Budget 2022: Emphasis on asset creation over direct income enhancements

The government has enhanced its capital expenditure significantly with specific focus on infrastructure in areas of railways, roads, and logistics

Beyond the detailed analysis of Budget numbers, it is probably more important to look at the intent and priorities of the government. In a world where pandemic swings, commodity price gyrations and inflation-led tightening are large unknowns, the Budget should also be analysed from two primary perspectives of credibility and intent.

There is a broad agreement that the Budget numbers are credible as revenue assumptions are not too optimistic; indeed, there are suggestions that the government has been a bit conservative in its estimates.

The more important intent question can be answered by looking at areas where the government intends to accelerate