Budget 2022-23: Rural stimulus need of the hour amid Covid-19 pandemic

Consumption, which was impacted during the pandemic, is expected to improve as the rate of vaccinations rises to cover the entirety of the country’s eligible population. Corporate taxation, which was reduced in 2019, is also expected to remain untouched in FY23.

Among key measures, the Budget is expected to hike allocation to the Mahatma Gandhi National Rural Employment Guarantee Scheme and other agricultural schemes, which will increase consumption.

Brokerages say any stimulus will positively impact rural and urban income levels, and increase consumption. Besides, such measures will improve consumer sentiment, according to Morgan Stanley, and that’s what’s needed from the