Budget 2022: All eyes are on FM Sitharaman as the Covid-affected economy seeks a boost in spending

The Union Budget for 2022-23 is released just days before Assembly elections in five states. Experts expect that initiatives to increase rural and agricultural funding will be included.

On Tuesday, Union Finance Minister Nirmala Sitharaman will give her fourth consecutive Budget in Parliament, which is expected to include measures to increase expenditure, restore investment, and create jobs, all of which have suffered huge setbacks since the Covid-19 outbreak struck the country.

The Economic Survey, which Sitharaman presented on the first day of the Parliament session on Monday, set the tone for the presentation of Budget 2022-23. The government, according to the Economic Survey, has fiscal room to do more to help the economy, which is expected to grow at a solid 8-8.5 percent in fiscal 2022-23.

It is expected to grow 9.2% in the fiscal year that ends in March, following a decrease in the previous year.

The Budget is released just days before five states' Assembly elections, including Uttar Pradesh and Punjab. Experts believe that the Budget will include initiatives to increase rural and agricultural expenditure.

It is unclear whether Sitharaman will change income tax rates, but the exemption limit of 2.5 lakh is expected to be increased.

As the country deals with the ongoing third wave of the Covid-19 pandemic, analysts say the finance minister will have to strike a delicate balance between maintaining the country's promising but fledgling economic recovery and tax collections while also considering measures to boost demand, create jobs, and combat inflation. Support for small companies and rural areas.Small company and rural economic measures are also likely to be included in the budget.