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Explain Union Budget 2022 to your Kids with the Help of these 5 Points

03 Feb 2022 0 COMMENT

Introduction

On February 1, 2022, the Finance Minister of India, Nirmala Sitharaman, tabled the Union Budget 2022. She laid out the incomes and expenditures of the government, created an infrastructure and digitization roadmap for the country and announced many other measures for growth of the country.

However, if you’re trying to explain the Budget to your kids, certain things can be hard to explain.

Here are 5 simplistic points to explain to your children about what happened in the Union Budget 2022:

1. First explain what a Union Budget is

Start with explaining what a Union Budget is to your kids. A Union Budget is a blueprint of the revenues and expenditures of a government for a financial year, which usually lasts from 1st April to 31st March. The Union Budget 2022 was presented from 1st April 2022 to 31st March 2023. Explain where the government gets its revenues from – income tax, corporate tax, goods and services tax, customs duty, borrowings, and other means. Then outline the different expenses a government could have – interest payments, defence expenditure, administrative expenses, welfare schemes, subsidies, pensions, etc. Don’t forget to explain what each of these means.

2. Get to Fiscal Deficit

Understanding fiscal deficit is an integral part of the Budget. Fiscal deficit arises when the government’s planned expenditure exceeds its income. This year, the estimated fiscal deficit is at 6.4% of the Gross Domestic Product. While the numbers aren’t vital for them to understand, explain how a deficit means the government will have to fund it with greater borrowing, which means its interest expenses will increase, and it could try to make up for it with higher taxes or lower expenditure.

Additional Read: Missed the Union Budget 2022 Speech? Here’s what you need to know

3. PM Gati Shakti

The focus of this year’s Budget was on four main pillars – PM Gati Shakti, Inclusive Development, Productivity Enhancement and Financing of Investments. Explain these terms to kids, especially PM Gati Shakti Master Plan. It is a plan for infrastructure development that will boost the country's roads, railways, airports, ports, mass transport, waterways, and logistics infrastructure.

4. Digitization of Education

A relevant portion of the Budget to explain to your kids would be the increased focus of digitization of education in the country. If your children are used to e-learning platforms,  explaining the 1 Class 1 Channel initiative should be a cakewalk. Tell them how the government is increasing the number of channels to 200 to have more education imparted in regional languages to reach children in semi-urban and rural areas. You can also mention the digital university being created.

Additional Read: Union Budget 2022: Things that will Get Cheaper and More Expensive for You

5. Mental Health Centres

Another relevant Budget mentioned to children would be the increased emphasis on mental health. With the pandemic, adults and children's mental health has taken a hit. Educate them about the 23 Tele Mental Health Centres that are being set up to assist those suffering from mental health issues.

Additional Read: What to Expect From Budget 2022 for Individuals and Salaried People

Conclusion

Explaining every detail of the Union Budget to children is not just unnecessary, but it could also be too much for them to take in. Instead, focus on some of the key areas of the Budget so they get a broad understanding of what it is. As they start to take more interest in the country's affairs, you can explain further nuances or any particular sector they are interested in.

Sources

  • Fiscal Deficit of 6.4% - (Source – Hindustan Times as of Feb 1, 2022)
  • 200 channels - (Source – Money Control as of Feb 1, 2022)
  • 23 Tele Mental Health Centres – (Source – NDTV as of Feb 1, 2022)

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