Gig economy tax breaks and mental health protections await student Himanshu Arora

The Union Budget is an important document that outlines the government’s expenditure and revenue plans for the coming financial year. It is a major tool for making economic policy and has a direct impact on the lives of citizens, especially the youth.

This series interviews students and young working professionals and tries to understand the reasons behind today’s youth’s lack of interest in budget announcements and their expectations from it.

Himanshu Arora of Shahid Bhagat Singh College, University of Delhi, recounts MintGenie in an interview on how he believes the decisions taken in the Union Budget can be a road map that can help the youth and GenZ in the future plan their finances for specific goals and spend only on what is necessary and what they can afford. He is a 21-year-old enthusiastic, lively student who is also an avid reader and actively participates in discussions around education, technology and entrepreneurship.

Do you think there is a lack of awareness and participation among the younger generation regarding the Union Budget and its deliberations? What could be the possible reasons behind this?

The Union Budget is still a foreign concept to the majority of the youth in India. It is considered an essential element of modern civilization and is indeed crucial as it has a widespread impact on many areas of the younger generation. Therefore, it is imperative for GenZ to have knowledge of what it represents as they grow up in an increasingly complex environment where they are ultimately responsible for their own financial destiny.

National surveys show that young adults have one of the lowest levels of financial literacy, which is clearly a RED signal for the economy. This is reflected in their general inability to choose appropriate financial products and in many cases their lack of participation in healthy budget discussions. It is imperative to understand that young people must ultimately take charge of their own financial future and realize the importance of being actively involved in discussions around the Union budget.

Lack of digital awareness in rural areas and limited access to smartphones among the economically weaker section could be a major reason behind the low voter turnout to participate in the Union Budget. Another major reason for this is that it is still not taught enough to the students in schools or colleges, nor is the information around it shared in a comprehensive manner.

How do the decisions taken in the Union Budget affect the youth and GenZ? Why is it important that they actively engage and be a part of it?

The decisions taken in the Union Budget could be a road map that can help the youth and GenZ in the future to plan their finances for specific goals and spend only on what is necessary and what they can afford. Budgeting decisions will ultimately play a key role in leading them to lead happier and more financially stable lifestyles.

The population of newly added and soon to be added taxpayers expects Finance Minister Nirmala Sitharaman to focus on increased capital expenditure to provide them with adequate educational facilities and job opportunities. The union budget can help manage their finances by making important decisions about education loans and looking at possible opportunities for additional income.

An increase in the standard deduction, tax breaks for the gig economy and increased student loan benefits are some of the items on the nation’s GenZ wish list, especially given the layoffs and wage cuts that have occurred since the pandemic era.

Market enthusiasts are looking forward to the decisions taken in this year’s Union Budget as a crucial situation for the crypto landscape as well. The process of filing tax returns, although digitized, still involves a lot of technical know-how that non-financial graduates or tax preparers lack. Thus, they want the process of filing tax returns to be simplified so that they can file taxes themselves without resorting to the help of qualified professionals.

Actively engaging and learning financial literacy is critical for today’s youth for a number of reasons, including the rising cost of higher education and the more complex nature of the global economy. Acquiring a vast knowledge of budgeting will help in managing finances and money.

What are the expectations of today’s youth from the government and its budget decisions? What are they looking forward to?

Every year the budget is formed taking into account the expectations of the young people of our country. Youth is the backbone of any society. When fed, young people can grow like a giant tree, but they can erupt like a volcano if budget decisions do not give them the relief they need to be supported or cared for. No country can afford to ignore this segment of the nation.

Young people have very high expectations from the government and its budget decisions. In 2020, they started their childhood when there was a financial crisis, and now they leave it with the life-changing experience of the COVID-19 pandemic. Indeed, they expect measures to alleviate challenges to their education, economic prospects and mental well-being in the near future:

education- Ambitious youth expect better quality of education through revamped institutes while focusing more on research-based learning that ultimately provides employability skills. The world is still recovering from the crucial phase of COVID-19, but India needs to take necessary steps to reduce the growing digital divide between the marginalized sections of the people and those belonging to the higher income category. Young people from poor families who cannot afford proper devices and data packages are in trouble.

Hiring- Employment continues to be a major concern for young India. Many young people lost their jobs during the pandemic and there is no guarantee that young people who are new to the field will find work soon. Livelihood opportunities in the informal sector are also declining. The need of the hour is to create more job opportunities to enable the youth to reach their full potential and to enable India to be a leader in the supply of skilled manpower.

entrepreneurship- Whether it is a matter of skills or lack of opportunity, today’s youth are struggling to find their place under the sun. Young India also envisions better facilities and opportunities in terms of entrepreneurship and startups. Schemes like Start-up India and Make in India should focus on job creators and not just job seekers.

Physical and mental health- The pandemic, the fear of contagion, the lockdown of deaths of loved ones, online classes, working from home, job loss, financial worries and many more have hit us hard and affected our mental health. Young people expect that the Union budget should aim to address young people’s physical and mental health. They should address these issues on a holistic basis and appropriate programs should be formulated to improve the health status of the youth.

In summary, rapid economic changes and future employment scenarios present both a challenge and an opportunity for young people to improve their employability for a better life. Improved employability would ensure job security and career growth, enabling young people to contribute to and benefit from economic growth.