Budget Recap: Here's what had became costlier and cheaper after Budget announcements in 2022

As the year 2022 comes to an end, here’s what the year has been like for the common man's pocket.

India's retail inflation eased to an 11-month low in November, falling below the central bank's tolerance ceiling of 6% for the first time since December last year.

However, inflation has this year hit the Indian economy hard and hurt citizens. Higher inflation has been a concern for central banks across the globe, including India, as the uncertain nature of the Russia-Ukraine war compounded supply side disruptions in the post-pandemic world that was barely going through a nascent recovery from economic shocks. The disruption to the global supply chain pushed up the prices of key commodities, also affecting local fuel and food prices.


Meanwhile, the value of the Indian rupee depreciated to a nadir amid Federal Reserve rate hikes and other global challenges. The declining local currency also put a considerable strain on imported inflation.

With the prices of raw materials and fuel going up, the common man is now shelling out more for everyday items like food, dairy products, fruits and vegetables, pulses, pre-packed products, fuel and clothing, among others. In the past few months, most people have seen a surge in the prices of most essential items and you might have to reconsider your overall household budget, especially for those falling into the low to middle-income groups.

While India's inflation rate has been a pain point for the citizens, the latest November inflation readings show that key items such as cereals and products, milk, spices, clothing, and transport have seen a decent uptick. Hurt by inflationary pressure, Indians would definitely want Finance Minister Nirmala Sitharaman to cut prices on these items of daily lives and products needed for basic survival.

Ahead of the upcoming Budget where all would look for price cuts, let's recap what happened in Budget 2022.

A large number of commonly used items, including headphones, earphones, loudspeakers, smart meters, imitation jewellery, solar cells and solar modules became expensive because of hikes in customs duties on imported parts.

The government increased the basic customs duty (BCD) on import of commonly used items, including headphones and earphones, loudspeakers, smart meters, imitation jewellery, solar cells, solar modules to promote domestic manufacturing.

However, imported cut and polished diamonds, frozen mussels, frozen squids, asafoetida, cocoa beans, methyl alcohol and acetic acid became cheaper as a result of rationalisation in customs duties.

Imported items that became costlier:

• Umbrella
• Imitation Jewellery
• Single or multiple loudspeakers
• Headphones and earphones
• Smart meters
• Solar cells
• Solar modules
• X-ray machines
• Parts of electronic toys

Goods that became cheaper as the government slashed the customs duty:

• Frozen mussels
• Frozen squids
• Asafoetida
• Cocoa beans
• Methyl alcohol
• Acetic acid
• Cut and polished diamonds
• Camera lens for cellular mobile phone

The budget for the next fiscal year starting April 1 is going to be a crucial one in defining what the Indian government has planned with regard to inflation and how its policies might impact the common man. The budget proposals will likely be announced by Sitharaman on February 1, 2023.