Union Budget of India Key highlights.

 

Union Budget of India Key highlights. 

The Budget 2022 focused on ‘digital and technology’ and sectors like infrastructure, health, education and provision of e-services to the masses. This Union Budget laid a foundation and blueprint of the economy over ‘Amrit Kal’ of the next 25 years – from India at 75 to India at 100. 

India posted a 9.2% GDP growth, the highest among all economies. We are amid the Omicron wave, the speed of our vaccination campaign has helped dramatically. The FM stated that ‘Sabka Prayaas’ will continue with strong growth. Budget 2022 has provided a sharp increase in public investment and capital expenditure provision. Strategic transfer of ownership of Air India has been completed.

Aside from that, the announcement of a digital rupee was another big news item in a budget that saw no major populist giveaways.

Here follows a sector-wise detailed reading of the various measures Finance Minister Sitharaman announced.

 

Expenditure and deficit & other key numbers

• Proposed fiscal deficit of 4.5% of GDP by 2025/26
• Projected fiscal deficit of 6.4% of GDP in 2022/23
• Revised fiscal deficit for 2021/22 at 6.9% of GDP
• 50 year interest free loans over and above normal borrowing allowed for states
• Scheme for financial assistance to states for capital investment outlay to be Rs 1 lakh crore for 2022/23
  
  

Taxes

• Govt vows a stable and predictable tax regime
• Govt to provide one-time window to correct omissions in ITRs filed, updated returns to be filed within 2 years
• Any cess or surcharge on income not allowed as business expenditure
• 1 per cent TDS on transfer of virtual assets above a threshold, gifts to be taxed
• Surcharge on long-term capital gains capped at 15 per cent
• The government will tax income from digital as ..
  
  

 Infra & manufacturing

• Desh stack e-portal to be launched to promote digital infra
• Strategic transfer of ownership of Air India completed now
• Four multi-modal national parks contracts will be awarded in FY23
• PM Gatishakti masterplan for expressways will be formulated in next financial year
• 100 PM Gati Shakti terminals to be set up in next three years
• Focus on public investment to modernise infrastructure over th ..
  
  

Electric Vehicles

• Battery swapping policy to allow EV charging stations for automobiles will be framed
• Private sector will be encouraged to create sustainable and innovative business models for battery and energy as a service, improving the efficiency in the EV ecosystem

 

Defence

• Govt committed to reduce import and promote self reliance in defence sector
• 68 per cent of capital for defence sector to be earmarked for local industry
• Defense R&D will be opened up for industry, startups and academia with 25% of defense R&D budget
• Private industry will be encouraged to take up the design and development of military platforms and equipment in collaboration with DRDO and other organizations through SPV model.
  
  

e-Passport

• Issuance of e-passports with futuristic tech to be introduced in 2022-23.
• The finance minister has said India would start issuing e-passports in 2022-23.

Housing & urban planning

• Rs 48, 000 crore is allotted for PM Awas Yojana
• In 2022-23, 80 lakh houses will be completed for identified beneficiaries of PM Awas Yojana; 60,000 houses will be identified as beneficiaries for PM Awas Yojana in rural & urban areas
• 60,000 crore allocated for providing access to tap water to 3.8 crore households
• In 2022-23, 80 lakh households will be identified for the affordable housing scheme
•    Rs 60,000 cr allocated to provide tap water connections to 3.8 crore households in 2022-23

MSMEs & startups

•  Rs 6,000 crore programme to rate MSMEs to be rolled out over 5 years
•   MSMEs such as Udyam, e-shram, NCS & Aseem portals will be inter-linked, their scope will be widened
•  They will now perform as portals with live organic databases providing G-C, B-C & B-B services such as credit facilitation, enhancing entrepreneurial opportunities.

Agriculture

•   Govt to pay Rs 2.37 lakh crore towards procurement of wheat and paddy under MSP operations
•   2022-23 has been announced as International Year of Millets
•   Railways will develop new products for small farmers and MSMEs
•   A rationalised scheme to increase domestic oilseed production will be brought in to cut down imports
•   Kisan Drones for crop assessment, land records, spraying of insecticides expected to drive a wave of technology in agri sector.
•   Ken Betwa river linking project worth Rs 44,605 crore announced
•  Draft DPRs for 5 river links have been finalised
•   Finance startups to be incentives to aid rural enterprises
•   Natural farming will be promoted along Ganga river corridor