Union Finance Minister Nirmala Sitharaman presented the Union Budget 2022-23 on Tuesday, 1 February. This was her fourth budget presentation and the tenth budget presented by the Prime Minister Narendra Modi government.
While she didn't announce any change in the Income Tax slabs, Sitharaman said that any income from transfer of any virtual digital asset would be taxed at the rate of 30 percent.
The finance minister began her presentation of the Union Budget 2022 by expressing empathy towards those who had to bear the adverse health and economic effects of COVID-19.
"India's economic growth in the current year is estimated to be 9.2 percent, the highest among all large economies," she said.
"This Union Budget seeks to lay foundation and give blueprint of economy over ‘Amrit Kal’ of next 25 years – from India at 75 to India at 100," she added.
Sitharaman had tabled the Economic Survey for 2021-22 in both Houses of Parliament on Monday, 31 January. The Survey has projected an 8-8.5 percent growth rate for the economy in the 2022-23 fiscal year.
This is a dip from the 9.2 percent growth estimated by the National Statistical Office (NSO) in the current financial year that ends in March.
"Moving forward on this parallel track, we lay the following four priorities – PM Gati Shakti, inclusive development, productivity enhancement and investment, sunrise opportunities, energy transition and climate action & financing of investments," she said on Tuesday.
We look at the key highlights of Union Budget 2022:
Agriculture
Procurement of wheat in Rabi season 2021-22 and the estimated procurement of paddy in Kharif season 2021-22 will give cover to 1,208 lakh metric tonnes of wheat and paddy from 163 lakh farmers and Rs 2.37 lakh crore will be the direct payment of MSP value to their accounts.
Chemical-free natural farming will be promoted throughout the country with a focus on farmers' land in 5 km wide corridors along the river Ganga, in the first stage.
States will be encouraged to revise syllabi of agricultural universities to meet needs of natural, zero-budget and organic farming, modern-day agriculture.
A fund with blended capital raised under co-investment model facilitated through NABARD will finance startups in agriculture and rural enterprises for farm produce value chain.
Use of Kisan Drones will be promoted for crop assessment, digitisation of land records, spraying of insecticides and nutrients.
Funds will be facilitated through NABARD to finance startups for agriculture and rural enterprise, relevant for farm produce value chain. Startups will support FPOs and provide tech to farmers.
Implementation of Ken Betwa Linking project at an estimated cost of Rs. 44,605 crore will be taken up with irrigation benefits to 9.0 lakh hectare farmland, drinking water to 62 lakh people, 103 MW hydropower, 27 MW solar power generation. Rs 1400 crores has been allocated for the same in 2022-23.
Education
'One class, one TV channel' program of PM eVIDYA to be expanded from 12 to 200 TV channels. This would enable all states to provide supplementary education in regional languages for Classes 1 to 12.
Virtual labs and skilling e-labs to promote critical thinking skills and stimulated learning environment.
A Digital University to be established with world class quality universal education.
High quality e-content will be delivered through Digital Teachers.
Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal)
to be launched to promote online training.
Startups to be promoted to facilitate Drone Shakti for Drone-As-A-Service.
Industry and Services
MSMEs such as Udyam, e-shram, NCS and Aseem portals will be interlinked, their scope to 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.
SEZ (Special Economic Zones) Act will be replaced with new legislation for the development of enterprise and hubs. It will cover the existing industrial enclaves and enhance the competitiveness of exports.
Road Transport and Highways
PM Gati Shakti Master Plan for Expressways will be formulated in 2022-23, to facilitate faster movement of people and goods.
National Highway network will be expanded by 25,000 km in 2022-23. Rs 20,000 crore will be mobilised to complement public resources.
To promote a shift to the use of public transport in urban areas, special mobility zones with zero fossil fuel policy will be introduced.
'Battery Swapping Policy' will be brought in urban areas consider space constraints
Women and Child Development
Government has revamped schemes of the Ministry of Women and Child Development such as Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0 to provide benefits.
Health
An open platform for the National Digital Health Ecosystem will be rolled out. To consist of digital registries of health providers and health facilities, unique health identity and universal access to health facilities.
National Tele Mental Health program will be launched for better access to quality mental health counseling and care services. To include a network of 23 tele mental health centres of excellence with Nimhans being the nodal centre and IIIT Bangalore providing technology support.
Two lakh Anganwadis to be upgraded to Saksham Anganwadis.
Finance
Emergency Credit Line Guarantee Scheme (ECLGS) will be extended up to March 2023, the guaranteed cover will be expanded by Rs 50,000 crores to total cover of Rs 5 lakh crores.
Effective Capital Expenditure of the Central Government is estimated at Rs 10.68 lakh crore in 2022-23, about 4.1 percent of GDP.
For 2022-23, Rs 1 lakh crore allocated to assist states in catalysing overall investments in economy. These 50-year interest-free loans are over and above normal borrowings allowed to states. To be used for PM Gati Shakti-related and other productive capital investments of states.
Railways
2,000 km of rail network to be brought under the indigenous world-class technology KAWACH, for safety and capacity augmentation.
400 new generation Vande Bharat trains with better Energy Efficiency and passenger riding experience to be manufactured in next three years.
Productivity Announcement
Issuance of E-passports to be rolled out in 2022-23 to enhance convenience for citizens.
Unique Land Parcel Identification Number for IT-based management of land records.
End to end online e-Bill System and utilising surety bonds in government procurement.
Defence
The Defence Ministry and the services have been allocated a total of Rs 5.25 lakh crores this year which is Rs 47,000 crores more from the last year’s 4.78 lakh crores. The allocation is around 10% increase from last year.
Sixty-eight percent of the capital procurement budget for Defence to be earmarked for domestic industry to promote Aatmanirbharta and reduce dependence on imports of defence equipment. This is up from the 58 percent last fiscal.
Power, Energy
To facilitate domestic manufacturing for ambitious goal of 280 GW of installed solar capacity by 2030, an additional allocation of Rs 19,500 crore for PLI for manufacturing of high-efficiency modules with priority to fully integrate manufacturing units to solar PV modules to be made.
Financing of Investment
Digital rupee to be issued using blockchain and other technologies by RBI starting 2022-23.
For 2022-23 States will be allowed a fiscal deficit of 4% of GSDP of which 0.5% will be tied to power sector reforms.
Taxation
Taxpayers can now file an updated return within two years from the relevant assessment year. This will provide an opportunity to correct an error.
Tax relief to persons with disability.
Reducing Alternate Minimum Tax Rate and Surcharge for Cooperatives.
Both Centre and States government employees' tax deduction limit to be increased from 10 percent to 14 percent to help the social security benefits of state government employees and bring them at par with the Central government employees.
Corporate surcharge to be reduced from 12 percent to 7 percent.
Any income from transfer of any virtual digital asset shall be taxed at the rate of 30 percent. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except cost of acquisition.
1% TDS on payment made in relation to transfer of virtual digital assets. Gift of virtual digital assets also proposed to be taxed in the hands of the recipients.
Gross GST collection for the month of January 2022 is Rs 1,40,986 crores, the highest since the inception of GST.
Period of incorporation of eligible start-ups extended by one more year up to 31-3-2023 for providing tax incentives.
Housing and Urban Affairs
Rs 48,000 crores allocated for completion of construction of 80 lakh houses under PM Awas Yojana in rural and urban areas in the year 2022-23.
Customs Duty
Customs duty on cut and polished diamonds, gems to be reduced to 5 percent.
Other Welfare Schemes
Har Ghar, Nal Se Jal: 3.8 crore households to be covered in 2022-23.
PM Awas Yojana: 80 lakh houses to be completed in 2022-23.
Aspirational Blocks Programme: For development of lagging blocks of aspirational districts.
Vibrant Villages Programme: Targeting development of villages on the Northern Border left out from the development gains.
PM-DevINE: To fund infrastructure and social development based on felt needs of the Northeast.
Digital Banking by Post Offices: 100% of post offices to come on the core banking system.
Digital Payments: Scheduled Commercial Banks to set up 75
Digital Banking Units in 75 districts.
Telecom
Private telecom providers in the country to roll out 5G services by next year.
Spectrum auctions to be conducted this year to roll out 5G services.
Scheme for design led manufacturing in 5G to be launched as part of PLI scheme.
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