Highlights of Union Budget 2022-23 India
As Asia's
third-largest economy rebounds from a pandemic-induced downturn, Indian Finance
Minister Nirmala Sitharaman said on Tuesday that the budget for 2022/2023 will
build the groundwork for economic recovery through public investment.
"Our
country's strong resilience is reflected in the overall quick rebound and
recovery of the economy," Sitharaman said.
While presenting
the Union Budget, FM stated that the country's growth rate for the coming
year is predicted to be 9.27 percent. The Budget, which focuses on four pillars
of growth — inclusive development, productivity enhancement, energy transition,
and climate action — provides a plan for India's economy from 75 to 100,
according to Sitharaman.
In 2022-23,
the Budget expects the Central government's effective capital expenditure to be
Rs 10.68 lakh crore, or around 4.1 percent of GDP. The Finance Minister quote that
‘’The GST receipts for the month of January 2022 were Rs1,40,986 crore, the
highest since the tax was introduced in 2017’’.
Highlights of the 2022 Budget: The
key changes announced by FM Sitharaman are listed below.
DEFICIT/EXPENDITURE
· By 2025/26, FM proposes a fiscal
deficit of 4.5 percent of GDP
· Estimates a budget deficit of 6.4% of
GDP in 2022/23
· Fiscal deficit for 2022/23 revised to
6.9% of GDP * Total expenditure for 2022/23 estimated to be 39.45 trillion
rupees
· In FY23, states will be allowed to
have a budget deficit of 4% of GDP.
· States are given 50-year
interest-free loans in addition to their normal borrowing
· 2022/23, the scheme for financial
assistance to states for capital investment outlay will be worth 1 trillion
rupees.
TAXATION
· Import duties are being reduced on
certain chemicals
· Customs duty exemption on steel scrap
for small and medium-sized businesses will be extended for another year
· Customs duty on stainless steel, flat
products, and high steel bars will be revoked
· Unblended fuel would face an extra
cost of 2 rupees per liter with effect from October 2022.
FINANCE
· The emergency credit line guarantee
scheme for small and medium-sized businesses will be extended until March
2023
· The emergency credit line guarantee
scheme for small and medium-sized businesses will be extended until March 2023
· Government has committed to
prioritize energy transition and climate action
· A public offering of Life Insurance
Corporation is expected soon
· Initiatives from last year's budget
have received adequate funding in this budget
· New legislation will be amended on the
Special Economic Zones Act
· The bankruptcy code will be amended
to speed up the resolution process
· Aims to reduce the time it takes to
wind up a company from two years to six months
· The long-term capital gain fee will
be capped at 15%.
CURRENCY IN DIGITAL FORMAT
· In 2022/23, digital rupee will
be introduced utilizing blockchain technology
· To introduce a taxation scheme for
virtual digital assets
· Losses resulting from the sale of
virtual digital assets cannot be mitigated by other sources of income
· Virtual digital asset income will be
taxed at a rate of 30%.
DEFENCE
* The
government looks forward to reduce defense imports.
INFRASTRUCTURE
·5G spectrum auctions will be held in
the current year (2022)
· A design-led manufacturing strategy
for 5G will be included in the production-linked scheme
·To award contracts for the
installation of optical fibre in rural regions, with a completion date of 2025
· In 2022/23, 480 billion rupees will
be allocated for affordable housing
· An additional 195 billion rupees
would be allocated for production-linked incentives for solar equipment
manufacturers.
AGRICULTURE
· A domestic scheme introduced to
reduce reliance on imported oilseeds
· Agriculture startup fund with blended
money raised through a co-investment model
· In 2022/23, railways will build
infrastructure for small farmers.
TRANSPORT
· Over the following three years, 400
energy-efficient trains will be manufactured
· In 2022/23, the national highway
network will be expanded by 25,000 kilometers
· In 2022/23, highway expansion will
cost 200 billion rupees
· India's budget will include a policy
on battery swapping.
Although
there has been no light of concerns or relief for common taxpayers and for the
salaried category.