Union Finance Minister, Nirmala Sitharaman is presenting the Union Budget 2022 for the 4th time in a row.
She will be presenting the financial statements and tax proposals for the fiscal year 2022-23 (April 2022 to March 2023).
A Made in India tablet has replaced the traditional "Bahi Khata" as Union Finance Minister Nirmala Sitharaman leaves the Finance Ministry's office to go to the Parliament to present the Budget.
The Economic Survey 2021-22 was released on 31st January 2022 by the Chief Economic Advisor of India, V Anantha Nageswaran.
India's economic growth in the current year (2021-22) is estimated to be 9.2% of GDP, the highest among all large economies.
The "Economic Survey" sees the Indian economy growing at 8 - 8.5 per cent in the financial year 2022-23 (FY23).
According to Article 112 of the Indian Constitution, the Union Budget of a year is referred to as the Annual Financial Statement (AFS).
The Budget Division of the Department of Economic Affairs in the Ministry of Finance is the nodal body responsible for preparing the Budget.
The first Budget of Independent India was presented in 1947.
Highlights1) Finance Minister said that the country is expected to grow at 9.27 per cent.
2) Two parallel tracks for the next 25 years: public investments in infrastructure and a budget that is inclusive and futuristic.
3) 7 focus areas: PM Gati Shakti, Inclusive Development, Productivity Enhancement, Sunrise Opportunities, Energy Transition, Climate Action and Financing of investments.
4) This Budget seeks to lay the foundation & give a blueprint of the economy over "Amrit Kal" of next 25 years - from India at 75 to India at 100.
Blueprint of Amrit Kaal, four Priorities: "PM GatiShakti", "Inclusive Development", "Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition, and Climate Action" and "Financing of Investments".
5) Production Linked Incentive schemes in 14 sectors with the potential to create 60 lakh new jobs, and the additional new production of Rs 30 lakh crore.
6) Startups will be promoted to facilitate Drone Shakti to make drone a service. Drone related courses will be started in select ITIs.
7) Emergency Credit Line Guarantee Scheme to be extended up to March 2023, guaranteed cover extended by another Rs 50,000 crore. The total cover under the scheme is now Rs 5 lakh crore, an additional amount has been earmarked for the hospitality sector.
8) Announcement of Ken Betwa river linking project worth Rs 44,605 crore to be beneficial for capital goods players.
9) 75 digital banking units will be set up in 75 districts.
10) The North Eastern Council will implement development initiatives for the North East to enable livelihood activities for the youth and women. This scheme is not a substitute for the existing schemes.
Prime Minister's Development Initiative for North-East Region (PM-DevINE) launched to fund infrastructure and social development projects in the North-East.
11) E-passports will be rolled out in 2022-23 to make it easier for citizens.
12) Ease of doing business 2.0 will be launched.
13) 5G spectrum auctions to be carried out in calendar 2022 to enable the launch of services within FY22-23.
14) An AVGC (Animation, visual effects, gaming and comics) promotion task force with all stakeholders will be set up to recommend ways to build domestic capacity for serving our markets and the global demand.
15) Special Economic Zones Act will be replaced with new legislation for the development of enterprises and hubs. It will cover the existing industrial enclaves and enhance the competitiveness of exports.
16) The Effective capital expenditure of the Central government is estimated at Rs 10.68 lakh crore in 2022-23, about 4.1% of GDP.
17) An additional allocation of Rs 19,500 crore to integrate manufacturing units to solar PV modules will be made, this will enable domestic manufacturing of 280 GW of installed solar capacity by 2030.
18) Digital rupee to be issued using blockchain and other technologies and will be issued by RBI starting 2022-23.
19) For 2022-23, an allocation of Rs 1 lakh crore has been made to assist the states in catalysing overall investments in the economy.
20) 100% of 1.5 lakh post offices will come on the core banking system, enabling financial inclusion and access to accounts through net banking, mobile banking, ATMs, and also providing online transfer of funds between post office accounts and bank accounts.
21) Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to empower citizens to skill, reskill or upskill through on-line training.
22) 68% of the capital procurement budget for Defence to be earmarked for domestic industry to promote Aatmanirbharta and reduce dependence on imports.
23) In 2022-23, 80 lakh houses will be completed for identified beneficiaries of PM Awas Yojana.
24) 25,000 km of national highways to be built in 2022-23 under PM Gati Shakti.
25) TV channel' program of PM eVIDYA (One class-One TV channel) will be expanded from 12 to 200 TV channels.
26) National telehealth programme is announced, an open platform for the National Digital Health Ecosystem.
27) One Station (Railway Station) One Product concept to help local businesses & supply chains.
28) Parvatmala (a National Ropeways Development Program) to be taken up on PPP mode.
29) Udyam, e-shram, NCS and ASEEM portals to be interlinked.
30) Saksham Anganwadi (New Generation Anganwadi) to benefits women and children through Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0.
31) Vibrant Villages Programme for development of Border villages with sparse population, limited connectivity and infrastructure on the northern border.
32) World-class foreign universities and institutions to be allowed in the GIFT City.
Tax Proposals1) A taxpayer can file an updated return on payment of taxes within two years from the end of the relevant assessment year.
2) Income from transfer of digital assets (Cryptocurrency) to be charged 30% tax, plus 1% tax on the transaction.
3) Existing tax benefits for startups, which were offered redemption of taxes for 3 consecutive years, to be extended by 1 more year.
4) Income from Long Term Capital Gains will be taxed at 15%.
5) The gross GST collections for the month of January 2022 are Rs 1,40,986 crore the highest since the inception of the tax.
6) Customs on polished diamonds, gemstones cut to 5%. Simply sawn diamonds will be exempted.
7) Deduction for employer contribution to NPS increased to 14% from 10% for State govt employees on par with central govt employees.
8) Alternate Minimum Tax for cooperative societies to be cut to 15%.
9) Unblended fuel to get an additional duty of 2 rupees per litre from October 2022.
10) A reduction of surcharge on unlisted shares from 28.5 per cent to 23 per cent.
Fiscal Deficit target1) For FY-23 total expenditure seen at Rs 39.45 lakh crore and total Receipts other than borrowing seen at Rs 22.84 lakh crore.
2) The Fiscal Deficit in 2022-23 is estimated at 6.4% of GDP, which is consistent with the broad path of fiscal consolidation announced last year to reach a fiscal deficit level below 4.5% by 2025-26.
3) Fiscal Deficit for FY-22 is revised to 6.9% of GDP as against 6.8% in Budget estimates.