On February 1, Finance Minister Nirmala Sitharaman introduce Union Budget 2022-23. Budget focus on PM Gati Sakti, Inclusive Development, Enhancement of productivity, Agriculture, housing, Climate action, Financing. As Asia’s third-largest economy rebounds from a pandemic-induced downturn, the budget will build the groundwork for economic development through public investment.
Overview of Economy
- Projected GDP growth is 8.5% for the next fiscal year by the economic survey.
- Finance Minister says, Growth if India’s estimated 9.2%, highest among all big economies.
- Capital Expenditure Outlay is increased by 35.4% from the premium year.
- The overall expenditure of the country is anticipated to be Rs 39.45 lakh crore, while the total receipts are estimated to be Rs 22.84 lakh crore. The budget deficit for FY23 is expected to be 6.4 percent of GDP.
- No change in personal tax slabs or increase in any deduction/exemption limits.
- Corporate Surcharge reduced to 7%, previously it was 12%.
Key Highlights of Union Budget 2022
1] Tax Deduction Limit: The tax deduction limit for both Central and State government employees would be enhanced to 14% to support state government employees with their social security benefits and bring them up to par with Central government employees.
2] Tax on virtual assets: The earnings from the transfer of any virtual digital asset are taxed at a rate of 30%. TDS of 1% on payments made for transfers over a certain amount.
3] ITR within 2 years: Taxpayers can now file an updated return within two years of the relevant assessment year to correct an error.
4] Tax applied on Long term Capital Gains(LTCG) will be 15%.
5] Digital Currency: The RBI will begin issuing digital currency in 2022-23, utilizing blockchain and other technologies, to boost the economy.
6] SEZ Act: The Special Economic Zones Act will be replaced by new legislation aimed at promoting enterprise and hub development. It will encompass existing industrial areas and boost export performance.
- Over the following three years, 400 new Vande Bharat trains will be produced.
- For safety and capacity enhancement, 2,000 kilometers of the rail network will be put under the KAWACH indigenous world-class technology.
- ‘One product one railway station’ will be promoted to create opportunities for local business.
8] Allocation to States: A commitment of Rs 1 lakh crore has been made to assist states in catalyzing total economic investment. These interest-free loans for 50 years are subject to additional borrowing limitations.
9] Gati Sakti Plan:
- PM Gati Shakti is supported by seven engines: roads, trains, airports, ports, mass transportation, waterways, and logistical infrastructure.
- All seven engines will work together to propel the economy forward.
- This fiscal year, the Gati Shakti Master Plan for expressways will be completed.
- Over the next three years, 100 additional freight terminals will be built.
- The National Highway connectivity will be built by 25,000 kilometers in 2022-23.
10] Pradhan Mantri Awas Yojana: The government has announced that Rs 48,000 crore will be allocated to the PM Awas Yojana, with 60,000 households in rural and urban areas being designated as beneficiaries.
11] E-bills and E-Passports: For procurement, ministries will use an entirely paperless, e-bill system and In 2022-23, E passports will be issued using embedded ship technology and futuristic technology.
12] Digital education: PM eVIDYA’s ‘One class, one TV channel’ program will be enlarged to 200 channels from 12.
13] 5G mobile service: The government declared that required spectrum auctions will be held in 2022 to help private telecom companies carry out 5G mobile services.
14] Enhance Solar Capacity: To promote domestic manufacturing of 280 gigawatts of installed solar capacity by 2030, the government would provide an additional Rs 19,500 crore to PLI for the fabrication of high-efficiency modules, with a priority to completely integrate manufacturing facilities to solar PV modules.
15] Defense: The domestic defense industry will receive 68 percent of the capital procurement budget.
16] For Farming: Natural farming without chemicals will be encouraged across the country. The value of farm procurement in FY23 is expected to be Rs 2.37 trillion. Kisan Drones will be promoted for crop evaluation, land record digitization, and insecticide and nutrient spraying.
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