India’s economic growth is predicted to be the greatest among big economies, at 9.2 %.
In this article, you will see the highlights of Union Budget 2022 presented by Finance Minister Nirmala Sitharaman on Feb 1st, 2022. With the assurance of creating 60 lakh new jobs under the productivity-linked incentive scheme in 14 sectors, Nirmala Sitharaman proposed a budget for this financial year.
The budget addressed health and well-being, infrastructure, inclusive development, energy transition and climate action, financing of investments, and ‘Minimum Government, Maximum Governance.
Here are the highlights of the Budget at a glance:
- Focus on growth and all-inclusive welfare
- Promoting technology-enabled development, energy, transition, and climate action
- The Fiscal deficit is 6.9% of GDP.
- No change in personal income tax rates.
- Tax relief announced to persons with disabilities.
- Reducing Alternate Minimum Tax Rate and Surcharge for Cooperatives.
- Edible oil, wearable electronics, imitation jewelry, and polished diamonds are cheaper.
Content
- Infrastructure
- Agriculture
- Education
- Defence
- Digital Developments
- Health and Sanitation
- All inclusive welfare focus
Infrastructure
- PM Gati Shakti National Master Plan, which is estimated to cost 20,000 crores.
- In 2022-23, the national highway network will be increased by 25,000 kilometers.
- In the years 2022-2023, a National Master Plan on Expressways will be developed.
- In the next three years, 400 new Vande Bharat trains will be produced.
- Under the Parvat Mala project, 60 km of rope-way projects are planned, as well as metro systems and multi-model connectivity.
- In the following three years, 100 Gati Shakti freight terminals will be built.
Agriculture
- Promoting chemical-free natural farming starting with farmers’ lands close to river Ganga
- Promoting post-harvest value addition, consumption, and branding of millet products
- Procurement of wheat, paddy, Kharif, and rabi crops, benefiting over one crore farmers
- PPP-based delivery of digital and high-tech services to farmers
- Use of Kisan Drones to aid farmers
- NABARD will facilitate a fund with blended capital to assist agriculture and rural sector startups.
- Implementation of Ken Betwa Link Project benefiting 9.1 lakh hectare farmland, providing drinking water to 62 lakh people and generating 130MW power
- Five more such projects are under the process of implementation.
Education
- Universalize of Quality Education.
- One class One TV channel program to be expanded to 200 TV channels. It provides supplementary education in all regional languages to compensate for the loss of formal education due to Covid.
- Virtual labs and skilling e-labs promote critical thinking skills and stimulate a learning environment.
- A Digital University with world-class quality universal education will be established. It will be made in different Indian languages, based on a networked hub model.
- High-quality e-content will be delivered through Digital Teachers.
- To boost online training, the Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched.
- Drone Shakti for Drone-as-a-Service will be facilitated by startups.
Defence
- Domestic procurement receives 68 percent of the capital procurement budget.
- Start-ups, private business, and academics will have access to defence R&D. This will be funded with 25% of the R&D budget.
- The design and development of military platforms and equipment will be promoted by the private sector.
Digital Developments
- In 2022-23, the RBI plans to launch a “digital rupee” based on blockchain technology.
- Virtual digital assets will be subject to a 30% tax.
- The receiver will be taxed if they receive virtual assets as a gift.
- In 75 districts, 75 digital banking units will be established.
Tax, economy and finance
- Green bonds will be issued to help fund the expansion of green infrastructure.
- If there is an error in their filing, taxpayers can file an amended return within two years.
- Companies pay 15%, and cooperative societies pay 18.5 percent alternative minimum tax.
- The maximum tax deduction for state government employees’ NPS accounts is 14 percent.
- From now on, everybody who is suitable will have to pay only 15%.
- For cooperatives with annual revenues of 1 to 10 crores, the surcharge has decreased to 7%.
- The long-term capital gains surcharge will be limited to 15%.
- Virtual digital assets will be subject to taxation.
- Customs tax on imitation goods has been reduced.
- The duty on sodium cyanide has been raised.
- The tax on umbrellas has been hiked to 20%.
- Scrap steel duty has been extended for another year.
Health and Sanitation
- National Digital Health Ecosystem will be rolled out.
- For quality counseling, the National Telemental Health Program will be implemented.
- Mission Shakti, Mission Vatsalya, Saksham Anganwadi, and Poshan 2.0 will be introduced as part of an integrated architecture.
- Har Ghar, Nal se Jal has been given Rs. 60,000 crores to reach 3.8 crore families in 2022-23.
- Saksham Anganwadis would be increased to two lakh Anganwadis.
All inclusive welfare focus
- Har Ghar, Nal Se Jal: In 2022-23, 3.8 crore families will be covered.
- PM Awas Yojana: In 2022-23, 80 lakh residences will be finished.
- PM-DevINE: To support infrastructural and social development in the North East based on the region’s perceived requirements.
- Vibrant Villages Program: Targeting the development of villages on the Northern Border left out from the development gains
- Digital Banking by Post Offices: 100% of post offices to come on the core banking system
- Establishing C-PACE: Facilitate voluntary winding up of companies
