According to finance minister Nirmala Sitharaman, the economy is predicted to expand at a rate of 9.27% this year.
At 11:00 A.M. Finance Minister Nirmala Sitharaman started her budget presentation by giving sympathy to pandemic survivors. She added that we are in the middle of the Omicron wave, and the rapidity with which we launched our vaccine program has tremendously aided us. I am convinced that 'Sabka Prayas' will continue to witness the fastest growth.
Focus areas of 2022-23 budgets are PM Gati Shakti, Inclusive Development, Productivity Enhancement, Sunrise Opportunities, Energy Transition, Climate Actions, and Financing of Enhancements.
PLI (product-linked incentives) programs in 14 industries can produce 60 lakh new jobs and Rs 30 lakh crore in extra new output.
PM Gati Shakti will boost the economy ahead, creating more employment and opportunity for young people:
- The master plan will include the seven economic transformation engines.
- The PM Gatishakti highway master plan will be finalized in the coming fiscal year.
- In 2022-23, the National Highway network will be extended by 25,000 kilometers.
- In Fiscal Year 2023, four tenders for multi-modal national parks will be granted.
The Gati Shakti initiative adds strength to railways:
- In the next three years, 400 new Vande Bharat trains will be designed and produced.
- To assist small enterprises, the idea of "one station, one product" will be propagated.
- In the next three years, India aims to expand 100 cargo terminals.
ECLGS (Emergency Credit Line Guarantee Scheme) will be extended till March 2023, with assured cover increasing by Rs 50,000 crore:
- The plan now has a total cover of Rs 5 lakh crore.
- An additional sum has been set aside for the hospitality sector.
For the farmers of India,
- In India, chemical-free organic farming will be encouraged.
- Kisan drones will be pushed for crop evaluation, land record digitization, and bug pesticide spraying.
- MSP direct payments to wheat and paddy farmers totaling Rs 2.37 lakh crore.
PM Gati Shakti's seven engines
- Mass transport
- Logistics infra
MSP direct payments to wheat and paddy farmers totaling Rs. 2.37 lakh crore
- To lessen dependency on oilseed imports, a rational and comprehensive approach must be implemented.
The Digital Push of FM (Frequency Modulation)
- The debut of a digital ecosystem for skilling and livelihood will take place.
- This program will use online training to educate, reskill, and upskill citizens. To locate appropriate jobs and possibilities, API-based (Application Programming Interference) skill credentials and payment layers are used.
- A nationwide open platform for the digital health ecosystem will be launched.
- The scope of MSMEs like Udyam, e-shram, NCS, and Aseem portals would be extended by interconnecting them.
- They will now act as platforms with live organic databases, delivering G-C, B-C, and B-B services including credit facilitation and expanding entrepreneurial chances.
- A fund with mixed capital collected under NABARD's (National Bank for Agriculture and Rural Development) co-investment approach to support agricultural and rural companies for the farm product value chain.
All-mode operators' data will be shared on the Unified Logistics Interface Platform.
- allow for efficient goods movement
- time and cost savings in logistics
- aid Inventory management that is just-in-time
- eliminate time-consuming paperwork
The pandemic has brought mental health to the forefront. There will be the start of a nationwide telemental health program
Inclusion of financial resources:
- All 1.5 lakh post offices would be connected to the main banking system, allowing for financial inclusion and account access via net banking, mobile banking, and ATMs, as well as online cash transfers between the post office and bank accounts.
- This would be especially beneficial to farmers and older residents in rural regions since it will allow for accessibility and wealth creation.
For the education sector:
- States will be urged to alter agricultural university curricula to fit the demands of natural, low-cost, and organic farming, as well as modern-day agriculture.
- PM eVIDYA's "one class, one TV channel" initiative will be broadened from 12 to 200 channels.
- As a result, all states will be able to provide extra education in regional dialects to students in grades 1 through 12.
In 2022-23, E-passports, the issuing of E passports employing integrated ship and modern technology, will be implemented to improve the comfort of people traveling abroad:
These were some of the features planned when it was initially introduced in 2019:
- It will just take a bit of time to scan these e-passports.
- The model was put to the test at a government-approved laboratory in the United States.
- The front and back covers are likely to be thicker.
- A little silicon chip is planned on the rear cover. The chip will have a storage size of 64 kilobytes.
- The chip will save the holder's picture and fingerprints. It will be capable of storing 30 visits.
The National Digital Health Ecosystem will be given an open platform
It will include digital health practitioner and facility records, a single health identification, and global access to health facilities.
Urban planning high-level committee
For suggestions on urban capacity building, planning execution, and governance, a high-level group of urban planners and economists will be constituted.
PM Awas Yojana has been allocated Rs 48, 000 crores.
- In 2022-23, 80 lakh dwellings would be constructed for PM Awas Yojana consumers; 60,000 houses will be designated as PM Awas Yojana claimants in rural and urban locations.
- 60,000 crores have been set aside to provide tap water to 3.8 crore homes.
- 80 lakh families would be chosen for the cheap housing plan in 2022-2023.
A push for Electric Vehicles
To strengthen the EV ecosystem, a battery-swapping regulation will be introduced along with connectivity.
Amendments for the Bankruptcy Code
- Amendments to the IBC (Insolvency and Bankruptcy Code) to improve the efficiency of the resolution process.
- make cross-border insolvency resolution easier
- To accelerate the voluntary closure of businesses
According to Sitharaman, the essential spectrum auction for the launch of 5G mobile services by commercial telecom companies would take place in 2022.
- As part of the PLI initiative to provide cheap internet and mobile connectivity in rural and remote locations, a design-led manufacturing project will be introduced for the 5G infrastructure.
- 5% of the annual collection under the USOs (United Service Organizations) fund will be dedicated to allowing cheap broadband and mobile service and expansion in rural areas.
- This will provide and promote R&D and commercialization of tech and solutions.
A self-reliant defense sector
- With 25% of the defense R&D (Research and development) budget set up for businesses, entrepreneurs, and universities, defense R&D will be available to everybody.
- Through the SPV (special purpose vehicle) model, private industry will be encouraged to design and produce military platforms and equipment in conjunction with DRDO (Defence Research and Development Organisation) and other organizations.
- In 2022-23, 68 percent of the defense capital acquisition budget will be allocated to domestic production (up from 58 percent last fiscal)
- Contracts for installing optical fiber in villages will be given in 2022-23 under the BharatNet PPP (public-private partnership ) initiative.
- The National Ropeways Development Plan was launched under a public-private partnership (PPP) model to improve connectivity and encourage tourism.
India is planning to issue sovereign green bonds.
- The resources will be utilized for projects that will assist lower the economy's carbon output.
- In Fiscal Year 2023, the government will issue sovereign green bonds as part of its fundraising program.
- Funds will be used to fund public-sector initiatives.
Capital spending would be increased to Rs 7.5 lakh crore.
- Capex in Fiscal Year 2023 is estimated to be 2.9 percent of GDP.
- The overall CAPEX for the Fiscal Year 2023 is expected to be Rs 10.7 lakh crore.
RBI plans to develop a digital rupee based on blockchain technology in 2023.
- In addition, the digital currency will increase effectiveness and a cost-effective currency management system. As a result, it is suggested that the Reserve Bank of India produce digital rupees utilizing blockchain and other technology beginning in 2022 and 2023.
- The fiscal deficit target for FY23 has been set at 6.4 percent.
- The entire spending for FY23 is expected to be Rs 39.45 lakh crore.
- Other than lending, total receipts are estimated to be Rs 22.84 lakh crore.
A new provision allowing taxpayers to revise their returns. Within two years following the conclusion of the effective evaluation year, a revised refund can be submitted.
Co-ops get a tax break.
- The Alternative Minimum Tax for collaborative groups will be reduced to 15%.
- For cooperative societies with an annual income of between Rs 1 crore and Rs 10 crore, the proposal will cut the penalty to 7%.
Employer contributions to state government employees' NPS (National Pension System) accounts are now eligible for a 14 percent tax deduction.
The government would tax digital asset transactions at a rate of 30%.
- Except for acquisition costs, no deductions are allowed for calculating income.
- Losses cannot be deducted from other sources of income.
- A 1% TDS (Tax Deducted at Source) is applied on each payment made for a transfer that exceeds a certain monetary benchmark.
Cryptocurrency gifts will be charged at the recipient's side.
Previous tax incentives for entrepreneurs, which were provided tax relief for three years in a row, will be maintained for another year.
As the Finance Minister unveils Budget 2022, Sensex maintains its advances and targets 59,000.
- Domestic indexes remained solid as Finance Minister Nirmala Sithraman delivered the Union Budget to Parliament.
- The best-performing sector was banking, followed by metals and healthcare.
The Finance Minister's speech has not indicated a shift in individual tax levels or a rise in any exemption/deduction limits.
Tax breaks are being offered to encourage the manufacture of electronics, including wearables and hearables. Duty exemptions for [components of mobile phones, such as the camera module]
Phasing out duty exemptions
- Over 350 restrictions on agricultural products, chemicals, pharmaceuticals, and other items will be taken out.
- Capital goods will be subject to a phase-out of concessional customs duties, with an initial rate of 7.5 percent to be charged.
GIFT (Gujarat International Finance Tec-City) is home to an international tribunal center.
- Moreover, a world-class university will be permitted to operate freely in the GIFT IFSC (International Financial Services Centre).
- GIFT-IFSC is currently India's first international financial services center.
Analysts claim that chemical-free farming will improve exports.
- Experts predict that India's development of chemical-free natural farming would boost exports shortly.
- "Chemical-free natural farming is significant news for both exports and national health," said Rajat Wahi, partner at Deloitte India.
- The aim for the Fiscal Year 2023 divestment is Rs 65,000 crore.
- Graphics, visual effects, gaming, and comic marketing task force
A task group on animation, visual effects, gaming, and comic book promotion will be established to make recommendations on how to meet market and worldwide demand.
Import tariffs on cut and polished diamonds and gemstones have been decreased to 5%.
From October 1, unblended fuel will be subject to an extra excise levy of Rs 2/litre, to encourage the use of biofuels in gasoline and diesel.
Rs 5,020 crore was provided by the Ministry of Minority Affairs.
- On Tuesday, the Union Budget allotted Rs 5020.50 crore to the Minority Affairs Ministry, which is Rs 674.05 crore higher than the revised estimates from the last year.
- The Ministry of Minority Affairs' financial plan for the fiscal year 2021-22 was Rs 4810.77 crore, however, the reduced allotment was Rs 4346.45 crore.
- Of the proposed allocation to the ministry, Rs 1425 crore is for the pre-matric scholarship scheme and Rs 515 crore is for the post-matric scholarship.
- Over 491 crore has been allocated for skill development and livelihood initiatives.
The Mahatma Gandhi National Rural Employment Guarantee scheme's Fiscal Year 2023 budget has been reduced from a revised estimate of Rs 98,000 crore in the Fiscal Year 2022 to Rs 73,000 crore 2023.
To satisfy spending requirements in the Fiscal Year 2023, the Centre would borrow Rs 11.6 lakh crore.
- The sum is expected to be Rs 2 lakh crore more than the existing estimate of Rs 9.7 lakh crore.
- According to the Budget paper, the government's total market borrowings for 2022-23 will be Rs 11,58,719 crore.
- The Revised Estimates for 2021-22 are Rs 8,75,771 crore, compared to Rs 9,67,708 crore in the Budget Estimates.
In the Fiscal Year 2023, the government predicts a near 27 percent drop in revenue from the telecom industry; Fiscal Year 2022 revenue is expected to be substantially over budget expectations.
- The predicted drop in income mop-up in FY23 follows the government's Fiscal Year 2022 receipts of roughly Rs 71,960 crore, which were far more than the Rs 53,986.72 crore it had forecasted.
- Jio paid Rs 30,791 crore last month to settle all outstanding debts related to spectrum purchased in auctions before March 2021.
- Earlier to that, it had paid an extra Rs 10,792 crore in October 2021, while Airtel had made an advance payment of Rs 15,519 crore to settle all outstanding debts related to the spectrum purchased in the 2014 sale.
Startup entrepreneurs and investors will benefit from a 15% tax charge ceiling.
- This satisfies a long-standing desire of new-age corporations, who wanted undeclared company share sales taxed the same as listed company share sales.
- To be sure, the fee on undeclared share sales has been decreased from 37.5 percent to 15%.
- The tax rate has remained steady at 20%.
- This would include not only employee stock option sales, but all purchases by privately backed firms as well, lowering their tax burden by about 16%.
What loses value, and what gets more expensive
The following is a list of things that will become more expensive as a result of the tariffs:
- Imitation Jewellery
- Single or multiple loudspeakers
- Headphones and earphones
- Smart meters
- Solar cells
- Solar modules
- X-ray machines
- Parts of electronic toys
Certain commodities, however, will become less expensive as a result of the government's import taxes reduction, including:-
- Frozen mussels
- Frozen squids
- Cocoa beans
- Methyl alcohol
- Acetic acid
- Cut and polished diamonds
- Camera lens for cellular mobile phone
India's lowered asset selling aim raises concerns about the LIC's initial public offering.
Sitharaman revealed today that the government expects to earn Rs 78,000 crore ($10.4 billion) via divestiture in the fiscal year ending March 31, down from Rs 1.75 lakh crore previously projected. By selling holdings in other firms, it has already raised Rs 12,000 crore.
The aim for the following financial year is Rs 65,000 crore.
This begs the issue of whether the government has lowered expectations for the Life Insurance Corporation of India IPO, staggered the share sale, or is simply being prudent with forecasts until the money is obtained. Finance Minister Nirmala Sitharaman indicated in her budget address that the IPO will happen "soon."
In 2022-23, the government would invest Rs 44,720 crore in BSNL, including Rs 3,300 crore allocated to the Voluntary Retirement Scheme.
Aside from the funding, the government would offer the telecom business further financial support of Rs 7,443.57 crore for a voluntary retirement program and Rs 3,550 crore in grant-in-aid for GST payment.
The VRS financial support involves the scheme's implementation at both BSNL and MTNL. According to the papers, BSNL would receive GST assistance for the payment of GST on the distribution of the 4G spectrum.
The new financial assistance for public sector enterprises comes on top of the Rs 69,000-crore relief package offered by the government in October 2019.
Sitharaman said, the budget, which emphasizes four pillars of growth — inclusive development, productivity enhancement, energy transition, and climate action —provides a structured approach for Economic growth from 75 to 100.
In 2022-23, the Budget expects the Union government's effective capital investment to be Rs 10.68 lakh crore or around 4.1 percent of GDP. The Finance Minister said that the GST receipts for January 2022 were Rs 1,40,986 crore, the highest since the tax was introduced in 2017.
Share This Post On
Leave a comment
You need to login to leave a comment. Log-in