Finance Minister Nirmala Sitharaman presented her fourth Budget on 1st February, 2022. FM Sitharaman’s Budget speech started at 11:00 am in Parliament. This is Narendra Modi Government’s tenth Budget, and the second paperless budget in view of the ongoing Covid-19 pandemic situation. India’s economic growth in FY22 to be at 9.2 per cent and 8-8.5 per cent in FY23, highest among all large economies, said FM in her address. India is in a pretty strong position to withstand challenges due to higher vaccinations, she added.
Here are Union Budget 2022’s Key Highlights:
‘PM Gati Shakti National Master Plan’ to be implemented at a cost of ₹20,000 crore.
National Highways network to be expanded by 25,000 kms in 2022-23.
National Master Plan on Expressways’ will be formulated in 2022-23.
400 new generation Vande Bharat trains to be manufactured in next 3 years.
60 km of ropeway projects under the ‘Parvat Mala project’.
Metro systems, muti-model connectivity.
100 Gati Shakti cargo terminals in the next 3 years.
Procurement of wheat, paddy, kharif and rabi crops, benefiting over 1 crore farmers.
NABARD to facilitate fund with blended capital to finance startups for agriculture & rural enterprise.
₹2.37 lakh crore towards direct payments for minimum support price.
Chemical-free, natural farming to be promoted across the country.
2022 to be Year of Millet - support for post-harvest value addition for millet products
Using Kisan drones for crop assessment and spraying of pesticides.
Ken-Betwa river linking project at a cost of Rs 44,000 crore, to benefit 9.0 lakh hectare of farmer land.
Digital University will be established, and to be made in different Indian languages, based on networked hub model.
One Class, One TV channel will be expanded from 12 to 200 TV Channels to provide supplementary education in all regional languages, to make up for loss of formal education due to Covid.
68% capital procurement budget earmarked for domestic procurement.
Defence R&D to be opened up for start ups, private industry and academia. 25% of R&D budget to be set aside for this.
Private industry will be encouraged to take up design and development of military platforms and equipment.
Developments on the digital front
RBI to introduce ‘digital rupee’ using blockchain technology in 2022-23.
Virtual digital assets to be taxed at 30%.
Gift of virtual assets will be taxed at the receiver's end.
75 digital banking units to be set up across 75 districts.
Tax, economy and finance
Green bonds will be issued for upping green infrastructure.
Fiscal deficit is 6.9% of GDP.
Taxpayers can file within 2 years an updated return if there is any anomaly in their filing.
Cooperative societies pay 18.5% alternate minimum tax and companies pay 15%. From now cooperative too will have to pay only 15%.
Surcharge has also been reduced to 7% for those cooperative having income 1 to 10 crores.
Tax relief to persons with disabilities.
Tax deduction limit for NPS account of state govt employees to 14%.
Virtual digital assets will be brought under tax regime.
Long term capital gains surcharge will be capped at 15%.
Custom duty on cut and polished diamond reduced to 5%.
Custom duty on imitation duty slashed.
Duty on Sodium cyanide increased.
Duty on umbrellas raised to 20%.
Steel scrap duty extended for another year.
Anti-dumping on stainless steel is being revoked.
Duty reduced on shrimp aquaculture.
Health and Sanitation
National Digital Health Ecosystem to be rolled out.
National Tele Mental Health program to be set up to focus on mental health.
23 tele mental health centres of excellence.
Integrated benefits to women and children through ‘Mission Shakti’, ‘Mission Vatsalya’, ‘Saksham Anganwadi’ and ‘Poshan 2.0’.
Rs. 60,000 crore allocated to cover 3.8 crore households in 2022-23 under ‘Har Ghar, Nal se Jal’.
1. The Government could have shown a bit of compassion towards Crypto Traders.
2. The Real Estate sector got completely neglected.
The Financial Express