Union Finance Minister Nirmala Sitharaman presented the Union Budget 2022 today. In its Union Budget 2022, the government has increased the capital expenditure target to Rs 7.5 lakh crore from Rs 5.5 lakh crore in the previous budget of FY 23. The increase in capital expenditure would be a major boost to the economy and a massive increase in private investment to boost job creation. In the last budget, the government increased the capital expenditure by 34.5 per cent to Rs 5.5 lakh crore in the previous budget. This will be 2.9 percent of GDP.
Economy
- Capex target increased by 35.4 per cent — from Rs 5.54 lakh crore to Rs 7.50 lakh crore. FY23 effective capex seen at Rs 10.7 lakh crore
- India’s growth highest among all major economies; We are now in a stronger position to face the challenges
- The goal is to complement macro-development with micro-inclusive wellness, digital economy and fintech, tech-enabled development, energy transition and climate action.
- ECLGS cover increased by Rs 50,000 to Rs 5 lakh crore
- The main focus of this year’s budget are: PM Gati Shakti, Inclusive Growth, Productivity Enhancement, Opportunities for Sunrise, Energy Transition, Climate Action, Financing of Investments
- There has been an excellent response to productivity-linked incentive schemes in 14 sectors; Received investment intent of Rs 30 lakh crore
- Economic reforms benefiting from public investment and capital expenditure. This budget will give impetus to development
taxes
- Government to levy 30 percent tax on income from digital asset transfer
- No deduction is allowed while computing income except cost of acquisition
- Loss cannot be adjusted against any other income
- Gift of cryptocurrencies will be taxed at the receiver’s end
- A new provision to allow taxpayers to file an updated return
- Updated return can be filed within 2 years from the end of the relevant assessment year.
- Alternative minimum tax for cooperatives to be reduced to 15 percent
- Proposal to reduce surcharge to 7 percent on cooperatives whose income is between Rs 1 crore and Rs 10 crore
- Tax deduction limit on employer’s contribution to NPS account of state government employees increased to 14 percent
Jobs
- ECLGS extended till March 2023, eyes on 60 lakh jobs in next 5 years
- Efforts of Central, State Governments leading to employment, entrepreneurship opportunities
- Digital ecosystem will be launched for skilling and livelihood.
- It aims to impart skills, skills, skills to citizens through online training.
- API based skill credential, payment layers to find relevant jobs and opportunities
finance
- Emergency credit line guarantee scheme for small and medium-sized businesses to be extended till March 2023
- Energy transition and climate action to be a major government priority Public issue of Life Insurance Corporation expected soon
- Adequate allocation has been provided in this budget to initiatives from last year’s budget
digital currency
- Launching of Digital Rupee using Blockchain technology from 2022/23
- To introduce scheme for taxation of virtual digital asset
- Losses from the sale of virtual digital assets cannot be compensated for by other income
- Income from virtual digital assets will be taxed at 30 percent
basic infrastructure
- 5G spectrum will be auctioned in 2022
- Design-based manufacturing plan for 5G to be part of production-linked plan
- To award the contract for laying optical fiber in rural areas, to be completed in 2025
- 480 billion rupees set aside for affordable housing in 2022/23
- To allocate an additional Rs 195 billion for production-linked incentives for solar equipment manufacturing
Agriculture
- Domestic scheme launched to reduce dependence on oilseeds import
- Fund with mixed capital raised under co-investment model for financing agriculture startups
- Railways to develop infrastructure for small farmers in 2022/23
Climate and net zero
- Climate change risks are the strongest external factor to the world
- The money will be used for projects that will help reduce the economy’s carbon intensity
- Sovereign Green Bonds to be part of government’s borrowing program in FY23
- Amount to be invested in public sector projects
- 4 pilot projects to be set up for coal gasification
- An additional allocation of Rs 19,500 crore has been made for PLI to manufacture high-efficiency solar modules
- Low carbon growth strategy opens up job opportunities
Travel
- E-passports to be introduced in 2022-23 to facilitate foreign travel
- E-passport with embedded chip to be rolled out
transportation
- 400 energy efficient trains to be built in next three years
- National Highway network to be expanded to 25,000 km in 2022/23
- Expansion of highways will cost Rs 200 billion in 2022/23
- India will bring battery swapping policy
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