Union Budget 2022: On Tuesday; Feb 1, Nirmala Sitharaman, the Finance Minister of Modi 2.0 government, delivered the Union Budget 2022-23 in Assembly.
The government has initiated expanding highways across the country by 25,000 kilometers, allocating Rs 60,000 crore to the Nal se Jal scheme, five river link projects across various states, an extra Rs 48,000 crore towards the PM housing program, and pumping up infrastructure projects in the North East as part of five major infrastructure projects.
The Finance Minister also announced a 5G spectrum auction in 2022, proposed setting up 75 digital banking units in 75 districts, declared a national mental health program, which the Covid-19 pandemic has exacerbated, and taxed virtual currencies such as cryptocurrencies like bitcoin and non-fungible tokens.
The finance minister’s speech was centered on a 35 percent increase in capital expenditures for FY23.
There are no significant changes to direct taxes, except a one-year continuation of the lower corporation tax rate of 15% for manufacturing units.
However, the finance minister also unveils a new crypto tax provision.
Let’s see some of Key Highlights from Budget 2022.
A 35.4 % increase in capital expenditure is planned.
Capital expenditure budgets would be increased from Approximately 4.54 lakhcrore to Rs 7.50 lakhcrore in 2022-23.
The Gatishakti program was highlighted.
There are seven growth engines (roads, railways, airports, ports, mass transport, waterways, logistics infrastructure).
In FY23, the National Highways Networks will be extended by 25,000 kilometers.
Rs 20,000 crore would be raised through innovative financial methods to supplement public resources.
The ECLGS Scheme for MSMEs has been extended and expanded until March 2023.
Coverage of Rs 50,000 crore has been added, and the total amount covered has now reached Rs 5 lakhcrore.
The SEZ Act will be repealed and replaced by new legislation.
It will cover all significant existing and new industrial enclaves to improve export competitiveness.
Provision for crypto taxation.
Any revenue collected from the transfer of a virtual digital asset will be taxed at the rate of 30%. There are no deductions for any expenditures or allowances other than acquisition costs.
TDS if the amount exceeds a specified monetary threshold by 1%.
Extending the lower tax rate on new manufacturing units.
The reduced tax rate of 15% for industrial units has been extended for another year until March 2024.
In FY23, India will introduce a digital rupee issued by the Reserve Bank of India.
Low-income housing programs and tap water in households are maintained.
HarGharNalSe Jal currently covers 8.7 crore households, with 5.5 crores receiving tap water in the last two years. In 2022-23, Rs 60,000 crore has been allocated to this scheme, with Rs 48,000 crore allocated to housing projects under the PM Housing scheme in FY23. PM Housing scheme has been allocated Rs 48,000 crore for FY23.
Atmanirbhar is a defense manufacturing company.
Domestic private enterprises will receive 68 percent of the defense purchase budget.
Defense R&D will be open to startups, institutes, and academic outlets, with 25% of the R&D budget set out for this purpose.
On January 31, a digital conference of RajyaSabha leaders, convened by Chairman of the assembly and Vice President M Venkaiah Naidu, preceded the Budget.
On January 31, President Ram NathKovind spoke to a joint session of the two Houses, kicking off the Parliament’s Budget session.
Aside from that, on January 31, the Economic Survey 2022 was delivered to both chambers of Parliament. The first phase of the union budget session began on January 31 ending on February 11.
From March 14 to April 8, the second phase of the budget session will occur.
This Parliamentary session occurs amid election campaigns in 5 states: Goa, Manipur, Punjab, Uttarakhand, and Uttar Pradesh.
With a vote later this summer, watching if the Budget for 2022-23 focuses further on populist policies will be interesting.