Union Budget 2022: Finance Minister Nirmala Sitharaman presented her fourth budget in Parliament today from 11:00 am. In view of the situation of covid-19 epidemic, this is the tenth and second paperless budget of the Narendra Modi government. Finance Minister Sitharaman today said, “We strive to provide the necessary ecosystem for the middle class. Ms. Sitharaman made some big announcements like no change in income tax slabs. The transfer of digital assets involves a tax of 30 percent. And she also said that India is in a strong position to meet the challenges due to high immunization.
The major announcements made by Finance Minister Nirmala Sitharaman on February 1, 2022 are as follows:
- Public issue of Life Insurance Corporation expected shortly
- Budget 2022 to focus on 4 pillars – productivity, climate action, financing investments and PM Gati Shakti plan.
- PLI (Production Linked Incentive scheme) in 14 sectors for Atmanirbhar Bharat to create 6 million jobs.
- She also announced an additional allocation of Rs 19,500 crore for PLI to manufacture high-efficiency modules to facilitate domestic manufacturing for the ambitious target of 280 GW of installed solar capacity by 2030.
- During the next 3 years, 400 new generation Vande Bharat trains will be brought with better efficiency and 100 PM Gati Shakti Cargo Terminals will be developed.
- The target of expanding the national highway network by 15% in the next financial year will be a positive for road construction companies.
- PM Gati-shakti masterplan has scope to enhance Multimodal communication through 7 engines – roads, railways, airports, ports, mass transport, waterways and logistics infrastructure, 2000 km of rail network to be brought under KAVACH & Highway network to grow by 25,000 km in FY23.
- RBI led digital rupee using blockchain to be launched in FY23, 1% TDS on transfer of virtual digital assets & income to be taxed at 30%.
- Surcharge on Corporate tax pruned from 12% to 7% for income upto Rs 10 crores.
- Surcharge on transfer of long-term capital gains tax capped at 15%.
- Taxpayers can now file an updated return within 2 years from the relevant assessment year.
- All post offices will be linked with core banking solutions to promote financial inclusion.
- No change in the income tax slab.
- Finance Minister Nirmala Sitharaman says that the Gross GST collection in January 2022 is a record Rs 1,40,986 crore, which is possible due to the rapid economic recovery.
- GDP growth for FY22 is expected to be 9.2%, which is the highest for any major economy.
- Auction of 5G spectrum to be conducted in 2022 for rolled out of 5G telecom services by private companies in FY 2022-23.
- The tax deduction limit for both central and state government employees will be increased from 10% to 14% to help the social security benefits of state government employees and bring them at par with the central government employees.
- Promoting Fintech and Digital Economy is a focus area for this budget.
- 75 Digital Banking System in 75 Districts by Scheduled Commercial Banks.
- Alternate minimum tax for cooperative societies down from 18.5% to 15%.
- Capital expenditure increased by 35.40% from Rs. 5.54 lakh crore to Rs. 7.50 lakh crore.
- Effective expenditure will be Rs. 10.68 lakh crore or 4.1% of GDP.
- Drone Shakti through various application centres for start-ups that work on drone technology.
- Finance Minister Nirmala Sitharaman said that startups will be promoted for Drone Shakti.
- PM eVidya to be expanded from 12 to 200 TV channels.
- National Tele Mental Health Programme with 23 centers to be launched.
- Open platform for National Digital health Ecosystem to be rolled out.
- Tax exemption to start-ups has been extended till March 2023.
- 2 lakh Anganwadis will be upgraded with better facilities.
- IBC will be amended to improve the efficiency of the resolution process including cross-border.
- 8 million new houses will be completed in rural, urban areas under the PM Awas yojana
- MSP direct payment worth Rs. 2.37 lakh crore to wheat and paddy farmers.
- 2 trillion outlay for MSMEs, 13 million additional loans for MSMEs.
- Rs 48,000 crore allocated for housing projects under ‘Pradhan Mantri Awas Yojana‘ for FY 2023, Rs 1500 crore allocated for development of Northeast in FY 2023 and Desk Stack for promotion of Digital Infra “e- Portal” will be launched.
- New Provision for filing of updated return within 2 years of the relevant assessment year.
- Electric vehicles Battery-swapping policy to be brought in line with interoperability standards.
- Concessional duty on import of capital goods to be abolished in a phased manner.
- Duty on unpolished diamonds to be reduced to 5%.
- 68% of the capital outlay for the domestic defense industry.
- Revised fiscal deficit 6.9% of GDP in FY22, while 6.8% in BE, fiscal deficit 6.4% in FY23.
- Total expenditure in FY23 is estimated to be 39.45 trillion; Total resource mobilization other than borrowing should be 22.84 trillion.
Key Highlights for MSME Sector:
- Udyam, E-Shram, NCS and Aseem Portal will be interlinked.
- 130 lakh MSMEs provided additional credit under Emergency Credit Linked Guarantee Scheme (ECLGS)
- ECLGS will be extended till March 2023.
- The guaranteed cover will be increased from Rs 50,000 crore to a total of Rs 5 lakh crore to meet the financial needs of the MSME sector.
- The Credit Guarantee Trust for Micro and Small Enterprises will be revamped with requisite funds. With this, MSMEs will get ₹ 2 lakh crore more.
- Raising and Accelerating MSME Performance (RAMP) program will be launched with an outlay of Rs.6000 crores.
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