BUDJET 2022-23

Presenting the Union Budget 2022, Finance Minister Nirmala Sitharaman Tuesday said
that the country is expected to grow at 9.27 per cent in the coming year. The Finance
Minister also said that the Budget gives a blueprint of economy from India at 75 to
India at 100, citing the four pillars of development — inclusive development,
productivity enhancement, energy transition and climate action.
The Finance Minister also said that there was a sharp increase in public investment
and capital expenditure in Budget 2021-22. This Budget (2022-23) will benefit the
youth, women, farmers, and the backward classes. The PM Gati Shakti master plan
will guide the process.
6 Pillar summary for Budget-2022
1.Central Bank Digital Currency (CBDC) / Digital Rupee to be issued using Blockchain
technology by RBI - to help in cheaper & efficient currency management system.
- Anytime – Anywhere Post Office Savings. All 1.5 lakh post offices will come on the
core banking system (CBS)→ net banking, mobile banking, ATMs, and also provide
online transfer of funds between post office accounts and bank accounts. This will
greatly help farmers and senior citizens in rural areas, enabling inter- operability and
financial inclusion.
- 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled
Commercial Banks.
- National Asset Reconstruction Company /Bad bank started.
- Insolvency and Bankruptcy Code: we will amend it to facilitate cross border
insolvency resolution.
2: Public finance-Taxation
- new ‘Updated return’: some taxpayers may realize that they have committed omissions
or mistakes in correctly estimating their income for tax payment. This new form to provide
an opportunity to correct such errors, within two years from the end of the relevant
assessment year.
- Reduced Alternate minimum tax rate and Surcharge for Cooperatives
- Tax relief on insurance policies bought by PH/their parents
- Tax reforms on NPS contribution of State government employees.
- Startup tax holiday scheme:- 0% corporation tax and income tax for 3 consecutive years
out of ten years from incorporation. This will be applicable on all Startups registered by
31.03.2023. (earlier it was going to expire in 2022)
- Corporation tax: 15% on newly setup domestic manufacturing companies. (if they start
the manufacturing by 2024. Earlier deadline was 2023).
- bitcoin / virtual digital assets: 30% Tax (including 1% TDS). Losses can’t be offset (unlike in
Capital gains tax). Gift of virtual digital asset is also proposed to be taxed in the hands of
the recipient.
- Litigation management to avoid repetitive appeals by the Income Tax Department.
- Surcharges reduced on the corporation tax of certain type of foreign companies and
start-ups.
3: Intl. Trade/Import Export
- Special Economic Zones Act will be replaced with a new law to make them ‘Development
of Enterprise and Service Hubs’.
- defence imports: 68% purchase will be made from India made products (earlier 58% last
year).
- to promote the domestic capital goods industry- Government will stop giving the tax
benefit/ charge more customs Duty on imported capital goods machineries and project
imports e.g. coal mining projects, power generation, transmission or distribution projects,
railway and metro projects
- Unblended fuel shall attract an additional differential excise duty of Rs. 2/ litre (To
encourage blending of bio-ethanol.)- to reduce import bill of crude oil / clean energy.
4: Sectors of Economy- Agriculture
- wheat & paddy MSP allocation total ₹2.37 lakh crore
- Chemical-free Natural Farming will be promoted esp on farmers’ lands in 5-km wide corridors along river Ganga
- 2023 is International Year of Millets- so we’ll promote millet food processing and purchase
- Oilseed production ke liye new scheme, to reduce our dependence on import of oilseeds,
- agriculture research development extension service mein involve startup, PPP
- ‘Kisan Drones’ for crop assessment, digitization of land records, spraying of insecticides, and nutrients.
- revise syllabi of agricultural universities for natural, zero-budget and organic farming, modern-day agriculture,
value addition and management.
- NABARD to finance startups for agriculture & rural enterprise, relevant for farm produce value chain.
- Funding for Ken-Betwa Link Project, Damanganga-Pinjal, Par-TapiNarmada, Godavari-Krishna, Krishna-Pennar
and Pennar-Cauvery river interlinking.
- SC/ST farmers to be given funding for agro forestry.
5: Infrastructure
- National Bank for Financing Infrastructure and Development (NaBFID) started
- PM GatiShakti focus on Roads, Railways, Airports, Ports, Mass Transport, Waterways, and
Logistics Infrastructure.
- The National Highways network will be expanded by 25,000 km in 2022-23.
- transport related online softwars and platforms 1) Unified Logistics Interface Platform
(ULIP) 2) Open-source mobility stack for travel of passengers
- Multimodal Logistics Parks at four locations through PPP mode will be awarded in 2022-
23.
- Railways will develop new products for small farmers and Small and Medium Enterprises,
- integration of Postal and Railways networks
- ‘One Station-One Product’ concept to help local businesses & supply chains.
- 2,000 km of network will be brought under Kavach, the indigenous world-class technology
for safety and capacity augmentation in 2022-23.
- 400 Vande Bharat Trains with better energy efficiency and passenger riding experience
- 100PM GatiShakti Cargo Terminals for multimodal logistics
- Design of metro systems to be improved
- Parvatmala: National Ropeways Development Programme via PPP
- EV: battery swapping policy to solve the constraint of space in urban areas for setting up
charging stations at large scale.
- Solar Power: goal of 280 GW of installed solar capacity by 2030. Production Linked
Incentive for manufacture of solar cells.
6: HRD: Health, Education, Skill, poverty
- Ayushman Bharat Digital Mission: digital registries of doctor, hospital, patient
record.
- National Tele Mental Health Programme with NIMHANS being the nodal centre.
Because pandemic has accentuated mental health problems in people of all ages.
- Ministry of Women & Child Development’s schemes, 1) Mission Shakti, 2) Mission
Vatsalya, 3) Saksham Anganwadi and Poshan 2.0 were launched recently
- Saksham Anganwadis: are a new generation anganwadis with better
infrastructure and audio-visual aids, clean energy. Two lakh anganwadis will be
upgraded under the Scheme.
- World-class foreign universities and institutions will be allowed in the GIFT City to
offer courses in Financial Management, FinTech, Science, Technology, Engineering
and Mathematics free from domestic regulations,
- Skilling: DESH-Stack eportal: Digital Ecosystem for Skilling and Livelihood. To
empower citizens to skill, reskill or upskill through on-line training.
- ‘Drone Shakti’, Drone-As-A-Service (DrAAS). In select ITIs- drone courses will be
launched.
- ‘one class-one TV channel’ programme of PM eVIDYA for TV-classes 1-12. To
cover the loss of 2 years of formal education in lockdown.
Conclusion
- Azadi ka Amrit Kaal, the 25-year-long leadup to India@100. following four priorities: 1)
PM GatiShakti, 2) Inclusive Development 3) Productivity Enhancement & Investment,
Sunrise Opportunities, Energy Transition, and Climate Action 5) Financing of Investments