Union Budget 2022Enabling India’s

big leap

February 01 2022
BUDGET AT A GLANCE.
 Finance minister Nirmala Sitharaman Tuesday presented the union budget 2022-23 in parliament as
a part of the 25-year lead up to India's 100-year independence.
 India’s 2022 budget aims to harness the momentum that has made India the fastest- growing large
economy ,targeting new growth opportunities in the green economy and tech industry.
 The government is pushing forward with its citizen empowerment agenda, promising jobs , inclusive
development ,healthcare transformation and female empowerment.
 India has grand ambitions for the next 5 years, with the nation looking to be global economics
powerhouse by its 100th year of independence in 2047. the new union budget 2022-2023 presents a
road map for the economy from India @75 to India@100 which focuses on four key pillars of
development : inclusive development, productivity enhancement, energy transition and climate
action.
 The government proposed to spend rs 39,44,909 crore in 2022-23 which is an increase of
4.6%over the revised estimate of 2021-22
KEY FEATURES OF UNION
BUDGET
 This Budget continues to provide impetus for growth. It lays a parallel track of

 (1) a blueprint for the Amrit Kaal, which is futuristic and inclusive. This will directly benefit our youth,
women, farmers, the Scheduled Castes and the Scheduled Tribes.
 (2) big public investment for modern infrastructure, readying for India at 100. This shall be guided by for
modern infrastructure, readying for India at 100. This shall be guided by
 Moving forward, on this parallel track, we lay the following four priorities:
 PM GatiShakti
 Inclusive Development

 Productivity Enhancement & Investment, Sunrise

 Opportunities, Energy Transition, and Climate Action

 Financing of Investments
GOALS OF AMRIT KAAL
 Focus on growth and all inclusive welfare
 Promoting technology enabled development, energy transition and climate action
 Virtuous cycle starting from private investment, crowded in by public capital investment
FOUR PRIORITIES

PM Gatishakti Inclusive development

FOUR PRIORITIES
Productivity Enhancement and
investment, sunrise opportunities, Financing of investment
energy transition and climate
action
PM GATISHAKTI
 Driven by seven engines: Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure.

 National Master Plan aimed at world class modern infrastructure and logistics synergy

 Formulation of Master Plan for expressways. Completing 25000 km national highways in 2022-23

 Unified Logistics Interface Platform allowing data exchange among all mode operators

 Open Source Mobility Stack for seamless travel of passengers

 4 Multimodal Logistics parks through PPP to be awarded in 2022-23

 Integration of Postal and Railways Network facilitating parcel movement.

 One Station One Product

 Extending coverage under Kavach

 400 new generation Vande Bharat Trains

 Multimodal connectivity between mass urban transport and railway stations

 National Ropeways Development Plan as sustainable alternative to conventional roads.

 Capacity building for infrastructure Projects

AGRICULTURE AND FOOD PROCESSING

 Promoting chemical free natural farming starting with farmers’ lands close to river Ganga

 • Promoting post harvest value addition, consumption and branding of millet products.

 Delivery of Digital and Hi-Tech services to farmers in PPP mode.

 Use of Kisan Drones to aid farmers.

 Launching fund with blended capital to finance agriculture start ups

 Launching fund with blended capital to finance agriculture start ups

 5 more such projects under process of implementation.

EDUCATION
 Universalisation of Quality Education
 One class One TV channel programme to be expanded to 200 TV channels
 Virtual labs and skilling e-labs to promote critical thinking skills and stimulated learning environment
 A Digital University will be established with world class quality universal education
 High quality e-content will be delivered through Digital Teachers

 Skill Development
 Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to promote online training
 Startups will be promoted to facilitate Drone Shakti for Drone-As-A-Service

 HEALTH
 National Digital Health Ecosystem will be rolled out
 National Tele Mental Health Programme will be launched for quality counselling
 Integrated architecture: Mission Shakti, Mission Vatsalya, Saksham Anganwadi, and Poshan 2.0 to be launched
 Two lakh Anganwadis to be upgraded to Saksham Anganwadis
 ALL INCLUSIVE WELFARE FOCUS
 Har Ghar, Nal Se Jal: 3.8 crore households to be covered in 2022-23
 PM Awas Yojana: 80 lakh houses to be completed in 2022-23
 PM-DevINE: To fund infrastructure and social development based on felt needs of the North East
 Aspirational Blocks Programme: For development of lagging blocks of aspirational districts
 Vibrant Villages Programme: Targeting development of villages on the Northern Border left out from
the development gains
 Digital Banking by Post Offices: 100% of post offices to come on the core banking system
 Digital Payments: Scheduled Commercial Banks to set up 75 Digital Banking Units in 75 districts
PRODUCTIVITY ENHANCEMENT AND INVESTMENT
 .

Ease of Doing Business 2.0

Ease of Living
Trust based governance

Integration of central and state level systems through IT Issuance of chip embedded e -
bridges Passports
Expanding scope of PARIVESH Modernisation of building
Portal byelaws, implementing Town
Planning Schemes and Transit
Unique Land Parcel Oriented Development
Identification Number for IT based management of land
records.
Establishing Centres of
Excellence in urban planning
Establishing C-PACE to facilitate voluntary winding up
of companies
Providing a battery swapping
End to end online e-Bill System and utilising surety policy as an alternative to
bonds in setting up charging stations in
government procurement.
urban areas

AVCG promotion task force

Support to 5G under PLI scheme

Opening up defence R&D for industry, startups and

academia
FINANCING OF INVESTMENT
 Public investment to continue to pump prime private investment and demand in 2022-23
 Introduction of Digital Rupee by RBI starting 2022-23
 Providing greater fiscal space to
 Enhanced outlay to Scheme for Financial Assistance to States for Capital Investment
 For 2022-23 States
- will be allowed a fiscal deficit of 4% of GSDP of which 0.5% will be tied to power sector
reforms

Infrastructure status for Measures to aid

Data Centres and investment by Venture
Energy Storage Capital and Private
Systems Equity Investment

Green Bonds to Blended Finance for

mobilise resources for sunrise sectors
green infrastructure
Mobilising
Resources
 TAX PROPOSALS
 Allowing taxpayers to file Updated Return within 2 years for correcting errors
 Tax relief to persons with disability
 Reducing Alternate Minimum Tax Rate and Surcharge for Cooperatives.

• Increasing tax deduction limit on employer’s contribution to NPS account of state government employees

• Extending period of incorporation of eligible startups for providing tax incentives

 Income from transfer of virtual assets to be taxed at 30%

 Better litigation management to avoid repetitive appeals

 Any Surcharge or Cess on Income and Profits not allowable as business expenditure

 Customs administration to be fully IT driven in SEZs • Phasing out concessional rates in capital goods and project imports

gradually and apply a moderate tariff of 7.5%

 Review of customs exemptions and tariff simplification

 Customs duty rates are being calibrated to provide a graded rate structure to facilitate domestic electronics manufacturing
 Rationalization of exemptions on implements and tools for agri sector manufactured in India
 Extension of customs duty exemption to steel scrap
 Reduction of duty on certain inputs required for shrimp aquaculture
 Unblended fuel shall attract additional differential excise duty
Rupee comes from

. .
ALLOCATION TO MAJOR SCHEMES
MINISTRY WISE ALLOCATIONS
Ministry of Communications 105406.82

Ministry of Chemicals and Fertilisers 107715.38

Ministry of Agriculture and Farmers' 132513.62

Welfare

Ministry of Rural Development 138203.63

Ministry of Railways 140367.13

Ministry of Home Affairs 185776.55

Ministry of Road Transport and 199107.71

Highways

Ministry of Consumer Affairs, Food 217684.46

and Public Distribution

Ministry of Defence 525166.15

0 100000 200000 300000 400000 500000 600000

Rs. Crore
BUDGET PROFILE
 KEY/IMPORTANT PLANS
/POLICY TO BE IMPLEMENTED
 MSME: (ministry of micro, Small and medium enterprise):
 Udyam, e-Shram, NCS and ASEEM portals will be interlinked. Their scope will be widened. They will now
perform as portals with live, organic databases, providing G2C, B2C and B2B services. These services will
relate to credit facilitation, skilling, and recruitment with an aim to further formalise the economy and
enhance entrepreneurial opportunities for all.
 Emergency Credit Line Guarantee Scheme (ECLGS) has provided much-needed additional credit to more than
130 lakh MSMEs. This has helped them mitigate the adverse impact of the pandemic. The hospitality and
related services, especially those by micro and small enterprises, are yet to regain their pre-pandemic level of
business. Considering these aspects, the ECLGS will be extended up to March 2023 and its guarantee cover
will be expanded by ` 50,000 crore to total cover of ` 5 lakh crore, with the additional amount being
earmarked exclusively for the hospitality and related enterprises.
 Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme will be revamped with required
infusion of funds. This will facilitate additional credit of ` 2 lakh crore for Micro and Small Enterprises and
expand employment opportunities.
 Raising and Accelerating MSME Performance (RAMP) programme with outlay of ` 6,000 crore over 5 years
will be rolled out. This will help the MSME sector become more resilient, competitive and efficient
 Digital Rupee : introduction of Central Bank Digital Currency (CBDC) will give a big boost to
digital economy. Digital currency will also lead to a more efficient and cheaper currency
management system. It is, therefore, proposed to introduce Digital Rupee, using blockchain and other
technologies, to be issued by the Reserve Bank of India starting 2022-23.
 Tax incentives to IFSC :Taking forward our efforts to further promote the IFSC, I hereby propose to
provide that income of a non-resident from offshore derivative instruments, or over the counter
derivatives issued by an offshore banking unit, income from royalty and interest on account of lease of
ship and income received from portfolio management services in IFSC shall be exempt from tax,
subject to specified conditions.
 Rationalizing TDS Provisions: It has been noticed that as a business promotion strategy, there is a
tendency on businesses to pass on benefits to their agents. Such benefits are taxable in the hands of
the agents. In order to track such transactions, I propose to provide for tax deduction by the person
giving benefits, if the aggregate value of such benefits exceeds ` 20,000 during the financial year.
 Remarkable progress in GST: GST has been a landmark reform of Independent India showcasing the
spirit of Cooperative Federalism. While aspirations were high, there were huge challenges too. These
challenges were overcome deftly and painstakingly under the guidance and oversight of the GST
Council. We can now take pride in a fully IT driven and progressive GST regime that has fulfilled the
cherished dream of India as one market- one tax. There are still some challenges remaining and we
aspire to meet them in the coming year. The right balance between facilitation and enforcement has
engendered significantly better compliance. GST revenues are buoyant despite the pandemic.
Taxpayers deserve applause for this growth. Not only did they adapt to the changes but
enthusiastically contributed to the cause by paying taxes. .
 MSME(ministry of micro, Small and medium enterprise):

Duty on umbrellas is being raised to 20 per cent. Exemption to parts of umbrellas is being
withdrawn. Exemption is also being rationalised on implements and tools for agri-sector which
are manufactured in India. Customs duty exemption given to steel scrap last year is being
extended for another year to provide relief to MSME secondary steel producers. Certain Anti-
dumping and CVD on stainless steel and coated steel flat products, bars of alloy steel and high-
speed steel are being revoked in larger public interest considering prevailing high prices of
metals.

.
CONCLUSION
 In conclusion ,barring these initiatives, union budget 2022-23 was neutral for most sectors.
The overall setup of the budget is positive, and if the government manages to walk the talk
in quality spending , consistent economic growth over the next three years will materialize.