(Report) KEY HIGHLIGHTS OF UNION BUDGET 2022-23

(Report) KEY HIGHLIGHTS OF UNION BUDGET 2022-23

Finance minister Nirmala Sitharaman presented the fourth Budget of the Modi 2.0 government today. In her shortest budget speech since 2019, Sitharaman said the budget will lay the foundation for India's economic growth and expansion for the next 25 years.

Budget 2022 Highlights

• Sitharaman keeps income tax slabs unchanged
• Divestment target for FY23 seen at Rs 65,000 crore
• 30% 'Crypto tax' announced by the finance minister
• Fiscal Deficit target set at 6.4% for FY23
• Digital rupee using blockchain to be launched in 2023 by RBI
• India to launch sovereign green bonds to reduce carbon dependence
• Govt to boost capex to Rs 7.5 lakh crore in FY23
• ECLGS to be extended up to March 2023, guaranteed cover extended by another Rs 50,000 crore
• 5G spectrum auction to be conducted in 2022
• Amendments for the Bankruptcy Code to enhance efficiency of resolution process
• National Ropeways Development Programme to be taken up in PPP mode
• An open platform for the National Digital Health Ecosystem will be rolled out
• Data exchange among all-mode operators to be brought on Unified Logistics Interface Platform
• Rs 2.37 lakh crore worth of MSP direct payments to wheat and paddy farmers
• India's growth estimated to be at 9.2%, highest among all large economies, says FM
• PLI schemes in 14 sectors with potential to create 60 lakh new jobs
• Tax deduction limit increased to 14% on employer's contribution to the NPS account of State govt employees

Focus areas of Budget 2022

• PM Gati Shakti
• Inclusive Development
• Productivity Enhancement
• Sunrise Opportunities
• Energy Transition
• Climate Action
• Financing of investments

Wrap Up

• Finance Minister Nirmala Sitharaman on Tuesday unveiled a bigger Rs 39.45 lakh crore Budget, with higher spending on highways to affordable housing with a view to fire up the key engines of the economy to sustain a world-beating recovery from the pandemic.
• While she primed up spending on infrastructure to create jobs and boost economic activity, Sitharaman did not tinker with income tax slabs or tax rates.
• Her Budget for the fiscal year beginning April 2022 proposed a massive 35 per cent jump in capital expenditure to Rs 7.5 lakh crore, coupled with rationalisation of customs duty, an extension of time for setting up new manufacturing companies and plans for starting a digital currency and tax crypto assets.
• Just like last year, the Budget gave a big boost for infrastructure spending -- from 5G spectrum auction, expanding national highways by 25,000 kms, inter-linking of rivers and manufacturing of 400 new generation Vande Bharat trains.

NGOs raise concern over reduction in fund allocation for social sector

• Puja Marwaha, CEO at Child Rights and You (CRY) said, "While there has been an increase in absolute terms, there has been a reduction in the share of child budget in the overall allocation." This year's budgetary allocations for children as a proportion of the Union Budget is the lowest in the last 10 years. It has reduced by 2.41 percentage points, Marwaha said.
• The Kailash Satyarthi Children's Foundation (KSCF) said a decline is noted in the allocation for the National Child Labour Project (NCLP). The allocation for NCLP has been reduced to a paltry Rs 30 crore from Rs 120 crore during FY22, it said.

Health sector allocation sees over 16% hike in Budget

• Out of the total Rs 86,200.65 crore (BE) for 2022-23, Rs 83,000 crore has been allocated to the Department of Health and Family Welfare, while Rs 3,200 crore has been allocated to the Department of Health Research.

All about PM Gatishakti

India Raises Tax on Some Imports to Spur Manufacturing

Some of the items on which duty has been raised are as follows:

• Headphones and earphones to 20% from 15%
• Single or multiple loudspeakers to 20% from 15%
• Smart meters to 25% from 15%
• Solar cells to 25% from 20%
• Solar modules to 40% from 20%
• Sodium cyanide to 10% from 7.5%
• Microbial fats and oils and their fractions to 100% from 30%

MHA allocated Rs 35,581 cr for J-K; maximum amount in all UTs

• The Edible Oil-Oil Palm programme received Rs 900 crore while the Edible Oil-Oilseeds programme received Rs 600 crore, as per the Budget 2022-23 allocation for the Agriculture Ministry.

Samyukta Kisan Morcha terms budget 'anti-farmer', asks farmers to prepare for 'massive struggle' for MSP

• The umbrella body of farm unions, that spearheaded protests against the Centre's now-repealed agri laws, claimed there has been a reduction in the share of agriculture and allied activities in the Budget to 3.8 per cent from 4.3 per cent last time.
• It claimed the government wants to "punish" the farmers for their successful over a year-long demonstration at Delhi's borders that were withdrawn after the contentious farm laws were rescinded in Parliament last year.

India on course to become USD 5 trillion economy by FY26: CEA

• Chief Economic Adviser V Anantha Nageswaran on Tuesday expressed hope that India would become a USD 5 trillion economy by FY26 or the next year on the back of 8-9 per cent sustained growth.
• Gross domestic product (GDP) in dollar terms has already crossed USD 3 trillion, he said during the Finance Minister's post Budget interaction with media.

Budget: India's fiscal deficit pegged slightly higher at 6.9% in FY22

The fiscal deficit of the government for 2022-23 is estimated to be Rs 16,61,196 crore. The Revised Estimates for 2021-22 indicate a fiscal deficit of Rs 15,91,089 crore as against the Budget Estimates of Rs 15,06,812 crore.

Culture Ministry gets over Rs 3,000 cr in Budget; 35 pc of amount earmarked for ASI

Sitharaman gives Rs 13,700 crore for Department of Space

• The allocation was an increase of Rs 1,058 crore over the revised estimate of Rs 12,642 crore in the previous budget.
• A giant share of the allocation - Rs 10,534 crore - has been made under the head of space technology that covers most of the centres of ISRO.

Experts question Centre push to set up 200 TV channels for classes 1-12

• Centre for Policy Research president Yamini Aiyar tweeted, "Kudos to Finance Minister for recognising loss from two years of school closure but really one class-one TV, e-content is NOT the answer. Opening schools is the and (sic). Are we so blind to realities on the ground?"
• "Learning loss of two years to be compensated by setting up TV channels, really????? It shows that we are not serious about loss of learning of our children. Open the schools and get children back for in person learning. Invest in school education," tweeted Chandrakant Lahariya, an epidemiologist and public policy specialist

Diamond duty reduction to spur demand: Jewellers

• “Union Finance Minister Nirmala Sitharaman's announcement of reduction in customs duty on cut and polished diamonds and gemstones and plan to develop a simplified regulatory framework to facilitate export of jewellery through e-commerce are positive steps which will enable the sector to grow in the country and boost exports,” Senco Gold & Diamonds CEO Suvankar Sen said,
• Small gold jewellers, however, said the government should have reduced import duty or GST of gold as diamond is not for the common people.

Tourism sector gets Rs 2400 cr in Budget

Of the proposed budget allocation of Rs 2,400 crore, a major portion of the outlay amounting to Rs 1,644 crore is earmarked for the development of infrastructure for tourism and Rs 421.50 crore is meant for promotion and publicity activities.

Diesel to cost Rs 2 more from Oct 1, North East to see petrol price go up

Diesel in most parts of the country may cost Rs 2 per litre more from October 1 while petrol in a few places such as North East may see a price hike after Finance Minister Nirmala Sitharaman levied additional excise duty on fuel sold without blending it with ethanol or biodiesel.

Budget has laid road map for long term development: Ashok Leyland

"Investment led growth strategy and the sizable capital investment for sustained and speedy economic revival are reflected in the sharp increase in capital expenditure for FY23. The special focus on education, digital and clean mobility is laudable", executive chairman of heavy commercial vehicle maker Ashok Leyland Ltd, Dheeraj Hinduja said.

Govt subsidies to fall 39 pc to Rs 4.33 lakh cr in FY22; Rs 3.18 lakh cr pegged for FY23

In its revised budget (RE) estimate for the 2021-22 fiscal, the government has pegged total subsidies to be at Rs 4,33,108 crore against the actual budget estimate of Rs 7,07,707 crore in the previous financial year.

Govt pegs STT collection at Rs 20,000-cr for FY23

• The government expects to collect Rs 20,000 crore from securities transaction tax (STT) in 2022-23, which is 60 per cent higher than the budget estimate of the preceding fiscal year.
• The Budget Estimate for 2021-22 projected collection of Rs 12,500 crore.

RSS affiliate demands crypto ban

On cryptocurrency, co-convener of RSS-affiliate Swadeshi Jagran Manch Ashwani Mahajan said, "Taxing it is a welcome step and now the government should move towards banning it. The decision to come up with digital currency issued by RBI is also praiseworthy."

Higher MSP allocation will drive consumption in rural markets: FMCG makers

• With an unexpected higher thrust on capital investment, putting more money in the pockets of farmers and continued focus on infrastructure development, it takes the much-needed investment route to drive long-term economic growth for the country, Dabur India Ltd CEO Mohit Malhotra said in a statement.
• In the Budget 2022-23, Finance Minister Nirmala Sitharaman has made a provision for Rs 2.37 lakh crore worth of MSP (Minimum Support Price) direct payments to wheat and paddy farmers, financial support for taking up agro-forestry and promoting chemical-free natural farming.

Metro projects get Rs 19,130-crore in Union budget

New Co-operation Ministry gets Rs 900 cr budget allocation for FY23

Industry hails infra push through Gati Shakti, PPP in Budget

• "Overall, the budget seems to have given a booster dose to facilitate faster economic growth of the nation; roads is definitely one of the prominent sectors to get deserved focus through adequate funding," IRB Infrastructure Developers Chairman & Managing Director Virendra D Mhaiskar said.
• According to EY India Tax Partner – Infrastructure Samir Kanabar said the key pillars of infrastructure i.e. NIP, NMP and PM Gati Shakti have been fuelled with energy to propel economic growth with an array of announcements relating to roads, railways and power among others which are indicative of expansionist mindset and sustainable development.
• The gross budgetary support towards capital expenditure has been increased significantly with the infrastructure sector being the key beneficiary, Rajeshwar Burla, Vice President and Group Head, Corporate Ratings, Icra said.

Bankers welcome Budget

• "The budget focussed on a familiar strategy of driving capital expenditure to drive growth, with the intention of crowding in private investment through higher public spending,” the country's largest private sector lender HDFC Bank said in a note.
• Micro-lending focused Bandhan Bank's chief executive CS Ghosh said the substantial rise in planned capital expenditure for the creation of infrastructure, focus on affordable housing, welfare and development of small enterprises, and the farm economy will prepare India for the next phase of growth.
• State-owned Bank of India's Atanu Kumar Das said pump-priming private investment as laid out in the budget proposals will lead to multiplier effects across all segments of the real sector.

Investors became richer by about Rs 3 lakh cr on Budget Day

• On the Budget Day, the 30-share BSE index jumped 848.40 points or 1.46 per cent to settle at 58,862.57. During the day, it gained 1,018.03 points to 59,032.20.
• It was merriment on the Dalal Street, as the market capitalisation of BSE-listed companies jumped by Rs 2,99,354.61 crore to Rs 2,67,40,561.79 crore.
• This is the second day of gain for the market and in two days investors' wealth has zoomed Rs 6,32,857.56 crore to reach Rs 2,67,40,561.79 crore.

Govt proposes to tweak TDS norms on sale of immovable property

• One per cent TDS will apply on a non-agriculture immovable property of over Rs 50 lakh on the basis of sale price or the stamp duty value, which ever is higher, after an amendment in the Income Tax Act.
• Currently, the TDS is deducted basis only the consideration value of the immobile properties.
• This amendment, if done, will take effect from April 1, 2022.

Rs 13,134 cr allocated for Social Justice and Empowerment Ministry in Union Budget 2022-23

The Union Budget has a provision of Rs 1.37 lakh crores of the capital investment support for the Railways.

Central Vista project: Rs 2,600 cr for construction of non-residential office buildings

• The Housing and Urban Affairs Ministry has been allocated Rs 2,600 crore in Budget 2022-23 for the construction of non-residential office buildings of the Central Vista project, including the Parliament and Supreme Court. This is Rs 767.56 crore more than Rs 1,833.43 crore given in the last fiscal.
• The redevelopment project of the Central Vista -- the nation's power corridor -- envisages a new triangular Parliament building, a common central secretariat, revamping of the three-kilometre Rajpath boulevard that stretches from Rashtrapati Bhavan to India Gate, a new prime minister's residence and a new Prime Minister's Office as well as a new Vice President's Enclave.
• A sum of Rs 2,600.99 has been been allocated for the construction of non-residential office buildings, including the Parliament and Supreme Court of India.

Courtesy : PIB