Finance Minister Nirmala Sitharaman presented the Union Budget 2022 on 1st Feb 2022 in the second year of the COVID-19 pandemic. She said that, they strive to provide necessary ecosystem for middle class and that this Budget hopes to lay the foundation for Amrit Kal from India at 75 to 100. This was the sixth Budget session that was conducted since the outbreak of the pandemic in January 2020. The authority has decided to keep the income tax block unchanged. Among the important announcements is the 30% tax on transfer of digital assets. A new digital rupee using block chain technology will also be introduced by the RBI, this fiscal. The Union Budget 2022 also comes in a month when assembly elections will take place in five states.
Union Budget 2022 – Highlights
Some of the important points of Union Budget 2022 are discussed below.
Deficit/Expenditure Budget 2022
- Proposes fiscal shortfall of 4.5% of GDP by 2025/26.
- Projects fiscal shortfall of 6.4% of GDP in 2022/23.
- Revised fiscal shortage for 2021/22 at 6.9% of GDP.
- Total expenditure expected for 2022/23 is 39.45 trillion
- States will be allowed 4% financial deficit to GDP in
- Interest free loans over and above normal borrowing allocated to states for 50 years.
- financial assistance scheme to states for capital investment expenditure to be 1 trillion rupees in 2022/23.
Taxation Budget 2022
- Import duty on some fixed chemicals are being
- Customs duty relief on steel scrap to be stretched for another year for small- and medium-sized businesses.
- Customs duty on flat products, stainless steel, high steel bars to be
- Pure fuel to get additional duty of 2 rupees per litre from October 2022.
Finance Budget 2022
- Emergency credit line guarantee scheme for small and medium sized dealings to be extended to March 2023.
- Energy changes and climate transition will be a major government priority.
- Public issue of Life Insurance Corporation expected shortly.
- Initiatives from previous year’s budget have been provided appropriate allocations in this budget’.
- Distinct Economic Zones Act to be replaced with new
- To reform bankruptcy code to speed up resolution process
- Looking forward to lower winding up of companies to 6 months from current 2 years.
- Long term capital gain surcharge to be rounded off at 15%.
Digital Currency Budget 2022
- To initiate digital rupee using block chain technology
- To start scheme for taxation of virtual or digital
- Losses from sale of virtual digital assets cannot be cancelled against other income.
- virtual digital properties to be taxed at 30%.
Defense Budget 2022
- Govt pledged to reduce defense imports.
Infrastructure Budget 2022
- 5G spectrum bidding to be conducted in 2022.
- Design-led manufacturing scheme for 5G will be a unit of production-linked scheme.
- To give contracts to lay optical fibre in countryside areas, completion expected in 2025.
- 480 billion rupees kept aside for low cost housing in 2022/23.
- To allocate additional 195 billion rupees for manufacturing-linked incentives towards solar equipment
Agriculture Budget 2022
- Domestic scheme introduced to lower dependence on oil seed imports..
- Fund with blended capital collected under co-investment model to finance agriculture startups.
- Railways to grow infrastructure for small farmers in 2022/23
Transport Budget 2022
- 400 energy efficient trains to be introduced over next three years.
- National highways network to be extended by 25,000 km in 2022/23.
- Highways extension project will cost 200 billion rupees in financial year 2022/23.
- India budget: to bring out battery swapping policy
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