Union Finance Minister Nirmala Sitharaman on Tuesday said that her budget for 2022-2023 will lay the foundation for economic growth through public investment as Asia’s third-largest economy emerges from a pandemic-induced slump. India economic growth in the current year is estimated to be 9.2 percent the highest among all larger company she said. The government has enhanced the outlay for capital expenditure sharply by 35.4% from ₹5.54 lakh crore in the current year to ₹7.5 lakh crore in 2022-23. This is also an increase of more than 2.2 times the expenditure of 2019-20 and the outlay 23 will be 2.9% of GDP, Sitharaman said.
The Major highlights of the Budget 2022
Union Budget seeks to lay foundation & give blueprint of economy over ‘Amrit Kal’ of next 25 years – from India at 75 to India at 100.
• Budget focus on Aatmanirbharta :-60 lakhs job created
• Budget to focus on 4 pillars – productivity, climate action, financing investments and PM Gati Shakti plan
• 400 new generation Vande Bharat trains with better efficiency to be brought in and 100 PM Gati Shakti Cargo terminals to be developed during next 3 years
• ECLGS to be extended till March 2023. The guaranteed cover will be expanded by Rs 50,000 crores to total cover of Rs 5 lakh crores to aid MSME sector financing needs
• Draft DPRs for 5 river links Damanganga-Pinjal, Par- Tapi-Narmada, Godavari-Krishna, Krishna-Pennar & Pennar-Kaveri have been finalized. Once consensus is reached among beneficiary states, centre will provide support for implementation
• 5G spectrum auction to be conducted in 2022 for rollout of 5G telecom services by private players in FY 2022-23
• To facilitate domestic manufacturing for ambitious goal of 280 GW of installed solar capacity by 2030, additional allocation of Rs 19,500 cr for PLI for manufacturing of high-efficiency modules with priority to fully integrate manufacturing units to solar PV modules will be made
• Digital rupee to be issued using block chain and other technologies; to be issued by RBI starting 2022-23. This will give a big boost to the economy
• Income tax relief to cooperative societies with reduction in rate of surcharge from 12% to 7% for income upto Rs 10 crores
• Taxpayers can now file an updated return within 2 years from the relevant assessment year
• Income from virtual digital assets brought under tax net. Gaines taxable at 30% without any deduction except cost of acquisition.
• Both Centre and States govt employees’ tax deduction limit to be increased from 10% to 14% to help the social security benefits of state govt employees and bring them at par with the Central govt employees
• Capital expenditure outlay being stepped up sharply by 35.4% from Rs 5.54 lakh crore in CY to Rs 7.50 lakh crore in 2022-23. Outlay in 2022-23 will be 2.9% of the GDP
• Rs. 60,000 crore allocated to cover 3.8 crore households in 2022-23 under Har Ghar, Nal se Jal.
• Ken-Betwa river linking project at a cost of Rs 44,000 crore, to benefit 9.0 lakh hectare of farmer land
What will cost you more in 2022-2023 budget?
A large number of commonly used items, including headphones, earphones, loudspeakers, smart meters, imitation jewellery, solar cells and solar modules will become more expensive due to a hike in customs duties on imported parts, as proposed by Finance Minister Nirmala Sitharaman in the Union Budget for 2022-23.
What will become cheaper as the government has slashed the customs duty and they are:-
• Frozen mussels
• Frozen squids
• Asafoetida
• Cocoa beans
• Methyl alcohol
• Acetic acid
• Cut and polished diamonds
• Camera lens for cellular mobile phone
FM just make crypto currencies legally with 30% tax
• The Budget announcement on a 30% cryptocurrency tax and the provision of tax deducted at source at 1% levied on payments made on transfer of digital assets has cheered the crypto community.
• While this has boosted the morale of the industry, a lot of crypto enthusiasts are wondering if the Finance Minister just made cryptocurrencies legal.According to Purushottam Anand, Founder of blockchain law firm Crypto Legal, taxing income from cryptocurrencies does not necessarily and explicitly legalise cryptocurrencies because income tax is not concerned about the manner or means of acquiring the income.
• During the current financial year alone, the RBI has paid a dividend of Rs 99,122 crore. This dividend payout was for the financial year 2020-21 paid in May last year.
• As per the Budget document, dividends from public sector enterprises and other investments have also been pegged lower at Rs 40,000 crore as against RE of Rs 46,000 crore.
• Total dividend collection of the next financial year would be Rs 1,31,948 crore as against the RE of Rs 1,68,247 crore, as per the RE of 2021-22.
There are a lot of expectations from Budget 2022 as people from various walks are pinning high hopes on the Modi government’s decisions and announcements on various sectors.
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