Budget 2022: A Budget for Naya Bharat!

In the spirit of making 'Atmanirbhar Bharat' and a massive 'vision for the next 25 years', Finance Minister Nirmala Sitharaman presented her fourth Union Budget in Parliament.

She began the speech by expressing empathy for those who have lost their lives in the Pandemic.

The budget for 2022-23 focused on a host of measures aimed at boosting Economic Growth with some remarkable achievements along with major announcements for the Financial Year.

Major Highlights of Budget 2022

Here are various measures presented by the Finance Minister on 1st Feb 2022.

Finances and Taxes

• Public issue of Life Insurance Corporation expected shortly
• Long term Capital Gain surcharge to be capped at 15%
• Corporate surcharge to be reduced from 12% to 7%
• Updated return can be filed within 2 years from the end of the relevant assessment year
• Alternate Minimum Tax for cooperative societies to be cut to 15%
• Emergency credit line guarantee scheme for small and medium sized businesses to be extended to March 2023
• Any cess or surcharge on Income not allowed as business expenditure
• 1% TDS on transfer of virtual assets above a threshold, gifts to be taxed
• No Deduction allowed while computing income except cost of acquisition
• Loss cannot be set off from any other income
• Gift of cryptocurrencies to be taxed at receiver’s end
• Customs duty on diamond to be reduced to 5%
• Reduction of surcharge on unlisted shares from 28.5% to 23%
• Tax deduction limit to be increased from 10% to 14% for Centre, state govt employees
• Rs 1 lakh crore financial assistance to be provided to the state in 2022-23 to catalyse investments
• To amend Bankruptcy code to speed up the resolution process
• Introducing central Bank digital currency (CBDC) by RBI using blockchain technology, starting 2022-23
• Measures will be taken to step up private Capital in the infrastructure sector
• 75 digital banks in 75 districts will be set up by scheduled commercial banks to encourage digital payments
• To launch scheme for taxation of virtual digital assets
• Income from virtual digital assets to be taxed at 30%
• Losses from sale of virtual digital assets cannot be Offset against other income
• Special Economic Zones Act to be replaced with new legislation
• January 2022 noted the highest GST collection since inception - Rs 1,40,986 crore
• 100% of 1.5 lakh post offices will come on the core banking system. This will enable Financial Inclusion and access to accounts through net banking, mobile banking, ATMs, etc
• Aims to lower winding up of companies to 6 months from 2 years currently

Economy

• Vision for next 25 years - 'Amrit Kal':India at 75 to 100. The FM laid down 4 areas of focus: PM Gatishakti, Inclusive Development Energy Transition & Climate Action and Financing of Investments
• Capital Expenditure to be stepped up by 35.4% from Rs 5.54 lakh crore to Rs 7.50 lakh crore.
• ECLGS Scheme for MSMEs extended to March 2023 and expanded
• Uniting macro-growth with micro for all-inclusive welfare, digital Economy and fintech, tech-enabled development, energy transition and climate action
• ECLGS cover expanded by Rs 50,000 to Rs 5 lakh crore
• In 2022-23, states will be allowed fiscal deficit of up to 4 pc of GSDP

Education

• Big provision for education and high-quality content
• One class, one TV channel' program of PM eVIDYA will be expanded from 12 to 200 TV channels
• Digital university to be set up to provide education; to be built on hub and spoke model
• To launch National Skill Qualification Framework (NSQF) to cater to dynamic Industry need
• States to be encouraged to revise syllabi of agricultural universities to meet needs of natural, zero-budget & organic farming, modern-day agriculture
• To implement 1-Class-1-TV Channel to provide supplementary education to children to make up for loss of formal education due to Covid

Jobs

• Emergency Credit Line Guarantee Scheme (ECLGS) extended till March 2023, 60 lakh jobs eyed in next 5 years
• Efforts of central, state governments leading to jobs, entrepreneurial opportunities
• Digital ecosystem for skilling and livelihood to be launched
• Aiming to skill, reskill, upskill citizens through online training
• API based skill credentials, payment layers to find relevant jobs and opportunities

MSME and Start-ups

• Rs 6,000-crore programme to rate MSMEs will be rolled out over the next five years
• Startups will promoted for Drone Shakti
• To promote digital infrastructure, a desh stack e-portal will be launched
• Private Equity/ Venture Capital invested Rs 5.5 lakh crore in startups, expert committee will be set up to suggest measures to help attract investment
• MSMEs such as Udyam, e-shram, NCS & Aseem portals will be inter-linked, their scope will be widened
• A fund with blended capital raised under co-investment model facilitated through NABARD to finance startups in agriculture & rural enterprises for farm produce Value Chain

Health

• For mental health counselling, a National Tele Mental Health Program will be launched
• An open platform for the national digital health ecosystem will be rolled out
• 95% of 112 aspirational districts have made significant progress in health and infrastructure

Agriculture

• Govt will promote chemical-free natural farming throughout the country to boost sustainable agricultural productivity and income of farmers
• Rs 2.37 lakh crore towards procurement of wheat and paddy under MSP operations
• More than 350 exemptions on some agri products, chemicals, drugs, etc to be phased out
• 2022-23 has been announced as International Year of Millets
• A rationalised scheme to increase domestic oilseed production will be brought in to cut down imports
• Railways will develop new products for small farmers and MSMEs
• Kisan Drones for crop assessment, Land records, spraying of insecticides expected to drive a wave of technology
• Ken Betwa river linking project worth Rs 44,605 crore announced
• Draft DPRs for 5 river links have been finalised
• Natural farming will be promoted along Ganga river corridor
• A fund under co-investment model will be facilitated through NABARD to finance startups for agriculture and rural enterprise relevant for farm produce value chain
• A completely paperless, e-bill system will be launched by ministries for procurement
• Financial support will be provided to farmers to take up agro-forestry

Infrastructure

• 5G spectrum auctions to be conducted in 2022
• 480 billion rupees set aside for affordable housing in 2022/23
• To allocate additional 195 billion rupees for production-linked incentives towards solar equipment Manufacturing
• 100 PM Gati Shakti terminals to be set up in next three years