THE UNION BUDGET 2022-23

The Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman presented the Union Budget 2022-23 in the Parliament February 1, 2022.

Key highlights of the budget

India's economic growth rate is estimated at 9.2 percent, which is the highest among all the major economies.
Under the production linked incentive scheme in 14 sectors, 60 lakh new jobs will be created.
The PLI scheme has the potential to increase production by an additional Rs 30 lakh crore.
Entering the nectar period of the next 25 years, the budget has emphasized development in 4 priorities:
PM GatiShakti
Inclusive Development
Productivity Enhancement & Investment, Sunrise opportunities, Energy Transition, and Climate Action.
Financing of investments

The 7 factors that promote PM Gatishakti are roads, rail routes, airways, airports, freight transport, waterways and logistic infrastructure.

Road transport

An extension of 25000 kms will be given in the national highway network in 2022-23.

Multimodal Logistics Park

Contracts will be awarded through PPP format for setting up of Multimodal Logistics Park at 4 locations in 2022-23.

Railways

One station one product concept to enhance local business and supply chains.
400 new generation Vande Bharat Trains to be manufactured during the next three years.
During the next 3 years, 100 PM Gatishakti Cargo Terminals will be developed for multimodal logistics.

Parvatmala

Inclusive Development

Agriculture

Direct payment of Rs 2.37 lakh crore to 1.63 crore farmers for procurement of wheat and paddy.

Ken Betwa Project

1400 crore outlay for the implementation of Ken-Betwa link project.
The Ken-Betwa link project will provide irrigation facility to 9.08 lakh hectares of farmers' land.

MSME

Education

Har Ghar, Nal Se Jal

Under Har Ghar, Nal Se Jal, Rs 60,000 crore was allocated to cover 3.8 crore families in the year 2022-23.

Housing for all

Under the Pradhan Mantri Awas Yojana, in the year 2022-23, 48 thousand crore rupees were allocated to complete 80 lakh houses.

Banking

E-passport

AtmaNirbharta in Defence:

The capital procurement budget earmarked for the domestic industry in 2022-23 is 68 per cent, up from 58 per cent in 2021.

Public Capital Investment

The outlay for capital expenditure increased by 35.4 per cent to Rs 7.50 lakh crore in 2022-23 from Rs 5.54 lakh crore in the current year.

Digital Rupee

Fiscal Management

Budget Estimates 2021-22: Rs 34.83 lakh crore
Revised Estimates 2021-22: Rs 37.70 lakh crore
Total estimated expenditure in the year 2022-23: Rs 39.45 lakh crore
Total receipts other than borrowings in the year 2022-23: Rs 22.84 lakh crore
Fiscal deficit of 6.9 per cent of GDP in the current fiscal (as against 6.8 per cent in BE)
Fiscal deficit estimated at 6.4 percent of GDP in 2022-23.

Tax

The alternative minimum tax payment for cooperatives has been reduced from 18.5 per cent to 15 per cent.
The current rate of surcharge was reduced from 12 per cent to 7 per cent for those cooperatives whose total income is more than Rs 1 crore and up to Rs 10 crore.
Proposal to increase the tax deduction limit on employer's contribution to NPS account of state government employees from 10 per cent to 14 per cent.
The last date for commencement of manufacturing and production under section 115BAB has been extended by one year i.e. from March 31, 2023 to March 31, 2024.
The tax rate on income arising from transfer of any virtual digital asset will be 30 percent.
The upper limit of surcharge on AOP (consortium constituted for execution of contract) has been fixed at 15 per cent.
To give a boost to the gems and jewelery sector, customs duty on cut and polished diamonds and gemstones is being reduced to 5 per cent; Nothing customs duty will be levied only on polished diamonds.

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