India's Budget for the Financial Year 2022-2023 was announced by Finance Minister Smt Nirmala Sitharaman yesterday. The Government has decided to focus on Growth and Inclusive Development, Promotion of technology enabled development, energy transition and climate action. The four main priorities decided by the Government are PM GatiShakti, Inclusive Development, Financing of Investments and Productivity Enhancement. The Finance Minister mentioned that the recovery of our Economy is reflective of our Country's resilience. The following are the important highlights of the Budget 2022:
Driven by seven engines, viz. Roads, Railways, Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure. A National Master Plan aimed at world class modern infrastructure and logistics synergy is on the cards. Formulation of Master Plan for expressways to complete 25000 km national highways in 2022-23. Development of a Unified Logistics Interface Platform allowing data exchange among all mode operators. Development of an Open Source Mobility Stack for seamless travel for passengers. 4 Multimodal Logistics parks through PPP will be awarded in 2022-23. The government plans to integrate Postal and Railways Network to facilitate parcel movement and also to extend coverage under Kavach as well as launch 400 new generation Vande Bharat trains. Also multimodal connectivity between mass urban transport and railway stations is to be developed. Development of a National Ropeways Development Plan as a sustainable alternative to conventional roads is also scheduled. The government also intends to build capacity for Infrastructure projects.
Government will promote Chemical Free natural farming and post harvest value addition, consumption and branding of millet products. Delivery of Digital and Hi-Tech services to farmers in PPP mode, Use of Kisan Drones to aid farmers, Launch of a fund with blended capital to finance agriculture start ups is also proposed. Implementation of Ken Betwa Link Project will benefit 9.1 lakh hectare farm land, providing drinking water to 62 lakh people and generating 130MW power. 5 more such projects are under process of implementation.
The government plans to expand the One class One TV channel programme to 200 TV channels and develop Virtual labs and skilling e-labs to promote critical thinking skills and simulate a learning environment. A Digital University will be established with world class quality universal education and High quality e-content will be delivered through Digital Teachers. A Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to promote online training. Startups will be promoted to facilitate Drone Shakti for Drone-As-A-Service.
The government has plans to roll out a National Digital Health Ecosystem and launch a National Tele Mental Health Programme for quality counselling. An Integrated architecture consisting of Mission Shakti, Mission Vatsalya, Saksham Anganwadi, and Poshan 2.0 is also to be launched. Two lakh Anganwadis are to be upgraded to Saksham Anganwadis.
3.8 crore households to be covered in 2022-23 under the Har Ghar, Nal Se Jal program. Under the PM Awas Yojana: 80 lakh houses to be completed in 2022-23. A fund for infrastructure and social development needs of the North East is also proposed. Aspirational Blocks Programme, a program for Development of lagging blocks of aspirational districts is also planned. Vibrant Villages Program, a program for the development of villages in the Northern region of the Country which have not yet benefited from development programs is also planned. 100% of post offices will soon become a part of the core banking system through Digital Banking initiatives. Scheduled Commercial Banks to set up 75 Digital Banking Units in 75 districts. For MSMEs, Raising and Accelerating MSME Performance (RAMP) programme will be rolled out.
Under the Ease of Doing Business initiative (2.0), the following actions are planned: Trust based governance, Integration of central and state level systems through IT bridges, Expanding scope of PARIVESH Portal, Unique Land Parcel Identification Number for IT based management of land records, Establishing C-PACE to facilitate voluntary winding up of companies, End to end online e-Bill System and utilising surety bonds in government procurement,AVCG promotion task force Support to 5G under PLI scheme,Opening up defence R&D for industry, startups and academia. Under the Ease of Living initiative, the following actions are planned: Issuance of chip embedded e-Passports, Modernisation of building byelaws, implementing Town Planning Schemes and Transit Oriented Development, Establishing Centres of excellence in urban planning, providing a battery swapping policy as an alternative to setting up charging stations in urban areas.
Public investment to continue to pump prime private investment and demand in 2022-23. The government has decided to focus on Capital Expenditure and curtail revenue expenditure.The government plans to introduce Digital Rupee starting 2022-23. Infrastructure status to be given to Data Centres and Energy Storage Systems. Measures will be taken to aid investment by Venture Capital and Private Equity Funds. Blended Financing options for Sunrise Sectors are advocated. Green Bonds will be introduced to mobilize resources for Green Infrastructure. The Government plans to enhance the outlay to Schemes for Financial Assistance to States for Capital Investment. For 2022-23 States will be allowed a fiscal deficit of 4% of Gross Net State Domestic Product (GSDP) of which 0.5% will be tied to power sector reforms.
Taxpayers to be allowed to file Updated Return within 2 years for correcting errors. Tax relief will be given to persons with disability. Alternate Minimum Tax and Surcharge will be reduced for Cooperatives. Period of Incorporation of eligible Start Ups to be extended, for providing Tax Incentives. Income from transfer of virtual assets to be taxed at 30%. Efforts to improve litigation management to reduce repetitive appeals. Increase in Tax Deduction limit on employer’s contribution to NPS account of state government employees. Surcharge or Cess on Income and Profits not allowable as business expenditure. Customs administration to become fully IT driven in SEZs. Phasing out of concessional rates in capital goods and project imports gradually, and the introduction of a moderate tariff of 7.5%. A Review of customs exemptions and tariff simplification is on the cards. Customs duty rates are being calibrated to provide a graded rate structure to facilitate domestic electronics manufacturing. Rationalisation of exemptions on implements and tools for the agri sector manufactured in India is proposed. Extension of customs duty exemption on steel scrap. Duty on certain inputs required for shrimp aquaculture will be reduced.Unblended fuel will attract additional differential Excise Duty.
Sources of Government Revenue:-
Income Tax (15%), Corporation Tax (15%), GST (16%), Customs (5%), Union Excise Duties (7%), Non Tax Revenue (5%), Non Debt Capital Receipts (2%), Borrowings and Other Liabilities (35%).
Segregation of Government Expenditure:
Defence (8%), Subsidies (8%), Allocation to Centrally Sponsored Schemes (9%), Pensions (4%), Central Sector Schemes (15%), Finance Commission and Other Transfers (10%), State's Share of Taxes and Duties (17%), Interest Payments (20%). Other Expenditure (9%).
Budget at a Glance:
Revenue Receipts Estimates for 2022-23 (22,04,422 Crore Rupees).
Capital Receipts Estimates for 2022-23 (17,40,487 Crore Rupees).
Revenue Expenditure Estimates for 2022-23 (31,94,663 Crore Rupees).
Effective Capital Expenditure Estimates for 2022-23 (10,67,889 Crore Rupees).
Allocation to Major Schemes for 2022-23 (Rupees Crore):
National Health Mission (37,800).
Jai Jeevan Mission (60,000).
National Education Mission (39,553).
Pradhan Mantri Gram Sadak Yojana (19,000).
PM Kisan (68,000).
Aatmanirbhar Bharat Rojgar Yojana (6,400).
Pardhan Mantri Swasthya Suraksha (10,000).
Ministry Wise Allocations (Rupees Crore):
Ministry of Communications (1,05,406.82).
Ministry of Chemicals and Fertilisers (1,07,715.38).
Ministry of Agriculture and Farmers'Welfare (1,32,513.62).
Ministry of Rural Development (1,38,203.63).
Ministry of Railways (1,40,367.13).
Ministry of Home Affairs (1,85,776.55).
Ministry of Road Transport and Highways (1,99,107.71).
Ministry of Consumer Affairs, Food and Public Distribution (2,17,684.46).
Ministry of Defence (5,25,166.15).
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