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Highlights of Union Budget 2022-23 India

As Asia's third-largest economy rebounds from a pandemic-induced downturn, Indian Finance Minister Nirmala Sitharaman said on Tuesday that the budget for 2022/2023 will build the groundwork for economic recovery through public investment. 

"Our country's strong resilience is reflected in the overall quick rebound and recovery of the economy," Sitharaman said.

While presenting the Union Budget, FM stated that the country's growth rate for the coming year is predicted to be 9.27 percent. The Budget, which focuses on four pillars of growth — inclusive development, productivity enhancement, energy transition, and climate action — provides a plan for India's economy from 75 to 100, according to Sitharaman.

In 2022-23, the Budget expects the Central government's effective capital expenditure to be Rs 10.68 lakh crore, or around 4.1 percent of GDP. The Finance Minister quote that ‘’The GST receipts for the month of January 2022 were Rs1,40,986 crore, the highest since the tax was introduced in 2017’’.

Highlights of the 2022 Budget: The key changes announced by FM Sitharaman are listed below.

DEFICIT/EXPENDITURE

·&�Բ�����;By 2025/26, FM proposes a fiscal deficit of 4.5 percent of GDP

·&�Բ�����;Estimates a budget deficit of 6.4% of GDP in 2022/23

·&�Բ�����;Fiscal deficit for 2022/23 revised to 6.9% of GDP * Total expenditure for 2022/23 estimated to be 39.45 trillion rupees

·&�Բ�����;In FY23, states will be allowed to have a budget deficit of 4% of GDP.

·&�Բ�����;States are given 50-year interest-free loans in addition to their normal borrowing

· 2022/23, the scheme for financial assistance to states for capital investment outlay will be worth 1 trillion rupees.

TAXATION

·&�Բ�����;Import duties are being reduced on certain chemicals

·&�Բ�����;Customs duty exemption on steel scrap for small and medium-sized businesses will be extended for another year

·&�Բ�����;Customs duty on stainless steel, flat products, and high steel bars will be revoked

·&�Բ�����;Unblended fuel would face an extra cost of 2 rupees per liter with effect from October 2022.

FINANCE

·&�Բ�����;The emergency credit line guarantee scheme for small and medium-sized businesses will be extended until March 2023 

·&�Բ�����;The emergency credit line guarantee scheme for small and medium-sized businesses will be extended until March 2023

·&�Բ�����;Government has committed to prioritize energy transition and climate action

·&�Բ�����;A public offering of Life Insurance Corporation is expected soon

·&�Բ�����;Initiatives from last year's budget have received adequate funding in this budget

·&�Բ�����;New legislation will be amended on the Special Economic Zones Act

·&�Բ�����;The bankruptcy code will be amended to speed up the resolution process

·&�Բ�����;Aims to reduce the time it takes to wind up a company from two years to six months

·&�Բ�����;The long-term capital gain fee will be capped at 15%.

CURRENCY IN DIGITAL FORMAT

·&�Բ�����;In 2022/23, digital rupee will be introduced utilizing blockchain technology

·&�Բ�����;To introduce a taxation scheme for virtual digital assets

·&�Բ�����;Losses resulting from the sale of virtual digital assets cannot be mitigated by other sources of income

·&�Բ�����;Virtual digital asset income will be taxed at a rate of 30%.

DEFENCE

* The government looks forward to reduce defense imports.

INFRASTRUCTURE

·5G spectrum auctions will be held in the current year (2022)

· A design-led manufacturing strategy for 5G will be included in the production-linked scheme

·To award contracts for the installation of optical fibre in rural regions, with a completion date of 2025

· In 2022/23, 480 billion rupees will be allocated for affordable housing

· An additional 195 billion rupees would be allocated for production-linked incentives for solar equipment manufacturers.

AGRICULTURE

·&�Բ�����;A domestic scheme introduced to reduce reliance on imported oilseeds

·&�Բ�����;Agriculture startup fund with blended money raised through a co-investment model

·&�Բ�����;In 2022/23, railways will build infrastructure for small farmers.

TRANSPORT

·&�Բ�����;Over the following three years, 400 energy-efficient trains will be manufactured

· In 2022/23, the national highway network will be expanded by 25,000 kilometers

·&�Բ�����;In 2022/23, highway expansion will cost 200 billion rupees

·&�Բ�����;India's budget will include a policy on battery swapping.

Although there has been no light of concerns or relief for common taxpayers and for the salaried category.