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Key Highlights: Budget 2022

Key Highlights, Budget 2022 –

  • ⦁ GDP growth for FY 22 is expected to be 9.2%, the highest for any large economy.
  • ⦁ PLI (Production Linked Incentive scheme) in 14 sectors for Aatmanirbhar Bharat to create 6 million jobs, an additional allocation of Rs 19,500 crore for PLI in solar PV module manufacturing.
  • ⦁ Promoting Fintech and the digital economy is a focus area for this budget.
  • ⦁ 75 digital banking systems in 75 districts by scheduled commercial banks.
  • ⦁ IBC to be amended to improve the efficiency of the resolution process, including cross border.
  • ⦁ Core Banking Services to start in Post offices.
  • ⦁ PM Gati-shakti master-plan Has scope to enhance multimodal communication through 7 engines, 2000 km of the rail network to be brought under KAVACH & Highway network to grow by 25,000 km in FY23.
  • ⦁ Contracts for implementation of multimodal logistics parks at 4 locations to be awarded in 2022-23, in PPP Mode.
  • ⦁ ECLGS (Emergency Credit Line Guarantee Scheme) to be extended up to March 2023, guaranteed cover extended by another Rs 50,000 crore.
  • ⦁ 8 million new dwellings in rural, urban areas to be completed under PM Awas Yojana.
  • ⦁ Rs 2.37 trillion worth of MSP direct payments to wheat and paddy farmers.
  • ⦁ Rs 2 trillion outlay for MSMEs. Additional loans for 13 mn MSMEs.
  • ⦁ Rs 48,000 crore allocated to housing projects under *PM Housing Scheme* for FY23, Rs 1,500 crore allocated for the development of the Northeast in FY23 & Desh stack e-portal to be launched to promote Digital infra.
  • ⦁ New provision to file the updated return within 2 years of the relevant assessment year.
  • ⦁ The alternate minimum tax for cooperative societies down from 18.5% to 15%.
  • ⦁ The tax deduction limit for state Govt employees* to NPS was raised from 10% to 14%**.
  • ⦁ Surcharge on Corporate tax pruned from 12% to 7% Surcharge on the transfer of long-term capital gains tax capped at 15%.
  • ⦁ Tax exemption to start-ups extended to March 2023.
  • ⦁ Gross GST collection for January 2022 at a record Rs 1.41 trillion.
  • ⦁ No change in income tax slab.
  • ⦁ Electric Vehicles battery-swapping policy is to be brought out with interoperability standards.
  • ⦁ Concessional duty on import of capital goods to be phased out.
  • ⦁ Duty on unpolished diamonds to be reduced to 5%.
  • ⦁ Customs duty on steel scrap extended by a year.
  • ⦁ RBI led digital rupee using blockchain to be launched in FY23, *1% TDS* on the transfer of virtual digital assets & income to be taxed at 30%.
  • ⦁ 68% of capital outlay for the Domestic defense industry.
  • ⦁ Revised Fiscal Deficit 6.9% of GDP in FY22 as against 6.8% in Budget estimates, Fiscal deficit at 6.4% in FY23.
  • ⦁ Total expenditure in FY23 estimated at Rs 39.45 trillion; total resources mobilization to be Rs 22.84 trillion other than borrowing.
Category: Indian Economy

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