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Budget 2022-2023: Key Highlights

Updated on: 01 Feb 2022 // 14 min read // #mmm news
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Finance Minister Nirmala Sitharaman has announced the fourth Budget of the Modi 2.0 government today.

Before the Budget 2022 announcement, Sensex jumped 700 points higher and Nifty topped 17.5K. Sitharaman said that GDP is expected to grow by 9.2% in FY22 while health infrastructure has improved.

Check Now: Get the latest updates on Union Budget 2022 

Expectations VS. Reality

Contrary to expectations, there was no change in income tax rates and slabs in the budget. On top of that, 30% tax is imposed on income from virtual digital assets like cryptocurrency, NFTs, etc. However, tax for co-operatives has been reduced to only 15% as well as there is a 5% reduction in surcharge for co-operatives. The only relief for common men is that now IT returns can be filed in 2 years.

Here are the sector-wise key highlights of today’s, i.e. 01.02.2022 budget release:

  • Transportation
    • National Highway network to be expanded by 25,000 km in 2022-23.
    • Modern infrastructure to raise productivity and Rs. 20k crore to boost transport infrastructure.
    • 300 new Vande Bharat trains in 3 years.
    • 100 Gati Shakti cargos in 3 years.
  • Agri
    • Outlay for minimum support price.
    • 2.73 lakh crore as MSP payment.
    • Bonanza for kisan in 2022.
    • Procurements of crops to increase.
    • Draft DPRs for 5 river links including Pennar-Kaveri, Krishna-Godavari.
    • Use of Kisaan drones and digitisation of land records
    • Machinery on rent to be available for small kisans.
    • Chemical and pesticide-free natural farming to be promoted in India.
    • 1000 LMT Paddy is expected to be procured.
    • Financial support for SC/ST farmers
  • MSME
    • 2 lakh crore credit for MSMEs.
    • Additional 50k crore credit guarantee.
    • Skilling programs, Sustainability, Employability to be pushed further.
    • PM E-Vidya expanded to 400 channels.
    • Classes on regional channels soon.
    • 200 TV Channels, 1 Class 1 TV Channel for up to 12th Standard.
    • Emergency Credit Line Guarantee Scheme extended till March 2023.
  • Health
    • Open platform for health infrastructure.
    • National health program soon.
    • Helplines to be established for Mental Health.
    • 2 lakh anganwadis to be updated.
    • Rs. 10 crore for Jal Jeevan mission.
    • 60,000 crore allocated for providing access to tap water to 3.8 crore households.
  • Housing
    • 18 lakh affordable houses by 2023
    • Rs. 48,000 crore for PM Awas Yojana
    • 15,000 crore for north-east infrastructure push.
  • Digital Payment & Fintech
    • 75 e-banking systems in 75 districts.
    • Post offices to be merged with the banking sector.
    • Core banking in all post offices by 2023.
    • Embedded chips in e-passports.
    • Introduction of digital currency by RBI soon - India to have its own digital currency.
    • Digital rupee to be launched in 2022-2023.
  • Urban Development
    • Urban development is critical.
    • Paradigm change in urban planning.
    • High level panel for urban development.
    • Battery swapping policy.
    • Special mobility zones to promote EV.
    • Efficient use of land resources.
    • Rs. 250 crore for knowledge centres.
    • Uniform process of registration - 1 nation, 1 registration form land reform.
    • Digitisation of land records underway.
    • End-to-end e-bill system.
  • Telecom
    • Roll out of 5Gs mobile services by 2023.
    • 5G spectrum auctions in 2022.
    • Scheme for design-led manufacturing for 5G.
    • 100% optical fibre network soon.
  • Defence
    • Defence R&D will be opened for industry & startups.
    • Atmanirbhar Bharat push in the defence sector.
    • 25% defence budget for research.
    • 68% defence budget for Make in India.
  • Energy
    • Low carbon development strategy.
    • Rs. 19500 crore for solar energy production.
    • Clean energy action plan for 10 sectors.
    • Energy efficiency and saving measures will be promoted.
    • Measures to stop stubble burning will be promoted.
  • Capital Expenditure
    • 35.4% hike in capital expenditure
    • 7.5 lakh crore capital expenditure for CAPEX by FY23.
    • Rise in CAPEX to boost consumption.
    • Sovereign green bonds to mobilise funds.
    • Venture capitalists invested 5.54 lakh crore in FY22.
    • Rs. 1 lakh crore for states to capitalise the economy.
    • 50-year interest free loans for states.
  • Budget Estimates
    • Total estimated Finance bill of 39.45 lakh crores for 2022-2023 year.
    • Rs. 22.8 lakh crore estimated total borrowing.
    • 6.9% fiscal deficit estimated this year.
    • Estimated 6.4% fiscal deficit in FY23.
  • Taxation
    • Only 15% tax for co-operatives.
    • 5% reduction in surcharge for co-operatives.
    • IT returns can be filed in 2 years.
    • Tax incentives for startups extended till March 2023.
    • 30% tax on income from virtual digital assets like cryptocurrency, NFTs, etc.
    • 1% TDS on payment of virtual assets.
    • 15% surcharge cap on long-term capital gain.
    • One market, one tax dream realised.
    • Fully IT driven GST revenue stream now.
    • GST revenue buoyant despite pandemic - Record Rs. 1.40 lakh crore GST revenue in Jan 2022, the highest since inception of GST.
    • Enhancement in ease of doing business.
    • No relaxation in income tax slabs.