Finance minister Nirmala Sitharaman has presented the budget for 2022-23 financial year in the Lok Sabha on 1st February, 2022. While the Budget 2022 was majorly focused on boosting the economic growth of the country amidst continued disruption from the pandemic and upsurging inflation, the finance minister has also laid a great importance to infrastructure spending. She also added that, the budget will also greatly emphasize on the foundation for India's fiscal growth and expansion for the next 25 years. Owing to numerous points, the introduction of Union Budget 2022 can be defined crucial for the public and policy makers. Some of them are upcoming elections in various states, impending threat of covid variant Omicron, gradually blossoming economic recovery, and so on. Dealing with some major issues of the country such as economic discrepancy, taxation, and expenditure attitude, Prime Minister Narendra Modi-led govt intends to guide the country in the economic growth of this year through the post-pandemic rebound.
Some of the Key points of the Union Budget 2022 are mention below.
- While presenting the Budget, Minister Sitharaman said that the economy of the country is anticipated to grow at 9.27 per cent. She has also revealed that, there was a sharp increase in the public investment and capital expenditure in the budget of fiscal year 2021-22. The current budget (2022-23) is expected to benefit the women, youth, farmers, and the backward classes. She further adds that the PM Gati Shakti master plan will act as a catalyst in this process.
- The finance minister stated that digital rupee will be delivered using blockchain technology by the RBI starting from the 2022-23 fiscal year. This major drive for digital currency is also expected to give a significant big boost to the economy.
- Income from the transmission of any virtual digital asset shall be taxed 30 percent, along with an additional 1% tax on transaction. Also, the revenue from Long Term Capital Gains will be taxed at 15%.
- This Union Budget is ready to craft the foundation and provide blueprint of economy over ‘Amrit Kal’ for the next 25 years – “from India at 75 to India at 100”, stated FM Nirmala Sitharaman.
- The overall GST collections for January 2022 are Rs 1,40,986 crore, which is highest since the tax inception in 2017.
- Corporate supplement to be reduced from 12% to 7%
- For constructing 80 lakh houses under PM Awas Yojana in rural and urban areas, Rs 48,000 crores has been allocated
- For both Centre and States govt employees, the tax abstraction limit to be augmented from 10% to 14%. This scheme is expected to help the social security benefits of state government employees and bring them to the same level as the Central govt employees.
- Taxes on polished diamonds and gemstones cut will be 5% but diamonds which are simply sawn will be excluded from this tax. To enable easy exportation of jewellery through e-commerce, basic guidelines will be introduced by June this year.
- About agriculture, Sitharaman said that the acquirement of wheat in Rabi season 2021-22 and the estimated attainment of paddy in Kharif season 2021-22 will cross 1,208 lakh metric tonnes of wheat and paddy from approx. 163 lakh farmers. In this regard, Rs 2.37 lakh crores will be the direct payment of MSP value to their accounts.
- Exclusive priorities to be laid on PM Gati Shakti, comprehensive growth, efficiency development and investment, sunrise opportunities, energy evolution and climate changes and funding of investments.
- The Production Related Enticement Scheme for attaining Aatmanirbhar Bharat has received an outstanding response. The scheme has the potential to generate 60 lakh novel trades and supplementary production of 30 lakh crore during the upcoming five years.