A version of the Union Budget for the year 2022 was unveiled on February 1 by Finance Minister Nirmala Sitharaman. Sitharaman, India’s Finance Minister, delivered the Union Budget 2022 to Parliament. In honor of “Azadi ka Amrit Mahotsav 2022,” the budget has been termed the “Amrit Budget.” According to the Finance Minister, India’s GDP growth for the fiscal year 2022-23 is expected to be 9.2%, which is higher than any other significant economy’s growth rate. This demonstrates that India has overcome the pandemic gloom and is now poised to lead the global economy in the years ahead. In this article, we will discuss the Union Budget 2022 Highlights.
Union Budget 2022 Highlights for MSME
- The credit guarantee trust for micro and small businesses will be restructured with the necessary capital infusion. This will result in an additional 2 lakh crore for MSMEs and benefit businesses having MSME Registration or Udyam Registration.
- ECLGS will be open until March 2023. The guaranteed cover will be increased by Rs 50,000 crores, bringing the total to Rs 5 lakh crores, in order to assist the MSME sector’s financing needs. Understand more about ECLGS and the previous update at – Government extends ECLGS scheme for MSMEs Registration
Union Budget 2022 Highlights on Tax Measures
The detailed budget speech also has important updates on Tax Measures. The Budget 2022 Highlights on Tax Measures are as follows.
Union Budget 2022 Highlights on Income tax
- In her Budget for FY23, FM Sitharaman proposes no changes to income tax rates or slabs. The current standard deduction is Rs. 50,000.
- The finance minister announced that the government intends to enhance the tax deduction on state government contributions to the NPS (National Pension System) from 10% to 14%.
- At the moment, only central government employees are able to claim a 14 percent tax advantage on their employer’s contribution to an employee’s NPS deposit. The tax advantage is capped at 10% for private-sector employees.
- Taxpayers can file income tax returns up to 2 years after the end of the relevant assessment year. However, Excess taxes and interest on the additional income, ranging from 25% to 50%, must be paid.
Union Budget 2022 Highlights on Corporate Taxes
- The corporation’s tax rate remains unchanged. However, the reduced 15% tax rate for new manufacturing businesses has been increased for one year. Hence, entrepreneurs in the business of manufacturing can apply for Company Formation and avail themselves of the benefit.
- The minimum alternative tax (MAT) for co-operative societies has been reduced to 15%. The move would level the playing field between cooperative organizations and commercial firms such as Private Limited Company registration, which is taxed at 15%.
Changes in Custom Duties
- A reduction on import duty to 5% duty on cut and polished diamonds and gemstones and a 0% duty reduction on sawn diamonds to promote the sector.
Taxation of Digital Assets / Crypto-currency
- To keep up with the worldwide trend toward virtual financial products, the government has announced intentions to introduce a digital currency and tax crypto assets.
- Revenue generated by the transfer of any virtual digital assets will be taxed at a rate of 30%. However, Losses on virtual digital asset trades cannot be adjusted while ITR Filing against other earnings.
- 1% TDS will also be levied on the transfer of digital assets.
- The Reserve Bank of India (RBI) will begin issuing digital rupees in 2022-23, utilizing blockchain and other cutting-edge technology.
- To promote financial inclusion, all post offices will be connected to core banking services.
Important Highlights of Union Budget 2022 for Infrastructure
- The connection of the Ken and Betwa rivers, estimated to cost 44,605 crores, would be undertaken.
- An international arbitration center will be established at GIFT City — a proposed economic region in Gujarat – to speedily resolve disputes governed by international law.
- According to Union Finance Minister Nirmala Sitharaman’s budget speech, capital spending for different infrastructure projects would rise by 35.4% in 2022-23. Next year, the government plans to spend Rs 7.50 lakh crore on capital spending, a significant increase over the present year’s Rs 5.54 lakh crore.
- States will get assistance in developing urban capacity – mass transit, planning assistance, and so on.
- The Union Finance Minister has proposed the introduction of 400 new Vande Bharat trains and said that tenders for multi-modal parks in four sites will be given next fiscal year.
Union Budget 2022 Highlights for Defense, Power Sector, Housing, Education and Agriculture
- 68 percent of funding for defense purchases will come from domestic industries.
- PLI Scheme would receive an extra allocation of Rs 19,500 crore to manufacture high-efficiency solar modules with priority given to fully integrated manufacturing plants for solar PV modules, in order to meet the innovative objective of 280 gigawatts of installed solar capacity by 2030.
- Har Ghar, Nal se Jal has been allotted Rs. 60,000 crore to cover 3.8 million homes in 2022-23.
- EV battery switching would be made easier with the introduction of a new policy, according to the finance minister.
- 250,000 Anganwadis will have their amenities updated.
- Land records will be transliterated in eight languages.
- There would be 1208 metric tonnes of wheat and paddy procured from 163 million farmers in the next two harvest seasons, according to Union Finance Minister Nirmala Sitharaman.
- Furthermore, An enormous amount of Rs 2.37 lakh crores would be sent directly to farmers’ bank accounts.
- E-passports equipped with integrated chips and future technology will be launched.
GST Highlights in Union Budget 2022
- According to information provided by the Finance Minister, despite the pandemic scenario in FY 2021-22, GST income collection has climbed significantly.
- Last month’s GST collection was Rs 1,40,986, the highest monthly total to date.
Furthermore, Sitharaman announced the beginning of a nationwide tele mental health initiative for mental health counseling. The initiative will be supported technologically by IIT Bangalore.
Gati Shakti in Budget
- Projects to connect infrastructure will be better planned and executed as a result of this initiative. The ‘Gati Shakti Master Plan for Expressways’ is specifically mentioned in the budget. The plan is expected to be finalized in 2022-23.
- When it comes to expressways, the government plans to implement the “GatiShakti Master Plan for Expressways” in 2022-23. This year, the national highway system is expected to grow by 25,000 kilometers.
Union Budget 2022 Highlights for Farming
- Natural farming, which the Prime Minister proposed last year and was included in the budget, was also mentioned. This is a new-age soil microbiology approach that doesn’t need chemical fertilizers to restore the soil. These chemical input-intensive small and marginal farmers stand to gain the most. Natural farming has the potential to increase farmers’ take-home earnings by drastically reducing the cost of production. Additionally, the government can control fertilizer subsidies.
Union Budget 2022 Highlights for Optical Fiber and Connectivity
- In order to carry data at a rapid rate, optical fibers are the equipment at the core of Digital India. The government’s goal is to make metropolitan India’s e-services available to the country’s rural areas as well. As a result, in 2022-23, contracts for the installation of optical fiber will be granted as part of the Bharat Net project. These initiatives should be completed by 2025.
Budget Allocation to Delhi Police
- In the budgeted figures for 2022-23, the Delhi Police has been granted a total of 10,355.29 crores, an increment of 1,701.03 crores above the amount of 8,654.26 crores last year.
- Security mechanisms across Delhi would be installed and innovative equipment will be procured with an allotment of 9,808.39 crores for establishment-related expenditure and 287 crores for capital expenditure. Additionally, the “up-gradation of a communication system including cyber highway and digital interconnection radio system, alongside deployment of Intelligent Traffic Management System and induction of different vehicles for police would be funded by this budget.
PLI Scheme in Union Budget 2022 Highlights
- India’s Make-In-India policy has been based on the Production Linked Incentive program. Therefore, An estimated 60 lakh new jobs and an extra 30 lakh crore in output might be created under the plan, which has been announced for 14 different industries. The finance minister said that a new design-led industrialization initiative would be started in order to create a robust environment for 5G deployment.
Union Budget 2022 Highlights for Education
- An analysis of the budget speech shows a desire for high quality in various programs or initiatives. Such as the goal of providing access to high-quality education for everybody.
- The finance minister announced that “high-quality e-content in all spoken languages would be produced for transmission through the internet, mobile phones, TV and radio through Digital Teachers.
- Through the Aspirational Districts Program, the government also hopes to enhance the “quality of life of people” in some of the country’s most underdeveloped regions.
- One Class 1 television channel will be developed to provide youngsters with supplemental education to compensate for the loss of formal education caused by COVID-19.
- Budget 2022 has also cleared the way for vocational training and the provision of creative outlets for pupils in order to foster critical thinking. In the years 2022-2023, 750 scientific and mathematics virtual laboratories and 75 skillings e-labs will be built up as simulated education systems under this plan.
Union Budget 2022 Highlights for Startups
- New themed funds for entrepreneurs, a ceiling on long-term capital gains (LTCG) surcharge, and benefits of deduction of 100% profit extended to startups incorporated by March 21, 2023. Hence, the beneficial rate of 15% available for newly incorporated domestic manufacturing companies extended to those commencing production up to March 31, 2024.
- In simple words, Finance Minister Nirmala Sitharaman has also announced an extension of one year for the benefits offered to entrepreneurs. As she put it, “Startups are becoming a key engine of economic development.” Tax benefits for entrepreneurs have been extended from three to four years of incorporation because of the pandemic, according to the minister, who announced the Union Budget 2022. Hence, Indian Entrepreneurs should now avail the benefits of Startup India Certificate Registration.
Budget Highlights for Urban Sector
- A high-level group of eminent urban planners, economists, and institutions would be established to offer recommendations on urban sector policies, capacity building, planning, implementation, and governance. Additionally, the minister indicated that states will get assistance in developing urban capability.
Vibrant Villages Programme in Budget 2022
- Finance Minister Nirmala Sitharaman declared in her budget address that the government will endeavor to improve connectivity to the northern border through the Vibrant Villages Program. While Sitharaman did not provide specifics, sources indicate that the plan is intended to strengthen infrastructure along India’s Chinese border in states such as Himachal Pradesh, Uttarakhand, and Arunachal Pradesh.
Union Budget 2022 Highlights for Women, Children, and Youth
- India’s government has “comprehensively revised” the programs of the Ministry of Women and Child Development, according to the Finance Minister. Mission Shakti, Mission Vatsalya, Saksham Anganwadi, and Poshan 2.0 are four government-sponsored initiatives aimed at helping women and children.
- Newer anganwadis, Saksham Anganwadis, feature greater infrastructure and audio-visual aids, making them easier to use. According to the minister, they run on green energy and create a better environment for young children’s growth. The program will improve two million Anganwadi.
- Furthermore, The budget gave a lot of emphasis to India’s youth because of the country’s demographics. Some of the announcements appear to be geared toward helping young people find work.
- Prime Minister’s Initiative for the North-East (PM-DevINE), which will be executed through the North-Eastern Council, is an example. It will be used to support infrastructure and community improvement initiatives. One reason for rethinking urban centers is to prepare for the influx of young people looking for jobs in big cities.
Finance Minister Announcement on Zero Fossil Fuel Policy
- We intend to encourage the usage of public transportation in cities. The finance minister said this will be supplemented by clean technology and governance solutions, zero-carbon or zero fossil fuel policy, and electric automobiles.
- Furthermore, you should know about the things that will cost less or more from this upcoming budget.
Union Budget 2022 Highlights: Cheaper vs Costlier Products
|Gemstones and Diamonds
|Camera Lens for Phones
|Mobile Phone Chargers
|Asafoetida and Cocoa Beans
|Methyl Alcohol and Acetic Acid
|Parts of Electronic Toys
|Steel Scrap and Chemicals for Petroleum Products
In this year’s Union Budget, there was a strong emphasis on economic growth and we will see several new changes in our nation.
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