Budget 2022 emphasised employment creation, a push for digital education, an emphasis on mental health wellness, and preparations for new-age technologies such as blockchain and 5G services.
Nirmala Sitharaman, the Finance Minister, delivered the Union Budget 2022 in Parliament on Tuesday. Nirmala Sitharaman, who presented the Budget, stated that the country's economic growth for the current financial year is estimated to be approximately 9.2%.
As the economy recovers from the Covid-19 outbreak, the Union Budget of 39.45 trillion rupees for the 2019 fiscal year focuses on increasing infrastructure and digitalisation investment to put growth on a better platform.
Budget 2022 emphasised employment creation, a push for digital education, an emphasis on mental health wellness, and preparations for new-age technologies such as blockchain and 5G services.
FM Nirmala Sitharaman did not have any goodies in store for taxpayers in her shortest Budget address ever, as she announced no modifications to income tax slabs or increases in exemptions. Budget 2022 also prioritised a push for a greener economy and a boost for made-in-India projects through increased defence spending on domestically produced equipment.
Here is your sector-by-sector breakdown of the Union Budget 2022, which will help you understand what Nirmala Sitharaman said on tuesday:
Income Tax:
The income tax slabs in the personal income tax category were not changed in the Budget 2022-23. In addition, contrary to popular belief, FM Sitharaman did not raise the standard deduction limit. The standard deduction is currently set at Rs 50,000, and increasing it would have put more money in the pockets of taxpayers.
Nirmala Sitharaman, the Minister of Finance, has proposed a new provision allowing taxpayers to file an updated return after paying additional tax. Within two years of the conclusion of the relevant assessment year, this revised return can be filed.
Corporate Tax:
The corporation tax rate was also set at the same level in Budget 2022. For newly constituted industrial firms, however, the concessionary rate of 15% has been extended for another year.
GST Collectoins:
In her Budget speech, FM Sitharaman stated that the Goods and Services Tax (GST) system has made significant progress, but that there are still certain problems. "Gross GST collection reached a new high of Rs 1,40,986 crores in January; this was made possible by the accelerated economic recovery," she remarked in the Lok Sabha.
Jobs:
In presenting the Budget 2022, FM stated that the government's next goal is to create 60 lakh employment in five years. According to FM Sitharaman, the productivity-linked incentive in 14 sectors for realising the vision of "AtmaNirbhar Bharat" has received a positive reaction, with the potential to create 60 lakh new jobs and 30 lakh crore in additional production over the next five years.
Pension:
To ensure that both central and state government employees are treated equally, the tax deduction ceiling on employer contributions to the National Pension System (NPS) account of state government employees would be raised from 10% to 14%.
Agriculture:
During the financial year 2022-23, the Centre would encourage Kisan Drones, chemical-free natural farming, and public-private partnerships for the delivery of digital and high-tech services to farmers across the country, said FM Nirmala Sitharaman during the presentation of the Union Budget 2022.
She also stated that the government will support a fund with blended money raised through Nabard to finance agri start-ups and rural enterprises.
The government's procurement of wheat and paddy at the minimum support price (MSP) during 2021-22, according to the FM, will cover 1,208 lakh tonnes from 163 lakh farmers. "The immediate payment of MSP value to their accounts will be Rs 2.37 lakh crore," she said.
PM Gati sakti:
The PM Gati Shakti National Master Plan, according to FM Sitharaman, is a transformative strategy to economic growth and sustainable development, powered by seven engines: roads, railroads, airports, ports, mass transportation, waterways, and logistics infrastructure.
During her presentation of the Budget for 2022-23, Sitharaman stated that the seven engines will work together to propel the economy ahead.
Taxes on Cryptocurriences:
Finance Minister Nirmala Sitharaman recommended a 30% tax on revenue from transactions in cryptocurrencies and other virtual assets on Tuesday, clarifying the taxation of such assets.
She also recommended a 1% TDS (tax deducted at source) on transactions in such asset classes beyond a specified level to bring such assets into the tax net. She also stated that gifts of cryptocurrency and digital assets will be taxed.
5G Network:
India is preparing to use 5G technology. According to Sitharaman, a spectrum auction will be held in the fiscal year 2022-23 to allow private companies to put out 5G mobile services. She also stated in her Union Budget speech for 2022-23 that corporate voluntary leave will be reduced from two years to six months.
Rupee Digital:
In response to widespread demand, FM Sitharaman said that the Reserve Bank of India (RBI) will introduce a 'Digital Rupee' based on blockchain technology in 2022-23.
Online Bank:
FM Sitharaman announced on Tuesday that scheduled commercial banks will establish 75 digital banks in 75 regions to promote digital payments.
E-Passport
She also announced the rollout of e-passports with embedded chips while presenting the Union Budget for 2022-23.
Housing:
Under the PM Awas Yojana, 80 lakh residences will be built at a cost of Rs 48,000 crore. A total of Rs 60,000 crore has been been aside for the 'Har Ghar, Nal Se Jal' scheme, which will benefit 3.8 crore households.
Rail Budget:
Around 2,000 kilometres of rail network will be brought under indigenous technology, KAWACH, for safety and capacity enhancement, according to FM Sitharaman. In addition, 400 new Vande Bharat trains will be constructed in the next three years, according to FM Sitharaman.
Emergency Credit:
The Emergency Financing Line Guarantee Scheme (ECLGS) will be extended until March 2023, providing much-needed supplementary credit to approximately 1.3 crore MSMEs. Its guarantee cover has also been increased by Rs 50,000 crore to Rs 5 lakh crore. FM Sitharaman
Borrowing:
To achieve its spending needs in 2022-23, the government will borrow roughly Rs 11.6 lakh crore from the market. This is roughly Rs 2 lakh crore more than the Budget forecast for the current fiscal year, which is Rs 9.7 lakh crore.
Green Economy:
FM Sitharaman has suggested an allocation of Rs 19,500 crore for production linked incentives for manufacturing of high-efficiency modules, emphasising the importance of the transition to a carbon-neutral economy.
Climate change threats, she said in her budget speech, are the most serious negative externalities that harm India and other countries. 'Sovereign Green Bonds' will be issued to raise funds for green infrastructure investment.
Defence:
To increase self-sufficiency and reduce dependency on defence imports, 68 percent of the defence capital procurement budget has been set aside for domestic industry. Industry and entrepreneurs have access to Defense Research and Development.
Health:
A 'National Tele Mental Health Programme' will be developed to improve access to high-quality mental health counselling and treatment services. Aside from that, the National Digital Health Ecosystem will have an open platform.
Digital registries of health practitioners and facilities, a unique health identity, and universal access to health services will all be part of it.
