Union Budget 2022 Highlights : Here are the Key Highlights of Budget 2022-23 for UPSC

Budget 2022 Summary : Important points to know from Rs 39.45 Lakh Crore Union Budget 2022-23

Union Finance Minister Nirmala Sitharaman presented the Union Budget 2022 on 1st February 2022 in a paperless format just like last year. Sitharaman was seen carrying a tablet kept inside a red coloured cover with a golden coloured national emblem embossed on it instead of the briefcase or ‘bahi khata’.

In this article “World_Polity” provides you the most important Union Budget 2022 Highlights. The most important key points of Budget 2022-23.

Union Budget 2022-23 

FM Nirmala Sitharaman presented the Union Budget 2022 by expressing empathy with those who had to bear adverse health and economic effects of the COVID19 pandemic. She hailed the Budget 2022-23 as something that will lay the foundation for the next 25 years. Here are the key takeaways. 

The Budget estimates the effective capital expenditure of the Central government at Rs 10.68 lakh crore in 2022-23, making up about 4.1 per cent of the GDP. The gross GST collections for the month of January 2022 are Rs 1,40,986 crore — the highest since the inception of the tax in 2017 — the Finance Minister said. 

Focus areas of Budget

• PM Gati Shakti 

• Inclusive Development 

• Productivity Enhancement 

• Sunrise Opportunities 

• Energy Transition 

• Climate Action

• Financing of investments 

Important points to know from Rs 39.45 Lakh Crore Union Budg et 2022-23 

The Union Budget seeks to complement macro-economic level growth with a focus on micro-economic level all inclusive welfare. The Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman tabled the Union Budget 2022-23 in Parliament. 

Here are the major points of Union Budget 2022-23 : 

• Divestment target for FY23 seen at Rs 65,000 crore 

• FM announces ‘Crypto tax’ of 30%, keeps income tax slabs untouched

• Fiscal Deficit target set at 6.4% for FY23 

• Digital rupee using blockchain to be launched in 2023, issued by RBI

• India to launch sovereign green bonds to reduce carbon dependence

• Govt to boost capex to Rs 7.5 lakh crore in FY23 ECLGS to be extended up to March 2023, guaranteed cover extended by another Rs 50,000 crore 

• Required spectrum auction to be conducted in 2022 for the rollout of 5G services by private telecom providers

• Amendments for the Bankruptcy Code to enhance efficiency of resolution process

• National Ropeways Development Programme to be taken up in PPP mode

• An open platform for the National Digital Health Ecosystem will be rolled out

• Data exchange among all-mode operators to be brought on Unified Logistics Interface Platform 

• Rs 2.37 lakh crore worth of MSP direct payments to wheat and paddy farmers 

• Ammendments for the Bankruptcy Code to enhance efficiency of resolution process

• National Ropeways Development Programme to be taken up in PPP mode

• An open platform for the National Digital Health Ecosystem will be rolled out

• Data exchange among all-mode operators to be brought on Unified Logistics Interface Platform 

• Rs 2.37 lakh crore worth of MSP direct payments to wheat and paddy farmers

• India’s growth estimated to be at 9.2%, highest among all large economies; we are now in a strong position to withstand challenges, says FM

• PLI schemes in 14 sectors with potential to create 60 lakh new jobs, and additional new production of Rs 30 lakh crore

• Rs 1,500 crore will be allotted for de velopment initiatives in the northeast

Budget 2022 Summary

KEY HIGHLIGHTS OF UNION BUDGET 2022-23 :

Presenting her second successive paperless budget, the finance minister said the country is marking AzadikaAmritMahotsav and has entered into AmritKaal, the 25-year-long lead up to India. 

Well here are the major highlights of Union Budget 2022-23 :

FISCAL POSITION

• India’s growth estimated at 9.2 pc, to be highest among large economies

• Fiscal deficit in 2022-23 estimated at 6.4 pc of GDP

• Total expenditure in 2022-23 pegged at Rs 39.45 lakh cr

• Total receipts other than borrowings estimated at Rs 22.84 lakh cr in FY23

• ‘Effective Capital Expenditure’ of Central Government estimated at Rs 10.68 lakh cr in 2022-23, which is about 4.1pc of GDP

• Fiscal deficit in current year at 6.9 pc of GDP (against 6.8pc in Budget Estimates)

• 60 lakh new jobs to be created under productivity linked incentive scheme in 14 sectors 

TAX PROPOSALS

• No change in personal income tax rates

• Provision to file an updated return on payment of additional tax; can be filed within two years from the end of the relevant assessment year.

• Updated return provision to enable assessee to declare income missed out earlier

• Tax deduction limit increased from 10% to 14% on employer’s contribution to the NPS account of State Government employees

• Incentives for Start-ups: Period of incorporation extended by 1 year, up to March 31, 2023 for eligible start-ups to avail tax benefit

• Any income from transfer of any virtual digital asset to be taxed at the rate of 30 pc; gift of virtual digital asset also to be taxed in the hands of recipient

• Health and Education Cess: any surcharge or cess on income, profits not allowable as business expenditure

• No set off, of any loss to be allowed against undisclosed income detected during search, survey operations

• Alternate Minimum Tax paid by cooperatives brought down from 18.5 per cent to 15 per cent

• Payment of annuity and lump sum amount from insurance scheme to be allowed to differently-abled dependent during the lifetime of parents/guardians, that is on parents/ guardian attaining the age of 60 years

• Surcharge on long term capital gains arising on transfer of any type of assets capped at 15 pc

• Gradual phasing out of concessional rates in capital goods and project imports; applying a tariff of 7.5 pc, conducive to the growth of domestic sector

• Over 350 exemption entries proposed to be gradually phased out, like exemption on certain agri produce, chemicals, fabrics, medical devices, and drugs and medicines for which sufficient domestic capacity exists

• Customs rate, tariff structure simplified particularly for sectors like chemicals, textiles and metals

• Customs duty rates to be calibrated for graded rate structure; to facilitate domestic manufacturing of wearable devices, hearable devices and electronic smart meters

• Duty concessions to parts of transformer of mobile phone chargers, camera lens of mobile camera module and some other items to promote domestic manufacturing of high growth electronic items

• Customs duty on cut, polished diamonds, gemstones cut to 5%; no duty on simply sawn diamond

• Customs duty of at least Rs 400 per kg to be paid on imitation jewellery import

• Customs duty on umbrellas raised to 20%; exemption to parts of umbrellas withdrawn

• Customs duty exemption given to steel scrap last year extended for another year to offer relief to MSME secondary steel producers

• Unblended fuel to attract an additional differential excise duty of Rs 2/ litre from Oct 1, 2022, to encourage blending of fuel 

ALLOCATION AND REFORMS

• Rs 2.37 lakh cr direct payment to 1.63 crore farmers for procurement of wheat, paddy

• Rs 2 lakh cr additional credit for Micro and Small Enterprises to be facilitated under the Credit Guarantee Trust for Micro and Small Enterprises

• For MSMEs, guarantee cover under ECLGS to be expanded by Rs 50,000 Crore to total cover of Rs 5 lakh cr

• Raising and Accelerating MSME performance (RAMP) programme with outlay of Rs 6,000 crore to be rolled out for MSMEs

• Rs 60,000 crore allocated to cover 3.8 crore households in 2022-23 under `Har Ghar, Nal se Jal’

• Rs 48,000 crore allocated for completion of 80 lakh houses in 2022-23 under PM Awas Yojana

• Additional allocation of Rs 19,500 crore for Production Linked Incentive for manufacture of high efficiency solar modules to meet the goal of 280 GW of installed solar power by 2030

• Initial allocation of Rs 1,500 crore made to enable livelihood activities for youth and women under the Prime Minister’s Development Initiative for North-East Region (PM-DevINE)

• SEZ Act to be replaced with new legislation to enable States to become partners in ‘Development of Enterprise and Service Hubs’

• Defence: 68% of capital procurement budget earmarked for domestic industry in 2022-23, up from 58% in 2021-22

• Defence R&D to be opened up for industry, startups and academia with 25% of defence R&D budget earmarked

• Scheduled Commercial Banks to set up 75 Digital Banking Units (DBUs) in 75 districts

• 100 per cent of 1.5 lakh post offices to come on core banking system

• e-Passports with embedded chip, futuristic technology to be rolled out

• Battery swapping policy to be brought out for setting up charging stations at scale in urban areas for promotion of electric mobility

• Centre for Processing Accelerated Corporate Exit (C-PACE) to be established for speedy winding-up of companies

• Scheme for design-led manufacturing to be launched to build a strong ecosystem for 5G as part of the PLI scheme

• Data Centres and Energy Storage Systems to be given infrastructure status

• RBI to introduce digital rupee in FY23 to boost digital economy, better currency management. 

* Must Read : KEY HIGHLIGHTS OF UNION BUDGET 2021-22

• Must Read : GK Questions and Answers on NITI AAYOG

Related Articles : 

* GK on Union Budget 2021-22 

* Planning in India Objective Questions 

* GST Goods and Services Tax India 

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