Table of Contents:
1. Union Budget 2022 Summary
In the second month of the year of recovery, 2022, India wakes up to an unapologetic, bold, and growth-oriented Union Budget. It aims at getting the economy back on its feet by boosting consumption. Like every year, people were eagerly waiting for the Union Budget. This year, particularly, being viewed as a year of revival from the 2020 catastrophe, people from the entire cross-section of the society were expecting leniency in tax slabs and major fund allocation to support the healthcare and the overall business segment.
While at some segments, the budget has brought a smile to people’s faces, in some areas, it has left many rather disheartened. With absolutely no rebate or incentive to brighten up the mood and temperament of the common men, the Union Budget 2021 has taken a rather staunch approach to revive the country’s economy by focusing more on healthcare, infrastructure, and financial reforms.
2. Highlights Of Union Budget 2022
From the multiplication of national highways, inexpensive housing to the manufacturing of 400 new era Vande Bharat trains and a lot of other measures, the government aims to enhance job creation and rigorously boost the economy this financial year 2022-2023. Most people waited for this budget with bated breath.
Given the scenario, the only glimmer of hope that the common man is trying to latch on to is the government’s promise to boost several industries and entrepreneurial ventures that would create more jobs.
Budget Allocation (Ministry Wise) In Crores
- Defence- 525.2K Rupees
- Consumer Affairs, Food & Public Distribution- 217.7k Rupees
- Road Transport & Highways- 199.1k Rupees
- Home Affairs- 185.8k Rupees
- Railways- 140.4k Rupees
- Rural Development- 138.2k Rupees
- Agriculture- 132.5k Rupees
- Chemicals & Fertilisers- 107.7k Rupees
- Communications- 105.4k Rupees
What Has Become Cheaper?
- Mobile Phone Chargers
- Frozen Mussels
- Steel Scrap
- Acetic Acid
- Frozen Squids
- Chemicals needed for Petroleum Products
- Cut and Polished Diamonds
- Methyl Alcohol
- Camera Lens for Cellular Mobile Phones
- Frozen Squids
- Cocoa Beans
- Unblended Lead and Petrol
- Parts of Electronics Toys
- X-Ray Machines
- Imitation Jewellery
- Solar Modules
- Single/Multiple Loudspeakers
- Solar Cells
- Earphones & Headphones
- Smart Meters
3. Key Announcements Of Union Budget 2022
Finance Minister Nirmala Sitharaman presented a growth-oriented budget that will focus on four pillars - Productivity, Climate Action, Financing Investment and PM Gati Shakti Yojana. To encourage private investment and development, capital expenditure has been increased by 35.4 per cent to Rs 7.50 lakh crore in the budget.
The Finance Minister has also announced that the Reserve Bank (RBI) will introduce digital currency during the financial year 2022-23. Nirmala Sitharaman has also announced the imposition of a hefty tax at the rate of 30 per cent on the income from virtual digital assets i.e. cryptocurrencies and NFTs.
In this article, we will graph the possible ways that will help the start-ups to flourish in the upcoming financial year and how that will in return boost employability in the country. The message came loud and clear that digitisation is going to be the anchor for us in our drive for recovery from the pandemic-stricken recession and also in our tryst to build an ‘Atma Nirbhar Bharat’. As mentioned earlier, this budget is unapologetic and non-appeasing for the common man.
4. Budget 2022 Highlights & Latest Announcements
30 Per Cent Tax On Income From Cryptocurrencies And NFTs
Finance Minister Nirmala Sitharaman has also announced the imposition of a hefty tax at the rate of 30 per cent on the income from virtual digital assets i.e cryptocurrencies and NFTs. The special thing about this is that the loss on virtual digital assets cannot be set off in this income. Apart from this, 1 per cent TDS will also be levied on the transaction of virtual digital assets.
RBI To Launch Digital Rupee Soon
The Finance Minister announced in the budget speech that the Reserve Bank of India (RBI) will introduce digital currency during the financial year 2022-23. This digital currency has been called 'Digital Rupee' by Nirmala Sitharaman in her speech.
Digital University Will Be Started For Education
Proposing the formation of a digital university for imparting education in the country, the Finance Minister said that it would be constructed based on the hub and spoke model.
No Relief In Personal Income Tax
Finance Minister Nirmala Sitharaman announced that there's no relief given to the taxpayers paying income tax. Neither has there been any concession in the rates of personal income tax nor has there been any change in the slab of income tax.
Surcharge Not More Than 15% On LTCG Tax
The surcharge cannot be levied more than 15 per cent on any LTCG tax. Finance Minister Nirmala Sitharaman says that the surcharge on cooperative societies, whose income is between Rs 1 to 10 crore, has been reduced from 12 to 7 per cent.
Exemption In Import Duty On Capital Goods Removed
Exemption in import duty on capital goods removed. Capital goods imports will now attract import duty at the rate of 7.5 per cent.
Big Announcement For Defense Sector
A big announcement has been made for the defence sector. In the defence sector, 68 per cent of the CAPEX will be reserved for Indian companies.
Budget 2022: Announcements Related To The Education Sector
PM eVidya's 'One Class One TV Channel' program will be expanded from 12 to 200 TV channels. This will help all the states to provide supplementary education in regional languages from classes 1 to 12. States will be encouraged to revise the curriculum of Agricultural Universities to meet the needs of modern-day farming with natural, zero-budget and organic farming.
30% Tax On Virtual Digital Assets
Virtual digital assets will be taxed at 30%. Any income arising from the transfer of virtual digital assets will be taxed at the rate of 30 per cent. Losses on the transfer of Virtual Digital Assets cannot be set off. TDS of 1% will also be levied on the transfer of virtual digital assets.
Tax Relief Limit On NPS Increased From 10% To 14%
The limit of tax relief on NPS for state employees is being increased from 10 per cent to 14 per cent.
Fiscal Deficit Equal To 6.9% Of GDP In 2021-22
In the financial year 2021-22, the fiscal deficit will be equal to 6.9% of GDP. Earlier it was estimated to be 6.8%. The fiscal deficit has been estimated at 6.4% of GDP in the financial year 2022-23.
SC-ST farmers will be given help for agro-forestry.
Digital Rupee Launch In 2022-23
The Finance Minister has announced the introduction of Digital Rupee in the country during the financial year 2022-23.
68 Per Cent Of The Capex In The Defence Sector Will Be Reserved For Indian Companies
The Finance Minister said that 68 per cent of the CAPEX in the defence sector would be reserved for Indian companies.
Spectrum Auction For 5-G Will Be Done In 2022
The Finance Minister has said that spectrum auction for 5G will be done in 2022.
100 New Generation Vande Bharat Trains Will Be Developed
Under the Gatishakti scheme, the Finance Minister has also announced for the Railways. In the next 3 years, 100 new-generation Vande Bharat trains will be developed. At the same time, 100 new cargo terminals will be built during this period. To promote local business, the concept of 'one station, one product' will be promoted. The railway will be expanded through the PPP model.
Government's Focus On Increasing Employment
More attention is being paid to employment potential, e-skills, employment generation and recruitment in the MSME sector. This well reflects the rise in unemployment in the recent past.
80 Lakh New Houses In PM Awas Yojana
The Finance Minister said that 48,000 crores have been allocated for PM Awas Yojana. Under this scheme 80 lakh, new houses will be built.
Rs 1500 Crore Allocated For The Development Of Northeast Region
The Finance Minister said that Rs 1500 crore has been allocated in this budget for the development of the Northeast.
Possibility Of 60 Lakh New Jobs From PLI Scheme
Finance Minister Nirmala Sitharaman says that the PLI scheme has got successful. This is likely to create 60 lakh new jobs in the next 5 years. Apart from this, additional production of 30 lakh crores is expected.
Finance Minister Told 4 Pillars Of Development
The Finance Minister has counted 4 pillars of development during the budget. In this, 25000 km highway has to be built in a year. Strengthening health infrastructure includes preparing a growth blueprint for 25 years.
100 Gatishakti Terminals To Be Built
The Finance Minister has said that 100 Gatishakti terminals will be built. Apart from this, 20 thousand crores will be spent on highway expansion.
Target To Build 25,000 Km Highway Every Year
The target is to build 25000 km of highways every year. Apart from this, inclusive development will be the priority of the government in the budget. The goal will be to increase productivity in the country. At the same time, investment in energy transformation will increase.
Development Of India Will Be Strengthened By The Budget
The Finance Minister said that this budget will not prepare the roadmap for just one or two years. Rather, a blueprint has been prepared for the next 25 years. This budget will encourage the development of the country. More and more jobs will be created.
30 Lakh Additional Jobs Potential
The Finance Minister says that the government's focus is on the youth. There is a potential to provide 30 lakh additional jobs. For this, the government is working with full capacity.
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FAQs On Union Budget 2022 Summary
Q. What was the theme of the Union Budget 2021 to 2022?
Ans- The government of India is devoted towards Atma Nirbhar Bharat majorly in the armed forces. Around 68% of the capital procurement budget will be reserved for the domestic industry of our country for 2022-23's been scaled up from 58% in 2021-22, the FM said. A total of Rs 19,500 crore has been marked for PLI for the manufacturing of high-efficiency modules for polysilicon.
Q. What is the total budget of 2022 to 2023?
Ans- The Modified Estimations for 2021-22 demonstrate a fiscal deficit of Rs 15,91,089 crore as against the Budget Estimates of Rs 15,06,812 crore. The total expenditure in 2022-23 is calculated at Rs 39.45 lakh crore, while the entire receipts apart from borrowings are assessed at Rs 22.84 lakh crore.
Q. Who has presented the Union Budget 2022 to 2023 in Parliament?
Ans- The Union Budget 2021 to 2022 in Parliament was presented by the Union Finance Minister Nirmala Sitharaman. This year it was announced to the public on 1st February 2022 before the closing of the Indian financial year in March.
Q. What is new about the union budget this year?
Ans- Some of the newer updates or Key Announcements Of Union Budget 2022 are:
- Focus Of Budget would be primarily on supplying Basic Amenities To the Poor and Middle-Class citizens of India
- All Taxpayers can now update I-T returns within 2 years
- India is likely to grow at 9.27% in the financial year 2022-2023
- Curation of Gati Shakti masterplan to make world-class infrastructures
- PLI scheme to generate at least 60 lakh new jobs in the coming 5 years
Q. What are the budget concerns regarding climate change in India for the year 2022-2023?
Ans- Climate change has appeared as a central concern for several policymakers. The relationship between climate change and financial markets runs in both approaches respectively. On the one hand, climate change influences financial markets unfavourably as environment shocks could lead to casualties on banks and monetary organisations. Along with that, the Indian financial markets can preach climate change appreciatively by developing better financial products to lower the risks.