Budget 2022: Nirmala Sitharaman announces budget for FY 2022-23

02 Feb 2022 CW Team

The finance minister revealed the plan of Prime Minister Narendra Modi's government to enhance domestic manufacturing and boost employment.

Here are the highlights of the budget 2022-

Expenditure-

Fiscal deficit of 6.4% of GDP in the year 2022-23.
2021-22 revised fiscal deficit at 6.9% of GDP.
Fiscal deficit of 4.5% GDP by the year 2025-26.
The year 2022-23's entire expenditure is estimated at Rs 39.45 trillion.
In the FY2023, states would be allowed a 4% fiscal deficit to GDP.
Capital investment outlay schemes for financial assistance to states to be Rs 1 trillion in the year 2022-23.

Taxes-

Import duty on the various chemicals is being decreased.
For small and medium-sized businesses, customs duty on steel scrap is to be extended for another year.
Customs duty on high steel bars, stainless steel, and flat products to be cancelled.
Unblended fuel to get an extra duty of Rs 2 per litre from October 2022.

Finance-

Emergency credit line guarantee scheme to be extended to March 2023 for small and medium-sized businesses.
Climate activity and energy transition would be one of the main government priorities.
The public issue of Life Insurance Corporation is expected soon.
Initiatives from the previous year's budget have been given sufficient allocations in the 2022-23 budget.
Special Economic Zones Act to be substituted with new legislation.
The resolution process is to be sped up to amend the bankruptcy code.
Aims to reduce the winding up of firms from currently 2 years to 6 months.
Long-term capital improvement taxation to be capped at 15%.

Digital Currency-

Starting 2022-23, the digital rupee is to be launched through blockchain technology.
To establish a scheme for the taxation of online digital assets.
Losses from the sale of virtual digital assets cannot be compensated against other income.

Defence-

The government focused on decreasing defence imports.

Infrastructure-

5G range auctions to be held in the year 2022.
Plan for design-led manufacturing for 5G would be part of a production-linked scheme.
To award contracts to lay optical fibre in rural places would be completed in 2025.
Rs 480 billion set aside for affordable housing in 2022-23.
To allot additional Rs 195 billion for production-linked incentives for solar equipment production.

Agriculture-

The domestic scheme is introduced to decrease reliance on oilseed imports.
Reserve with blended capital raised under the co-investment model to fund agriculture startups.
In the year 2022-23, railways will develop infrastructure for small farmers.

Transport-

Over the next three years, 400 energy-efficient trains will be manufactured.
National highways network to be developed by 25,000km in 2022-23.
The expansion of highways to cost Rs 200 billion in 2022-23.
The budget of India to introduce a battery swapping policy.

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Minister of Finance Nirmala Sitharaman has announced that the 2022-23 budget would lay out the economic growth's foundation by public investment as India's economy arises from a pandemic-induced slump. The finance minister revealed the plan of Prime Minister Narendra Modi's government to enhance domestic manufacturing and boost employment. Here are the highlights of the budget 2022- Expenditure- Fiscal deficit of 6.4% of GDP in the year 2022-23. 2021-22 revised fiscal deficit at 6.9% of GDP. Fiscal deficit of 4.5% GDP by the year 2025-26. The year 2022-23's entire expenditure is estimated at Rs 39.45 trillion. In the FY2023, states would be allowed a 4% fiscal deficit to GDP. Capital investment outlay schemes for financial assistance to states to be Rs 1 trillion in the year 2022-23. Taxes- Import duty on the various chemicals is being decreased. For small and medium-sized businesses, customs duty on steel scrap is to be extended for another year. Customs duty on high steel bars, stainless steel, and flat products to be cancelled. Unblended fuel to get an extra duty of Rs 2 per litre from October 2022. Finance- Emergency credit line guarantee scheme to be extended to March 2023 for small and medium-sized businesses. Climate activity and energy transition would be one of the main government priorities. The public issue of Life Insurance Corporation is expected soon. Initiatives from the previous year's budget have been given sufficient allocations in the 2022-23 budget. Special Economic Zones Act to be substituted with new legislation. The resolution process is to be sped up to amend the bankruptcy code. Aims to reduce the winding up of firms from currently 2 years to 6 months. Long-term capital improvement taxation to be capped at 15%. Digital Currency- Starting 2022-23, the digital rupee is to be launched through blockchain technology. To establish a scheme for the taxation of online digital assets. Losses from the sale of virtual digital assets cannot be compensated against other income. Defence- The government focused on decreasing defence imports. Infrastructure- 5G range auctions to be held in the year 2022. Plan for design-led manufacturing for 5G would be part of a production-linked scheme. To award contracts to lay optical fibre in rural places would be completed in 2025. Rs 480 billion set aside for affordable housing in 2022-23. To allot additional Rs 195 billion for production-linked incentives for solar equipment production. Agriculture- The domestic scheme is introduced to decrease reliance on oilseed imports. Reserve with blended capital raised under the co-investment model to fund agriculture startups. In the year 2022-23, railways will develop infrastructure for small farmers. Transport- Over the next three years, 400 energy-efficient trains will be manufactured. National highways network to be developed by 25,000km in 2022-23. The expansion of highways to cost Rs 200 billion in 2022-23. The budget of India to introduce a battery swapping policy. Image Source