Earlier today, on the 1st of February, Union Finance Minister, Nirmala Sitharaman presented the Union Budget for 2022. She remarked that the country’s growth is estimated to grow at 9.2%, making it the highest among all large economies. There will be 60 lakh new jobs created under the productivity linked incentive scheme in 14 sector, owing to the recent plummet in the country’s employment rate.
The primary focus of the budget proposals this year will be on infrastructure, climate action, health and well-being, inclusive development, energy transition, financing of investments, and ‘Minimum Government, Maximum Governance.
Let’s find out what the Union Budget for 2022 holds for its citizens.
Union Budget 2022: Highlights
Taxes & Finance
- Additional charges on long-term gains are limited at 15%.
- 1 lakh crore in financial assistance to states to be provided in 2022-23.
- One-time window to correct ITRs filed, provided by the government.
- TDS of 1% to be charged on transfer of virtual assets above a threshold – including gifts.
- Digital Rupee by RBI using blockchain technology to be rolled out by 2023.
- People with disabilities receive tax relief.
- 5 lakh post offices to be made accessible online on the core banking system.
- 75 digital banks, 75 districts – government encourages digital payments.
- All virtual digital assets to be brought under tax regime.
- Reduce surcharge on cooperative societies to 7% – income between Rs. 1 crore to Rs. 10 crores.
Businesses, MSMEs & Start-Ups
- UDYAM, e-SHRAM, NCS and ASEEM portal to be interlinked.
- 75,000 compliances were removed and 1,486 union laws were recalled.
- 6,000 crore programme to rate MSMEs to be rolled out over 5 years.
- PE/VC invest Rs. 5.5 lakh in start-up – expert committee to suggest measures on attracting investments.
- Voluntary exit for corporates brought down to 6 months from 2 years.
- Ease of Doing Business (EODB) 2.0 and Ease of Living next phase to be launched.
- The expansion of the National Highway by 25,000 km between 2022-23.
- Focus on public investment to modernise infrastructure.
- The manufacture of 400 new-generation Vande Bharat trains in 3 years.
- 4 multi-modal national parks contracts to be awarded in FY23.
- Building 60 km ropeway projects under the Parvat Mala project.
- In 3 years, to set up 100 Gati Shakti cargo terminals.
- Efforts to be put in to reduce imports and promote self-reliance in the defence sector.
- 68% of the capital procurement budget earmarked for the domestic industry – Aatmanirbharta.
- 25% defence R&D budget set aside for start-ups, academia, and private industries.
- Private industry to design and develop military platforms and equipment through SVP models.
- Government to pay Rs. 2.37 lakhs for procuring wheat and paddy – aiding over 1 crore farmers.
- International Year of Millets (2022-23) – post-harvest value addition for millet products.
- NABARD’s blended capital to fund start-ups for agricultural and rural enterprises.
- Ken-Betwa river linking project, Rs. 44,000 crore – reaching 9.0 lakh hectares of farmland.
- Financial support is set to be provided to farmers for agro-forestry.
- Har Ghar, Nal se Jal has been allocated Rs. 60,000 crore to cover 3.8 crore households in 2022-23.
- 95% of 112 districts have made noteworthy progress in health infrastructures.
- 23 centres for the National Tele-Mental Health program to be set up.
- An open platform for the National Digital Health Ecosystem to be launched soon.
- Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0 to provide benefits to women and children.
- 1-Class-1-TV Channel to provide additional education to children.
- National Skill Qualification Framework (NSQF) to cater to active industry needs.
- Digital University to be set up in different Indian languages – built on a hub and spoke model.
So, keep up with the latest updates on the Union Budget 2022, and watch out for how it may impact you!