Highlights of The Union Budget 2022-23
Highlights of The Union Budget 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 today.
PART A
India’s economic growth estimated at 9.2% to be the highest among all large economies.
60 lakh new jobs to be created under the productivity linked incentive scheme in 14
sectors.
PLI Schemes have the potential to create an additional production of Rs 30 lakh crore.
Entering Amrit Kaal, the 25 year long lead up to India @100, the budget provides
impetus for growth along four priorities:
PM GatiShakti
Inclusive Development
Productivity Enhancement & Investment, Sunrise opportunities, Energy
Transition, and Climate Action.
Financing of investments
PM GatiShakti
The seven engines that drive PM GatiShakti are Roads, Railways, Airports, Ports,
Mass Transport, Waterways and Logistics Infrastructure.
The scope of PM GatiShakti National Master Plan will encompass the seven engines for
economic transformation, seamless multimodal connectivity and logistics efficiency.
The projects pertaining to these 7 engines in the National Infrastructure Pipeline
will be aligned with PM GatiShakti framework.
1
Road Transport
Railways
One Station One Product concept to help local businesses & supply chains.
2000 Km of railway network to be brought under Kavach, the indigenous world class
technology and capacity augmentation in 2022-23.
400 new generation Vande Bharat Trains to be manufactured during the next three
years.
100 PM GatiShakti Cargo terminals for multimodal logistics to be developed during
the next three years.
Parvatmala
Inclusive Development
Agriculture
Rs. 2.37 lakh crore direct payment to 1.63 crore farmers for procurement of wheat
and paddy.
Chemical free Natural farming to be promoted throughout the county. Initial focus is on
farmer’s lands in 5 Km wide corridors along river Ganga.
NABARD to facilitate fund with blended capital to finance startups for agriculture &
rural enterprise.
‘Kisan Drones’ for crop assessment, digitization of land records, spraying of insecticides
and nutrients.
1400 crore outlay for implementation of the Ken – Betwa link project.
9.08 lakh hectares of farmers’ lands to receive irrigation benefits by Ken-Betwa link
project.
2
MSME
Skill Development
Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be
launched to empower citizens to skill, reskill or upskill through on-line training.
Startups will be promoted to facilitate ‘Drone Shakti’ and for Drone-As-A-Service
(DrAAS).
Education
‘One class-One TV channel’ programme of PM eVIDYA to be expanded to 200 TV
channels.
Virtual labs and skilling e-labs to be set up to promote critical thinking skills and
simulated learning environment.
High-quality e-content will be developed for delivery through Digital Teachers.
Digital University for world-class quality universal education with personalised learning
experience to be established.
Health
An open platform for National Digital Health Ecosystem to be rolled out.
‘National Tele Mental Health Programme’ for quality mental health counselling and
care services to be launched.
A network of 23 tele-mental health centres of excellence will be set up, with
NIMHANS being the nodal centre and International Institute of Information Technology-
Bangalore (IIITB) providing technology support.
Saksham Anganwadi
Integrated benefits to women and children through Mission Shakti, Mission Vatsalya,
Saksham Anganwadi and Poshan 2.0.
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Two lakh anganwadis to be upgraded to Saksham Anganwadis.
Banking
100 per cent of 1.5 lakh post offices to come on the core banking system.
Scheduled Commercial Banks to set up 75 Digital Banking Units (DBUs) in 75
districts.
e-Passport
e-Passports with embedded chip and futuristic technology to be rolled out.
Urban Planning
Modernization of building byelaws, Town Planning Schemes (TPS), and Transit Oriented
Development (TOD) will be implemented.
Battery swapping policy to be brought out for setting up charging stations at scale in
urban areas.
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AVGC Promotion Task Force
An animation, visual effects, gaming, and comic (AVGC) promotion task force to be
set-up to realize the potential of this sector.
Telecom Sector
Scheme for design-led manufacturing to be launched to build a strong ecosystem for 5G
as part of the Production Linked Incentive Scheme.
Export Promotion
Special Economic Zones Act to be replaced with a new legislation to enable States to
become partners in ‘Development of Enterprise and Service Hubs’.
AtmaNirbharta in 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.
Independent nodal umbrella body to be set up for meeting testing and certification
requirements.
Sunrise Opportunities
Government contribution to be provided for R&D in Sunrise Opportunities like Artificial
Intelligence, Geospatial Systems and Drones, Semiconductor and its eco-system, Space
Economy, Genomics and Pharmaceuticals, Green Energy, and Clean Mobility Systems.
5
Public Capital Investment:
Public investment to continue to pump-prime private investment and demand in 2022-23.
Outlay for capital expenditure stepped up sharply by 35.4% to Rs. 7.50 lakh crore
in 2022-23 from Rs. 5.54 lakh crore in the current year.
Outlay in 2022-23 to be 2.9% of GDP.
‘Effective Capital Expenditure’ of Central Government estimated at Rs. 10.68 lakh
crore in 2022-23, which is about 4.1% of GDP.
GIFT-IFSC
World-class foreign universities and institutions to be allowed in the GIFT City.
An International Arbitration Centre to be set up for timely settlement of disputes
under international jurisprudence.
Mobilising Resources
Data Centres and Energy Storage Systems to be given infrastructure status.
Venture Capital and Private Equity invested more than Rs. 5.5 lakh crore last year
facilitating one of the largest start-up and growth ecosystem. Measures to be taken to help
scale up this investment.
Blended funds to be promoted for sunrise sectors.
Sovereign Green Bonds to be issued for mobilizing resources for green infrastructure.
Digital Rupee
Introduction of Digital Rupee by the Reserve Bank of India starting 2022-23.
Enhanced outlay for ‘Scheme for Financial Assistance to States for Capital
Investment’:
From Rs. 10,000 crore in Budget Estimates to Rs. 15,000 crore in Revised
Estimates for current year
Allocation of Rs. 1 lakh crore in 2022-23 to assist the states in catalysing overall
investments in the economy: fifty-year interest free loans, over and above normal
borrowings
In 2022-23, States will be allowed a fiscal deficit of 4% of GSDP, of which 0.5% will
be tied to power sector reforms
Fiscal Management
Budget Estimates 2021-22: Rs. 34.83 lakh crore
Revised Estimates 2021-22: Rs. 37.70 lakh crore
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Total expenditure in 2022-23 estimated at Rs. 39.45 lakh crore
Total receipts other than borrowings in 2022-23 estimated at Rs. 22.84 lakh crore
Fiscal deficit in current year: 6.9% of GDP (against 6.8% in Budget Estimates)
Fiscal deficit in 2022-23 estimated at 6.4% of GDP
PART B
DIRECT TAXES
Cooperative societies
Alternate Minimum Tax paid by cooperatives brought down from 18.5 per cent to 15
per cent.
To provide a level playing field between cooperative societies and companies.
Surcharge on cooperative societies reduced from 12 per cent to 7 per cent for those
having total income of more than Rs 1 crore and up to Rs 10 crores.
Payment of annuity and lump sum amount from insurance scheme to be allowed to
differently abled dependent during the lifetime of parents/guardians, i.e., on parents/
guardian attaining the age of 60 years.
Tax deduction limit increased from 10 per cent to 14 per cent on employer’s
contribution to the NPS account of State Government employees.
Brings them at par with central government employees.
Would help in enhancing social security benefits.
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Incentives for Start-ups
Litigation Management
In cases where question of law is identical to the one pending in High Court or Supreme
Court, the filing of appeal by the department shall be deferred till such question of law
is decided by the court.
To greatly help in reducing repeated litigation between taxpayers and the department.
Rationalization of Surcharge
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Surcharge on long term capital gains arising on transfer of any type of assets capped at 15
per cent.
To give a boost to the start up community.
Any surcharge or cess on income and profits not allowable as business expenditure.
No set off, of any loss to be allowed against undisclosed income detected during search
and survey operations.
INDIRECT TAXES
GST revenues are buoyant despite the pandemic – Taxpayers deserve applause for this
growth.
Faceless Customs has been fully established. During Covid-19 pandemic, Customs
formations have done exceptional frontline work against all odds displaying agility and
purpose.
Gradually phasing out of the concessional rates in capital goods and project imports; and
applying a moderate tariff of 7.5 percent – conducive to the growth of domestic sector
and ‘Make in India’.
Certain exemptions for advanced machineries that are not manufactured within the
country shall continue.
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A few exemptions introduced on inputs, like specialised castings, ball screw and linear
motion guide - to encourage domestic manufacturing of capital goods.
More than 350 exemption entries proposed to be gradually phased out, like exemption
on certain agricultural produce, chemicals, fabrics, medical devices, & drugs and
medicines for which sufficient domestic capacity exists.
Simplifying the Customs rate and tariff structure particularly for sectors like chemicals,
textiles and metals and minimise disputes; Removal of exemption on items which are or
can be manufactured in India and providing concessional duties on raw material that go
into manufacturing of intermediate products – in line with the objective of ‘Make in
India’ and ‘Atmanirbhar Bharat’.
Electronics
Customs duty on cut and polished diamonds and gemstones being reduced to 5 per cent;
Nil customs duty to simply sawn diamond - To give a boost to the Gems and Jewellery
sector
.
A simplified regulatory framework to be implemented by June this year - To facilitate
export of jewellery through e-commerce.
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Chemicals
Customs duty on certain critical chemicals namely methanol, acetic acid and heavy feed
stocks for petroleum refining being reduced; Duty is being raised on sodium cyanide for
which adequate domestic capacity exists – This will help in enhancing domestic value
addition.
MSME
Customs duty on umbrellas being raised to 20 per cent. Exemption to parts of umbrellas
being withdrawn.
Exemption being rationalised on implements and tools for agri-sector which are
manufactured in India
Customs duty exemption given to steel scrap last year extended for another year to
provide relief to MSME secondary steel producers
Certain Anti- dumping and CVD on stainless steel and coated steel flat products, bars of
alloy steel and high-speed steel are being revoked – to tackle prevailing high prices of
metal in larger public interest.
Exports
Duty being reduced on certain inputs required for shrimp aquaculture - to promote its
exports.
Unblended fuel to attract an additional differential excise duty of Rs 2/ litre from the 1st
of October 2022 - to encourage blending of fuel.
RM/BB/LP/RC/SSV/AKS/SV
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