Union Finance Minister, Nirmala Sitharaman, delivered her fourth Budget in the Parliament on February 1.
A digital-first approach took priority as the Finance Minister announced proposal to launch Digital currency by the RBI, and setting up of a Digital University. Expansions under PM Gati Shakti project were also emphasised upon with National Highways to be expanded by 25,000 km in next fiscal.
No mention of personal income tax was made in the speech.
Explained | Understanding the formulation of the Budget
This is the second consecutive year that a paperless budget was presented.
The Economic Survey 2022 , released on January 31st 2022, estimated the country's GDP to grow by 9.2% this year.
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On 5G spectrum auction and capital expenditure
"I won't be able to speculate on it," Ms. Sitharaman says on the 5G spectrum auction.
"Private investment will also have to pick up, and we have increased with an expectation that they will also come forward," she responds to a question on increase in capital expenditure.
On targets of Government Housing programmes
"Barring the setback from the pandemic, all these programmes are on course to achieve targets," T.V. Somanathan says.
On opposition's reaction to the budget
"As a leader of the oldest political party, Shri Rahul Gandhi, please understand what is being said in the budget. I pity people who come up with quick responses...just because you want to put something on Twitter, that doesn't help...is employment okay in Punjab, are the farmers doing okay in Maharashtra?," Ms. Sitharaman says.
"I will take criticism but not from somebody who has not done his homework," she says.
On inflation and job losses
"Since 2014, this government has not allowed inflation to go into double digits," Ms. Sitharaman says while responding to a question on inflation and rising prices.
"Under Atmanirbhar Bharat we made several announcements that helped sustain jobs. I am not denying that there has been impact on jobs, but to say that we have done nothing, that is not right," she says.
On Farmer income and $5 trillion economy
CEA V. Anantha Nageswaran, on MSP for farmers says "We are well on the way to helping farmers substantially."
"We are the fastest growing economy among large economies and our GDP in dollar terms has crossed $3 trillion. There is reason to believe that Rupee will remain stable. By 2026-27, or with some luck even in 2025-26, we will be a $5 trillion economy," he said to a question on $5 trillion economy.
On the issue of income tax, Ms. Sitharaman says, "I have not increased tax, not even a single paisa," keeping in mind the situation arising out of the pandemic
Digital Rupee and Cryptocurrency
On Digital Rupee and Cryptocurrency, Ms. Sitharaman clarifies, "What RBI issues will be the digital currency, everything that prevails outside of it...are assets being created by individuals and in transacting that asset if there are profits being made, we are taxing that at 30%."
'We will achieve the numbers': FM at Post-budget conference
On hospitality and related sectors, Nirmala Sitharaman says, "The tested and proven formula was the emergency credit liquidity guarantee scheme...to the existing 4.5 lakh crore sovereign guarantee, we added 50,000 crore."
"I think our assesments have proven right. We are sure to achieve the numbers, if anything, we will better them," she responds to a question on the numbers being conservative.
Rajya Sabha adjourned for the day
Chairman Venkaiah Naidu adjourns the Upper House for the day. Rajya Sabha will reconvene at 10.00 a.m. on February 2, 2022.
Nirmala Sitharaman tables the Budget in the Rajya Sabha
Union Finance Minister, Nirmala Sitharaman lays on the table, the Union Budget 2022-23, and the Fiscal Policy Statement.
Rajya Sabha convenes for the Budget Session
FM Nirmala Sitharaman proposes to issue sovereign green bonds to mobilise resources
Finance Minister Nirmala Sitharaman on February 1 proposed to issue sovereign green bonds to mobilise resources as part of the Government's borrowing programme.
She said that outlay for capital expenditure has been stepped up by 35.4% to ₹7.5 lakh crore in FY'23.
Major river-interlinking projects to be executed
Finance Minister Nirmala Sitharaman, in her Budget presentation on February 1, highlighted the Centre’s commitment to execute major river-interlinking projects.
Ms. Sitharaman prominently mentioned the Ken-Betwa river interlinking project that was formally approved by the government last year at an approximate cost of ₹46,000 crore.
Lok Sabha adjourned for the day.
Lok Sabha adjourned for the day. The House will reconvene at 4.30 p.m. on February 2, 2022
No mention of personal income tax was made by Union Finance Minister Nirmala Sitharaman
Budget Speech ends.
Faceless customs has been fully established, Ms. Sitharaman says. Reasonable tariffs are conducive to growth of industry. Propose to apply a moderate tariff of 7.5%
Custom duty on cut and polished diamond reduced to 5%
Customs duty of at least Rs 400 per Kg to be paid on imitation jewellery import. This has been done to disincentivise import of undervalued imitation jewellery.
Custom duty critical chemicals reduced.
Duty is being raised on Sodium Cyanide
Duty on umbrellas raised to 20% with exemption to parts of umbrellas being withdrawn.
Steel scrap duty extended for another year
Anti-dumping on stainless steel are being revoked
Duty reduced on shrimp aquaculture
GST revenues are buoyant despite the pandemic. "Gross GST collection for January 2022 are Rs. 1,40,986 crores," highest since inception of GST, Ms. Sitharaman informs the House.
Tax payers deserve applause, she says.
Health and education cess are not business expenditure. IT is also not a business expenditure, she clarifies
Rationalisation of surcharge
Surcharge of AOPs will be capped at 15%. Long term capital gains on listed equity share units liable to surcharge of 15%
Scheme for taxation of Virtual Digital Assets
For taxation of Virtual Digital Asset, any income from transfer of VDA shall be taxed at rate of 30% without any deduction. Loss cannot be set off. Gift of VDA also to be taxed in hands of recipient
Incentives for start ups
In view of COVID, I propose to extend period of corporation by one more year, for providing tax incentives.
Tax relief to persons with disabilities
The parents or guardian can take insurance from their children with disabilities The payment of annuity or lump sum for disabled dependent will be exempted during the lifetime
Cooperative societies alternate minimum tax
Cooperative societies pay 18.5% alternate minimum tax and companies pay 15%. From now cooperative too will have to pay only 15%
Surcharge has also been reduced to 7% for those cooperative having income 1 to 10 crores
New updated Return
Proposing a new provision to file an updated return on payment of additional tax. This can be file within 2 years. This will enable the tax payee to declare an income if they have missed out earlier. An affirmative step towards voluntary compliance
Financial Assistance to States for Capital investment
The scheme for Financial Assistance to States for Capital investment. For 2022-23, the allocation is 1 lakh crore to assist States. This will be for PM Gati Shakti and PM Gram Sadak Yojana, Digital schemes etc.
Digital Rupee to be issued by the RBI
"Introduction of a central bank digital currency will give boost to digital economy," leading to cheaper currency management system, Ms. Sitharaman says.
Blockchain and other technologies will be used by RBI to issue the same from 2022.
Data centres, and energy storage systems will be included in the harmonised list of infrastructure.
Outlay for capital expenditure stepped up by 35.4% to 7.50 lakh crores in 2022-23
This outlay will be 2.95 of the GDP.
Self Reliance in Defence
68% capital procurement budget earmarked for domestic procurement
Defence R&D will be opened up for start ups, private industry and academia. Independent nodal body to be set up.
AI, geo-spatial systems, drones, space economy, Pharma. has immense potential for sustainable development
SEZ Act to be replaced
Special Economic Zone Act will be replaced with new legislation enabling State to become partners. This will cover all large industrial enclaves.
Telecom development in Rural Areas
5% annual collection of service obligation fund will be allocated for rural telecom and broadband development
Contracts for laying optical fibres will be awarded under Bharatnet through PPP. The scheme will be completed in 2025
Spectrum auction will be conducted in 2022 for 5G rollout, Ms. Sitharaman informs.
"What about BSNL" asks opposition.
AVGC taskforce to be set up
Animation, Visual Effects, Gaming and Comic offers immense potential to employ Youth.
Accelerated corporate exit will be facilitated. from 2 years, it will be reduced to 6 months
75% bills are settled within 10 days. e-bill system will be launched for use by all central govt agencies.
System will enable contractors to submit digitally signed bills.
FM proposes battery swapping policy and inter operability standards will be formulated.
This will improve efficiency for Electric Vehicle
Need to nurture mega-cities while also focusing on Tier 2 and Tier 3 cities.
For Urban capacity building, support will be provided to States.
For developing India-specific knowledge, 5 academic institutions will be designated as Centres of Excellence.
Promote of shift to public transport in urban areas.
Minimum Government, Maximum Governance
Over 25,000 compliances reduced, and nearly 1500 union laws were repealed. "Our trust in Public and ease of Doing Business is what is highlighted here," Ms. Sitharaman says, speaking on "Trust-based governance"
Parivesh - single window portal for all green clearances was launched in 2018. The scope of this portal will be expanded.
e-Passports to be rolled out in 2022-23. It will have an embedded chip, to enhance convenience for travellers.
Post Office to come under Core Banking Systems
100% of 1.5 lakh Post Offices will come on Core banking systems. "This will be helpful for farmers and senior citizens in rural areas," Ms. Sitharaman says.
Govt is continuously encouraging digital banking and fintech. Taking forward this agenda, We propose to set up 75 banking units in 75 districts.
Aspirational Districts Programme
95% of 112 districts have made significant progress, surpassing even some of the State Average values. In 2022-23 programme will focus on lagging blocks.
Vibrant villages programme for border villages. Road connectivity, and support for livelihood generation are included as part of this programme.
PM Development Initiative Scheme for North East
PM Development Inititiative Scheme for North East to be launched. It will fund infrastructure in spirit of PM Gati Shakti This will enable livlihood activities for youth and children
This is in addition to the existing schemes, she says.
Saksham Anganwadis are new generation anganwadis powered by clean energy. 2 lakh anganwadis will be upgraded.
National Mental Health Tele-programme
"Pandemic has accentuated mental health problems," she says informing launch of National Mental Health Tele-programme with NIMHANS being Nodal centre
Digital University will be established for world- class education. "This will be made in different Indian languages," she says, adding that this will be based on networked hub model.
A new portal will be launched for skilling, she says.
She speaks on education divide among under privileged children, who have lost out for 2 years.
"One Class, One TV channel" will be expanded from 12 to 200 TV Channels. "This is help states to provide supplementary education in all regional languages," she says.
River Linking projects
"Aimed at providing irrigation benefit to 9.0 lakh hectare of farmer land," the Ken-Betwa link project will be taken up.
Draft DPR for 5 river links have been finalised, she informs the House, adding that the Centre will provide support for their implementations
Procurement of Wheat and Rabbi 2021-22, will cover 1208 lakh metric tonnes of wheat and paddy from 163 lakh farmers.
Chemical free farming to be promoted across the country.
Ms. Sitharaman announces support for post-harvest value addition for millet products, as 2022 will be Year of Millet.
Use of Kisan drones will be promoted for crop assessments, spraying of insecticides.
"Aim is to improve connectivity," Ms. Sitharaman says informing plans for ecologically sustainable roads in hilly areas.
PM Gati Shakti
PM Gati Shakti has 7 engines and will pull economy in unison.
It will also include infrastructure development by States. Touchstone of masterplan will be world class modern infrastructure, Ms. Sitharaman says.
National Highways network to be expanded by 25,000 kms in 2022-23.
400 new generation Vande Bharat trains will be developed and manufactured in next 3 years, she informs the House.
"One Station One Product" concept to be popularised.
Metro systems, muti-model connectivity will be facilitated on priority, and 100 Gati Shakti cargo terminals in the next 3 years.
Four Priorities for the government
- PM Gati Shakti
- Inclusive Development
- Energy transition and climate action
- Financing of Investments
Lok Sabha convenes for the Budget session
Lok Sabha assembles. Lok Sabha Speaker Om Birla is in the Chair.
Nirmala Sitharaman starts the Budget by extending her empathy for those who suffered due to COVID-19.
Ms. Sitharaman lists out goals for the government in light of the Amrit Mahotsav.
"Since 2014, our focus has been empowerment of citizens." She lists welfare programmes for cooking gas, electrification, drinking water, DBT etc.
"It continues to build on the vision of Budget of 2021-22," Ms. Sitharaman says.
Transfer of ownership of Air India has been completed, and Public issue for LIC will take place shortly, Ms. Sitharaman informs the House, as members start sloganeering.
Strengthening of health infrastructure, vaccination programme, productivity linked incentive has generated 60 lakh new jobs, she says.
Congress demands relief for middle class
Ahead of budget presentation, Congress took to Twitter demanding relief to salaried and middle class
It’s also time for us to learn and ready ourselves for a long speech. And a part of this long speech involves terms that aren’t used in daily conversation. Here is a ready reckoner for some of these terms.
Chaired by Prime Minister Narendra Modi, the Cabinet meeting held to approve the Budget has concluded.
Cabinet has approved the Budget, following which the Union Finance Minister will present the same in Parliament shortly.
Sensex, Nifty open higher ahead of Budget presentation
Sensex surged over 600 points and Nifty advanced 159 points in opening trade on February 1, ahead of the Union Budget 2022-23 presentation in Parliament.
The 30-share Sensex was trading 603.39 points or 1.04% higher at 58,617.56, and the broader Nifty rose 159.25 points or 0.92% to 17,499.10.
Union Finance Minister, Nirmala Sitharaman, arrives at her North Block office, ahead of Budget 2022 presentation in the Parliament today.
Experts want Centre to set aside ‘green expenditure’ funds
Ahead of the upcoming Union Budget, environmental experts on January 31 called for Budgetary allocation under “green expenditure” to show that India is serious about meeting the enhanced targets announced by Prime Minister Narendra Modi at Conference of the Parties 26 in Glasgow.
They also said that India’s climate targets will require an investment of about $35 million in energy storage in this decade alone. The Budget for the fiscal year commencing April 1, 2022, will be presented on Tuesday by Finance Minister Nirmala Sitharaman.
India Inc. seek Budget sops from govt. for creating jobs
Ahead of the Union Budget 2022-23, Indian industry has urged the government to offer incentives for creating jobs, including special sops under the Production Linked Incentive (PLI) schemes already announced.
The plea assumes significance amid growing concerns about high unemployment levels in the country, even as a FICCI survey of manufacturing firms showed that 75% of firms don’t plan to hire in this quarter despite a marked increase in business volumes and orders in the October to December 2021 quarter.