Union Finance Minister Nirmala Sitharaman presented the Union Budget 2022 on February 1. She said that the Budget proposals for this financial year rest on health and well-being, infrastructure, inclusive development, energy transition and climate action, financing of investments and 'Minimum Government, Maximum Governance'. 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.
Significant announcements include digital currency, e-passports and a slew of infrastructure projects. Edible oil, wearable electronics, imitation jewellery, polished diamond are to be cheaper. Fiscal deficit is 6.9% of GDP. Tax relief announced to persons with disabilities. No change in personal income tax rates.
Here are the highlights of the Budget in a glance:
PM Gati Shakti National Master Plan at a cost of ₹20,000 crore
National Highways network to be expanded by 25,000 kms in 2022-23.
National Master Plan on Expressways will be formulated in 2022-23
400 new generation Vande Bharat trains to be manufactured in next 3 years.
60 km of ropeway projects under the Parvat Mala project
Metro systems, muti-model connectivity
100 Gati Shakti cargo terminals in the next 3 years.
Procurement of wheat, paddy, kharif and rabi crops, benefiting over 1 crore farmers.
NABARD to facilitate fund with blended capital to finance startups for agriculture & rural enterprise.
₹2.37 lakh crore towards direct payments for minimum support price.
Chemical-free, natural farming to be promoted across the country.
2022 to be Year of Millet - support for post-harvest value addition for millet products
Using Kisan drones for crop assessment and spraying of pesticides
Ken-Betwa river linking project at a cost of Rs 44,000 crore, to benefit 9.0 lakh hectare of farmer land
Digital University will be established, and to be made in different Indian languages, based on networked hub model.
One Class, One TV channel will be expanded from 12 to 200 TV Channels to provide supplementary education in all regional languages, to make up for loss of formal education due to Covid.
68% capital procurement budget earmarked for domestic procurement.
Defence R&D to be opened up for start ups, private industry and academia. 25% of R&D budget to be set aside for this.
Private industry will be encouraged to take up design and development of military platforms and equipment.
Developments on the digital front
RBI to introduce ‘digital rupee’ using blockchain technology in 2022-23.
Virtual digital assets to be taxed at 30%.
Gift of virtual assets will be taxed at the receiver's end.
75 digital banking units to be set up across 75 districts.
Tax, economy and finance
Green bonds will be issued for upping green infrastructure.
Fiscal deficit is 6.9% of GDP.
Taxpayers can file within 2 years an updated return if there is any anomaly in their filing.
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.
Tax relief to persons with disabilities.
Tax deduction limit for NPS account of state govt employees to 14%.
Virtual digital assets will be brought under tax regime.
Long term capital gains surcharge will be capped at 15%.
Custom duty on cut and polished diamond reduced to 5%.
Custom duty on imitation duty slashed.
Duty on Sodium cyanide increased.
Duty on umbrellas raised to 20%.
Steel scrap duty extended for another year.
Anti-dumping on stainless steel is being revoked.
Duty reduced on shrimp aquaculture.
Health and Sanitation
National Digital Health Ecosystem to be rolled out.
National Tele Mental Health program to be set up to focus on mental health.
23 tele mental health centres of excellence.
Integrated benefits to women and children through Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0.
Rs. 60,000 crore allocated to cover 3.8 crore households in 2022-23 under Har Ghar, Nal se Jal.