Highlights of Budget 2022-23:

DEFICIT/EXPENDITURE

* Proposes fiscal deficit of 4.5% of GDP by 2025/26

* Projects fiscal deficit of 6.4% of GDP in 2022/23

* Revised fiscal deficit for 2021/22 at 6.9% of GDP

* Total expenditure in 2022/23 seen at 39.45 trillion rupees.

* States will be allowed 4% fiscal deficit to GDP in FY23

* 50 year interest free loans over and above normal borrowing allocated to states

* Scheme for financial assistance to states for capital investment outlay to be 1 trillion rupees in 2022/23

TAXATION

* Import duty on certain chemicals are being reduced

* Customs duty exemption on steel scrap to be extended for another year for small- and medium-sized businesses

* Customs duty on stainless steel, flat products, high steel bars to be revoked

* Unblended fuel to get additional duty of 2 rupees per litre from October 2022

FINANCE

* Emergency credit line guarantee scheme for small and medium sized businesses to be extended to March 2023

* Energy transition and climate action will be a major government priority

* Public issue of Life Insurance Corporation expected shortly

* Initiatives from last year's budget have been provided adequate allocations in this budget

* Special Economic Zones Act to be replaced with new legislation

* To amend bankruptcy code to speed up resolution process

* Aims to lower winding up of companies to 6 months from 2 years currently

* Long term capital gain surcharge to be capped at 15%

Other Highlights:

– Public issue of Life Insurance Corporation expected shortly: FM

– Union Budget seeks to lay foundation & give blueprint of economy over ‘Amrit Kal’ of next 25 years – from India at 75 to India at 100

– Budget to focus on 4 pillars – productivity, climate action, financing investments and PM Gati Shakti plan

– 400 new generation Vande Bharat trains with better efficiency to be brought in and 100 PM Gati Shakti Cargo terminals to be developed during next 3 years

– ECLGS to be extended till March 2023. The guaranteed cover will be expanded by Rs 50,000 crores to total cover of Rs 5 lakh crores to aid MSME sector financing needs

– Draft DPRs for 5 river links Damanganga-Pinjal, Par- Tapi-Narmada, Godavari-Krishna, Krishna-Pennar & Pennar-Kaveri have been finalized. Once consensus is reached among beneficiary states, centre will provide support for implementation

– 5G spectrum auction to be conducted in 2022 for rollout of 5G telecom services by private players in FY 2022-23

– To facilitate domestic manufacturing for ambitious goal of 280 GW of installed solar capacity by 2030, additional allocation of Rs 19,500 cr for PLI for manufacturing of high-efficiency modules with priority to fully integrate manufacturing units to solar PV modules will be made

– Digital rupee to be issued using blockchain and other technologies; to be issued by RBI starting 2022-23. This will give a big boost to the economy

– Income tax relief to cooperative societies with reduction in rate of surcharge from 12% to 7% for income up to Rs 10 crores

– Taxpayers can now file an updated return within 2 years from the relevant assessment year

– Income from virtual digital assets brought under tax net. Gaines taxable at 30% without any deduction except cost of acquisition

– Both Centre and States govt employees’ tax deduction limit to be increased from 10% to 14% to help the social security benefits of state govt employees and bring them at par with the Central govt employees

– Capital expenditure outlay being stepped up sharply by 35.4% from Rs 5.54 lakh crore in CY to Rs 7.50 lakh crore in 2022-23. Outlay in 2022-23 will be 2.9% of the GDP

Read Key Features of Budget 2022-23



(Source- Livemint, Financial Express and Ministry of Finance, Govt of India.)