India’s economic growth in current year is estimated to be 9.2%, highest among all the large economies.
Budget 2022 seeks to lay the foundation to steer the economy over Amrit Kaal of next 25 years, from India at 75 to India at 100, continuing to build on the vision of Budget 2021
Strategic transfer of ownership of Air India has been completed. LIC IPO soon.
PLI schemes in 14 sectors with potential to create 60 lakh new jobs, and additional new production of Rs 30 lakh crore.
PM Gati Shakti masterplan for expressways will be formulated in next financial year.
The National Highway network will be expanded by 25,000 kms in 2022-23.
Four multi-modal national parks contracts will be awarded in FY23.
400 new-generation Vande Bharat trains will be developed and manufactured in next 3 years under Gati Shakti plan.
India plans 100 cargo terminals in next 3 years.
ECLGS has been extended upto March 2023, guaranteed cover extended by another Rs 50,000 crore.
Total cover under scheme now Rs 5 lakh crore.
Additional amount has been earmarked for hospitality sector.
Chemical-free natural farming to be promoted in India.
Use of Kisan drones to be promoted for crop assessment, digitization of land records, spraying of insect pesticides.
Rs 2.37 lakh crore worth of MSP direct payments to wheat and paddy farmers.
For small enterprises
MSMEs such as Udyam, e-shram, NCS & Aseem portals will be inter-linked, widening the scope.
A fund with blended capital raised under co-investment model facilitated through NABARD to finance startups in agriculture & rural enterprises for farm produce value chain.
100% of 1.5 lakh post offices will come under the core banking system, enabling financial inclusion and access to accounts through net banking, mobile banking, ATMs, and also provide online transfer of funds between post office accounts and bank accounts.
A push for EVs
Battery-swapping policy to be introduced with interoperability standards to boost EV ecosystem.
Auction for 5G spectrum will be conducted in 2022 for the rollout of 5G mobile services by private telecom providers.
Scheme for design led manufacturing to be launched for 5G ecosystem as part of PLI scheme to enable affordable broadband and mobile communication in rural and remote areas.
Defense R&D will be opened up for industry, startups and academia with 25% of defense R&D budget.
68% of capital procurement budget in defence will be earmarked for domestic industry in 2022-23 (up from the 58% last fiscal)
India to launch sovereign green bonds
Sovereign green bonds will be part of government’s borrowing programme in FY23.
Funds will be used for projects that will help reduce carbon intensity of the economy.
Capital expenditure is being stepped up to Rs 7.5 lakh crore.
FY23 capex seen at 2.9% of GDP
FY23 effective capex seen at Rs 10.7 lakh crore.
RBI will be launching Digital Rupee, using blockchain technology in 2023.
Fiscal Deficit target set at 6.4% for FY23
FY23 total expenditure seen at Rs 39.45 lakh crore.
Total Receipts other than borrowing seen at Rs 22.84 lakh crore.
Alternate Minimum Tax for cooperative societies to be cut to 15%.
Proposal will reduce surcharge on cooperative societies to 7%, for those whose income is between Rs 1 crore and Rs 10 crore.
Announcements for taxpayers
Taxpayers can file updated return on payment of taxes within two years from the end of relevant assessment year.
30% tax on proceeds of virtual/digital assets with no deductions other than cost of acquisition
No set off permitted against other income.
1% TDS to be levied on payments made on transfer of digital assets.
GST collections for the month of January 2022 are at ₹1,40,986 cr which is the highest since the inception of GST.