Union Budget 2022-23 Key Highlights

Union Budget 2022-23 Key Highlights

Nirmala Sitharaman announced all the budget allocations for various developmental projects and emphasized the growth of the economy on a case-to-case basis. She explored all the sectors of the economy and tried fulfilling the long-awaited aspirations.

The Budget was announced in two parts of which the first part gave an overview of the development portfolio with a focus on inclusive development and other announcements to enhance the productivity of the economy.

The second part contained a more individual-centric approach and declared provisions for the individuals, entrepreneurs, and enterprises operating in the economy.

Sector-specific announcements were also made to provide overall development in all phases of development.

Take a glimpse at the key takeaways of the Union Budget 2022-23

Focus laid on  4 pillars

        • Productivity
        • Climate action
        • Financing investments
        • PM Gati Shakti plan.
  • Develop blueprint over Amrit Kal (India at 75 to India at 100)
  • Inclusion of 400 new Vande Bharata train and development of 100 new PM Gati shakti Cargo terminals during the next 3 years
  • ECGLS cover extended to 5 lakh crore till March 2023
  • Introduction of the digital rupee by RBI starting from 202-23
  • Proposal for implementation of Damanganga-Pinjal, Par- Tapi-Narmada, Godavari-Krishna, Krishna-Pennar & Pennar-Kaveri river links.
  • 5G telecom auction to be conducted in FY 2022-23.
  • Installation of 280 GW solar capacity by 2030.
  • Issue of digital coin by RBI in 2022-23.
  • Alternate Minimum Tax paid by cooperatives reduced to 15% and surcharge on an income of more than 1 crore up to 10 crores reduced to 7 %
  • 8 ropeway projects covering a total length of 60 km under the National Ropeway development program
  • Finance for agricultural start-ups through NABARD
  • Surcharge or cess on income and profits shall not be treated as business expenditure.
  • Application of Kisan Drones to help in crop assessment, digitize land records and spray insecticides and nutrients               

MSME and Skill Development

  • Udyam e-shram , NCS, and ASEEM portals interlinked together
  • Launch of DESH stack e- portal for digitized skill development.
  • Extension of Emergency credit-linked Guarantee scheme ( ECLGS) till March 2023.

Public Capital Investment

  • 35.4% rise in capital expenditure in the current year.
  • An expected outlay of 2.9% in 2022-23
  • Estimated effective capital expenditure of INR 10.68 lakh crore ( 4.1% of GDP) in the Union Budget 2022-23.

Fiscal space to states

  • A revised estimate of 15000 crores for the current year
  • Allocation of Rs 1 lakh crore (2022-23)
  • Interest-free loan for 50 years
  • In 2022-23, States can attain a fiscal deficit of 4% of GSDP out of which 0.5% will be tied to power sector reform

Fiscal Management

  • Budget estimate Rs 34.83 lakh crore (2021-22)
  • Revised estimate Rs 37.70 lakh crore (2021-22)
  • Total expenditure Rs 39.45 lakh crore (2022-23)
  • Total receipts (other than borrowings) Rs 22.84 lakh crore (2022-23)
  • Fiscal deficit (current year) 6.9% of GDP
  • Fiscal Deficit (2022-23) 6.44% of GDP

Direct Taxes

 The tax slab of 2021-22 has been repeated for 2022-23 without any format changes.

A new provision to file an updated return has been introduced. Now you can declare the income which missed out in the previous ITR. You can file the updated ITR within 2 years from the end of the relevant assessment year.

Tax relief ( differently-abled persons)

The dependants of differently-abled can now get Annuity and lumpsum amount of insurance during the lifetime of parents/ guardians attaining the age of 60.

National Pension Scheme contribution in Union Budget 2022-23

Rise in tax deduction limit to the NPS account of State Government employees from 10 % to 14 % on employer contribution.

Startups

Period of incorporation for eligible start-ups extended by one year (up to 31st March 2023)

Eligible start startups can avail of tax benefit

Virtual digital assets

Introduction of specific tax regime

A tax levy of 30% on transfer of any virtual digital asset

No deduction shall be made except the cost of acquisition while calculating such income

Any loss incurred in these transactions shall not be adjusted against any other income

Surcharge

Surcharge on AOPs has been capped at 15%.

Reduces disparity between individual companies and AOPs

Indirect taxes

  • Application of IT in the administration of SEZ and the other functions to be implemented from 30 Sept 2022
  • Set up of agile faceless custom arrangements.
  • Application of 7.5% tariff to help in the growth of domestic market under ‘Make in India’ initiative.
  • Exemptions on machines not manufactured in India to remain in effect.

Sector-specific proposals in Union Budget 2022-23

Electronics

  • Calibrate custom duty rates to facilitate domestic manufacturing of electronic smart meters, wearable, and hearable devices.
  • Duty concession on other parts and items to enhance local manufacturing.

Gems and Jewellery

  • Custom duty reduces to 5% (for cut and polished diamonds)
  • Implementation of a simplified regulatory framework to facilitate the e-commerce sector ( export of jewelery)

MSME

  • Rise in the customs duty of umbrella to 20%. Other exemptions stand withdrawn.
  • Exemptions are retained on tools of the Agri sector that are manufactured in India.

 Exports

  • Exemptions provided on trimming, fasteners, buttons, lining material, etc to incentivize exports
  • Duty reduced on shrimp aquaculture to help in its promotion.

Blended fuel

Additional differential charged in form of excise duty of Rs. 2 / liters from 1 Oct 2022 to encourage the use of blended fuel.

Read Also

What is a ‘zero-sum budget’?
Union Budget 2022-23 updates on ‘virtual digital asset
Union Budget 2022-23 updates on the Agricultural sector
Union Budget 2022-23 Updates on Education and Health Sector
Union Budget 2022-23 updates on Industry and Commerce
Union Budget 2022-23 update on Direct Taxation
Union Budget 2022-23 Update on Startups
Union Budget 2022-23 updates on MSMEs
Union Budget 2022-23 updates on Banking and Finance

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