Here are the highlights for the Union Budget, 2022. Overall, there seem to be some good development plans to incorporate digital and other technology in the various sectors.
For a printable version click here.
Economy
·
Fiscal deficit
for FY22 is revised to 6.9% from 6.8% as per the earlier budgeted estimates
(BE)
·
FY23 BE of
fiscal deficit is pegged at 6.4%
·
Capital
expenditure expected to be INR 7.5 trillion in FY23 up from INR 6.03 trillion
in FY22 revised estimates
·
Total
expenditure in FY23 seen at INR 39.45 trillion
·
Total receipts
in FY23 seen at INR 22.84 trillion
Taxation
·
No change in Income
Tax slabs
· A new provision
to allow taxpayers to file an updated return. Updated return can be filed
within 2 years from the end of the relevant assessment year
· Long term
capital gains on listed equity share units subject to a maximum surcharge of 15%
·
Income from
transfer of digital assets to be taxed at 30%
·
Propose to
increase tax deduction limit to 14% on employers’ contribution to NPS account
of state government employees
·
Alternate
minimum tax to be reduced to 15% for cooperative societies
·
Custom duty
exemption on steel scrap is being extended by a year to help MSME
·
Custom duty
imitation jewellery raised to discourage their imports
·
Custom duty on
methanol to be reduced
·
Concessional
customs duty on capital goods to be phased out, initial rate of 7.5% to be
imposed
·
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
·
More than 350
exemptions on some agri products, chemicals, drugs, etc. to be phased out
Real Estate
·
In FY23, 80 lakh
houses will be completed for the identified eligible beneficiaries of PM Awas
Yojana, both rural and urban and Rs. 48,000 cr. has been allocated for the same.
Infrastructure
·
Outlay for
capital expenditure increased 24% YoY to Rs. 7.5 lakh crore in FY23E
·
Allocation under
Jal Jeevan Mission Rs. 60,000 cr were made to cover remaining 3.8 crore
households
·
PM Gati Shakti
Master Plan for Expressways will be formulated in FY23E to facilitate faster
movement of people and goods
·
The National Highways
network will be expanded by 25,000 km in FY23
·
Implementation
of the Ken-Betwa River Link Project, at an estimated cost of Rs. 44,605 cr will
be taken up. Allocations of Rs1,400 crore in FY23E have been made for this
project
BFSI
·
Extension of
ECLGS Scheme till March 2023 and amount is increased by INR 50,000 cr to INR
5,00,000 cr. covering both Banks and NBFCs
·
proposed that
Schedule Commercial Banks will set up 75 digital centres in 75 districts
·
Increased
allocation under PMAY for affordable housing to INR 48000 cr is beneficial for
home loan providers
·
RBI will issue
digital currency using block chain technology
Telecom
·
Telecom - Govt
expects non-Tax revenues of Rs. 52,806 Cr in FY23 vs Rs. 71,959 Cr in FY22 RE
·
5G Spectrum
auction to be conducted in 2022
·
Scheme for
design led manufacturing to be launched for 5G ecosystem through PLI to enable
affordable broadband and mobile connectivity in rural/mountain areas
·
Fibre
connectivity contracts for all villages will be awarded in FY2022-23 with a
completion target by 2025
·
5% of USO
(Universal Service Obligation) fund will be allocated for speedier rollout in
rural and geographically difficult areas
IT
·
Special economic
zone policy to be replaced with a new legislation
Defence
·
Defence R&D
will be opened for industry, start-ups and academia with 25% of defence R&D
budget allocated to it
·
Private industry
will be encouraged to take up the design & development of defence platforms
and equipment along with DRDO through SPV model
·
68% of capital budget
for procurement in defence will be for domestic procurement in 2022-23 (vs 58%
last fiscal)
Chemicals
·
Custom duty on
methanol is reduced to 2.5% and acetic acid is reduced to 5%
·
Custom duty on
heavy feedstock for petroleum is also reduced
·
Sodium cyanide
duty is increased to 10% due to adequate domestic supply
·
More than 350
duty exemptions on some agri products, chemicals, drugs, etc to be phased out.
Logistics
·
Gati Shakti
Master Plan formulation will provide clarity on development of multi-modal
logistic parks in the country
·
100 new cargo
terminals and 400 Vande Bharat trains to be rolled out in the next three years.
Building Materials
·
Current coverage
of Har Ghar, Nal Se Jal is 8.7 crores. Of this 5.5 crore households were
provided tap water in last 2 years itself. Allocation of INR 60,000 crore has
been made with an aim to cover 3.8 crore households in 2022-23. This is
positive for Pipe companies
·
Increased
allocation under PMAY is positive for Building materials companies.
Auto
·
No reduction in
custom duty
·
A
battery-swapping policy to be brought out with interoperability standards to
boost EV ecosystem
·
FM announced
voluntary vehicle scrapping policy, to phase out old and unfit vehicles.
Details of the scheme will be separately shared by the Ministry
·
Push on Ethanol
blending: Additional basic excise duty of Rs 2 per litre on unblended petrol
from Oct 2022.
Power
·
Focus on clean
energy. Battery storage and Grid integration will be granted infra status
·
New PLI scheme
of INR 19,500 cr for High Efficiency solar modules
·
Introduction of
Coal Gasification Policy and use of bio pellets in thermal power plants.
Cement
·
Highway
expansion by 25,000 km in FY23 and 48,000cr allocation for PMAY to augur well
for cement demand.
Metals
·
Exemption of
custom duty on steel scrap is extended (it was 2.5% two years back)
Agriculture and food processing
·
Promoting
chemical free natural farming starting with farmers’ lands close to river Ganga
·
Promoting post-harvest
value addition, consumption and branding of millet products
·
Delivery of
Digital and Hi-Tech services to farmers in PPP mode
·
Use of Kisan
Drones to aid farmers
·
Launching fund
with blended capital to finance agriculture start ups
·
Implementation
of Ken Betwa Link Project benefitting 9.1 lakh hectare farm land, providing
drinking water to 62 lakh people and generating 130MW power
·
5 more such
projects under process of implementation
Education
Universalisation of Quality Education
·
One class One TV
channel programme to be expanded to 200 TV channels
·
Virtual labs and
skilling e-labs to promote critical thinking skills and stimulated learning
environment
·
A Digital
University will be established with world class quality universal education
·
High quality
e-content will be delivered through Digital Teachers
Skill Development
·
Digital
Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to
promote online training
·
Start-ups will
be promoted to facilitate Drone Shakti for Drone-As-A-Service
Health
·
National Digital
Health Ecosystem will be rolled outa
·
National Tele
Mental Health Programme will be launched for quality counselling
·
Integrated
architecture: Mission Shakti, Mission Vatsalya, Saksham Anganwadi, and Poshan
2.0 to be launched
·
Two lakh
Anganwadis to be upgraded to Saksham Anganwadis
·
Concessional
customs duty on few of the drugs will be phased out
Productivity Enhancement And Investment
·
Expanding scope
of PARIVESH Portal
·
Issuance of chip
embedded ePassports
·
Modernisation of
building byelaws, implementing Town Planning Schemes and Transit Oriented
Development
·
Providing a
battery swapping policy as an alternative to setting up charging stations in
urban areas
·
Introduction of
Digital Rupee by RBI starting 2022-23
Warm regards,
Mota Investments
Turn Your Investments into
Wealth
https://motainvestments.blogspot.com/
Mobile No. +91-7738003894
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