Union Budget 2022: Here are the key takeaways

The Finance Minister of India, Mrs Nirmala Sitharaman delivered a paperless budget 2022 and read her speech from a tablet. She began her Union budget 2022 speech by remembering those who suffered during the COVID -19 pandemic. The focus of the budget was providing opportunities to businesses, creating new job employment opportunities, agriculture, healthcare, MSMEs and a greater boost to infrastructure creation.

Indian Finance Minister Mrs Nirmala Sitharaman presented her fourth Union Budget today and her budget speech began with ‘Amrit Kal’ – the next 25 years from India at 75 to 100.

Here are the major announcements and takeaways of the Union Budget 2022-23

• No Change in Income tax Slabs: – There is no change in the present Income Tax slabs and the income tax exemption limit remains same as INR 2.5Lakhs. However, to provide the opportunity to correct errors 2 years provision for submitting updated IT returns.

• Virtual Digital Assets: – Income from transfer of any virtual digital asset (for e.g cryptocurrency, NFTs) shall be taxed at the rate of 30%. TDS of 1 percent on payment made for transfer

• Digital Rupee/Currency: – It is proposed to introduce a digital rupee using blockchain and other technology to be issued by RBI starting 2022 and 2023.

• Defense: – To provide boost to domestic defense production and to promote atmanirbharta (self-reliance), and reduce dependence on imports, around 68% of capital procurement budget to be earmarked for domestic Defense industry. The private players in domestic defense industry to be encouraged to manufacture in collaboration with DRDO. Defense R&D to be opened for startups, institutes and academic outlets.

• Infrastructure via PM Gati Shakti: – Big private investment in infrastructure would be guided by 100 Lakh-crore PM Gati Shakti Master Plan, said FM. 400 new-generations Vande Bharat trains to be built over the next three years. National Highways will be extended by 25,000 km with Rs 20,000 crore outlays, 2,000 km of the rail network under KAWACH plan. 100 new Rail Cargo Terminals to be developed.

• Housing:– The FM announces Rs 48,000 crore to be allotted for PM Awas Yojana and 60,000 houses will be identified as beneficiaries in rural and urban areas. In 2022-23, 80 lakh households will be identified for the affordable housing scheme.

• Digital E-passports: – New E-passports with embedded chips will be issued by 2023. These e-passports with futuristic technology will enhance the experience for citizens.

• Roll out of 5G mobile services:– The auction of 5G telecom spectrum will be conducted to roll out 5G mobile services within 2022-23 by private telecom players.

• National Mental Health program:– The FM said that the COVID -19 pandemic has brought mental health problems in people of all ages. For better access to quality mental health counseling and care services, a National Tele Mental Health program will be launched, said the finance minister.

• Post Office Banking: – Around 1.5 lakh post offices to be connected leading to 100 percent of post offices to come under core banking system, which will allow online transfer between post offices and bank accounts.

• Battery Swapping Policy: FM Sitharaman also announced setting electric vehicle (EV) sharing stations during her budget presentation. She also said that the private sector would be encouraged to develop sustainable business models for the battery as a service and battery swapping policy.

• LTCG: – Surcharge on long-term capital gains to be capped at 15%.

• Digital Education: – FM announced that “One Class, One TV Channel” program of PM eVIDYA will be expanded from 12 to 200 TV channels. This will enable all the states to provide education in their regional languages for classes 1 to 12. Creation of Digital University is also announced.

• GST: – FM announced Fully IT-driven and progressive GST regime. Gross GST collection for January is 1.46 Lakh crore which is the highest since GST was launched.

The Writer is a Columnist and Finance Professional. He has keen interests in International Affairs, Politics, Economy and Law.