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Budget 2022 Highlights – Key Takeaways, Important Points
Union Budget “2022-23 will lay the foundation for economic growth through public investment, as Asia’s third-largest economy rises from a pandemic-induced slump”-Said Indian Finance Minister Nirmala Sitharaman.
On that note, Famed Business Astrologer and Astro-Strategist Hirav Shah lists down key highlights of 2022’s budget.
Key Highlights Of Budget 2022 :
1.Digital Currency:
a.Starting 2022/23, using blockchain technology to launch digital rupee.
b. Scheme for virtual digital assets’ taxation to be launched.
c. Against other income, losses from sale of virtual digital assets can’t be offset.
d.30% tax and 1% TDS on Virtual Digital Assets.
2. Defense:
a.Reducing defense imports have been committed by the Government.
3. Infrastructure:
a. In 2022, 5G spectrum auctions to be conducted.
b. 5G’s design-led manufacturing scheme will be part of the production-linked scheme.
c. In rural areas, to award contracts to lay optical fiber- completion in 2025
d. For affordable housing, 480 billion rupees are set aside.
e. 195 billion rupees for production-linked incentives towards solar equipment manufacturing, to be allocated in addition.
4. Agriculture:
a. To reduce dependence on oilseed imports, a domestic scheme was introduced.
b. To finance agriculture startups, funds with blended capital raised under co-investment model.
c. Railways to develop infrastructure for small farmers.
5.Deficit / Expenditure:
a.By 2025/26, projects fiscal deficit of 4.5% of GDP.
b. By 2022/23, proposes a fiscal deficit of 6.4% of GDP.
c. For 2021/22, revised fiscal deficit at 6.9% of GDP.
d. In 2022/23, total expenditure seen at 39.45 trillion rupees.
e.Allocated to states are, 50 year interest free loans over and above normal borrowing.
f.In 2022/23, scheme for financial assistance to states for capital investment outlay to be 1 trillion rupees.
g. In FY23, states will be allowed a 4% fiscal deficit to GDP
6.Finance:
a.For small and medium sized businesses, emergency credit line guarantee scheme to be extended to March 2023
b. A major government priority will be energy transition and climate action.
c. Life Insurance Corporation’s public issue
expected shortly.
d.Initiatives from 2021’s budget have been provided adequate allocations.
e. With new legislation, special economic zones act to be replaced.
f. Bankruptcy code to be amended to speed up the resolution process.
g. From 2 years currently to 6 months, aims to lower winding up of companies.
h. At 15 %, long term capital gain surcharge to be capped.
7.Transport:
a. Over the next three years, 400 energy efficient trains to be manufactured.
b. In 2022/23, the national highways network to be expanded by 25,000km.
c.In 2022/23, highways expansion to cost 200 billion rupees.
d. India budget: to bring out a policy of battery swapping.
8.Taxation:
a.On certain chemicals, import duty is being reduced.
b.For another year for small-and medium-sized businesses, customs duty exemption on steel scrap to be extended.
c. To be revoked will be customs duty on stainless steel, flat products, high steel bars.
d. From October 2022, unblended fuel to get additional duty of 2 rupees per liter.
Final Word:
“The overall sharp rebound and recovery of the economy is reflective of India’s strong resilience and in such a positive scenario, the budget that is being presented looks like a growth aka progressive budget, favorable for the growth oriented sector. In other words, the budget stresses more on the long-term drivers of growth than on the short-term consumption support measures“-Opines Hirav Shah, Renowned Astro-Strategist and Business Astrologer.
“Lastly, the budget may look conservative on estimating taxes, but we will get better results in months to come“- Concludes Hirav Shah.
