Budget 2023 Live Updates

Budget 2022 Highlights

The Budget 2022 goals or goals of Amrit Kaal are

1. Focus on growth and all inclusive welfare.
2. Promoting technology enabled development, energy transition and climate action.
3. Virtuous cycle starting from private investment, crowded in by public capital investment

Also, the Budget 2022 focuses on four priorities namely:

• PM GatiShakti
• Inclusive Development
• Productivity Enhancement and Investment, Surise Opportunities, Energy Transition and Climate Action.
• Financing of Investments.

The Indian economy is staging a sustained recovery which is reflective of the country’s resilience.

PM GatiShakti

• Driven by seven engines: Roads, Railways,Airports, Ports, Mass Transport, Waterways,and Logistics Infrastructure.
• National Master Plan aimed at world class modern infrastructure and logistics synergy.
• Formulation of Master Plan for expressways. Completing 25000 km national highways in 2022-23.
• Unified Logistics Interface Platform allowing data exchange among all mode operators.
• Open Source Mobility Stack for seamless travel of passengers.
• 4 Multimodal Logistics parks through PPP to be awarded in 2022-23.
• Integration of Postal and Railways Network facilitating parcel movement.
• One Station One Product.
• Extending coverage under Kavach.
• 400 new generation Vande Bharat Trains.
• Multimodal connectivity between mass urban transport and railway stations.
• National Ropeways Development Plan as sustainable alternative to conventional roads.
• Capacity building for infrastructure Projects.

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

• 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.
• Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to promote online training.
• Startups will be promoted to facilitate Drone Shakti for Drone-As-A-Service.

Health

• National Digital Health Ecosystem will be rolled out.
• 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.

All Inclusive Welfare Focus

• Har Ghar, Nal Se Jal: 3.8 crore households to be covered in 2022-23.
• PM Awas Yojana: 80 lakh houses to be completed in 2022-23.
• PM-DevINE: To fund infrastructure and social development based on felt needs of the North East.
• Aspirational Blocks Programme: For development of lagging blocks of aspirational districts.
• Vibrant Villages Programme: Targeting development of villages on the Northern Border left out from the development gains.
• Digital Banking by Post Offices: 100% of post offices to come on the core banking system.
• Digital Payments: Scheduled Commercial Banks to set up 75 Digital Banking Units in 75 districts.

Productivity Enhancement and Investment

Ease of Doing Business 2.0

• Trust based governance
• Integration of central and state level systems through IT bridges.
• Expanding scope of PARIVESH Portal.
• Unique Land Parcel Identification Number for IT based management of land records.
• Establishing C-PACE to facilitate voluntary winding up of companies.
• End to end online e-Bill System and utilising surety bonds in government procurement.
• AVCG promotion task force.
• Support to 5G under PLI scheme.
• Opening up defence R&D for industry, startups and academia.

Ease of Living

• Issuance of chip embedded ePassports.
• Modernisation of building byelaws, implementing Town Planning Schemes and Transit Oriented Development.
• Establishing Centres of Excellence in urban planning.
• Providing a battery swapping policy as an alternative to setting up charging stations in urban areas.

Financing of investment

• Public investment to continue to pump prime private investment and demand in 2022-23.
• Introduction of Digital Rupee by RBI starting 2022-23.
• Green Bonds to mobilise resources for green infrastructure.
• Infrastructure status for Data Centres and Energy Storage Systems.
• Measures to aid investment by Venture Capital and Private Equity Investment.
• Blended Finance for sunrise sectors.
• Providing greater fiscal space to States.
• Enhanced outlay to Scheme for Financial Assistance to States for Capital Investment.
• For 2022-23 States will be allowed a fiscal deficit of 4% of GSDP of which 0.5% will be tied to power sector reforms.

Tax Proposals

• Allowing taxpayers to file Updated Return within 2 years for correcting errors.
• Tax relief to persons with disability.
• Reducing Alternate Minimum Tax Rate and Surcharge for Cooperatives.
• Extending period of incorporation of eligible startups for providing tax incentives.
• Income from transfer of virtual assets to be taxed at 30%.
• Better litigation management to avoid repetitive appeals.
• Any Surcharge or Cess on Income and Profits not allowable as business expenditure.
• Increasing tax deduction limit on employer’s contribution to NPS account of state government employees.
• Customs administration to be fully IT driven in SEZs.
• Phasing out concessional rates in capital goods and project imports gradually and apply a moderate tariff of 7.5%.
• Review of customs exemptions and tariff simplification.
• Customs duty rates are being calibrated to provide a graded rate structure to facilitate domestic electronics manufacturing.
• Rationalisation of exemptions on implements and tools for agri sector manufactured in India.
• Extension of customs duty exemption to steel scrap.
• Reduction of duty on certain inputs required for shrimp aquaculture.
• Unblended fuel shall attract additional differential excise duty.

Ministry wise Allocations

Crypto Budget 2022

Below are the important points with regard to Budget crypto:

• Any income from transfer of any virtual digital asset shall be taxed at the rate of 30%.
• No deduction in respect of any expenditure or allowance shall be allowed while computing such income except cost of aquisition.
• Further loss from transfer of virtual digital asset cannot be setoff against any other income.
• Further, in order to capture the transaction details, the finance minister proposed to provide for TDS on payment made in relation to tranfer of virutal digial asset at the rate of 1% of such consideration above a monetary threshold.
• Gift of virutal digital asset is also propsed to be taxed in the hands of the receiptent.
• Introduction of Digital Rupee by RBI starting 2022-23.

Budget 2022 Live:12:41 PM:A complete paperless end-to-end online e-bill system to be launched for use by all Central Ministries for their procurement, To enhance transparency & reduce delays in payments Will enable online submission of digitally signed bills, tracking claims from anywhere.

Budget 2022 Live:12:40 PM:Union Finance Minister Nirmala Sitharaman introduces Finance Bill 2022.

Budget 2022 Live:12:37 PM:‘Centre for Processing Accelerated Corporate Exit’ to be set up to facilitate and speed up voluntary winding up of companies from the currently required 2 years to less than 6 months.

Budget 2022 Live:12:34 PM:Adoption of integration with National Generic Document Registration System with ‘One Nation One Registration’ Software to be promoted for uniform anywhere registration of deeds and documents.

Budget 2022 Live:12:33 PM:To further electronics manufacturing, duty concessions are given for the high growth of electronics items.

Budget 2022 Live: 12:32 PM:Faceless customs have done exceptional work against all odds and been an enabler in PLI & Ease of Doing Business.

Budget 2022 Live: 12:31 PM:Taxpayers deserve applause who have diligently contributed to fulfilling their responsibilities in improved tax & GST.

Budget 2022 Live: 12:28 PM:GST played a remarkable reform in India’s GDP. GST revenues are buoyant despite the pandemic, gross GST collection for month of January are over Rs. 1.4 lakh crore. The highest since the inception of GST.

Budget 2022 Live: 12:26 PM:Issue of e-passports using embedded chip and futuristic tech to be rolled out in 2022-23, to enhance convenience for citizens for Overseas Travel.

Budget 2022 Live: 12:25 PM:Virtual digital assets to be taxed at 30% and 1 % TDS on transfer of virtual digital assets.

Budget 2022 Live: 12:20 PM:Tax deduction limit to be reduced for central government employees from 18% to 15% in their contribution to NPAs.

Budget 2022 Live: 12:19 PM:Existing tax benefits for Startups that were offered redemption of taxes for 3 consecutive years to be extended by 1 more year.

Budget 2022 Live: 12:18 PM:Reduce of surcharge of cooperative societies from 12% to 7% for those having income below 1 crore:

Budget 2022 Live: 12:17 PM:Reduced alternate minimum tax for cooperatives from 18.5% to 15%.

Budget 2022 Live: 12:15 PM:We have further simplified tax system. Introducing new updated return where people can file updated return within 2 years of the filed IT Return.

Budget 2022 Live: 12:11 PM: Digital currency to boost digital economy. Digital Rupee to be issued by RBI starting 2022-23.

Budget 2022 Live: 12:05 PM:Government back funds SIDBI fund of funds have provided scale capital creating a multiplier effect:

Budget 2022 Live: 12:04 PM:Open platform for National Digital Health Ecosystem to be rolled out digital registries of health providers, health facilities, unique Health IDs and consent framework, universal access to health facilities

Budget 2022 Live: 12:02 PM:Outlay for capital expenditure increased by 35.4% from previous year to 7.50 lakh crore in 2022-23:

Budget 2022 Live: 12:01 PM: Sovereign Green Bonds to be issued in public sector projects to reduce carbon footprint initiatives in the economy.

Budget 2022 Live: 11:59 AM:Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) to be revamped with required fund infusion Will facilitate additional credit of Rs. 2 lakh crore for Micro and Small Enterprises and expand job opportunities

Budget 2022 Live: 11:55 AM: Raising and Accelerating MSME Performance (RAMP) with an outlay of Rs. 6,000 crore over 5 years, to be rolled out To enable the MSME sector to become more efficient, resilient, and competitive.

Budget 2022 Live: 11:51 AM: Emergency Credit Line Guarantee, which has provided additional credit to MSMEs, extended till March ’23 Guarantee cover to be expanded by Rs. 50,000 Cr. to a total cover of Rs. 5 lakh crores Additional amount earmarked exclusively for hospitality, related sectors

Budget 2022 Live: 11:47 AM: Settlement of 75% of running bills in 10 days to be established. To reduce delays in payment, paperless ebills to be set up by the Ministries

Budget 2022 Live: 11:46 AM:Private sector will be encouraged to create sustainable and innovative business models for battery and energy as a service, improving the efficiency in the EV ecosystem.

Budget 2022 Live: 11:45 AM:‘One Nation, One Registration’ will be established for anywhere registration to facilitate ease of living & doing business:

Budget 2022 Live: 11:39 AM: With 1486 union laws repealed, Ease of Doing Business 2.0 will be launched. We will follow the idea of trust-based government:

Budget 2022 Live: 11:15 AM: Production Linked Incentive (PLI) Scheme for achieving Aatma Nirbhar Bharat has received excellent response, with potential to create 60 lakh new jobs and additional production of 30 lakh crore during next 5 years.

Budget 2022 Live: 11:00 AM: FM Nirmala Sitharaman is presenting the Union Budget 2022-23 in the Parliament now.

Budget 2022 Live: 10:15 AM: FM Nirmala Sitharaman reaches Parliament. Budget 2022 – 2023 to be presented in paperless form.

Below are the key highlights of the Economic Survey which is presented a day prior to the Budget 2022. Watch this space for Budget 2022 Live Updates tomorrow from 11 am onwards.

Economic Survey 2021-22: Resilence of India’s External Sector

• Merchandise exports and imports surpassed pre-COVID level.
• Significant pickup in net services.
• Net capital flows at US$ 65.6 billion in first half of 2021-22.
• BOP surplus of US$ 63.1 billion in first half of 2021-22.
• Forex reserves touched US$ 633.6 billion as of December 31, 2021.
• India was 4th largest forex reserves holder in the world as of November 2021.

Economic Survey 2021-22: Agriculture and Food Management

• Shift focus towards harnessing potential of allied activities like animal husbandry, dairying and fisheries.
• Develop and implement small holding farm technologies to improve productivity of small and marginal farmers.
• Prioritize crop diversification towards oilseeds, pulses and horticulture.
• Coordinated action form State Governments needed to facilitate shift to high value and less water consuming crops.

Economic Survey 2021-22: Fiscal Development

During April- Nov 2021 (YOY)

• Revenue Receipts gone up by 67.2%.
• Gross tax revenue registered a growth of over50%.
• Capital Expenditure has grown by 13.5%.
• Fiscal Deficit has been contained at 46.2% of BE.
• With the recovery of economy, Government debt is expected to decline.
• Several off-budget items brought within the budget allocations.
• State govt’s capex gone up by 67%.

Economic Survey 2021-22: Monetary Management and Financial Intermediation

• YOY Bank credit growth increased: 5.3% (April 2021) to 9.2% (Dec 2021).
• Gross NPA of SCBs: 11.2% (end of 2017-18) to 6.9% (Sept 2021).
• Net NPA of SCBs: 6% (end of 2017-18) to 2.2% (Sept 2021)
• Capital to Risk weighted asset ratio of SCBs: 13% (2013-14) to 16.54% (Sept 2021).
• Liquidity in the system remained in surplus.
• Credit to agriculture sector registered robust growth.
• In April- Nov 2021 RS 89,066 cr was raised via 75 IPO issues. The Indian markets outperformed their peers.
• Economic survey points to the need for the standardised framework for cross-border insolvency for increased access, recognition, cooperation and coordination.

Economic Survey 2021-22: Prices & Inflation

• Average headline CPI- Combined reduced to 5.2% in Apr-Dec 2021 from 6.6% last year.
• Food inflation reduced to 2.9% in Apr-Dec 2021 against 9.1% last year.
• Effective supply-side management kept prices under control.
• Proactive measures were taken to contain price rise in pulses and edible oil.
• WPI increased to 12.5% in Apr-Dec 2021. This is attributed to low base in previous year, pick-up in economic activity, sharp increase in international prices of crude oil and other imported inputs, high freight costs.

Economic Survey 2021-22: Industry and Infrastructure

• IIP growth at 17.4% during April to November in 2021-22 compared to -15.3% last year.
• All time high net profit to sales ratio of large corporates – 10.6% in Q2 of 2021-22.
• 30.4% increase in road construction-36.5 km per day in 2020-21 compared to 28 kms in 2019-20.
• Capital expenditure of Indian Railways budgeted to increase 5 times over 2014 level to Rs 2.15 lakh crores.
• PLI introduced to scale up industries.
• Major boost provided to physical as well as digital infrastructure.

Economic Survey 2021-22: Services Sector

• Growth rate of 8.2% expected in the services sector.
• Growth rate in the service sector surpases the pre-pandemic level for (H1 2021-22).
• $16.7 Billion FDI in Services Sector, 54% of total FDI inflows in H1 2021-22.
• India’s share in world commercial services exports grew to 4.1% in 2020.
• India is now home to more about 14,000 startups and world’s 3rd largest start-up ecosystem.
• 21.6% growth in services export (H1 2021-22) surpasses pre-pandemi level.
• Muted response of second wave shown by high frequency indicators like Purchasing Managers’ index and air and rail freight.
• Major reforms included removal of telecom regulations in IT-BPO sector and opening of space sector to private players.
• 44 Indian Start-ups achieved unicorn status in 2021, taking tally to 83.