Smt. Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs delivered the Union Budget 2022-23 on February 1st, 2022. The 2022 budget, while focusing mostly on the innovation and infrastructure industries, also included funds for health and education to help the average man. The Union Budget 2022-23 also provided a broad picture of India’s GDP and security during the COVID-19 period. It also suggested fresh allocations for nearly every industry to foster development in the region. In this post, we will look at some of the highlights of the Union Budget for the fiscal year 2022-23.

MSMEs

• The government’s Raising and Accelerating MSME Achievement program would provide Rs. 6000 crores.
• The government plans to connect many portals, including ASEEM, Udyam, e-ashram, and NCS.
• Extra credit would be granted to 13 lakh MSMEs under the Emergency Credit Line Welfare Schemes.
• The base coverage under the Emergency Credit Line Guarantee Scheme (ECLGS) has been increased by Rs.5000 crore to total insurance of Rs.5 lakh crore. In addition, the ECLGS has been prolonged until March 2023.
• The budget authorized Rs.2 lakh cr of new credit for micro and small firms under the Credit Guarantee Fund for Small and Micro Enterprises.

Jobs

ECLGS has been extended and broadened till March 2023, and 60 lakh jobs are expected and anticipated to be created over the next five years. Central and state government efforts result in jobs and entrepreneurship opportunities To be launched is a digital environment for leveling up and livelihood. Through online teaching, the goal is to skill, reskill, and upskill citizens. API-based skill certifications, as well as payment layers, are used to discover relevant employment and possibilities.

Architecture, railways, roads, and waterways, as well as logistics.

• 400 Vande Bharat greater efficiency rail lines would be developed during the next three years.
• Four multi-modal national parks would be awarded contracts in the fiscal year 2022-23.
• The PM Gatishakti master plan for motorways would begin in the following fiscal year.

Indian Fiscal estimates

• The fiscal deficit in the fiscal year 2022-23 is anticipated to be 6.4 percent of GDP.
• With 9.2 percent, India’s growth rate is expected to be among the fastest in the world.
• The overall expected cost in 2022-23 is Rs.39.45 lakh crore.
• Total receipts, excluding borrowed money, are expected to be Rs.22.84 lakh crore in the fiscal year 2023.
• The Productivity Linked Incentive Scheme will generate 60 lakh employment opportunities across 14 industries.
• According to the budget, the Central Government’s capital spending in 2022-23 is expected to be Rs.10.68 lakh crore.

Tax

• There is a new method for submitting an updated tax return after paying additional tax. The return must be lodged within two years of the conclusion of the assessment year in question.
• The income generated by an online virtual transfer of ownership would be taxed at a rate of 30%.
• Income earned as a result of receiving gifts of an online virtual asset would be levied on the recipient’s end as well.
• The budget made no new modifications to the current personal income tax brackets.
• The tax deduction ceiling on the employer’s contribution to the NPS program has been doubled from 10% to 14% for State Government workers.
• The administration has prolonged the deadline of incorporation for qualified start-ups by a year under the benefits for start-ups.
• Under the health and education cess, a charge or cess on revenue or earnings would not be deemed a business expense.
• The optional minimum tax imposed by cooperatives has been reduced from 18.5 percent to 15 percent.
• The surcharge on long-term capital gains on the exchange of any form of asset is limited to 15%.
• More than 350 exemption items, including specified agricultural products, medical gadgets, chemicals, fabrics, and so on, were recommended to be phased out progressively in the program.
• Annuities and lump-sum payments on insurance should be made available to differently-abled individuals who are dependent on their families and reach the age of 60.
• Customs rates and tariff systems would be streamlined in industries such as chemicals, metals, and fabrics.

Agriculture

• Allotments were established in the budget to encourage money for blended finance for sunrise chances.
• These could include agri-tech, climate change, and so on. This money will be created by NABARD and would be available to financial start-ups working in agribusiness and rural businesses. Farmers can simply seek assistance from these start-ups and learn about technology from FPOs.
• The government intends to take careful steps to encourage chemical-free farming in India.
• Kisan Drones would be utilized to boost agricultural evaluation, digitization of land records, and insecticide application.
• The government will assist in the launch of high-tech services for farmers.
• Farmers’ Minimum Support Price (MSP) would be instantly deposited into their savings accounts.

Education:

• The budget envisaged the creation of a digital university dedicated to online education. Using a hub-and-spoke design, it would primarily focus on information, connectivity, and technology.
• The government plans to establish 2 lakh Anganwadis on a larger scale for the sake of child’s welfare.
• One Class, One TV Channel, a PM eVIDYA program, would be extended from 12 to 200 TV channels. This bill would help states by allowing them to provide alternative classes to kids in grades 1 through 12 who speak regional languages.
• According to the New Economic Policy’s new rules, a considerable portion of the GDP would be dedicated to developing education. Approximately 6% of GDP would be allocated to education.

Start-Ups

• Defense R&D would help new businesses get started.
• Drones and their use will be pushed with the help of ‘drone shakti,’ which will collaborate with start-ups.

Online Banking 

• The government intends to create an online billing system that will be used by all departments to ensure prompt bill payments and a maximum decrease in failures.
• The budget projected an Rs.5.4 lakh crore increase in credit.