MAJOR IMPACT OF UNION FINANCE BUDGET  2022 – 2023

Finance Minister Nirmala Sitharaman on Tuesday, 1^st February has presented the Union finance Plan, 2022- 2023. This Budget is expected to establish the groundwork for Amrit Kal for the next 25 years i.e. from 75th to India’s 100th birthday, citing the four pillars of development — inclusive development, productivity enhancement, energy transition, and climate action. This article will provide information on sector-wise detailed measures implemented by union budget 2022.

Below are the impacts of Union Budget 2022 according to their sectorial divisions

In the Agricultural sector

1. The Gati Shakti master plan guide introduced under budget (2022-23) will benefit the youth, women, farmers, and the backward classes. PM Gati Shakti would include seven engines for multi-modal connectivity for states, as well as the faster implementation of development projects using technology to allow for faster flow of people and products, thanks to a government-funded project worth Rs 20,000 crores.
2. INR 2.37 lakh crore will be paid to 1.63 crore farmers for procurement of wheat and paddy in 5 Km wide corridors along river Ganga.
3. Chemical-free Natural farming to be promoted throughout the county.
4. ‘Kisan Drones’ for crop assessment, digitization of land records, spraying of insecticides and nutrients.

In Fintech and Blockchain Technology

1. To promote the use of digital currency in India and in turn to give a boon to the economy, Finance minister Nirmala Sitharaman had stated that digital currency will be issued in India by using blockchain technology by the RBI starting from 2022-23.
2. Any income earned on transfer of any virtual digital asset shall be taxed at the rate of 30 percent, plus 1% tax on the transaction.
3. 75 Digital Banking Units (DBUs) to be inaugurated by Scheduled Commercial Banks in 75 districts across the country.

Taxes

1. For corporates: The amount of corporate surcharge will be reduced from 12% to 7%, from the FY 2022-23. Any income tax or surcharge will not be considered as business expenditure.
2. The tax rate for cooperative societies will be reduced by 15% and the surcharge to be reduced to 7% if income is >1Cr. but <10 Cr.
3. There will be no change in personal income tax slabs and rates in Budget 2022. However, the tax deduction will be allowed on employer’s contribution up to 14% for state government employees.
4. Income from Long Term Capital Gains will be taxed at 15%
5. The time period for filing an updated return has been extended to 2 years.

Micro, Small and Medium Enterprises (MSMEs)

1. For proving credit support to the MSMEs, Government will provide ECLGS till the year 2023 guarantee cover by another INR 50,000 crore taking the total cover under the scheme to INR 5 lakh crore, with an additional amount being earmarked exclusively for the hospitality and related enterprises.

Startups

1. Eligible startups established before March 31, 2022, have been proposed to the provided tax incentives for three consequent two years, out of the 10-year period starting with the incorporation
2. Accelerated corporate exits to wind up the companies by reducing the timeline to six months from 2 years earlier.
3. 95000 Crores will be allocated for manufacturing solar PV.
4. More than 350 exemption entries are proposed to be gradually phased out which includes agricultural produce, chemicals, fabrics, medical devices, and drugs and medicines.
5. Drone Shakti works with start-ups that use drone technology through numerous application centers.

Infrastructure Development

1. Private telcos will bring out 5G in 2022-23, as well as an online e-billing system for all government goods.
2. States will be given assistance in improving urban capacities, such as planning assistance and mass transit.
3. River connection between the Ken and Betwa rivers will be undertaken at a cost of INR 44,065 crore.
4. The length of national highways will be increased by 25,000 kilometers.
5. 2000 Km of the railway network to be brought under Kavach, the indigenous world-class technology, and capacity augmentation in 2022-23.
6. 400 new generation Vande Bharat Trains to be manufactured during the next three years.

Education, Jobs, and Upskilling

1. One class, one TV channel’ program of PM eVIDYA will be expanded from 12 to 200 TV channels to provide supplementary education in regional languages for classes 1 to 12
2. A new portal DESH-stack e-portal will be launched to encourage a digital ecosystem for skilling and livelihood, DESH-stack e-portal will be launched.
3. API-based trusted skill credentials will be launched that can be used to find relevant jobs and entrepreneurial opportunities.

Electric Vehicle

1. Setting up charging stations at scale, a battery swapping policy and interoperability standards will be formulated.
2. The private sector will be encouraged to develop sustainable and innovative business models for ‘Battery or Energy as a Service to improve efficiency in the EV system.

Healthcare

1. The government will allocate Rs 4,176.84 crore to utilise to support wellness centres, setting up of integrated public health labs, and critical care hospital blocks in districts with a population of more than 5 lakh.
2. 23 centers with specialized mental healthcare resources will be set up by NIMHANS to cover up the psychological stress due to COVID-19 pandemic.

Know More: Union Budget 2022- Live News and Updates

Conclusion

This Union budget 2022 is a visionary budget, which is focused on solving the major concerns of the economic development like startups, agricultural, MSMEs, etc. This will help India to become self-reliant by boosting expenditure towards growth-oriented policies that will create jobs, boost manufacturing, help to create an agri-economy & infrastructure creation.