Warm Greeting To Our Readers!!
The Union Budget for the session 2022-23 was announced by our honorable Finance Minister, Mrs. Nirmala Sitharaman, on 1st February 2022. The budget presented yesterday was the fourth budget of the MODI 2.0 government.
Experts say the overall conclusion for Union Budget 2022-23 is that it has measures for several sectors that focus on boosting growth amid rising inflammation and covid uncertainties.
Well, let us see a sector-wise detailed reading of the various measures Finance Minister Sitharaman announced.
What did The Economic Sector get From Union Budget 2022-23?
Finance Minister in her statement, stated that India has the highest growth among all major economies; she said that the Indian economy is now in a strong position to withstand challenges. She also said that the Indian economy recovery is benefitting from public investment and capital spending, and the budget announced will enhance this growth.
The Budget goals for the economic sector is complementing macro-growth with micro-all-inclusive welfare, digital economy and fintech, tech-enabled development, energy transition, and climate action
The capital expenditure for the financial year 2022-23 got expanded by 35.4 percent — from Rs 5.54 lakh crore to Rs 7.50 lakh crore.
This year's Budget's top focus is on subjects like PM Gati Shakti, Inclusive Development, Productivity Enhancement, Sunrise Opportunities, Energy Transition, Climate Action, and Financing of investments.
What Union Budget 2022-23 Says About The Expenditure And Deficit?
Before we talk about the deficit let us first know about:
- Revised fiscal deficit for 2021/22 at 6.9% of GDP
- Projected fiscal deficit of 6.4% of GDP in 2022/23
- Proposed fiscal deficit of 4.5% of GDP by 2025/26
According to Union Budget 2022-23, the financial assistance to states for capital investment outlay will be Rs 1 lakh crore for the FY 2022/23. Also, 50-year interest-free loans over and above normal borrowing are allowed for states.
Receipt from disinvestment proceeds in next financial year pegged at Rs 65,000 crore, lower than the current year's mobilization of Rs 78,000 crore.
What Union Budget 2022-23 Says About The Tax Regimes?
The Union Budget 2022-23, brings out no big changes in the tax regimes and vows a stable and predictable tax regime. However, it announced a one-time window to correct omissions in ITRs filed, also updated returns to be filed within 2 years.
The Budget introduced a new provision that will allow taxpayers to file an updated return. Updated returns can be filed within 2 years from the end of the relevant assessment year.
“Any cess or surcharge on income will not be allowed as business expenditure, 1 percent TDS will be charged on transfer of virtual assets above a threshold, gifts also to be taxed” as per Budget 2022-23.
Surcharge on long-term capital gains will be capped at 15 percent. The government will tax income from digital asset transfers at 30%. Loss cannot be set off from any other income.
There have been some tax changes done for cooperative societies.
- Alternate Minimum Tax for cooperative societies to be cut to 15%
- The proposal will reduce the surcharge on cooperative societies to 7%, for those whose income is between Rs 1 crore and Rs 10 crore
Also, for employees who contribute to NPS (National Pension Scheme), their tax deduction limit will increase to 14%.
The biggest gift from Budget 2022-23 is for cryptocurrency holders, cryptocurrencies now to be taxed at the receiver's end.
What The Union Budget 2022-23 Has For The Job Sector?
Finance Minister in her statement announced around 60 lakh job opportunities in the next 5 years, ECLGS extended till March 2023. Emergency Credit Line Guarantee Scheme (ECLGS) was announced by Finance Ministry on 13/05/2020, to aid the Micro, Small, and Medium Enterprises (MSMEs) sector given the economic distress caused by the COVID-19 pandemic.
Digital ecosystem for skilling and livelihood announced to be launched that will aim to skill, reskill, upskill citizens through online training. API based skill credentials, payment layers to find relevant jobs and opportunities
What The Union Budget 2022-23 Has For Digital Currency?
Following are the steps are taken for Digital Currency in Budget 2022-23:
- Launch of blockchain-based digital rupee starting 2022-23
- To launch a scheme for the taxation of virtual digital assets
- Losses from the sale of virtual digital assets cannot be offset against other income
- Income from virtual digital assets to be taxed at 30%
What The Union Budget 2022-23 Has For Health Sector?
The Finance Minister announced an open platform for the national digital health ecosystem that will be rolled out soon. The platform will include digital registries of health providers and health facilities, it will give individuals a unique health identity that will avail them of universal access to health facilities.
She also stated that 95 percent of 112 aspirational districts have made significant progress in health. She further added that for Mental health Counselling, a National Tele Mental Health Program will be launched soon.
What The Union Budget 2022-23 Has For Finance And Investment Sector?
Following are the points that point out what steps the Union Budget 2022-23 has taken to improve the Finance and Investment Sector:
- Rs 1 lakh crore financial assistance to states to be provided in 2022-23 to catalyze investments
- Proposed to introduce Digital Rupee by RBI using blockchain technology, starting 2022-23
- Measures will be taken to step up private capital in the infra sector
- Digital Rupee to be rolled out by 2023
- 100% of 1.5 lakh post offices will come on the core banking system, enabling financial inclusion and access to accounts through net banking, mobile banking, ATMs, and also providing online transfer of funds between post office accounts and bank accounts
- This will be helpful especially for farmers and senior citizens in rural areas, enabling interoperability, and financial inclusion.
- IBC amendments to enhance the efficiency of the resolution process
- Facilitate cross-border insolvency resolution
- 75 digital banks in 75 districts will be set up by scheduled commercial banks to encourage digital payments
- The use of surety bonds as a substitute for bank guarantee will be made acceptable in government procurements
- An international arbitration center will be set up in GIFT city to provide faster dispute resolution
- World-class university to be allowed in GIFT IFSC free from domestic regulation
- Payment of annuity and lump sum amount to the differently-abled dependent during the lifetime of parents/guardians, i.e., on parents/ guardians attaining the age of sixty years.
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