Hi, in this article I am going to discuss the brief on “highlights of Budget 2022-23” presented on 1st of February, 2022 by Finance Minister Smt. Nirmala Sitaraman. So without wasting time, let’s start.
What is a Budget in the Indian Economy?
Budget is the estimated income and expenditure of the country for a particular financial year. The budget is drawn up by the government and is presented to the legislature or the parliament for approval. The budget is then implemented by the concerned department or agency. The budget is also known as the national budget.
Major highlights of Budget 2022-23
In this section, we will divide the whole budget into sections and discuss what is provided for different sectors in the budget
Basically Budget 2022-23 has 4 priorities
- PM GatiShakti,
- Inclusive development,
- Productivity enhancement and investment, energy transition and climate action
- Financing of investments
Focus on Infrastructure
- PM Gatishakti Programme
- Capital expenditure to be stepped up by 35.4 percent increasing to Rs. 7.50 lakh crore from Rs. 4.54 crore
- The national highways network will be expanded by 25,000km in FY 2023
Banking and Economy related announcements
- There will be a 30 percent tax on income generated by transferring any virtual asset
- No deduction or offsets allowed and no carry forward of losses into subsequent assessment years
- There will be 1 percent TDS on all transactions with a clear intent to tax more or widen the tax base
- Virtual digital asset will now be included in “Property”.
- Fungible, Non-fungible token (NFT), and any other token will be counted in crypto asset
- Digital rupee to be issued by Reserve Bank of India (RBI) in FY 2022-23
- Digital university to be set up providing access to students across the country for world-class quality universal education in different languages
- 100 percent of 1.5 lakh post offices to be included in the Core Banking System
PM Housing scheme and other welfare scheme
- Housing projects allotted Rs. 48000 cr. for FY23
- Har ghar Nal Se Jal : 3.8 crore households to be covered in this FY 2022-23
- 75 digital Banking units in 75 districts will be set up by Scheduled Commercial Banks
- Defence Budget is increased by 9.8 percent. It is 5.25 lakh crore for FY 2022-23
- 68 percent of defence procurement Budget earmarked for domestic private industry
- Defence R&D to be opened for startups, institutes, and academic outlets and 25 percent of R&D budget is allocated to this
- Union Government has allocated Rs. 1.04 lakh crore for the education sector in Budget 2022-23 showing an increase of 11.86 percent
- Centre announces expansion of one class one TV channel. 200 new channels will be broadcasted for school children to learn online.
- High quality e-content will be delivered by the teachers digitally.
- Various startups will be promoted to facilitate Drone shakti for using drones as a service
- A digital portal named DESH stack e-portal ( Digital Ecosystem for Skilling and Livlihood) to boost online trainings.
- Health Budget saw a drastic drop of 45 percent. The expenses towards medical and public health falls to Rs. 41,011 crore from Rs. 74,820 crore in current financial year.
- allocation of Rs. 5000 crore as support to states for COVID vaccination which is Rs. 33000 crore lesser than 2021-22 allocation.
- 23 tele -mental health centres to be set up to better the access to quality mental health conselling and care services. Nimbhans will be the nodal centre and IIT Banglore will provide tech support.
- 2 lakh anganwadis will be upgraded to Saksham anganwadis.
- Finance Ministry got the highest allocation i.e. 15.38 lakh crore
- Allocation towards Agriculture sector is Rs. 1.32 lakh crore
- Ministry of Rural Development got an allocation of Rs. 1.38 lakh crore
- Income tax slab unchanged
- Corporate surcharge reduced to 7 percent from 12 percent
- e-passports with embedded chips will be introduced this Fiscal year
- Sports Budget increased to Rs. 3062 crore
- 5G auction will be conducted to facilitate 5G services within 2022-23
- Faster roll out of battery swapping cnetres where electric vehicles owners would able to refuel their EV
- Use of Kisan drones to be promoted for crop assessment, digitization of land records and spraying of insectides and nutrients
- There is nothing new for middle class
Items that will get cheaper
- Gemstones and diamonds
- Methyl alcohol
- Frozen squids
- Frozen mussels
- Cocoa beans
- Mobile phones and chargers
- Camera lens for mobile phones
- Steel scrap
- Chemicals required for petroleum products
Items that will get costlier
- Imitation jewellery
- Solar cells
- Solar modules
- Smart meters
- Parts of Electronic toys
- X-ray machines
- Single or multiple loudspeakers
- Imported headphones or earphones
Budget 2022-23 has presented the vision for the next 25 years lead to India@100. So, a budget isn’t merely a means of setting out your financial plans for the upcoming year. Sure, it’s that too. But it’s far more than that. A budget is actually your guide to financial freedom, setting out what you stand to gain or lose by implementing or abandoning each budgetary decision.
Use it cautiously and take care to monitor your spending habits regularly. You don’t want to break the bank! So, If you like this information, also share it on social media and click on subscribe button, to get our fresh content information on your device. Thanks:)
Also Read:— Major highlights of Economic Survey 2021-22