FM Nirmala Sitharaman presents Union Budget for 2022-23 in Parliament today.
Presenting her second successive paperless budget, the Finance Minister
said the country is marking AzadikaAmritMahotsav, and has entered into AmritKaal, the 25-year-long lead up to India@100.
The Prime Minister in his Independence Day address had set-out the
vision for India@100 and by achieving certain goals during the
AmritKaal, the government aims to attain the vision.
She outlined the goals as complementing the macro-economic level growth
focus with a micro-economic level all-inclusive welfare focus, with
public capital investment helping to crowd-in private investment.
Ms Sitharaman expressed her empathy for those who had to bear adverse
health and economic effects of the pandemic. She said, with the
accelerated improvement of health infrastructure in the past two years,
the country is in a strong position to withstand challenges.
Budget 2022-23 reflects firm commitment of the Government to boost economic growth by investing in infrastructure development.
This is substantiated by increase in capital expenditure by 35.4 per
cent that is over one lakh 96 thousand crore rupees over the Budgetary
Estimate of 2021-22. Under the budget, the total resources being
transferred to the States is 16 lakh 11 thousand seven hundred eighty
one crore rupees.
Latest GDP estimates and movement in key economic activity indicators
confirm strengthened momentum of India’s economic recovery. India’s
nominal GDP is expected to grow by 11.1 per cent in the financial year
2022-23 over 2021-22, the Finance Minister said.
In the Railway sector, the Minister said, ‘One Station-One Product’
concept will be popularized to help local businesses and supply chains.
Multimodal connectivity between mass urban transport and railway
stations will be facilitated on priority.
The Minister said, capacity in planning, design, financing (including
innovative ways), and implementation management of the PM GatiShakti
infrastructure projects will be ramped up.
Under PM DevINE Programme, 1500 crore rupees has been allotted.
The construction of Aizawl By-pass on Western Side will be done at a
cost of 500 crore rupees.
The Minister said, multimodal Logistics Parks at four locations through PPP mode will be implemented in 2022-23.
National Digital Health Ecosystem to be rolled out and National Tele
Mental Health Programme to be launched for quality counseling, the
Minister said. Ms Sitharaman said two lakh Anganwadis to be upgraded to
Saksham Anganwadi.
To give boost to digital banking by Post Offices, 100 per cent of post offices to be brought under the core-banking system.
The Minister said the government is keen on promoting chemical free
natural farming starting with farmers’ lands close to river Ganga. It
also envisages to promote post harvest value addition, consumption and
branding of millet products.
In 2022, entire network 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 and ATMs. It will also provide
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 inter-operability and financial inclusion.
To mark 75 years of independence, 75 Digital Banking Units (DBUs) will
be set up in 75 districts across the country by Scheduled Commercial
Banks. The move will ensure that the benefits of digital banking reach
every nook and corner of the country in a consumer-friendly manner.
E-Passports using embedded chip and futuristic technology will be issued
in 2022-23 to enhance convenience for the citizens in their overseas
travel.
A battery swapping policy will be launched in view of the constraint of
space in urban areas for setting up charging stations for electric
vehicles. The inter-operability standards to improve efficiency in the
EV eco-system, will be formulated. The private sector will be encouraged
to develop sustainable and innovative business models for ‘Battery or
Energy as a Service’.
For efficient use of land resources, States will be encouraged to adopt
Unique Land Parcel Identification Number to facilitate IT-based
management of records.
‘One-Nation One-Registration Software’ will be promoted under NGDRS. It
will be the uniform process for registration and ‘anywhere
registration’ of deeds and documents.
Ms Sitharaman said, government will set up a task force to recommend
ways to realize the immense potential in animation, visual effects,
gaming, and comic (AVGC) sector.
The auction of required spectrum for rollout of 5G mobile services will
start in 2022. Private telecom operators will be facilitated to rollout
the 5G mobile services within 2022-23.
The Finance Minister said, a scheme for design-led manufacturing will be
launched to build a strong ecosystem for 5G as part of the Production
Linked Incentive Scheme.
The contract for laying optical fibre cable in all villages, including
remote areas under Bharatnet project will be awarded through PPP in
2022-23.
Ms Sitharaman said, the Special Economic Zones Act will be replaced with
a new legislation to enable the states to become partners in
‘Development of Enterprise and Service Hubs’.
In order to reduce imports and promote Atma Nirbharta in
equipment for Armed Forces, 68 per cent of the capital procurement
budget will be earmarked for domestic industry in 2022-23. This is 10
percent more compared to 58 per cent during the current fiscal.
Defence R&D will be opened up for industry, startups and academia
with 25 per cent of defence R&D budget earmarked. Private industry
will be encouraged to take up design and development of military
platforms and equipment in collaboration with DRDO and other
organizations through SPV model.
India’s tryst with solar power continues. To facilitate domestic
manufacturing for achieving the ambitious goal of 280 Giga Watt of
installed solar capacity by 2030, Government has allocated additional
19,500 crore rupees under Production Linked Incentive (PLI) scheme. This
will facilitate the manufacture of high efficiency modules, with
priority to fully integrated manufacturing units from polysilicon to
solar PV modules.
With this investment taken together with the provision made for creation
of capital assets through Grants-in-Aid to States, the ‘Effective
Capital Expenditure’ of the Central Government is estimated at 10.68
lakh crore rupees in 2022-23, which will be about 4.1 per cent of GDP.
Government will allow world-class foreign universities and institutions
in the GIFT City. They can offer courses in Financial Management,
FinTech, Science, Technology, Engineering and Mathematics free from
domestic regulations to facilitate availability of high-end human
resources for financial services and technology.
Data Centres and Energy Storage Systems including dense charging
infrastructure and grid-scale battery systems will be included in the
harmonized list of infrastructure. This will facilitate credit
availability for digital infrastructure and clean energy storage.
Digital Rupee will be introduced using blockchain and other
technologies. It will be issued by Reserve Bank starting 2022-23. Ms
Sitharaman said, introduction of Central Bank Digital Currency (CBDC)
will give a big boost to digital economy and lead to a more efficient
and cheaper currency management system.
As against a total expenditure of 34.83 lakh crore rupees projected in
the Budget Estimates 2021-22, the Revised Estimate is 37.70 lakh crore
rupees. The Revised Estimate of capital expenditure is 6.03 lakh crore
rupees.
Coming to the Budget Estimates, the Finance Minister said, total
expenditure in 2022-23 is estimated at 39.45 lakh crore rupees, while
the total receipts other than borrowings are estimated at 22.84 lakh
crore rupees.
The revised Fiscal Deficit in the current year is estimated at 6.9
percent of GDP. Finance Minister said, the Fiscal Deficit in 2022-23 is
estimated at 6.4 percent of GDP, which is consistent with the broad path
of fiscal consolidation announced by the government last year to reach a
fiscal deficit level below 4.5 percent by 2025-26.
While dwelling upon the Direct Tax proposals contained in the Union
Budget for the year 2022-23, Finance Minister Nirmala Sitharaman said,
India is growing at an accelerated pace and people are undertaking
multiple financial transactions. She announced a new provision to permit
taxpayers to file an Updated Return on payment of additional tax. This
updated return can be filed within two years from the end of the
relevant assessment year.
Giving relief to cooperative societies, the Finance Minister proposed to
reduced Alternate Minimum Tax from eighteen and one half per cent to
fifteen per cent.
It is also proposed to reduce the
surcharge on co-operative societies from present 12 per cent to seven
per cent for those having total income of more than one crore and up to
10 crore rupees.
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(With input from news agency language)
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