Union Budget 2022 – Highlights by Dr. Nitya Prakash
Just heard the Indian budget Speech FY 22-23. Key takeaways/ comments that caught my attention. Overall, growth-oriented, development oriented, long term oriented, progressive budget for a developed India. Happy for the direction.
– FY 23 growth estimated at 9.2%.
– Working on vision for India @100.
– Need a modern infrastructure for India by the time India turns 100. To develop Roads, rails, ports, waterways.
– Massive allocation of Rs 7.5 lakh crore for capital expenditure for FY23E, (up 35.4% YoY)
– This will help all industries through multiplier: cement, steel, Commercial vehicles, infra, manufacturing etc.
– Betwa River linking project Rs. 45000 cr.
– 400 new-generation Vande Bharat trains
– India plans 100 cargo terminals in 3 years
– Said capital investments holds the key to economic revival.
– Want to focus on private sector led growth in long run.
– Focus on micro- reforms like Nal se Jal etc., cooking gas, etc.
– Expanding PM Awas program
– Focus on Entrepreneurial opportunities and employment.
– Focus on Digital and technology in governance
– Push for electric vehicles, developing ecosystem to interoperability rules.
– 100% of 1.5 lakh post offices will come on the CBS, enabling financial inclusion and access to post office accounts through net banking, mobile banking, ATMs
– online transfer of funds between post office accounts and bank accounts.
– RBI to issue digital Rupee using block chain technology in FY 23.
– Will make tech, Agri-tech work for farmers.
– I thank tax-payers. Tax payers deserve applause.
– Number of programs for MSMEs. 130 lac MSMEs availed of ECLGS. Program will be extended till March 2023. Limit raised to Rs. 5 lac cr.
– Focus on e-governance, e- programs. PM e Vidya program, e-passports will be issued from now on. To supplement e-licence, e-documents etc.
– large number of legacy laws repealed (I heard as 1400 not sure).
– Connecting villages to digital ecosystem. Massive optical fibre layout in villages under Bharatnet.
– Want to develop trustworthy tax regime, need voluntary compliance. Avoiding lengthy litigations.
– Incentives for Start-ups, benefits for newly incorporated entities
– India to launch Sovereign green bonds
– Virtual digital assets will be taxed at 30%. No deductions no set offs.
– All long term cap gain tax aligned at 15% (not just equities).
– Budget expenditure FY 22-23 = 39.5 lac cr. Total receipts 22.9 lac cr.
– Fiscal deficit at 6.9%, will bring it down to 6.4% next year.
– By the way, GST collections for Jan 21 is Rs. 1.41 lac crores (all time high)
– Overall, a very growth and development-oriented budget. If we go in this direction and at this rate for 20-25 years, our roads, ports, infra, railways, waterways etc will be world class. That will set it up for further growth, and we will have lot more tax resources every year (it will compound), which will allow more investment in welfare on a sustainable basis. Look forward to a new developed India.