Finance Minister Nirmala Sitharaman on Tuesday prepared a Budget speech which was titled ‘Amrit Kal’. Paradoxically, she hinted about the development in India in the next 25 years.
Union Budget 2022 analysis
Here is a short analysis of the official budget documents and the important points from the FM’s speech.
- The Capital Expenditure will increase by 35.4%. The outlay for capital expenditure is to increase from 4.54 lakh crore. Earlier it was Rs. 7.50 lakh crore in 2022-23.
Apparently there’s no clarity about this given. - The Finance Minister Nirmala Sitharaman proposed to impose import duty on components of mobile phones and chargers. She said that “for greater domestic value addition, few exemptions on part of chargers and sub-parts of mobiles will be withdrawn and for some parts of mobiles’ rate will move from nil to moderate 2.5 per cent.”
- Sitharaman emphasised the importance of the Gati Shakti Plan. She mentioned the seven engines of growth in this plan. Roads, Railways, Airports, Ports, Mass transport, Waterways, Logistics infrastructure etc.
- Further added that the national Highways network will be expanded by 25,000 KM in 2023, Rs. 20,000 crore will be mobilized through innovative ways of financing to compliment the public resources.
- The ECLGS Scheme for MSME’s is extended to March 2023 and expanded with an added cover of Rs. 50,000 crore. Earlier, it was Rs 5 lakh crore.
- Crypto currency will be introduced and any income transfer of any virtual digital asset will be taxed at 30%. TDS at 1% will be above a certain monetary threshold.
- Digital rupee will be introduced which will be issued by the RBI in 2023.
- 68% of the defence procurement budget is earmarked for domestic private industry. Defence R&D will be opened for startups, institutes and academic outlets, 255 of R&D budget is allotted for this purpose.
- Around 60,000 crore has been allocated for affordable housing and piped water in 2023. Currently, 8.7 crore households are under this scheme of which 5.5 crore households are already provided tap water.
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