Budget 2022 highlights puts emphasis over four pillars namely productivity enhancement, inclusive development, energy transition and climate action.
The word “Budget” traces its origin to the French word “Bugeut” and a tradition in which financial statements were kept in a leather bag for being presented in the British Parliament.
Although the word budget is widely prevalent, it is an Annual financial statement, enshrined in article 112 of our constitution.
It deals with the income, expenditure and related aspects on part of the government.
On the 1st of February every year (from 2017) the budget comes before the Parliament and the Finance Minister gives out the details through the budget speech.
Department of economic affairs, Ministry of Finance is responsible for the preparation of budget documents after getting necessary inputs from different ministries and departments.
The goals will be realised through concerted actions that have been planned onwards with specific outlays and other necessary assistance from the government.
The fiscal deficit has been estimated at 6.8% as last year’s prediction was 6.9% which drifted beyond 9% owing to the Covid-19 pandemic.
The budget has hoped that growth will be around 9.27% for the FY 2022-23.
Let’s get some important bytes regarding budget 2022.
A big digital push
The government is committed to fostering transparency and efficiency which largely rely on digitization.
- RBI issuing digital currency from 2022-23,
- Establishment of a digital university
- Around 75 districts to get digital banking units to make services more conducive.
- Issuing of e-passport launched.
- All the post offices will be connected to core banking services to serve the purpose of financial inclusion with digital reach to the remote areas.
- Monetary assistance for supporting digital payments will continue.
Infrastructure and Green Energy A priority
This has been the top agenda and, the budget has much for it. PM GATI SHAKTI envisages robust infrastructure along with inclusiveness and low carbon footprints. The following points reflect that it has been attended enthusiastically.
- 400 new Vande Bharat trains to be on the track.
- 100 PM GATI SHAKTI cargo terminals to be set up to ease the cost of logistics.
- 25,000 km of highways to come up.
- DPRs of 5 river linking projects have been given final shape and the implementation will be there once the concerned states achieve consensus.
- 8 rope ways projects of 60 km length will be accomplished through the involvement of both the private and public sectors.
- 2,000 km of rail tracks to be under “kawach” for ensuring safety.
- Rs.19,800 crore for manufacturing of solar modules having high efficiency with an aim of generating 280 GW of solar power by 2030.
- A system of battery swap with greater interoperability will be in place to give impetus to electric vehicles. Batteries carry 40% of the total cost of EVs.
- Now, there is going to be an independent natural gas distribution operator to remove any bias in allocation of transport capacity.
- 68% of capital expenditure funds in the defence sector go to the domestic manufacturers for promotion of indigenous content.
- North-Eastern Council will be responsible for the implementation of initiatives aimed at infrastructure development of the North-East.
- Ujjawala scheme extended for another one year to tap the left households.
- Nearly 3.8 crore more Nal Jal connections to be completed.
Urban reforms and agriculture
- There is a plan to take urban planners, the institutes and urban economists on board in a high level committee to suggest over effective policy and implementation for planned urban development.
- Use of “kisan drones” for land survey, spraying, crop assessment and other works has been mooted.
- Nearly over 1208 lakh tonnes of wheat and rice to be procured at MSP.
- Government to pay 2.37 lakh crore as MSP and determined to give a push to chemical free farming and production of millets.
- Increasing domestic oilseeds output to reduce dependence on imports.
- Fund support for agri start-ups through NABARD.
- PPP route for making the high tech services availed by the farmers.
Also Read : Pradhan Mantri Kisan Samman Nidhi Yojana (PMKSNY Scheme): A LEAP FOR REFORM
Education and health
- An open access through the National digital Health Ecosystem to be there having details regarding health providers, unique health identity and several vital resources for strengthening the health care system.
- A national level tele mental health programme to help the affected cope with mental illness.
- Revision agricultural universities’ syllabus to meet the needs of modern day farming and assure the farmers with increased output, low input cost and better soil health. Zero based natural farming to be in focus.
- Centre of excellence to aid urban planning to come up.
Direct Tax Measures in Budget 2022 Highlights
Direct tax scenario is watched keenly by salaried class, pensioners, corporates, investors and others. It’s incidence is direct and it affects disposable income and overall consumption pattern to a large extent.
In Income Tax slabs have been kept as existing. No changes were made in the Income-tax slab for salaried employees in Budget 2022 it is kept as it is the previous budget.
Income Tax Slab FY 2022 – 2023
Income Tax Slab for Individual Tax Payers (Less Than 60 Years Age)
| Income Slab | Tax Rate |
| Income up to Rs 2,50,000* | Nil |
| Income from Rs 2,50,000 – Rs 5,00,000 | 5% |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
| Surcharge: 10% of income tax, where total income is more than Rs.50 lakh up to Rs.1 cr. 15% of income tax, where the total income exceeds Rs.1 cr. | |
| Education & Health Cess: 4% on total income tax + surcharge. | |
| Standard Deduction: Rs. 50000. |
Income Tax Slab for Senior Citizens (60 Yrs age or more but Less than 80 Yrs age)
| Income Slab | Tax Rate |
| Income up to Rs 3,00,000* | Nil |
| Income from Rs 3,00,000 – Rs 5,00,000 | 5% |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
| Surcharge: 10% of income tax, where total income is more than Rs.50 lakh up to Rs.1 cr. 15% of income tax, where the total income exceeds Rs.1 cr. | |
| Education & Health Cess: 4% on total income tax + surcharge. | |
| Standard Deduction: Rs. 50000. |
Income Tax Slab for Senior Citizens(80 Years age Or More)
| Income Slab | Tax Rate |
| Income up to Rs 5,00,000* | Nil |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
| Surcharge: 10% of income tax, where total income is more than Rs.50 lakh up to Rs.1 cr. 15% of income tax, where the total income exceeds Rs.1 cr. | |
| Education & Health Cess: 4% on total of income tax + surcharge. | |
| Standard Deduction: Rs. 50000. |
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Features of this 2022 budget are:
- Surcharge over corporates has been pegged at 7% from the existing 12%
- Income generated from the virtual assets will invite 30% tax.
- Uniform TDS of 14% for govt. employees for ensuring social security benefits.
- Minimum Alternative Tax reduced for cooperatives to 15% from 18.5%.
- Now onwards, there will be 2 years available to mend any error in tax returns calculated from the assessment year.
- A measure of 15% corporate tax to be extended to March, 2024.
- Tax relief to disabled and parents can avail the insurance facilities.
- For easing the exit
- Now all assets have 15% LTCG as only listed shares and mutual funds could avail it till now.
- Exit from start ups and unicorn now relaxed with surcharge reduced to 23% from 28.5%.
- Cross border insolvency process has been tried to be made smooth.
Conclusion
We should hope that this budget stands well as per the goals of our nation and fulfill the dreams of inclusive development, climate action, digitisation and robust infrastructure.
