INDIA NEWS
Feb 1-15, 2022 - Vol 2, Issue 14
UNION BUDGET
NIRMALA SITHARAMAN PRESENTS BUDGET 2022 Union Budget 2022-23 highlights
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ollowing are the highlights of the Union Budget 2022-23 presented by Finance Minister Nirmala Sitharaman in Parliament on Tuesday: FISCAL POSITION India's growth estimated at 9.2 pc, to be highest among large economies Fiscal deficit in 2022-23 estimated at 6.4 pc of GDP Total expenditure in 2022-23 pegged at Rs 39.45 lakh cr Total receipts other than borrowings estimated at Rs 22.84 lakh cr in FY23 ‘Effective Capital Expenditure' of central government estimated at Rs 10.68 lakh cr in 2022-23, which is about 4.1pc of GDP Fiscal deficit in current year at 6.9 pc of GDP (against 6.8pc in Budget Estimates) 60 lakh new jobs to be created under productivity linked incentive scheme in 14 sectors TAX PROPOSALS No change in personal income tax rates Provision to file an updated return on payment of additional tax; can be filed within two years from the end of the relevant assessment year Updated return provision to enable assessee to declare income missed out earlier Tax deduction limit increased from 10% to 14% on employer's contribution to the NPS account of state government employees Incentives for start-ups: Period of incorporation extended by 1 year, up to March 31, 2023 for eligible
start-ups to avail tax benefit Any income from transfer of any virtual digital asset to be taxed at the rate of 30 pc; gift of virtual digital asset also to be taxed in the hands of recipient Health and education cess: any surcharge or cess on income, profits not allowable as business expenditure No setoff of any loss to be allowed against undisclosed income detected during search, survey operations Alternate minimum tax paid by cooperatives brought down from 18.5 per cent to 15 per cent
structure; to facilitate domestic manufacturing of wearable devices, hearable devices and electronic smart meters Duty concessions to parts of transformer of mobile phone chargers, camera lens of mobile camera module and some other items to promote domestic manufacturing of high growth electronic items Customs duty on cut, polished diamonds, gemstones cut to 5%; no duty on simply sawn diamond Customs duty of at least Rs 400 per kg to be paid on imitation jewellery import
Payment of annuity and lump sum amount from insurance scheme to be allowed to differently-abled dependent during the lifetime of parents/guardians, that is on parents/ guardian attaining the age of 60 years
Customs duty on umbrellas raised to 20%; exemption to parts of umbrellas withdrawn
Surcharge on long term capital gains arising on transfer of any type of assets capped at 15 pc
Unblended fuel to attract an additional differential excise duty of Rs 2/ litre from Oct 1, 2022, to encourage blending of fuel
Gradual phasing out of concessional rates in capital goods and project imports; applying a tariff of 7.5 pc, conducive to the growth of domestic sector Over 350 exemption entries proposed to be gradually phased out, like exemption on certain agri produce, chemicals, fabrics, medical devices, and drugs and medicines for which sufficient domestic capacity exists Customs rate, tariff structure simplified particularly for sectors like chemicals, textiles and metals Customs duty rates to be calibrated for graded rate
Customs duty exemption given to steel scrap last year extended for another year to offer relief to MSME secondary steel producers
ALLOCATION AND REFORMS Rs 2.37 lakh cr direct payment to 1.63 crore farmers for procurement of wheat, paddy Rs 2 lakh cr additional credit for micro and small enterprises to be facilitated under the Credit Guarantee Trust for Micro and Small Enterprises For MSMEs, guarantee cover under ECLGS to be expanded by Rs 50,000 Crore to total cover of Rs 5 lakh cr Raising and Accelerating MSME performance (RAMP) programme with outlay of Rs 6,000 crore to be rolled out for MSMEs
Rs 60,000 crore allocated to cover 3.8 crore households in 2022-23 under ‘Har Ghar, Nal se Jal'
Scheduled Commercial Banks to set up 75 Digital Banking Units (DBUs) in 75 districts
Rs 48,000 crore allocated for completion of 80 lakh houses in 2022-23 under PM Awas Yojana
100 per cent of 1.5 lakh post offices to come on core banking system
Additional allocation of Rs 19,500 crore for Production Linked Incentive for manufacture of high efficiency solar modules to meet the goal of 280 GW of installed solar power by 2030
e-Passports with embedded chip, futuristic technology to be rolled out
Initial allocation of Rs 1,500 crore made to enable livelihood activities for youth and women under the Prime Minister's Development Initiative for NorthEast Region (PM-DevINE) SEZ Act to be replaced with new legislation to enable States to become partners in ‘Development of Enterprise and Service Hubs' Defence: 68% of capital procurement budget earmarked for domestic industry in 2022-23, up from 58% in 2021-22 Defence R&D to be opened up for industry, startups and academia with 25% of defence R&D budget earmarked
Battery swapping policy to be brought out for setting up charging stations at scale in urban areas for promotion of electric mobility Centre for Processing Accelerated Corporate Exit (C-PACE) to be established for speedy windingup of companies Scheme for design-led manufacturing to be launched to build a strong ecosystem for 5G as part of the PLI scheme Data centres and energy storage systems to be given infrastructure status RBI to introduce digital rupee in FY23 to boost digital economy, better currency management Source: Rediff.com
All key demands of Telangana ignored Kejriwal 'disappointed' as Hyderabad, Feb 2 (IANS): The Union Budget 2022-23 came as a big shock for Telangana as all its demands for additional funds and new projects were ignored.
central taxes. This is Rs 3,175.85 crore higher than the 2021-22 budget estimates and Rs 1,240.14 crore higher than the revised estimates.
The budget speech of Finance Minister Nirmala Sitharaman also had no mention of the commitments made to the state under Andhra Pradesh Reorganisation Act 2014.
However, there was no allocation to the state in addition to the state's share in central taxes, funds for local bodies as per the recommendation of Finance Commission and allocation for centrally sponsored schemes.
The state had high hopes from the budget and it had demanded allocation of Rs 60,000 crore for various projects. It was for this reason the budget evoked angry reaction from Chief Minister K. Chandrasekhar Rao, who termed it as 'golmal' and 'useless' budget. Telangana's long pending demand for national status to either Kaleshwaram or PalamuruRangareddy lift irrigation projects was again ignored by the Centre. As per the budget estimates, Telangana will get Rs 17,165 crore during 2022-23 as its share in the
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With the Centre imposing a huge cut of Rs 25,000 crore on allocation of MGNREGS across the country, the flow of funds to the state under the rural employment guarantee scheme is likely to be badly hit. Telangana has 1.19 crore workers registered under the scheme and they are provided work for 100 days in a year with minimum daily wages of Rs 237. With the cut in allocation the state may be forced to cut the number of workers or work days under the scheme. For
the current financial year, the state has received Rs 3,053 crore under the central scheme.
Budget fails to address inflation
The Centre also did not take the recommendation of 15th Finance Commission to allocate Rs 2,362 crore for state-specific grants for four years from 2022-23 into consideration. As per this recommendation, the state was expecting Rs 471 crore every year. The state has also not received arrears towards the special assistance for development of backward areas under AP Reorganisation Act. For the last three years, the state government had been demanding release of Rs 24,205 crore as per the recommendation of NITI Aayog. Similarly, the demand to allocate funds for Mission Bhagiratha and Mission Kakatiya as per the recommendation of NITI Aayog was once again ignored. Ahead of the budget, state finance minister T.
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New Delhi, Feb 1 (IANS): Terming the Union Budget 2022-23 "disappointing", Delhi Chief Minister Arvind Kejriwal on Tuesday said that it has nothing to ease the burden of common masses hit by the rising inflation amid Covid-19. "People had high hopes from the Union Budget in Covid times. It has disappointed masses. The budget has nothing for the common people. It has nothing to ease the inflation," Kejriwal
posted in Hindi on Twitter. Finance Minister Nirmala Sitharaman presented the Union Budget this morning. Prime Minister Narendra Modi hailed the budget, saying it would benefit all via "more investment, more infrastructure, more growth", but Congress leader Rahul Gandhi targeted it for its lack of provisions for the "salaried and middle class, the poor and deprived, youth, farmers and MSMEs".
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