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Budget 2022-2023 Updates

The Finance Minister began her Budget speech by expressing empathy for those who suffered during the COVID 19 Pandemic. Nirmala Sitharaman estimated India’s growth to be at 9.2% which is the highest amongst all the large economies.

Here are the top announcements from the Budget 2022-23 proposal:

Agriculture

• The domestic scheme was introduced to reduce the dependence on the imports of oilseeds
• Fund with blended capital raised under co-investment model for financing the agricultural startups
• Infrastructure for small farmers to be developed by the Railway in 2022- 2023

Finance

• The emergency credit line guarantee scheme for the SMEs to be extended to March 2023
• A Public Issue of the Life Insurance Corporation will be done shortly
• SEZ Special Economic Zones will be replaced with new legislation
• Amendments to the bankruptcy code to speed up the resolution process.
• aims to lower the winding up of companies to 6 months from 2 years.
• The long-term capital surcharge is to be capped at 15%.

Infrastructure

• A 5G spectrum auction will be conducted in 2022.
• The Scheme for Design Manufacturing for 5G  to be a part of the Production Link Scheme
• Award contract to lay optical fibre in rural parts, project completion by 2025.
• 480 billion is set aside for affordable housing.
• Production linked incentives towards solar equipment manufacturing.

Transport

• 400 new energy-efficient trains to be manufactured over the next three years
• Expansion of National Highway by 25,000 km.
• Highway expansion t cost 200 billion rupees

Digital currency

• To launch the digital rupee with blockchain technology starting 2022/2023
• To launch a scheme for the taxation of virtual digital assets
• Loses from the sale of virtual digital assets cannot be offset against other income
• Income from virtual digital assets will be taxed at 30%.

Announcement or taxpayers

• Taxpayers can file updated returns on the payment of taxes within two years from the end of the relevant assessment year.
• New provisions will ensure voluntary tax filing and reduce litigation.
• 30% tax on the proceeds of virtual assets with no deduction other than the cost.
• No set-off is permitted against the other income.
• 1% TDS levied on the payments made on digital transfer assets.
• Deduction for employer contribution to NPS to be increased to 14 from 10% earlier for the State government employees on par with central government employees.

Key Highlights of the Budget

• States to be allowed Fiscal deficit of up to 4 % of GSDP.
• 1 trillion financial assistance to the state to catalyse investments.
• The proposed introduction of the digital rupee by RBI using blockchain technology
• Measures to set up private capital in the infra sector.
• PE/VC investing Rs. 5.5 trillion in startups with an expert committee to suggest measures for new investments.
• An international arbitration centre is to be set up in GIFT  city to provide fast dispute resolution
• World-class universities are to be allowed in GIFT IFSC, which will be free from domestic rules and regulations.
• Sovereign green bonds will be issued to mobilize resources as a part of the borrowing program of the government.
• Financial support to the farmers to take up agro-forestry.

The Union Budget is the annual report of India and contains the revenue and expenditure for the end of the particular fiscal year, which runs from April 1 to 31^st March.