Highlights of Union Budget 2022-23

Finance Minister Nirmala Sitharaman presented her fourth Budget in the Lok Sabha on Tuesday.

• Govt proposes to increase tax deduction from 10% to 14% on contribution in NPS by state govts to employees.
• Concessional corporate tax rate of 15 pc would be available for 1 more year till March 2024 for newly incorporated manufacturing companies.
• 30% tax on income from transfer of virtual digital assets; no deduction on expenses except cost of acquisition, loss cannot be set off.
• Remarkable progress made in GST regime, there are still few challenges remaining.
• PM’s Development Initiative for North East to be implemented through North Eastern Council, initial allocation of Rs 1,500 cr for scheme.
• 1 per cent TDS on transfer of virtual assets above a threshold, gifts to be taxed.
• Any cess or surcharge on income not allowed as business expenditure.
• Fiscal deficit at 6.9 per cent of GDP in 2021-22, 6.4 per cent in 2022-23.
• Total expenditure in FY23 estimated at Rs 39.45 lakh cr; total resources mobilisation to be Rs 22.84 lakh cr other than borrowing
• Govt vows a stable and predictable tax regime.
• Govt to provide one-time window to correct omissions in ITRs filed, updated returns to be filed within 2 years.
• Govt proposes to reduce Minimum Alternative Tax to 15 pc for co-op societies, at par with corporate.
• In 2022-23, states will be allowed fiscal deficit of up to 4 pc of GSDP.
• Rs 1 lakh crore financial assistance to states to be provided in 2022-23 to catalyse investments.
• Proposed to introduce Digital Rupee by RBI using blockchain technology, starting 2022-23.
• Measures will be taken to step up private capital in infra sector.
• PE/VC invested Rs 5.5 lakh crore in startup, expert committee will be set up to suggest measures to help attract investment.
• Data centre and energy storage system to be given infrastructure status; move to provide easy financing.
• International arbitration centre will be set up in GIFT city to provide faster dispute resolution.
• World-class university to be allowed in GIFT IFSC free from domestic regulation.
• Sovereign green bonds to be issued to mobilise resources as part of govt’s borrowing programme
• Effective capital expenditure will be Rs 10.68 lakh crore, or 4.1 pc of GDP, in 2022-23.
• Public investment must take lead to pump prime private investment and support demand.
• Outlay for capital expenditure stepped up 35.4 pc to Rs 7.5 lakh crore in FY’23.
• Economy has shown resilience to come out of pandemic, we need to sustain the level of growth.
• Financial support will be provided to farmers to take up agro-forestry.
• Risks of climate change are strongest externalities for the world.
• Contracts for laying of optical fibre net to all villages under BharatNet to be provided under PPP mode.
• Govt committed to reduce import and promote self reliance in defense sector.
• 68 per cent of capital for defence sector to be earmarked for local industry.
• 5 pc of USO Fund to be provided for R&D and technology upgradation.
• 400 new generation Vande Bharat trains to be manufactured in next 3 years.
• Spectrum auction will be conducted to roll out 5G mobile services within 2022-23 by private firms.
• 4 pilot projects for coal gasification to be set up.
• Rs 19,500 cr additional allocation for PLI for manufacturing high efficiency solar modules has been made: FM.
• Low carbon development strategy opens up employment opportunity
• Strategic transfer of Air India ownership has been completed; strategic buyers for NINL have been selected, says Sitharaman.
• Big private investment in infra would be guided by Gati Shakti.
• PM Gati Shakti masterplan is based on 7 engines of growth.
• National Highways will be extended by 25,000 km during 2022-23.
• Efforts of central, state governments leading to jobs, entrepreneurial opportunities.
• One product one railway station will be popularised, 400 new Vande Bharat trains to be introduced.
• Govt focus since 2014 on poor and marginalised; govt strives to provide necessary ecosystem to middle class, says Sitharaman.
• Speed in coverage of vaccination has helped in economic recovery, says FM.
• Sharp rebound in economy reflected in 2021-22, growth expected at 9.2%.
• Virtuous cycle of investment expected to revive on the back of capex and crowd in private investment.
• Inclusive development, productivity enhancement, energy transition and climate action four pillars of development.
• NARCL has commenced its activity