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
