MarketCrypto MarketNews

Budget 2022 Released- Here’s what you need to know

On Tuesday, 1st February 2022, Finance Minister Nirmala Sitharaman present the budget for the financial year 2022-23. In her shortest budget speech till date, she commented, “This budget seeks to lay the foundation and give a blueprint to steer the economy over the Amrit Kaal of the next 25 years- from India at 75 to India at 100”. There is no illusion to the fact that though the speech was short, it was power-packed with information. And I am here as usual to help you jot down the important highlights of it. So, let’s tie our seat belts and go on a drive admiring the highlights of budget 2022.

->The bigger; The better:

Making a comeback after the pause in pandemic its focal point, the finance minister presented a budget of Rs. 39.45 lakh crore that will focus more on investment in infrastructure.

->Greater Fiscal Deficit:

As opposed to the last year’s deficit of 6.8%, the fiscal deficit for this year is expected at 6.9% of GDP, and with a target of 6.4% for the next fiscal year, making people concerned on the matter.

->Capex encouragement:

The capital expenditure under budget 2022 has bumped up to Rs. 7.5 lakh crore or we can say, by 35%. The move as explained by the minister, is done to focus on reviving the economy after it took a brutal hit due to the pandemic. The percentage rise has been constant in the last two years, the last year also seeing an increase of 35% to Rs. 5.5 lakh crore for the year 2021-22.

->Housing becomes more affordable- You might be able to purchase your dream home:

Under the Pradhan Mantri AwasYojna, the minister has announced an allocation of Rs. 48,000 crore and the completion of 80 lakh homes. This is a move to make more houses available and affordable to the citizens of the country.

->Gradual but slower privatization:

The Centre has lowered the aim for the current financial year to Rs. 78,000 crore and pegged the divestment target for the next financial year at Rs. 65,000 crores. The smaller fiscal target for next fiscal is seen as the government scaling back plans to sell state-run companies in the wake of political criticism and market turmoil.

->Record Borrowing:

The gross borrowing for this financial year is raised by 40% to 14.95 lakh crores. This is again because of the budget’s plan on investment in infrastructure, which results in a bond selloff that is beholding the benchmark 10-year bond yield rise by 15 basis points in Budget.

->Returns are now updated:

Under the new budget for this financial year, taxpayers are given an opportunity to correct their errors and file the duly updated returns withing two years of the relevant concerned assessment year.

->The Tax Deduction Limit has now been increased:

The tax deduction limit for state government employees on the employer’s contribution to the National Pension System has been increased from 10 percent in the last year to 14 percent this year. This stretch of limit has brought them at equal footing with the Central government employees.

->We now have a tax framework for digital currencies:

A 30% tax is imposed now on income that comes from cryptocurrencies and other digital assets, and this step now puts these assets in the highest tax band. Continuing this, comes another hard blow on citizens when the Center comments that losses from their sale cannot be offset against other income.

->Introducing digital currency:

The next fiscal year, as the finance minister commented, might see the introduction of a new digital currency that will use blockchain and other supporting technology. This is a measure taking in consideration the concerns voiced by central bank around private cryptocurrencies being the possible cause of financial instability.

->Replacing SEZ Act:

A new legislation that allows states to become partners in developing enterprise and service hubs is set to replace the Special Economic Zones Act. This will cover all large existing and new industrial enclaves to optimally utilize infrastructure and enhance export competitiveness.

->States will be given financial assistance to invest in capital:

In the financial year 23, the outlay for the ‘Scheme for Financial Assistance to States for Capital Investment’ is being increased to Rs 1 lakh crore, from the revised estimate of Rs, 15,000 crores for the current financial year, to assist the states in boosting the overall investments in the economy.

->A Plan to Launch a Mental Health Program:

Well, a very new and most probably a very big news bomb that the financial minister dropped in this budget is the launch of a National Tele Mental Health program. This is aimed to improve the quality and access of the mental health counselling services provided to the citizens. If implemented properly, this could be one of the best initiatives by the Center.

->Paperless e-bill system:

A completely paperless, online e-bill system will be started for use by all central ministries to enhance transparency, promote digital technology and also to reduce delays in payments.

->Increment in number of channels under ‘One Class- One TV Channel’:

Measures are being taken to increase the number of channels in the program of PM eVIDYA from 12 to a whopping 200. This is to enable all states to provide supplementary education in regional languages for classes 1 to 12. The plan is to also set up a Digital University in order to provide world class quality of education with a personalized learning experience. This will be available in different Indian languages and ICT formats.

->E-Passports:

In the financial year 23, E-passports equipped with embedded chips and futuristic technology will be released to make overseas travel even more convenient. Well, this among many other important points is what is present in the budget of 2022. Some of the points will be dealt with in another blog. So, to know more, don’t forget to come back here, and read. In the meanwhile, you can also check out other finance related blogs our website. Until next time!

Also Read: The Fall in Number of Bitcoin Millionaires

Related Articles

Back to top button