On Tuesday, finance minister Nirmala Sitaraman put forward the union budget 2022-23 in the Parliament. It is a budget worth Rs 39.45 lakh crore that prioritises investing massively in infrastructure.
From developing 400 new Vande Bharat trains to the highway network extension, the government focuses on job creation and pushing the economy further. However, the finance minister projected India’s economic growth fastest among the major economies across the globe as it is expected to grow by 9.2% this financial year.
Here are takeaways of Union Budget 2022-23.
- The Ministry of Finance projected PM Gatishakti National Master Plan to transform the economy. Seven significant engines, including highways, railways, waterways, ports, airports, mass transport, and logistics infrastructure, will be in charge of this master plan.
- To boost the investment in startups, Nirmala Sitaraman proposed a 15% surcharge cap on LTCG (Long-term capital gains).
- The government has brought crypto trading and virtual assets under the taxation bar and imposed a 30% per cent direct tax on trading in virtual currencies. Moreover, the government will launch Digital Rupees in the financial years of 2022-23.
- Rs 51,971 cr has been allocated in the Union Budget 2022-23 to settle Air India debt.
- There are no amendments in personal tax rates; the government has not raised the standard deduction, though the surcharge on cooperative societies is reduced from 18.5 % to 15 %.
- From the fiscal year of 2022-23, the government will start issuing e-passports with built-in electronic chips. For e-Passports authentication, the government authorities will use Radiofrequency identification techniques and biometrics.
- The Indian government will conduct a 5G spectrum auction to allocate 5G spectrum technologies for private telecom services in the current financial year.
- The tax deduction limit will be increased by 4% for both state and central government employees. Thus, the government will facilitate state government employees with social security benefits same as central government employees.
- The finance minister announced that the government would boost domestic solar cells and module manufacturing funding within the PLI scheme. Such investment will be increased from Rs. 4500 crore to Rs. 24000 crore.
- Numerous items, including headphones, earphones, imitation jewellery, solar cells and modules, will cost higher because of increased customs duties. On the other hand, goods such as clothes, cocoa beans, methyl alcohol, steal scraps along with the cut and polished diamond will be cheaper.
Overall, this budget has a lot of positives and a few vital drawbacks. The government is likely to boost employment and enhance the strength of the nation’s infrastructure. Bringing digital assets under taxation indicates that the government has validated digital currencies to some extent.