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Tuesday, July 05, 2022

Budget 2022 Highlights: Focus of Budget on providing basic amenities to poor, middle class, says PM Modi

Budget 2022 India Highlights, FM Nirmala Sitharaman Speech Highlights: Modi further said the Budget proposes to make a four-fold increase in public investments as compared to those in the UPA regime and that the measure will open up immense opportunities.

By: Express Web Desk | New Delhi |
Updated: February 4, 2022 12:12:32 pm
Sitharaman, while presenting the Union Budget, said that the country is expected to grow at 9.27 per cent in the coming year. (Express Photo by Tashi Tobgyal)

Budget 2022 Highlights: The focus of the Union Budget is on providing basic amenities to the poor, middle class and youth, Prime Minister Narendra Modi said on Wednesday, and asserted that it is imperative that India becomes self-reliant. Addressing BJP workers at ‘Aatmanirbhar Arthvyavastha’ event, Modi termed Budget 2022 as a step towards a modern and self-reliant India. Modi further said the Budget proposes to make a four-fold increase in public investments as compared to those in the UPA regime and that the measure will open up immense opportunities. Earlier on Tuesday, the Prime Minister had hailed the Union Budget as “people-friendly”  and “progressive”.

Speaking at a press conference after presenting the Union Budget on Tuesday, Finance Minister Nirmala Sitharaman said a conscious decision was taken not to increase taxes because of the hardship that people have been facing due to the pandemic.  Sitharaman, while presenting the Union Budget, said that the country is expected to grow at 9.27 per cent in the coming year. With a focus on four pillars of development — inclusive development, productivity enhancement, energy transition and climate action — the Budget gives a blueprint of economy from India at 75 to India at 100, Sitharaman said.

The Budget estimates the effective capital expenditure of the Central government at Rs 10.68 lakh crore in 2022-23, making up about 4.1 per cent of the GDP. The gross GST collections for the month of January 2022 are Rs 1,40,986 crore — the highest since the inception of the tax in 2017 — the Finance Minister said. In a major push for digital currency, Sitharaman stated that digital rupee will be issued using blockchain technology by the RBI starting 2022-23. This will give a big boost to the economy, the Finance Minister said. She added that income from the transfer of any virtual digital asset shall be taxed at the rate of 30 per cent.

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Budget 2022 Highlights: Focus of Budget on providing basic amenities to poor, middle class, says PM; Taxpayers can now update I-T returns within 2 years; India likely to grow at 9.27%; Gati Shakti masterplan to make world-class infra; PLI scheme to create at least 60 lakh new jobs in 5 years

20:56 (IST)02 Feb 2022
Explained: The retrospective changes to income-tax law, how they impact you

The Union Budget 2022-23 brought in some amendments to the Income Tax Act that would be effective retrospectively.

Making a retrospective amendment to the Income-tax Act from 2005-06, the Budget has clarified that cess and surcharge will not be allowed to be claimed as deductions in the form of expenditure, a practice that some companies and businesses were resorting to in the absence of legal clarity.

It has also allowed exemption of the amount received for medical treatment and on account of death due to Covid-19 retrospectively from April 1, 2020. Read the Explained here

17:45 (IST)02 Feb 2022
Next year's I-T return to have separate column for crypto income: Revenue Secy

Income tax return forms from next year will have a separate column for making disclosures on gains made from cryptocurrencies and paying taxes, Revenue Secretary Tarun Bajaj said on Wednesday.

The government will from April 1 charge a 30 per cent tax plus cess and surcharges, on such transactions in the same manner as it treats winnings from horse races or other speculative transactions.

In an interview with PTI, Bajaj said gains from cryptocurrencies were always taxable and what the Budget proposed is not a new tax but providing certainty over the issue.

16:47 (IST)02 Feb 2022
Explained: Import duty changes in Budget and its significance

Signalling a move to protect domestic industries which are not necessarily capital, technology or labour intensive, Finance Minister Nirmala Sitharaman on Tuesday introduced a slew of higher custom duties on items of daily use such as umbrellas, headphones, earphones, loudspeakers, smart meters, and imitation jewelry.

Most of these products are imported from China, either as complete units or as knocked down units which are then assembled in factories in India. For example, the customs duty on umbrellas was doubled to 20 per cent, while exemptions provided on import of parts of umbrellas were withdrawn. Similarly, the customs duty on single or multiple loudspeakers, whether or not mounted in their enclosures was hiked to 20 per cent from 15 per cent. Read Explained Here

16:45 (IST)02 Feb 2022
‘Maharashtra is the second biggest gainer from Union budget after Uttar Pradesh’

While the Maha Vikas Aghadi government has alleged that Union budget 2022 hardly has anything for Maharashtra, Viidyes K Totare, MD & CEO of Archers Wealth Management Pvt Ltd, an equity advisory firm based out of Pune, says the state is the second biggest gainer after Uttar Pradesh, as it has got over Rs 51,000 crore for implementing various central schemes. Read Manoj More Interview

14:52 (IST)02 Feb 2022
Budget 2022: Tharoor pitches for 'Vande Bharat' train in place of Silver Line in Kerala

Senior Congress leader and MP, Shashi Tharoor, who had earlier courted controversy for adopting a supportive stand for the LDF government's mammoth Silver Line rail corridor project in Kerala, has opined that the union budget announcement on the launch of 400 Vande Bharat train services in three years could be an alternative for the multi-crore semi high speed initiative.

The Thiruvananthapuram MP tweeted that one interesting element for Kerala in the union budget 2022 was the announcement of 400 new Vande Bharat trains, which can travel at 180 kmph.

Whether the Centre and the state government could see the Vande Bharat trains as a 'cheaper and more energy-efficient substitute' for the Silver Line? he asked. He also said it could address Chief Minister's Pinarayi Vijayan's concern for speedy train travel to promote development and alleviate the concerns of his own party, Congress's concerns about land acquisition and environmental impact.

14:01 (IST)02 Feb 2022
Budget 2022: Punekars spilt over measures announced

A day after Union Finance Minister Nirmala Sitharaman presented the Budget for the year 2022-23, most citizens in Pune were divided over the measures announced in the Government’s annual financial document. While some felt let down by the lack of tax breaks, some felt the Budget will allow the creation of employment in the country.

Amit Waghmare a young businessman from Moshi Pradhikarn, said the Budget is “old wine in a new bottle”. “Take out all the previous Budgets presented by the BJP Government. They have big promises and zero results. The same has been done this time too. Being middle-class taxpayers, we feel excluded. There is nothing for us,” Waghmare said. Read more 

13:39 (IST)02 Feb 2022
Budget 2022-23: Health sector ‘disappointed’, says government did not think about healthcare sector

Several health sector professionals expressed disappointment after the Union Budget was presented in Parliament Tuesday and said the government failed to deliver in the healthcare sector despite Covid-19.

In a press note issued by the Association of Indian Medical Device Industry (AiMeD), forum coordinator Rajiv Nath expressed “deep disappointment and anguish over the Union Budget 2022 giving cold shoulder again to the Indian Medical Device Industry and nothing laudable for the healthcare”. Read more 

13:05 (IST)02 Feb 2022
Budget to benefit border villages in Uttarakhand: PM Modi

Speaking to party workers on the Union Budget 2022, PM Modi said, 'Migration from border villages not good for national security. The budget has provisions to develop 'vibrant villages' along the border.'

'Vibrant village programme will benefit border villages in Uttarakhand, Arunachal Pradesh and Ladakh,' he said. 'Government plans to impart National Cadet Corps training to youth in border villages. It will help them join armed forces,' he added.

12:18 (IST)02 Feb 2022
Farmers expected to get more than 1.5 lakh crore as MSP for paddy this season: PM Modi
11:57 (IST)02 Feb 2022
Budget 2022 focused on development of villages at the border: PM Modi
11:51 (IST)02 Feb 2022
India's GDP increased due to govt's effective policies: PM Modi to party workers
11:45 (IST)02 Feb 2022
Budget 2022 focused on modernising Indian agriculture: PM Modi to his party workers

The budget also focused on modernizing Indian agriculture with a focus on organic farming. This will make farming more lucrative. Kisan drones and other machinery will be made available to the farmers at reasonable prices, PM Modi said while addressing party workers.

11:32 (IST)02 Feb 2022
Possibility of new world order post Covid: PM Modi to party workers on the budget

Prime Minister Narendra Modi on Wednesday said, “There is a possibility of a new world order post-Covid pandemic. Today, the world’s perspective of looking at India has changed a lot. Now, the world wants to see a stronger India,” while addressing party workers on the Union Budget 2022.

10:40 (IST)02 Feb 2022
‘Golmaal’ budget with no direction or intent: Telangana CM Chandrasekhar Rao slams Centre

Telangana Chief Minister K Chandrasekhar Rao has said that the Union budget is a “useless” one with no direction or intent. “The Union budget can be called a ‘golmaal budget’,” he said in a statement.

He said that the budget has disappointed SC, ST, BC, minorities, farming community, the poor, hereditary professions, and employees. Stating that the country needed someone to take it in a new direction of development and accountability, Chandrasekhar Rao said that he would forge an alliance that will be an alternative to the National Democratic Alliance (NDA) and the United Progressive Alliance (UPA). The CM said that he would meet Maharashtra Chief Minister and Shiv Sena leader Uddhav Thackeray in a few days in this regard. Read more 

10:32 (IST)02 Feb 2022
MHA budget hiked by 11 per cent, lion’s share of allocation for police

The Ministry of Home Affairs (MHA) has been allocated in excess of Rs 1.85 lakh crore in the Union Budget 2022-23 which is over 11% higher than the allocation of Rs 1.66 lakh crore in the last budget for the current fiscal. In 2019-20, the Budget had allocated Rs 1.67 lakh crore to the MHA.

However, capital expenditure in the 2022-23 Budget for MHA has increased by only 5% from Rs 15,924 crore in the last Budget to Rs 16,753 crore this Budget.

The lion’s share of the Budget allocation for MHA has gone to police which has been earmarked in excess of Rs 1.17 lakh crore for the coming fiscal. The allocation for Delhi Police has increased from Rs 8,338 crore to Rs 10,096 crore between the last and this Budget. Read more 

10:28 (IST)02 Feb 2022
Listen in: What you should know about the Union Budget 2022

From a major push for capital expenditure and announcements related to virtual assets and digital currencies, to not acknowledging the distress in the economy and moving away from disinvestment, in this episode, Indian Express’s Udit Misra joins host Shashank Bhargava to discuss everything you need to know about the Union Budget 2022.  Podcast

10:20 (IST)02 Feb 2022
Budget: Govt focus on digitation of land records

The linkage of National Generic Document Registration System (NGDRS) with the ‘One-Nation One-Registration Software’ will be promoted as an option for uniform registration process and “anywhere registration of deeds & documents”, Finance Minister Nirmala Sitharaman announced on Tuesday.

“Efficient use of land resources is a strong imperative,” Sitharaman said, adding that, “States will be encouraged to adopt Unique Land Parcel Identification Number to facilitate IT-based management of records. The facility for transliteration of land records across any of the Schedule VIII languages will also be rolled out.” Read more 

09:42 (IST)02 Feb 2022
Through public spend, there will be crowding in of pvt investments: FM

How would you characterise the Budget?

That time when I made that statement (“once-in-a-hundred-year Budget”) that this Budget is being prepared at a time that once in a 100 years pandemic has hit us and we are preparing this Budget. But it so turned out that everyone started saying that it is a “once-in-a-hundred-year Budget”. No no, (this) Budget was being prepared in a once-in-a-100-year situation. But never mind, that stuck with me in a way. Read more 

09:17 (IST)02 Feb 2022
Budget 2022: Rs 200 cr for development assistance to Afghanistan, Rs 100 cr for Chabahar port

In a signal of its commitment to Afghan people, India on Tuesday set aside in its budget for 2022-23, an amount of Rs 200 crore as development assistance to Afghanistan besides allocating Rs 100 crore for the Chabahar port project.

Finance Minister Nirmala Sitharaman allocated a total of Rs 17,250 crore to the Ministry of External Affairs in the Union Budget for the next fiscal, out of which Rs 6,292 crore is for development assistance to countries in India’s neighbourhood as well as in Africa and Latin America.

It is learnt that the allocation of Rs 200 crore to Afghanistan is a signal of India’s commitment to the Afghan people and the money may be spent on paying for old projects, scholarships and providing aid to the Afghan people. Read more 

09:05 (IST)02 Feb 2022
Out of the shadow: 30% tax on crypto, RBI to issue its digital currency

Union Finance Minister Nirmala Sitharaman Tuesday proposed to tax “any income from transfer of any virtual digital asset” at a rate of 30 per cent and impose a 1 per cent tax deduction at source (TDS) of transactions above a monetary threshold.

While the upside is limited from a revenue mobilisation perspective, the step is important as it is the first formal recognition by the Government of increasingly popular financial instruments, such as cryptocurrencies, and applications, such as non-fungible tokens. Read more 

Nirmala Sitharaman Nirmala Sitharaman made a statement with her sartorial pick for Budget 2021. (Express photo by Praveen Khanna)

The Budget comes at a time when India’s employment rate has plummeted. Historic unemployment and faltering growth not only exacerbated inequalities of income and wealth but also led to anincrease in the absolute number of poor peoplein India — an unprecedented and embarrassing reversal in poverty alleviation. In the years leading up to Covid-led technical recession, there was much disagreement about the government’s approach.

The Economic Survey, tabled just a day before Sitharaman will announce the Union Budget 2022-23, emphasised the need for the government to provide a buffer against stresses such as the uncertainty in the global environment, the cycle of liquidity withdrawal by major central banks, etc.

The Survey has pegged that in the government’s efforts to build a post-Covid economy, demand measures alone will not provide the solution. This is based mainly on the fact that a wide variety of factors such as consumer behaviour, technological developments, geo-politics, supply-chains, climate change could interact in unpredictable ways, and India will need to develop a supply-side strategy to deal with the long-term unpredictability of the post-Covid world.

Last year, the government decided to set up an asset reconstruction company that will take over the bad loans of banks, giving them the flexibility to finance the economic recovery. Just days ahead of the Union Budget 2022-23, this proposal to set up a ‘bad bank’ was cleared. State Bank of India Chairman Dinesh Khara said the proposed ‘bad bank’ has “now” received all necessary permissions including from the Reserve Bank of India. It is ready to commence operations with 15 cases worth Rs 50,335 crore to be transferred by March 31, he said.

Must-Reads on Budget 2022-23:

Economic Survey: Key challenges and concerns for Indian economy

Economic Survey in 5 points: Nurturing a post-Covid recovery and the risk factors

Explained: Bad bank is ready, how will it resolve stressed assets?

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