Key highlights for Budget 2022-23

Deficit/ Expenditure

Revised Fiscal Deficit of 6.9% of GDP in FY2021-22 as against 6.8% estimated in budget. Fiscal deficit estimated at 6.4% for FY 2022-23.
Total Expenditure is estimated to be at ₹ 39.45 trillion for FY 2022-23, total resources to be mobilized ₹ 22.84 trillion other than borrowings.
50 years interest free loans over and above normal borrowing allocated to states.
Scheme for financial assistance to states for capital investment outlay to be 1 trillion rupees in FY 2022-23.

Taxation

Concessional duty on import of capital goods to be phased out.
Duty on unpolished diamonds to be reduced to 5%.
Customs duty on steel scrap extended by a year for small and medium sized businesses. Custom duty on stainless steel, flat products, high steel bars to be revoked.
Unblended fuel to get additional duty of ₹ 2 per litre from October 2022.
Import duty on certain chemicals reduced.
New provision to file updated return within 2 years of relevant assessment year.
Alternate minimum tax for cooperative societies down from 18.5% to 15%.
Tax deduction limit for state government employees to NPS raised from 10% to 14%.
Surcharge on Corporate tax pruned from 12% to 7% for those having income more than ₹1 crore.
Surcharge on transfer of long-term capital gains tax capped at 15%.
Tax exemption to start-ups extended to March 2023.
Gross GST collection for January 2022 at a record ₹ 1.41 trillion
No change in income tax slab. Revised income tax declaration can be done within 2 years of the end of relevant assessment year.

Finance

ECLGS (Emergency Credit Line Guarantee Scheme) to be for small and medium sized businesses extended upto March 2023, guaranteed cover extended by another ₹ 50,000 crore.
Energy transition and climate action will be a major government priority.
Public issue of Life Insurance Corporation expected shortly.
Special Economic Zones Act to be replace with new legislation.
To amend bankruptcy code to speed up resolution process.
IBC to be amended to improve efficiency of resolution process including cross border.
Aims to lower winding up of companies to 6 months from 2 years currently.
75 digital banking units in 75 districts to be launched by Scheduled Commercial Banks.
Long Term capital Gain surcharge capped at 15%.
An expert committee to be set up to examine ways to encourage venture capital in startup ecosystem.
Industries and startup to be encouraged in research and development projects.
Promoting Fintech and digital economy a focus area for this Budget.
All postal services to adopt core banking enabling interoperability and financial inclusion.
₹ 2 trillion outlay for MSMEs, Additional loans for 13 million MSMEs.

Digital Currency

RBI led digital rupee using blockchain to be launched in FY 2022-23, 1% TDS on transfer of virtual digital assets and income to be taxed at 30%. Gift of digital asset to be taxed at the hands of recipient.
Losses from sale of virtual digital assets cannot be off set against other income.

Defence

Infrastructure

Scheme for design-led manufacturing for 5G will be part of production-linked scheme.
PLI (Production Linked Incentive scheme) in 14 sectors for Aatmanirbhar Bharat to create 6 million jobs, additional allocation of Rs 19,500 crore for PLI in solar PV module manufacturing.
5G spectrum auction to be conducted in 2022-02-01.
Award contracts to lay optical fibre in rural areas for completion in 2025.
₹480 billion set aside for affordable housing in FY 2022-23.
35.4% increase in capex to ₹ 6.50 lakh crores in FY 2023.
₹ 60,000 crore to be spent to provide tap water to 3.8 crore households.
A multi language digital university will be set up with ISTE standards to build on hub and spoke model.
Kisan drones to be used for crop assessments, digitization of land records and spraying of insecticides and nutrients.
The rail sector will develop “One Station One Product”, which will leverage local produce carried on the railways.
Contracts for implementation of multimodal logistics parks at 4 locations to be awarded in 2022-23, in PPP Mode. Contracts for 8 ropeway projects for a length of 60 km will be awarded in 2022-23.
₹ 48,000 crore allocated to housing projects under PM Housing Scheme for FY 2022-23, ₹ 1,500 crore allocated for development of the Northeast in FY 2022-23 and Desh stack e-portal to be launched to promote Digital infrastructure.
8 million new dwelling in rural, urban areas to be completed under PM Awas Yojana

Agriculture

Domestic scheme introduced to reduce dependence on oilseed imports
Fund with blended capital raised under co-investment model to finance agriculture startups.
Railways to develop infrastructure for small farmers in FY 2022-23.
₹ 2.37 trillion worth of MSP direct payments to wheat and paddy farmers.
Promoting chemical free natural farming starting with farmers’ lands close to river Ganga.
Promoting post harvest value addition, consumption and branding of millet products.
The Ken-Betwa Link Project is aimed at providing irrigation benefits to 9.08 lakh hectare of farmers’ lands, drinking water supply for 62 lakh people, 103 MW of Hydro, and 27 MW of solar power.

Transport

400 energy efficient Vande Bharat Trains to be manufactured over next 3 years.
National highways network to be expanded by 25,0000 kms in FY 2022-23. Estimated cost for it ₹ 200 billions.
PM Gati-shakti masterplan has scope to enhance Multimodal communication through 7 engines, 2000 km of rail network to be brought under KAVACH.
India Budget to bring out battery swapping policy.

Others

E-passports with embedded chips to be rolled out in FY 2023.
Battery-swapping policy to be brought out with interoperability standards to encourage Electric Vehicles.

A National Tele Mental Health Program to be launched to improve access to quality mental health counseling and care services.