Big Picture: Decoding the Budget | Union Budget 2022 Summarized

Context: Finance Minister Nirmala Sitharaman Tuesday presented the Union Budget 2022-23 in Parliament. In five big infrastructure projects, the government has proposed expanding highways in the country by 25,000 kilometres, allocating Rs 60,000 crore to the Nal se Jal scheme, five river link projects across various states, an additional Rs 48,000 crore in the PM housing scheme, and boosting infrastructure development in the North East.

• The Finance Minister also announced the auction of 5G spectrum in 2022; proposed setting up 75 digital banking units in 75 districts; announced a national programme for mental health, worsened by the Covid-19 pandemic; and brought virtual currencies like cryptocurrency and non-fungible tokens under the tax net.

Key Highlights

• Digital Rupee is to be issued using block chain technologies
• Issuance of E – Passports
• National Tele Mental Health programme is to be launched
• Zero Fossil Fuel policy to be introduced
• Special Economic Zones Act to be replaced with a new act
• Sovereign green bonds are to be issued
• India growth: Estimated at 9.2%
• Scheme for oil seeds to be launched: To increase domestic oil production and reduce imports

PM Gati Shakti: Rs 20,000 crores

• The PM Gati Shakti Master plan is to be expanded to 25,000 km. 100 PM Gati Shakti Cargo terminals are to be developed in next three years.

Loans for states

• The states are to be provided with Rs 1 lakh crores of financial assistance. These are interest free loans. The states can use this for PM Gati Shakti related investments and other productive investments.

Multi modal logistics parks

• To be opened in four locations through PPP model

PM eVIDYA

• It is One class One TV channel programme. It is to be expanded from 12 to 200 TV channels. This is to educate in regional languages from Class 1 to Class 12.

For MSP: Rs 2.37 lakh crores

• The minister has allocated Rs 2.37 lakh crores for direct payment of minimum support price. Procurement of wheat in 2021-22 was 1208 lakh tonnes and procurement of paddy was 163 lakh tonnes.

PLI

• Rs 19,500 allocated for PLI for manufacturing of high – energy efficiency module. This is to help India achieve its solar energy target of 280 GW by 2030.

Railways

• 400 new Vande Bharat trains are to be launched

Credit guarantee

• CGTMSE: Credit Guarantee Trust for Micro and Small enterprises is to be revamped. Additional credit of Rs 2 lakh crores
• Emergency Credit Line Guarantee Scheme: Extended till March 2023

Housing

• PM Awas Yojana: 60,000 houses to be identified as beneficiaries. Rs 48,000 crores allocated

Financial Inclusion

• 1.5 lakh post offices will come on core banking system

Ken Betwa Linking Project

• Rs 1,400 crores allocated. The total cost of the project is estimated to be Rs 44,605 crores. This is to benefit 9 hectare farmland, supply drinking water to 62 lakh people, generate 103 MW of hydro power and 27 MW of solar power.

Tax

• The central and state government employees’ tax deduction limit is to be increased from 10% to 14%. This will help the social security benefits.
• The transfer of virtual digital asset shall be taxed at 30%
• Corporate surcharge reduced from 12% to 7%
• Customs duty on diamonds reduced to 5%
• Long Term Capital Gains to be taxed at 15%