{"id":1185,"date":"2022-02-02T05:38:51","date_gmt":"2022-02-02T05:38:51","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=1185"},"modified":"2022-02-03T08:28:28","modified_gmt":"2022-02-03T08:28:28","slug":"budget-decode","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/budget-decode\/","title":{"rendered":"BUDGET DECODE"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>Finance\nMinister delivered her fourth budget in a long one hour thirty minutes speech\nin Lok Sabha, projecting an expected growth rate of the country at 9.27% in the\ncoming fiscal year.&nbsp; The&nbsp; Budget 2022 was focused on four pillars of development\nnamely, inclusive development, productivity enhancement, energy transition, and\nclimate action.<\/p>\n\n\n\n<p>The\nFinance Minister of the nation with her budget laid the foundation of Amrit Kal\nfor the next 25 years. By achieving certain during the Amrit Kal, the government\naims to achieve the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Complementing the macro-economic level growth\nfocus with a microeconomic level all-inclusive welfare focus,<\/li><li>Promoting digital economy &amp; fintech,\ntechnology-enabled development, energy transition, and climate action, <\/li><li>Relying on a virtuous cycle starting from private\ninvestment with public capital investment helps to crowd-in private investment.<\/li><\/ul>\n\n\n\n<p>The Finance\nminister in her budget speech said, this budget will provide an impetus for\ngrowth and will benefit youth, women, farmers, the Scheduled Castes, and\nthe Scheduled Tribes and will make India ready at 100 years. Keeping the goal\nin mind, the budget laid down four priorities:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>PM\nGati Shakti, <\/li><li>Inclusive Development, <\/li><li>Productivity Enhancement\n&amp;Investment, Sunrise Opportunities, Energy Transition, and Climate Action, <\/li><li>Financing of investments.<\/li><\/ul>\n\n\n\n<p><strong>PM Gati Shakti- <\/strong>transformative\napproach for economic growth and sustainable development. The approach is\ndriven by seven engines, namely, Roads, Railways, Airports, Ports, Mass\nTransport, Waterways, and Logistics Infrastructure. All seven engines will pull\nforward the economy in unison.<\/p>\n\n\n\n<p>unison.<\/p>\n\n\n\n<p><strong>Roads-<\/strong> Under PM Gati Shakti Plan, the National\nhighway network is to be expanded by 25,000Km in FY2022-23.<\/p>\n\n\n\n<p><strong>Railways-<\/strong>Railways will\ndevelop efficient logistics services for small farmers and SMEs. Furter to help\nlocal businesses, the One station-One Product concept will be popularised. For better energy efficiency and passenger riding experience, 400\nnew-generation VandeBharat Trains will be manufactured in the next 3 years.<\/p>\n\n\n\n<p><strong>Inclusive Development- <\/strong>Under inclusive development, agriculture, MSME, Digital banking, Ken\nBetwa Project, food processing Skill Development, housing, education among\nothers to be taken care of.<\/p>\n\n\n\n<p><strong>Agriculture-<\/strong> In the procurement of 2021-22 of wheat in\nRabi and Paddy in Kharif will cover 1208 lakh metric tonnes, from 163 lakh\nfarmers and MSP of Rs 2.37lakh crores will directly be credited to the\nrespective account.<\/p>\n\n\n\n<p>Chemical-free\nfarming will be promoted on the farmer&#8217;s land in 5kh wide corridors along river\nGanga.<\/p>\n\n\n\n<p>2023 has been\nannounced as the international year of Millets. Support will be provided for\npost-harvest value addition, enhancing domestic consumption, and branding\nmillet products nationally and internationally.<\/p>\n\n\n\n<p>For crop\nAssessments, digitization of land records, spraying of insecticides and\nnutrients, use of Kisan drones will be promoted.<\/p>\n\n\n\n<p>Syllabi of\nagricultural universities to be revised to meet needs of natural, zero-budget\n&amp; organic farming, modern-day agriculture<\/p>\n\n\n\n<p><strong>&nbsp;Ken Betwa Projects-<\/strong> at\nan estimated cost of Rs 44,605 crore will be taken up for implementation\nof&nbsp; Ken Betwa Project. This is aimed at\nproviding irrigation benefits to 9.08 lakh hectares of farmers\u2019 lands, drinking\nwater supply for 62lakh people, 103 MW of Hydro, and 27 MW of solar power.<\/p>\n\n\n\n<p><strong>MSME-<\/strong> Udyam, e-Shram, NCS, and ASEEM portals will be interlinked. With a live\nand organic database, they will provide G2C, B2C, and B2B services. These\nservices will help to further formalize the economy and enhance entrepreneurial\nopportunities for all.<\/p>\n\n\n\n<p>The\nhospitality and related services, especially those by micro and small\nenterprises, are yet to regain their pre-pandemic level of business. Considering\nthe same, the ECLGS will be extended up to March 2023 and its guarantee cover\nwill be expanded by Rs50,000 crore to the total cover of Rs5 lakh crore.<\/p>\n\n\n\n<p>Credit\nGuarantee Trust for Micro and Small Enterprises (CGTMSE) scheme will be\nrevamped and will facilitate additional credit of Rs2 lakh crore for MSME and\nexpand employment opportunities.<\/p>\n\n\n\n<p>An outlay of\nRs 6000 crores will be rolled out over the next 5 years to raise and accelerate\nMSME performance. <\/p>\n\n\n\n<p><strong>Skill\nDevelopment-<\/strong> The National Skill Qualification Framework\n(NSQF) will be aligned to meet the dynamic industry needs.<\/p>\n\n\n\n<p>The DESH-Stack\nportal will be launched to empower citizens to skill, reskill or upskill\nthrough online training.<\/p>\n\n\n\n<p><strong>Quality Education-<\/strong> One class one\nTV channel, the program of e-vidya will be expanded from 12- 200 Tv channels, to\nenhance regional education for classes 1-12. <\/p>\n\n\n\n<p>To promote crucial critical thinking skills, to give space for\ncreativity, in 2022-2023, 750 virtual labs in science and mathematics, and 75\nskilling e-labs for simulated learning environments will be set up.<\/p>\n\n\n\n<p><strong>Digital University-<\/strong>Digital universities will be established to provide access to the\nstudent with a personalized learning experience. University will be based on a\nhub and spoke network. Private universities will collab with the hub and spoke\nnetwork.\n<\/p>\n\n\n\n<p><strong>Ayushman\nBharat Digital Mission-<\/strong> National Digital Health\nEcosystem will be rolled out, consisting of digital registries of health\nproviders and health facilities, unique health identity, consent framework, and\nuniversal access to health facilities.<\/p>\n\n\n\n<p><strong>Har Ghar, Nal se Jal-<\/strong>Rs60,000cores will be allotted to cover 3.8 crore households to\nprovide tap water.<\/p>\n\n\n\n<p><strong>Housing For All<\/strong>&#8211; for\nthe identified eligible beneficiaries of PM Awas Yojana, both rural and urban,\n80 lakh houses will be completed in 2022-23.<\/p>\n\n\n\n<p>For reduction\nof time required for all land and construction-related approvals, for promoting\naffordable housing, the central government to work with the respective state\ngovernment.<\/p>\n\n\n\n<p><strong>Prime Minister\u2019s Development Initiative for North\nEast Region (PMDevINE)-<\/strong> A new scheme will be implemented\nthrough the North-Eastern Council fund infrastructure, in the spirit of PM\nGatiShakti, and social development projects based on the needs of the\nNorth-East. An initial allocation of Rs1500 crores will be made.<\/p>\n\n\n\n<p><strong>Anytime Anywhere Post Office Saving<\/strong>&#8211; In 2022, 100% of post offices will come under the core banking\nsystem to enable financial inclusion.<\/p>\n\n\n\n<p><strong>Digital Banking<\/strong>&#8211; 75\nDigital Banking Units (DBUs) in 75 districts of the country to be set up by\nScheduled Commercial Banks.<\/p>\n\n\n\n<p><strong>Digital Payment-<\/strong> financial support for the digital payment ecosystem announced in the\nBudget 2021 will continue in 2022-23, to promote the use of payment platforms\nthat are economical and user friendly.<\/p>\n\n\n\n<p><strong>Productivity Enhancement &amp;\nInvestment, Sunrise Opportunities, Energy Transition, and Climate Action<\/strong><\/p>\n\n\n\n<p><strong>&nbsp;<\/strong><strong>Ease of Doing Business 2.0 and Ease of Living-<\/strong> over 25,000 compliances were reduced and 1486<\/p>\n\n\n\n<p>Union laws\nwere repealed.<strong><\/strong><\/p>\n\n\n\n<p>The new phase\nof ease of doing business and ease of living will be guided by the active\ninvolvement of the states, digitization of manual processes and interventions,\nintegration of the central and state-level systems through IT bridges, single-point\naccess for all citizen-centric services, and standardization and removal of\noverlapping compliances.<\/p>\n\n\n\n<p><strong>Green Clearance<\/strong>-The\nscope of PARIVESH, the single window portal launched in 2018 will be expanded,\nto provide information to the applicants<\/p>\n\n\n\n<p>This will\nenable application for all four approvals through a single form, and tracking\nof the process through Centralized Processing Centre-Green (CPC-Green).<\/p>\n\n\n\n<p><strong>E-Passport-<\/strong>Issuance\nof e-passport using embedded chips and futuristic technology will be rolled out\nin 2022-23.<\/p>\n\n\n\n<p><strong>Urban Planning Support to States-<\/strong>to facilitate reforms for people to live and work closer to mass\ntransit systems Modernization of building bylaws, Town Planning Schemes (TPS),\nand Transit-Oriented Development (TOD) will be implemented.<\/p>\n\n\n\n<p><strong>Battery&nbsp;\nSwapping Policy- <\/strong>To improve efficiency in\nthe EV ecosystem, the private sector will be encouraged to develop sustainable\nand innovative business models for \u2018Battery or Energy as a Service&#8217;.<\/p>\n\n\n\n<p><strong>Land Record Management- <\/strong>One-Nation One-Registration Software\u2019 will be promoted as an option\nfor a uniform process for registration and \u2018anywhere registration\u2019 of deeds\n&amp; documents.<\/p>\n\n\n\n<p><strong>Accelerate Corporate Exit-<\/strong> Voluntary exit for\ncorporates to be cut down to 6 months from existing 2 years.<\/p>\n\n\n\n<p><strong>Government\nProcurement<\/strong>-Provision\nhas been for encouraging settlement of disputes through conciliation. further\nprovisions are made for payment of 75 percent of running bills, mandatorily\nwithin 10 days.<\/p>\n\n\n\n<p>End-to-end online e-Bill System will be\nlaunched for use by all central ministries, to enhance transparency and reduce\ndelays in payments, and go completely paperless.<\/p>\n\n\n\n<p><strong>AVGC\nPromotion Taskforce- <\/strong>to\nrecommend ways to realize and build domestic capacity for serving our markets\nand the global demand, an AVGC promotion task force with all stakeholders will\nbe set up.<\/p>\n\n\n\n<p><strong>Telecom\nSector-<\/strong>Spectrum\nauction for 5G to roll out in 2022. As part of the PLI scheme, design-led\nmanufacturing is to be launched for the 5G ecosystem. For R&amp;D and\ntechnology up-gradation, 5% of USO fund to be allocated. Infrastructure status\nto be given to Datacenter and energy storage.<\/p>\n\n\n\n<p><strong>Export\nPromotion-<\/strong>The\nSpecial Economic Zones Act will be replaced with a new legislation development\nof Enterprise and Service Hubs\u2019.<\/p>\n\n\n\n<p><strong>AtmaNirbharta\nin Defence- <\/strong>To\nreduce dependence on imports, 68 %of the capital procurement budget will be\nearmarked for the domestic industry in 2022-23, up from 58% in 2021-22.<\/p>\n\n\n\n<p><strong>Energy\nTransition and Climate Action-<\/strong>This budget proposed several near-term and\nlong-term strategies for climate action.<\/p>\n\n\n\n<p>Allocation of Rs 19,500 crore to facilitate\ndomestic manufacturing for the ambitious goal of 280 GW of installed solar\ncapacity by 2030.<\/p>\n\n\n\n<p><strong>Transition\nto Carbon Neutral Economy-<\/strong>5%-7% biomass pellets will be co-fired in thermal power\nplants resulting in CO2 savings of 38 MMT annually.<\/p>\n\n\n\n<p><strong>Financing Of Investment<\/strong><\/p>\n\n\n\n<p><strong>Public\nCapital Investment- <\/strong>Outlay\nfor capital expenditure increased by 35.4% from Rs 5.54 lakh crore in the\ncurrent year to Rs 7.50 lakh crore in 2022-23.<\/p>\n\n\n\n<p><strong>Effective\nCapital Expenditure-<\/strong>The\n\u2018Effective Capital Expenditure\u2019 of the Central Government is estimated at\nRs10.68 lakh crore in 2022-23, which will be about 4.1% of GDP.<\/p>\n\n\n\n<p><strong>Green\nBonds-<\/strong>Green\nBonds will be issued for mobilizing resources for green infrastructure.\nProceeds from the same will be used for projects which help in reducing the\ncarbon intensity of the economy.<\/p>\n\n\n\n<p><strong>Digital\nRupee-<\/strong>CentralBank Digital Currency (CBDC) will be\nintroduced to boost the digital economy. this will lead to a more efficient and\ncheaper currency management system.<\/p>\n\n\n\n<p>Digital Rupee to be introduced using\nblockchain and other technologies by the Reserve Bank of India starting\n2022-23.<\/p>\n\n\n\n<p><strong>Financial\nAssitance to states for capital Investment-<\/strong>the outlay for \u2018Scheme for Financial\nAssistance to&nbsp; States for Capital\nInvestment\u2019 is being enhanced from Rs10,000 crore in the Budget Estimates to Rs\n15,000 crore in the Revised Estimates for the current year.<\/p>\n\n\n\n<p>Following the recommendations of the\n15th&nbsp; Finance Commission, in 2022-23,\nstates will be allowed a fiscal deficit of 4% of GSDP of which 0.5 percent will\nbe tied to power sector reforms.<\/p>\n\n\n\n<p><strong>Fiscal\nManagement-<\/strong>2021-22\nrevised expenditure is reported at Rs 37.70 lakh\ncrore.<\/p>\n\n\n\n<p>The estimated\ntotal expenditure in 2022-23 is Rs39.45 lakh crore, while the total receipts other than borrowings are\nestimated at Rs 22.84 lakh\ncrore.<\/p>\n\n\n\n<p>The fiscal\ndeficit is estimated at 6.9% of GDP.<\/p>\n\n\n\n<p><strong>DIRECT TAX<\/strong><\/p>\n\n\n\n<p><strong>The government\n<\/strong>intends to bring more reforms that will take\nahead our vision to establish a trustworthy tax regime that will further\nsimplify the tax system, promote voluntary compliance by taxpayers, and reduce\nlitigation.<\/p>\n\n\n\n<p><strong>Introduction of &#8220;Updated Return&#8221;<\/strong><\/p>\n\n\n\n<p>Under this\nprovision, taxpayers can file an <strong>Updated\nReturn<\/strong> on payment of additional tax within two years from the end of the\nrelevant assessment year.<\/p>\n\n\n\n<p><strong>Minimum Tax rate and Surcharge for cooperatives<\/strong><\/p>\n\n\n\n<p>Surcharge on\nco-operative societies from present 12% to 7%&nbsp;\nfor those having total income of more than Rs 1 crore and up to Rs10\ncrores. This will help to enhance the income of cooperative societies and their\nmembers who are mostly from rural and farming communities.<\/p>\n\n\n\n<p><strong>Tax relief to a person with a disability<\/strong><\/p>\n\n\n\n<p>The Finance\nminister allowed the payment of annuity and lump sum amount to the differently-abled\ndependent during the lifetime of parents\/guardians, i.e., on parents\/ guardians\nattaining the age of 60.<\/p>\n\n\n\n<p><strong>Parity Between employees of state and Central\nGovernment<\/strong><\/p>\n\n\n\n<p>Tax deduction limit\nincreased to 14% from existing 10% on employer\u2019s contribution to the NPS\naccount of State Government employees<\/p>\n\n\n\n<p><strong>Incentives for Startup and new incorporated\nmanufacturing Entities-<\/strong><\/p>\n\n\n\n<p>Startups\nestablished before 31st march,2022 gets tax incentive for 3 years out of ten\nyears from incorporation. The budget has extended the period of incorporation\nof the eligible start-up by one more year, that is, up to 31st March 2023.<\/p>\n\n\n\n<p>The last date\nfor the incorporation of manufacturing entities has been extended till March\n2024.<\/p>\n\n\n\n<p><strong>Taxation on Virtual Digital Asset<\/strong><\/p>\n\n\n\n<p>Any income\nfrom the transfer of any virtual digital asset shall be taxed at the rate of\n30%. No deduction shall be allowed in respect of any expenditure or allowance. Loss\non sale of virtual assets can&#8217;t be set off against any other income.<\/p>\n\n\n\n<p>To capture transaction\ndetail TDS of 1% will be provided above a monetary threshold. ven the gift of a\nvirtual asset to be taxed at the hand of the recipient.<\/p>\n\n\n\n<p><strong>Tax Incentive to IFSC<\/strong><\/p>\n\n\n\n<p>The income of\na non-resident from offshore derivative instruments or over-the-counter\nderivatives issued by an offshore banking unit, income from royalty and\ninterest on account of lease of a ship, and income received from portfolio\nmanagement services in IFSC shall be exempt from tax.<\/p>\n\n\n\n<p><strong>Rationalization of Surcharge<\/strong><\/p>\n\n\n\n<p>Surcharge on\nAOP&#8217;s to be capped at 15%. Surcharge on any capital gain on transfer of any\ntype of asset will be capped at 15%.<\/p>\n\n\n\n<p><strong>INDIRECT TAX<\/strong><\/p>\n\n\n\n<p><strong>Progress in GST<\/strong><\/p>\n\n\n\n<p>Gross GST\nrevenue for Jan 2022-&nbsp; Rs1,40,960 crores,\nthe highest since the GST regime started.<\/p>\n\n\n\n<p><strong>SECTOR-SPECIFIC<\/strong><\/p>\n\n\n\n<p><strong>Electronics- <\/strong>Customs\nduty rates are being calibrated to provide a graded rate structure to\nfacilitate domestic manufacturing of electronics like wearable devices,\ntransformer of mobile phone chargers and camera lens of the mobile camera\nmodule, and certain other items.<\/p>\n\n\n\n<p><strong>Gems and Jewellery-<\/strong> Customs duty on cut and polished diamonds and gemstones is being\nreduced to 5%.<\/p>\n\n\n\n<p>The customs\nduty on imitation jewelry has been proposed at Rs 400 per Kg of import.<\/p>\n\n\n\n<p><strong>Tariff Measure to encourage Blending of Fuel<\/strong><\/p>\n\n\n\n<p>To encourage the blending of fuel, unblended fuel to attract\nadditional excise duty of Rs2 per litre from October 2022<strong>.<\/strong><\/p>\n\n\n\n<p>The budget was more\ntowards the development of the agriculture sector that will help push the GDP\nof the country coupled with infrastructural development and encouragement to\nthe new startups. However, there was no tax relief for the common man.<\/p>\n\n\n\n<p>The market did take\nthe budget with happy notes in the early hours of the trade and touched the\nintraday high of 17604.10, but&nbsp; as the\nbudget presentation proceeded, the market subdued and slipped to close the day\nat 17576.85<\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 2,135<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"1185\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">1    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Finance Minister delivered her fourth budget in a long one hour thirty minutes speech in Lok Sabha, projecting an expected growth rate of the country [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/budget-decode\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":1177,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[183,10,1],"tags":[],"class_list":["post-1185","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budget-2022","category-featured","category-other"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/1185","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=1185"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/1185\/revisions"}],"predecessor-version":[{"id":1187,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/1185\/revisions\/1187"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/1177"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=1185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=1185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=1185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}