GS Paper - 3 (Economy)

Finance Minister Nirmala Sitharaman on 1 February 2022 presented the Union Budget 2022, the blueprint for 'amrit kal' of the next 25 years, in Parliament. The Union Budget Finance Minister Nirmala Sitharaman said that India's growth is estimated to be at 9.27 per cent in FY23.

Key takeaways of Budget 2022

  1. The finance minister listed four priorities of the government -- PM Gati Shakti, inclusive development, energy transition and climate action and financing of investments.
  2. PM Gati Shakti masterplan will encompass the seven engines for economic transformation, seamless multimodal connectivity and logistics efficiency.
  3. FM extended the credit-linked guarantee scheme till March 2023. The scope of portals meant to support MSMEs will be widened, with efforts to further formalise the economy. Emergency credit line gave support to more than 1 lakh MSMEs.
  4. The finance minister added that 400 new generation Vande Bharat trains with better efficiency will be brought in over the next three years.
  5. The implementation of the Ken-Betwa link worth Rs 44,605 crore will be taken up to provide irrigation of over 9 lakh hectares of the farmers land providing irrigation, farming and livelihood facilities to farmers and local population.
  6. The Centre plans to launch a digital DESH e-portal for reskilling youth. Skilling programmes will be reoriented. For skilling, upskilling and reskilling of our youth, Digital DESH e-portal will be launched.
  7. 'One Class One TV Channel' will be increased from 12 to 200 TV Channels to provide supplementary education in regional languages for classes 1-12.
  8. The government would promote the use of 'Kisan Drones' in agriculture as part of the Budget for 2022-23. These drones would be used for assessing crops, digitising land records, and spraying pesticides, insecticides and other nutrients.
  9. The Centre will set up an Animation, Visual Effects, Gaming and Comics (AVGC) promotion task force to recommend ways to realise this sector and build domestic capacity for serving markets and the global demand.
  10. The Special Economic Zones (SEZ) Act will be replaced with new legislation for the development of enterprise and hubs. An end-to-end e-Bill facility will be launched for all government procurements.
  11. In a boost to the EV infrastructure, FM said a battery swapping policy will be brought out and interoperability standards will be formed. Private sector will be encouraged to create sustainable and innovative business models for battery and energy as a service, improving the efficiency in the EV ecosystem.
  12. The Digital Rupee using blockchain will be issued by the RBI in this fiscal year. In the tax corner, FM said that taxpayers can now file updated returns within two years. The income from cryptocurrencies, NFTs and other virtual assets to be taxed at 30 per cent
  13. 'One Nation, One Registration' will be established for anywhere registration to facilitate ease of living and doing business. Customs Duty on cut, polished gem stones has been reduced to 5 per cent.
  14. Tax deduction limit will be reduced for central government employees from 18 per cent to 15 per cent in their contribution to NPAs.
  15. Co-operative surcharge will be reduced from 12 per cent to 7 per cent.