The digital rupee, incentives for start-ups, and an increase in capital expenditure are just a few of the highlights of FM Sitharaman’s Budget 2022-23.
Tax on income from the transfer of virtual digital assets, a digital rupee, and incentives for start-ups are among the highlights of Finance Minister Nirmala Sitharaman’s Budget 2022-23, which was unveiled in Parliament on Tuesday.
The government has proposed a 30% tax on any income derived from the transfer of virtual digital assets.
‘One point to note is what FM said that last month’s GST collection is a record Rs 1.49 Lakh Crores. ‘
It is also proposed that financial assistance to states for capital investment be increased to Rs 15,000 crore in the Revised Estimate, up from Rs 10,000 crore in the Budget Estimate for 2021-22.
Here are the live updates:
5:13 pm: Modi govt continues infra push, Budget shows big jumps for highways, transport & tap water.
Finance Minister says Gati Shakti Master Plan for expressways will be formulated to facilitate faster movement of people & goods. It will build 25,000 km of expressways in 2022-23.
5:07 pm: Green bonds, push for indigenous solar panels, EVs: Spotlight on climate change in Budget 2022
FM Nirmala Sitharaman calls climate change ‘strongest negative externalities that affect India, other countries say the focus is on reducing dependence on non-renewable energy.
5:00 pm: The announced replacement of the Special Economic Zones (SEZ) Act is intended to help states participate better, and the details will be worked out, says the FM as the press conference wraps up.
4:40 pm: Defence procurement gets a Budget boost, Modi govt hikes capital outlay to Rs 1.52 lakh crore
The overall defense budget for 2022-23 stands at Rs 5.25 lakh crore, up from Rs 4.78 lakh crore in 2021-22. The defense budget is 13.3% of the total expenditure planned by Centre for 2022-23.
4:30 pm: On Rahul Gandhi’s “zero-sum Budget” comment, the FM says it’s a “typical UP-type” comment by a leader “who ran away from UP”. Criticizing “quick responses”, she says, “Just putting something on Twitter doesn’t help”. She adds, “I only pity a party for having a leader who comments without thinking.”
4:22 pm: Chief Economic Advisor V. Anantha Nageswaran says India can expect to be at the $5 trillion economy mark by FY26.
4:19 pm: This budget in every aspect is a continuation of last year’s budget, including in terms of privatization, says FM Sitharaman.
4:00 pm: FM says digital currency can only be issued by the Reserve Bank of India and will be issued later this year. Cryptocurrencies are not currencies.
3:58 pm: “We are sure to achieve the tax numbers or even better them,” says Sitharaman
3:54 pm: On LIC IPO, FM says “I’ve indicated clearly that it will happen,” will in all probability go through in FY22.
3:52 pm: FM Sitharaman addresses a post-Budget press conference.
3:50 pm: BJP president J.P. Nadda says the Budget will empower the poor and is focused on infrastructure, rural and hilly areas, and the Northeast.
3:35 pm: Saying that more than Rs. 2.25 lakh crore MSP will be directly transferred to farmers, PM Modi adds that the Budget will double farmers’ incomes, and many new schemes have been announced for Micro, Small, and Medium Enterprises (MSMEs). He will speak in detail on the Budget at 11 am tomorrow.
3:15 pm: In the post-Budget address, PM Modi says the Budget has brought hope and opportunities and will strengthen the economy, with more growth, infrastructure, growth, jobs, and a focus on green jobs.
3:03 pm: Noting the FM’s reference to record GST collection figures last month, Union minister Hardeep Singh Puri says he is “very encouraged by the announcements”.
2:36 pm: Mental and digital wellbeing focus of Budget as health spend gets 16% boost
FM announces the setting up of a national telemental health network. NIMHANS will be the nodal centre, and the International Institute of Information Technology, Bengaluru, will provide tech support.
2:20 pm: Budget 2022 is growth-oriented, focusing on public sector infrastructure.
2:08 pm: “This Budget looks at sunrise areas of growth. India needs to go green, India needs to go digital and that is what this Budget pitches for. It pushes for urbanization, clean electricity, clean mobilization, and digital rupee,” says Niti Aayog CEO Amitabh Kant.
2:07 pm: Health Minister Mansukh Mandaviya thanks PM Modi and FM Sitharaman for the launch of the National Tele-mental Health Programme, which says it will ensure quality mental health counseling for all.
1:57 pm: Market Update: Sensex is now trading 660 points higher at 58,680.92, Nifty is up 172 points to trade at 17,512.25
1:51 pm: No changes in tax slabs, deductions — FM Sitharaman gives the middle class a skip in Budget 2022.
It was widely expected that Sitharaman would announce higher deductions under Section 80C of the Income Tax Act. However, no such move was forthcoming.
1:45 pm: ‘Modi Government’s Zero-Sum Budget’, says Congress leader Rahul Gandhi.
1:33 pm: Jayant Sinha, former MoS finance, says it’s a pro-growth budget, will keep inflation under control.
1:30 pm: Congress MP Shashi Tharoor says Budget is a “damp squib”.
1:20 pm: ‘A Pegasus Spin Budget’: Mamata Banerjee; Trinamool Congress chief and West Bengal Chief Minister says Budget 2022 doesn’t have anything for common people, calls it “A Pegasus Spin Budget”.
1:16 pm: Road Transport and Highways Minister Nitin Gadkari said the budget will help promote modern infrastructure in the country.
1:14 pm: Home Minister Amit Shah says the Budget will be helpful in making India the leading economy of the world under the leadership of PM Modi.
1:12 pm: Reacting to this year’s Union Budget, TMC MP Derek O’Brien says the PM doesn’t care about farmers, the middle class, daily earners, and the unemployed.
1:10 pm: Defence Minister Rajnath Singh calls Budget 2022 “a growth-oriented Budget focused on harnessing the energies of New India.”
12:47 pm: Markets welcome FM’s announcements, Sensex up 857 points at 58,871.95, Nifty up 206 points to trade at 17,546.80.
12:33 pm: FM Nirmala Sitharaman concludes her budget speech.
12:30 pm: No changes in personal income tax slabs.
12:29 pm: Custom duty on cut & polished diamonds and gemstones reduced to 5 percent.
12:28 pm: Propose to phase out more than 350 customs duty exemptions over time, says FM.
12:24 pm: Gross GST revenues in January 2022 at Rs 1.41 lakh crore, highest since the regime’s inception: FM.
12:16 pm: FM proposes to cap surcharge on long-term capital gains on transfer of any assets at 15 percent from 2022-23.
12:14 pm: Any income from the transfer of virtual digital assets will be taxed at 30 percent from 2022-23.
12:12 pm: Propose to increase tax deduction limit for NPS for state govt employees to 14% from 10%: FM.
12:11 pm: Propose a reduced tax surcharge on cooperatives to 7 percent: FM.
12:10 pm: Propose to reduce minimum alternate tax on cooperatives to 15 percent in 2022-23.
12:09 pm: Taxpayers can file updated returns on payment of additional tax within 2 yrs: FM.
12:04 pm: Total spending in 2022-23 at Rs 39.45 lakh crore, revised fiscal deficit estimated at 6.9 percent of GDP in 2021-22, 6.4 percent in 2022-23: FM.
12:03 pm: Financial assistance to states for capital investment is being increased from Rs 10,000 crore in 2021-22 budget estimate to Rs 15,000 crore in Revised Estimate.
12:00 pm: FM proposes to introduce a digital rupee using blockchain technology to be issued by the Reserve Bank of India starting 2022-23.
11:57 am: International arbitration centre will be set up in GIFT city, says FM.
11:56 am: Sovereign green bonds will be issued for mobilizing resources for green infra, says FM.
11:54 am: The outlay for capital expenditure is being stepped up sharply by 35.4% from Rs 5.54 lakh cr in the current year to Rs 7.50 lakh crore in 2022-23, says FM.
11:50 am: 5G tech can enable growth and job opportunities and for that required 5G spectrum auctions will be held in 2022
11:48 am: Defence R&D to be opened for industry, start-ups & academia.
11:47 am: 68 percent of the capital procurement budget for defense will be earmarked in 2022-23 for domestic procurement, up from 58 percent in 2021-22 to promote Aatmanirbharta and reduce dependence on imports of defense equipment.
11:46 am: SEZ Act will be replaced with new legislation that will enable states to become partners in the development of enterprise: FM.
11:45 am: Will facilitate the use of surety bonds in govt procurement. The surety bond will be used in place of guarantees for govt purchase: FM.
11:42 am: Push to electric mobility. Govt to bring out battery swapping policy, battery charging stations will be set up in our cities.
11:41 am: We need to reimagine our cities. A high-level committee will be set up to develop urban plans and building capacity: FM.
11:37 am: Will pay Rs 2.7 lakh crore as MSP payments to farmers.
11:36 am: E-passports with embedded chips to be rolled out
11:35 am: For Amrit Kal, the next phase of ease of doing business 2.0 & ease of living will be launched. The new phase will be guided by the active involvement of the state: FM.
11:33 am: Focus to promote use on payment platforms that are economical & use-friendly, says FM.
11:32 am: 100 more post offices will become part of the core banking system to help farmers, senior citizens enabling inter-operability and financial inclusion.
11:31 am Plan to complete 80 lakh houses under PM Awaas yojana in 2022-23: FM.
11:30 am Rs 60,000 crore allotted to provide tap water connections to 3.8 crore households under the govt’s flagship Har Ghar Jal programme in 2022-23: FM.
11:29 am: A news scheme – Prime Minister’s Development Initiative for the Northeast – will be implemented, says FM.
11:28 am: National tele mental health network of 23 mental health institutes to be rolled out: FM.
11:27 am Open platform for national digital health ecosystem to be rolled out: FM.
11:26 am: A digital university will be established to provide world-class education in India.
11:25 am: ‘One Class, One TV Channel’ programme of PM e-vidya will be expanded from 12 to 200 TV channels. This will enable all states to provide supplementary education in regional languages for classes 1-12: FM.
11:24 am: In select ITIs in all states, required courses for skilling will be started.
11:22 am: Digital ecosystem for skilling & livelihood will be launched, says FM.
11:19 am: Emergency credit line guarantee scheme for MSMEs will be extended up to March 2023 for a total cover of Rs 5 lakh crores: FM.
11:18 am: Draft DPRs for 5 river links have been finalized, says FM
11:16 am: Chemical-free natural farming to be promoted; Use of Kisan drones to be promoted for crop assessment FM says.
11:15 am: FM announces Parbatmala — the National Ropeway Development programme will be launched in 2022 to develop ropeway connectivity in hilly terrains
11:14 am: Will develop 100 PM Gati Shakti cargo terminals: FM
11:13 am: One Station, One Product to be popularised to help local businesses & supply chains
11:12 am: 25,000 km of national highways to be built in 2022-23: FM
11:11 am: PM Gati Shakti plan one of the four pillars of growth: FM
11:10 am: Big public investment for modern infrastructure to be benefitted by PM’s Gati Shakti plan. PM Gati Shakti master plan will encompass the 7 engines for economic transformation, seamless multimodal connectivity, and logistics efficiency: FM.
11:09 am: Speed in coverage of Covid vaccination has helped in economic recovery,” says Sitharaman
11:08 am: India’s economic recovery is continuing to benefit from the multiplier effect, says FM
11:07 am: IPO of Life Insurance Corporation is expected shortly, others too are in the process for 2022-23, says Sitharaman
11:05 am: Economic recovery from pandemic shows India’s resilience, says FM.
11:01 am: India’s economic growth in 2021-22 estimated at 9.2 percent, says FM
11:00 am: FM Sitharaman tables Union Budget 2022.
10:44 am: Union Cabinet approves Budget 2022, Sitharaman to present it shortly.
10:38 am: Morning cheer for markets: Sensex rises by 755 points to 58,769.56, Nifty by 217 points to reach 17,556.90.
10:24 am: All set: Copies of Budget 2022 arrive at the Parliament.
10:22 am: Prime Minister Narendra Modi arrives at Parliament for the Union cabinet meeting ahead of Budget.
10:14 am: Agri, roads infra: A new survey reveals that a majority of Indians want these sectors to be the top focus areas in this year’s Budget.
10:07 am: FM Sitharaman arrives at the Parliament. She will present the Budget at 11 am.
9:45 am: Finance Minister Sitharaman along with Ministers of State for Finance, Dr. Bhagwat Kishanrao Karad and Pankaj Chaudhary, and senior officials of the finance ministry call on President Ram Nath Kovind.
9:35 am: Cut taxes & simplify them. That’s the best option for the Budget to spur demand, boost recovery.
9:25 am: The Modi government is likely to continue with its infra push in the Budget, especially for the highways sector. The sector is likely to see an at least 30 percent jump in capital expenditure — to approximately Rs 1.8 lakh crore from Rs 1.18 lakh crore in the ongoing 2021-22 fiscal.
9:15 am: FM Sitharaman arrives at Rashtrapati Bhavan, she will meet President Ram Nath Kovind.
9:07 am: What to make of Budget 2022? Can it boost growth, provide pandemic support & revive the economy?
9:05 am: Finance Minister Nirmala Sitharaman will present an inclusive budget, in line with each and every sectors’ needs. It will be benefiting everyone: MoS Finance Pankaj Chaudhary tells ANI.
9:03 am: Jobs informal sector, bond market reforms: how Budget 2022 should respond to K-shaped recovery.
9:01 am: Finance Minister Nirmala Sitharaman arrives at the Ministry of Finance ahead of the Budget.
9:00 am: Ahead of the Union Budget, the Economic Survey 2021-22 was tabled in Parliament Monday. The Survey has projected the Indian economy will grow between 8 and 8.5 percent in 2022-23.
(News Input Source: Agent)
Prasanta Patnaik