Union Budget 2022: main talking points

Monday, January 31, 2022

Here are some main points based on sector wise:

DEFICIT/EXPENDITURE

Proposes fiscal deficit of 4.5% of GDP by 2025/26
Projects fiscal deficit of 6.4% of GDP in 2022/23
Revised fiscal deficit for 2021/22 at 6.9% of GDP
Total expenditure in 2022/23 seen at 39.45 trillion rupees
States will be allowed 4% fiscal deficit to GDP in FY23
50 year 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 2022/23

TAXATION

Import duty on certain chemicals are being reduced
Customs duty exemption on steel scrap to be extended for another year for small- and medium-sized businesses
Customs duty on stainless steel, flat products, high steel bars to be revoked
Unblended fuel to get additional duty of 2 rupees per litre from October 2022

FINANCE

Emergency credit line guarantee scheme for small and medium sized businesses to be extended to March 2023
Energy transition and climate action will be a major government priority
Public issue of Life Insurance Corporation expected shortly
Initiatives from last year's budget have been provided adequate allocations in this budget
Special Economic Zones Act to be replaced with new legislation
To amend bankruptcy code to speed up resolution process
Aims to lower winding up of companies to 6 months from 2 years currently
Long term capital gain surcharge to be capped at 15%

DIGITAL CURRENCY

To launch digital rupee using block chain technology starting 2022/23
To launch scheme for taxation of virtual digital assets
Losses from sale of virtual digital assets cannot be offset against other income
Income from virtual digital assets to be taxed at 30%

DEFENCE

INFRASTRUCTURE

5G spectrum auctions to be conducted in 2022
Scheme for design-led manufacturing for 5G will be part of production-linked scheme
To award contracts to lay optical fiber in rural areas, completion in 2025
480 billion rupees set aside for affordable housing in 2022/23
To allocate additional 195 billion rupees for production-linked incentives towards solar equipment manufacturing

AGRICULTURE

Domestic scheme introduced to reduce dependence on oil seed imports
Fund with blended capital raised under co-investment model to finance agriculture startups
Railways to develop infrastructure for small farmers in 2022/23

TRANSPORT

read more: https://economictimes.indiatimes.com/news/newsblogs/budget-2022-live-news-updates-nirmala-sitharaman-announcements/liveblog/89257591.cms

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