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Highlights of the Union Budget 2022-23 – PDF Download, Important Points

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Highlights of the Union Budget 2022-23

Highlights of the Union Budget 2022-23

The Union Budget 2022-23 was presented by the Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman on February 1st, 2022. Focusing mainly on the technology and infrastructure sectors, the 2022 budget also offered provisions for health and education for the upliftment of the common man.

The Union Budget 2022-23 also gave a broad idea of India’s GDP and stability during the time of COVID-19. It also proposed new allotments for almost every sector to cultivate growth in the sub-continent. In the following article, we will be looking into some of the highlights of the Union Budget for the financial year 2022-23.

Union Budget 2022-23 Highlights

MSMEs

  • Rs. 6000 cr would be provided through the Raising and Accelerating MSME Performance program launched by the government.
  • The government would be interlinking several portals such as ASEEM, Udyam, e-ashram, and NCS.
  • Under the Emergency Credit Line Guarantee Scheme, additional credit would be awarded to 13 lakh MSMEs.
  • Under the Emergency Credit Line Guarantee Scheme (ECLGS), the base cover has been expanded by Rs.5000 cr to a total cover of Rs.5 lakh cr. Also, the ECLGS has been extended up till March 2023.
  • Under the Credit Guarantee Trust for Micro and Small Enterprises, the budget allocated Rs.2 lakh cr of additional credit for micro and small enterprises.

India’s Fiscal Estimations

  • The fiscal deficit in the financial year 2022-23 is estimated at 6.4% of the GDP.
  • India’s growth is estimated among the highest in the world with 9.2%.
  • The estimated total expenditure in 2022-23 is Rs.39.45 lakh cr.
  • Total receipts in the financial year 2023, excluding borrowings, are estimated at Rs.22.84 lakh cr.
  • 60 lakh new jobs opportunities to be created in 14 sectors under the Productivity Linked Incentive Scheme.
  • As per the budget, the Central Government’s capital expenditure in 2022-23 has been estimated at Rs.10.68 lakh cr.

Direct and Indirect Taxes

  • New provision for filing an updated return on payment of additional tax. The return can be filed within two years from the end of the relevant assessment year.
  • Income generated from a virtual digital asset transfer would be taxed at 30%.
  • Income generated on receiving a gift of a virtual digital asset would also be taxed on the recipient’s part.
  • The budget did not propose any new changes in the prevailing personal income tax rates.
  • For State Government employees, the tax deduction limit has been increased from 10% to 14% on the employer’s contribution to the NPS account.
  • Under the incentives for start-ups, the government has extended the period of incorporation by a year for availing tax benefits by eligible start-ups.
  • Surcharge or cess on income, profits would not be considered business expenditure under the health and education cess head.
  • The alternate minimum tax paid by cooperatives has been lowered to 15% from the previous 18.5%.
  • Surcharge on long-term capital gains on transfer of any type of assets is capped at 15%.
  • The budget proposed more than 350 exemption entries to be phased out gradually, including selected agricultural produce, medical devices, chemicals, fabrics, etc.
  • Annuity and lump-sum payment on insurance to be allowed to differently-abled people, who are dependent during the lifetime of their parents attaining the age of 60 years.
  • Sectors such as chemicals, metals, and textiles would have simplified customs rates and tariff structures.
  • Mobile phone charger transformers would also have customs duty concessions and other products such as modules of mobile camera lenses.
  • Imitation jewelry import would face an added customs duty of Rs.400 per kilogram. Duty exemptions are also provided to the steel scrap with an extended year for the betterment of the MSME secondary steel producers.
  • Umbrellas would face an increased customs duty to 20%.
  • No customs duty would be charged on simply sawn diamonds.
  • There is a 5% cut in the customs duty on cut and polished diamonds.
  • For the betterment of the domestic manufacturing of wearable devices, hearable devices, and electronic smart meters, customs duty rates would be regulated for a graded rate structure.
  • For the upliftment of fuel blending, the budget has proposed additional excise duty on unblended fuel of Rs.2 per liter, starting from October 1st, 2022.

Budget Allocation 

  • As per the budget, the total capital expenditure would be increased by 35.4%, which would be increased from the previous Rs.4.54 lakh cr to Rs.7.50 lakh cr this financial year.
  • The budget revised India’s fiscal deficit for the year 2022-23 has been estimated at 6.9% of the total GDP.
  • 50-year interest-free loans of Rs.1 lakh cr would be awarded to the States for assistance in the funding of investments related to PM Gati Shakti.

Agriculture

  • The budget made allotments to promote funds for the purpose of blended finance for sunrise opportunities. These may include agri-tech, climate action, etc. this fund would be generated through NABARD, which would reach financial start-ups working towards agriculture and rural enterprises. Farmers can easily seek help from these start-ups and gather tech learnings from FPOs.
  • The government would take considerate steps to promote chemical-free farming in India.
  • Kisan Drones would be used to promote crop assessment, land record digitization, and insecticide spraying.
  • The government would help in launching the delivery of high-tech services to farmers.
  • The Minimum Support Price (MSP) for farmers would be directly transferred into their bank accounts.

Education

  • The budget proposed the establishment of a digital university meant for online education. It would mainly focus on Information, Communication and Technology with the help of a hub and spoke model.
  • The government would be setting up 2 lakh Anganwadis on an upgraded scale for the better health of the children.
  • The PM eVIDYA program, One Class, One TV Channel, would be further expanded from 12 to 200 TV channels. This measure would be benefiting States in providing substitute classes to students of classes 1 to 12, speaking regional languages.
  • As per the new guidelines of the New Economic Policy, a large part of the GDP would support promoting education. Around 6% of GDP would be used for educational purposes. This step has been taken to be in tune with the changing times and education patterns.
  • Courses relating to different skills would be offered to students by selected IITs in all states.

Start-Ups

  • Start-ups would be facilitated with defence R&Ds.
  • Drones and their usage is to be promoted with the help of ‘drone shakti,’ working in conjunction with start-ups.

Digital Banking

  • For timely bill payments and maximum reduction of failures, the government would be launching an online billing system that all the ministries would use.
  • The budget estimated the growth of credit by Rs.5.4 lakh cr.

Infrastructure, Railways, Roadways, Waterways, Logistics

  • The next three years would see the development of 400 Vande Bharat higher efficiency trains.
  • In the financial year 2022-23, 4 multi-modal national parks would be given contracts.
  • The PM Gatishakti master plan for expressways would be started in the next financial year.

Basic Amenities and Housing

  • Planned for the year 2022-23, around 80 lakh households would be recognized as part of the affordable housing scheme. The government would be employing Rs.60000 cr for the provision of drinkable tap water for 3.8 cr households.
  • The government would be enabling the Ken-Betwa link at Rs.44605 cr for the purpose of providing drinking water, solar power, and hydropower to 65 lakh people, as well as irrigation to 9.05 lakh hectares.

Other Allocations

  • Under the Prime Minister’s Development Initiative for North-East Region, the budget allocated Rs.1500 cr for the betterment of livelihood activities for women and the youth.
  • As per the budget, the Special Economic Zones Act is set to be replaced with legislation that would work with the States in partnership with the Development of Enterprise and Service Hubs.
  • For the promotion of electronic mobility in urban settings, the budget has been allocated for a battery swapping policy which would see the setting up of charging stations in various places.
  • Under the Production Linked Incentive scheme, the government would launch a design-led manufacturing scheme for building a strong ecosystem for 5G.
  • On the technological front, the government would be releasing e-Passports with
  • the futuristic embedded chip technology.
  • For the fast wind-up of companies, the government would be establishing the Centre for Processing Accelerated Corporate Exit (C-PACE).
  • The government would be awarding infrastructure status to energy storage systems and data centers.

This year’s Union Budget focused more on providing aid and development opportunities for the promotion of micro-economic level growth. It seeks to uplift all the sectors of the economy as well as offers guidance to new entrepreneurs employing start-ups for the technological advancement of the nation.

Budget 2022 PDFs

Budget at a Glance – PDF
Deficit Statistics – PDF
Transfer of Resources to States and Union Territories with Legislature – PDF
Budget Profile – PDF
Receipts – PDF
Expenditure – PDF
Outlay on Major Schemes – PDF

Statement I – Consolidated Fund of India

Revenue Account – Receipts – PDF
Revenue Account – Disbursements – PDF
Capital Account – Receipts – PDF
Capital Account – Disbursements – PDF
Statement IA – Disbursements ‘Charged’ on the Consolidated Fund of India – PDF
Statement II – Contingency Fund of India – Net – PDF

Statement III – Public Account of India

Receipts – PDF
Disbursements – PDF
Receipts & Expenditure of Union Territories without Legislature – PDF
Finance Bill – PDF
Budget Highlights (Key Features) – PDF
Memorandum – PDF

Receipt Budget

Introductory Note – PDF

PART-A RECEIPTS

Abstract of Receipts – PDF

Summary of Estimates of Tax, Non-Tax Revenue and Capital Receipts

Tax Revenue – PDF
Non-Tax Revenue – PDF
Capital Receipts – PDF

Annexures

  1. Trends in Receipts – PDF
  2. Analysis of Tax and Non-Tax Revenue Receipts included in Annexure 1 – PDF
  3. Reconciliation between estimates of Receipts shown in Annual Financial Statement and Receipts Budget – PDF
  4. Statement showing State-wise Distribution of Net Proceeds of Union Taxes and Duties for BE 2020-2021 – PDF
    4A. Statement showing State-wise Distribution of Net Proceeds of Union Taxes and Duties for RE 2019-2020 – PDF
    4B. Statement showing State-wise Distribution of Net Proceeds of Union Taxes and Duties for Actual 2018-2019 – PDF
  5. Tax Revenues raised but not realised (Principal Taxes) – PDF
  6. Arrears of Non-Tax Revenue – PDF
  7. Revenue impact of Tax Incentive under the Central Tax System: Financial Years 2018-19 and 2019-20 – PDF
  8. Sources and Application of National Small Savings Fund as on 31st March, 2020 – PDF

PART-B ASSET AND LIABILITY STATEMENTS

Debt position of the Government of India – PDF

Expenditure Budget/Profile

Expenditure Profile – PDF
Expenditure Budget – PDF
Demands for Grants of Central Government – PDF

Customs Notifications

Explanatory Notes – PDF
D.O. Letter from JS(TRU-I) – PDF
Output Outcome Framework for Schemes 2020-2021 – PDF

Pre Union Budget 2022-23 – News

FADA Demands GST Rates to Come Down to 18%: Budget 2022

On Monday, the industry body stated that the FADA has sought a GST reduction on 18% to spur demand on two-wheelers. The FADA represents over 15,000 automobile dealers with 26,500 dealerships. The FADA noted that the two-wheelers are not a luxury item but a necessity.

The Federation of Automobile Dealers Association also urged for a uniform 5% GST rate for all vehicles. The industry body said that the FADA believes that reduction in GST rates and growth in demand will increase tax collections. It will prove to be revenue positive and effective in the overall economy. The reduction in GST will result in a shift of industry from unorganized to organized segments.  

Currently, charging rates of the GST are:

  1. 12 and 18 percent for the used cars
  2. 12 percent for the cars under 4,000 mm
  3. 18 percent for the vehicles above 4,000 mm

With the reduction in corporate tax for private limited companies with up to Rs 400 crore turnover, the FADA demands the same benefits for the auto dealership community. FADA also demanded ‘a Depreciation Scheme’ for FY 2022-23.

Updated Date: 26-01-2022

Highlights of the Union Budget 2021-22

The Union Budget for the financial year 2021-22 was introduced by the Hon’ble Finance Minister of India, Smt. Nirmala Sitharaman on February 1st, 2021. The new budget set the guidelines for the upcoming financial year and highlighted seven flagbearers for the nation’s economy.

The Finance Minister began by stating the issues and the difficulties faced by our nation’s economy as the repercussions of the COVID-19 pandemic and the objectives of the Pradhan Mantri Garib Kalyan Yojana to combat such hurdles. FM also highlighted the availability of two vaccines against COVID-19 and announced the release of two more in the near future.

The flagbearers of Indian economy 2021-22

Under the Union Budget presented in the parliament, the finance minister stated seven components as the backbone for reviving the dwindling economy of our nation. These include:

  • Health and Wellbeing
  • Physical and Financial Capital
  • Infrastructure
  • Inclusive development for Aspirational India
  • Reinvigorating Human Capital
  • Innovation and R&D
  • Minimum Government Maximum Governance

The major goal of the budget is to focus on the development of these components as a strategy for economic spikes and recovering the lost finances of the past.

Union Budget 2021-22 at a glance:

The major announcements made by the Finance Minister under this union budget are mentioned below:

  • Health and Wellbeing: The FM announced an increase in the spending with an expense of Rs.64 thousand crores that shall be spread over 6 years as part of a new scheme partnered with the National Health Mission. This has been done to provide aid to the urban and rural healthcare facilities.
  • Jal Jeevan Mission: The Finance Minister also declared a new scheme as Jal Jeevan Mission that possessed Rs.2.87 lakh crores as an outlay. The new mission is targeted to sustain and improve the water supply in urban areas and local bodies as well as ensure proper supply to all the tap connections.
  • Urban Swachh Bharat 2.0: The Finance Minister also announced Rs.1.41 lakh crores to be given for Urban Swachh Bharat 2.0 to be used over 5 years.
  • Physical capital: The Finance Minister reinstated Rs.1.47 lakh crores for 5 years to fulfill the improvement of wastewater treatment and management of water pollution due to plastic wastes.
  • Scrapping Policy: One of the innovative policies introduced under the Union Budget 2021 was the scrapping policy that has the objective of reducing vehicular pollution.
  • Finance Minister also stated that around Rs.35000 crore shall be allotted for the production and distribution of COVID-19 vaccines.
  • Infrastructure: Under the current budget an amount of Rs.1.97 lakh crores has been announced oriented towards manufacture on a global scale and also to grow employment opportunities for the youth. The budget also integrated the development of 7 high-end textile parks across the country over the next 3 years.
  • Financial Capital: For boosting the financial capital of the country the Finance Minister announced the establishment of a Financial Institution and has declared Rs.5 crores as development amount. The Minister also announced an amount of Rs.2 lakh crore as state capital expenditure.
  • The total capital expenditure for the financial year 2021-22 has been stated to be Rs.5.54 lakh crore and the Year-on-Year growth rate has been estimated at around 34.5% by the finance minister.
  • Union Budget also announced the allowance for National Highways for the following states: a) Kerala: RS.65,000 crores, b) Tamil Nadu: Rs.1.03 lakh crores, and c) West Bengal: Rs.25,000 crores
  • Inclusive development of Aspirational India: Under this pillar of the Union Budget, the Finance Minister announced a reform in the agricultural sector allowing a 1.5 times greater MSP than the last budget. The agricultural credit has also been increased now to Rs.16.5 crore.

Union Budget and its economic reforms for 2021:

Under the new Union Budget for the financial year 2021-22, the healthcare sector has been considered as a top-tier priority. The sector has been provided with an expense of Rs.64,180 crore as part of the Pradhan Mantri Swasth Bharat Yojana. This allowance is aimed to be spread over the next six years.

To increase the productivity and efficiency of the health and hospitality sector and to support the pillar of Healthcare and Wellbeing of the nation, the Finance Minister has allotted Rs.2,23,846 crore and this outlay will increase at the rate of 137% on a Year-on-Year basis. The institutions such as NCDC and hospitals across the country that has been hit by the worse of the pandemic shall bear some relief under the budget allowance.

The FDI limits have also been increased to 74% from the previous 49% in the insurance sector.

Union Budget 2021-22: Tax Proposals

The Union Budget was not all-too-happy for the salaried individuals or the working professionals as the government didn’t present any evident tax benefits or changes in the corporate tax.

Direct Tax Proposals:

  • The Finance Minister announced in what comes as a significant move that the limit of the tax audit has been increased to Rs.10 crore under Section 44AB.
  • The budget declared that Senior Citizens whose only source of income is a pension or interest income shall be exempted from taxation. Under the revised Sec 194P, the banks will deduct tax for senior citizens aged 75 years or above.
  • There has also been a reduction in time for tax evasions for IT proceedings where the limit has been set at three years.
  • Under the budget, a new Dispute Resolution Committee has also been established that shall be in-charge to resolve any tax evasion disputes under Sec 245MA and those with a total income above Rs.50 Lakh can approach this committee for disputed income.
  • Finance Minister also announced a faceless appeal in front of ITAT or the tribunal center where a transparent and jurisdiction-free dispute appeal can be made by the taxpayers.
  • The budget held good news for startups because their tax holiday has now been extended by one year (March 2022).
  • The budget also entails a provision of pre-filling for returns, TDS, salary.
  • An additional tax shall now be applied on the dividend income for the financial year
  • The Finance Minister stated that the PF contribution of the employee shall not be allowed for taxation deduction in case it has not been deposited by his/her employer.
  • For Section 43CA, the amendment remains and the stamp duty value will be at the rate of 120%
  • The Sec 44ADA is now applied only to the residents, partnership firm or HUF
  • The Finance Minister has also extended the deduction under Section 80EEA until 31st March 2022.

Indirect Tax Proposals:

  • Finance Minister has revised the custom duties for various commodities such as Copper scrap- 2.5%, Excise duty on petrol and diesel, Solar inverters- 20%, Solar lanterns- 15%

These custom duties shall be applicable from February 2nd, 2021.

  • The budget has also announced an NCCD on tariff items amounting to around 25%. This shall be applicable from January 1st, 2022.
  • AIDC has been imposed on diesel and petrol amounting to Rs.4/liter and Rs.2.5/liter respectively.
  • The Finance Minister also informed that the customs duty on cotton, alcohol, silks, etc shall be increased.
  • Under the new budget, there will be no exemption of leather as it is indigenously produced.
  • Turant Customs: The new budget also introduced the Turant Customs service that will be aimed at providing a faster, paperless, and faceless custom procedure
  • Several provisions were also introduced for the CGST Act for Sec 16 to enabling the taxpayers’ input tax credit claim, Sec 50 for providing interest on cash liability, and Sec 35 and 44 were amended for enabling the filing of income tax returns on a self-certification basis.

Highlights of the Union Budget 2021-2022 FAQs:

1. When was the Union Budget 2021-22 announced?

The Union Budget for the year 2021-22 was announced by Hon’ble Finance Minister Nirmala Sitharaman on February 1st, 2021.

2. What is the declared budget for COVID support under Union Budget 2021-22?

The Finance Minister has allotted Rs.27.1 lakh crore as COVID support to healthcare and wellbeing.

3. What is the budget announced for healthcare under the financial year 2021-22?

The declared budget for healthcare institutes is Rs.2,34,846 crore

4. What is the proposed railway budget under Union Budget 2021-22?

The Finance Minister has announced Rs.1.1 lakh crore as railway budget for FY 2021-22.

5. What is the outlay for Swachh Bharat Abhiyan proposed under Union Budget 2021-22?

Finance Minister declared that approximately Rs.1.42 lakh crore for the Swachh Bharat Abhiyan 2.0

6. What is the outlay proposed for Aatmanirbhar Health Yojana?

The proposed budget for Aatmanirbhar Health Yojana under Union Budget 2021-22 is Rs.64,180 crore.

7. How much is the total allotted capital expenditure under Union Budget 2021-22?

The total capital expenditure for the financial year 2021-22 has been stated to be Rs.5.54 lakh crore and the Year-on-Year growth rate has been estimated at around 34.5% by the finance minister.

8. Are there any reformations in income tax slab rates for the Financial year 2021-22?

No, the Union Budget 2021-22 did not propose any changes in the tax slab.

9. What is the proposed outlay of Jal Jeevan Mission for the year 2021-22?

The proposed budget for Jal Jeevan Mission is slated at Rs.2.87 lakh crore.

10. What is the proposed outlay for the power sector under Union Budget 2021-22?

The Finance Minister has announced a budget of Rs.3.05 lakh crore for the FY 2021-22.


Budget 2021 PDFs

Topic

PDF

Budget at a Glance

PDF

Budget Speech

PDF

Deficit Statistics

PDF

Transfer of Resources to States and Union Territories with Legislature

PDF

Budget Profile

PDF

Receipts

PDF

Expenditure

PDF

Outlay on Major Schemes

PDF

Statement I – Consolidated Fund of India

Revenue Account – Receipts

PDF

Revenue Account – Disbursements

PDF

Capital Account – Receipts

PDF

Capital Account – Disbursements

PDF

Statement IA – Disbursements ‘Charged’ on the Consolidated Fund of India

PDF

Statement II – Contingency Fund of India – Net

PDF

Statement III – Public Account of India

Receipts

PDF

Disbursements

PDF

Receipts & Expenditure of Union Territories without Legislature

PDF

Finance Bill

PDF

Budget Highlights (Key Features)

PDF

Memorandum

PDF

Reciept Budget

Introductory Note

PDF

PART-A RECEIPTS

Abstract of Receipts

PDF

Summary of Estimates of Tax, Non-Tax Revenue and Capital Receipts

I. Tax Revenue

PDF

II. Non-Tax Revenue

PDF

III. Capital Receipts

PDF

Annexures

1. Trends in Receipts

PDF

2. Analysis of Tax and Non-Tax Revenue Receipts included in Annexure 1

PDF

3. Reconciliation between estimates of Receipts shown in Annual Financial Statement and Receipts Budget

PDF

4. Statement showing State-wise Distribution of Net Proceeds of Union Taxes and Duties for BE 2020-2021

PDF

4A. Statement showing State-wise Distribution of Net Proceeds of Union Taxes and Duties for RE 2019-2020

PDF

4B. Statement showing State-wise Distribution of Net Proceeds of Union Taxes and Duties for Actual 2018-2019

PDF

5. Tax Revenues raised but not realised (Principal Taxes)

PDF

6. Arrears of Non-Tax Revenue

PDF

7. Revenue impact of Tax Incentive under the Central Tax System: Financial Years 2018-19 and 2019-20

PDF

8. Sources and Application of National Small Savings Fund as on 31st March, 2020

PDF

PART-B ASSET AND LIABILITY STATEMENTS

1. Debt position of the Government of India

PDF

Expenditure Budget/Profile

Expenditure Profile

Link

Expenditure Budget

Link

Demands for Grants of Central Government

Link

Customs Notifications

Explanatory Notes

PDF

D.O. Letter from JS(TRU-I)

PDF

The Macro Economic Framework Statement

The Macro Economic Framework Statement

PDF

Medium Term Fiscal Policy cum Fiscal Policy Strategy Statement

Medium Term Fiscal Policy cum Fiscal Policy Strategy Statement

PDF

Output Outcome Framework for Schemes 2020-2021

Output Outcome Framework for Schemes 2020-2021

PDF

Last Year: Highlights of the Union Budget 2020-21

The union budget means different things to different people.

To the man in the street it means a new price and tax regime and to the woman in the kitchen it means finding new ways of balancing the home budget.

It all adds up to going round in circles trying to make the ends meet for most citizens.

The budget which the honorable finance minister has presented for the year 2020, with the aim of boosting income and increasing the purchasing power of individuals initially got a thumbs down from the stock market as the indices tanked but later bounced back strongly recouping the losses and cheering the general sentiment.

The following are the highlights of the budget that, according to the government, have been structured around three prominent themes –Aspirational India, Economic Development for all and caring society.

Tax Proposals

1) For starters, the finance minister has removed more than seventy deductions that provided relief to income taxpayers.

2) With the dividend distribution tax (DDT) scrapped you will now be required to pay income tax as per your individual tax slab.

3) With the new income tax regime that has been introduced, you will pay lower income tax if you forego income tax deductions.

The following proposals will bring cheer to most tax payers:

i) For taxable income up to Rs. 5 lakh tax – Nil tax

ii) For taxable income between Rs5 lakh to Rs7.5 lakh Income tax rate stands reduced from 20% to 10%.

iii) For taxable income from Rs7.5 lakh to Rs10 lakh the tax rate has been reduced from 20% to 15%.

iv) For taxable income between Rs10 lakh to Rs12.5 lakh the applicable tax rate will be 20% as against the earlier 30% to 20%.

v) For taxable income between Rs12.5 lakh to Rs15 lakh, the rate will now be 25% down from 30%.

vi) For taxable income above Rs15 lakh income tax has been retained at 30%.

  • Tax on cooperative societies has been revised downward from 30% to 22% surcharge and cess.
  • Vivaad se vishvas scheme, a scheme to be launched to settle direct tax disputes has been proposed. Meanwhile, the government will waive interest and penalty for those who wish to pay the disputed amount till 31 March.
  • The government has extended a new corporate tax regime for new manufacturing plants to new power generation companies with a view to boost power generation capacity. The companies will pay only 15 % tax under the new corporate tax regime.
  • The registration of charity institutions is proposed to be made fully electronic. Pre-filled IT return form to claim exemption easily.
  • A new taxpayer charter is to be instituted to end tax harassment.

Aspirational India

Agriculture, Irrigation and Rural Development

Allocation of Rs 2.8 lakh crore for the agriculture sector has been made in the budget

  • Pradhan Mantri Kisan Urja Suraksha Utthan Mahabhiyan is to be extended under which 20 lakh farmers would be allocated funds for stand-alone solar pumps and additional 15 lakh for grid connected pumps.
  • Indian Railways and Ministry of Civil Aviation is to launch ‘Kisan Rail’ and ‘Krishi Udaan’ schemes respectively for a seamless national cold supply chain for perishables.
  • It has been proposed to raise fishery exports to Rs1 lakh crore by 2024-25.

Wellness, water and sanitation

The budget has allocated Rs 69,000 crore for the healthcare sector.

  • More than 20,000 empanelled hospitals under PM Jan Arogya Yojana to be set up.
  • Jan Aushadhi Kendra Scheme proposed to be expanded to all districts by 2024.
  • The budget provides for allocation of Rs 12,300 crore for Swachh Bharat this financial year.

Education sector

  • Budget has allocated Rs99,300 crore for the education sector in 2020-21 and around Rs3,000 crore for skill development.
  • Full-fledged online degree level education programs from top 100, NIRF ranking institutes to benefit underprivileged students.
  • Finance Minister has proposed IND SAT exam for students of Asia and Africa to promote ‘study in India’ program.

Economic Development

Infrastructure

  • This union budget allocates Rs  1.7 lakh crore for the infrastructure sector.
  • Roads: Accelerated development of highways
  • Railways: 150 passenger trains through PPP mode. Additional Tejas type trains for tourist destinations.
  • Airways: 100 more airports to be developed under UDAAN
  • Large solar power capacity for Indian Railways planned
  • A suburban rail project for Bengaluru planned at a cost of Rs18,600 crore
  • Under the public-private partnership mode the budget provides for five new smart cities.

New Economy

A national mission for Quantum Technologies and applications proposed with an outlay of Rs 8000 crore.

Banking and financial sector

  • Government plans to launch debt ETF aimed at boosting the debt market.
  • Deduction of Rs1.5 lakh for affordable housing announced earlier extended by one more year. Projects under affordable housing will get a tax holiday for one more year, but they need to get clearance by March 2021.
  • For the security of fixed deposits, the budget has increased deposit insurance cover in banks from Rs 1 Lakh to Rs 5 Lakhs per depositor. The deposit insurance would apply even for deposits in multiple banks, i.e. Rs 5 Lakhs maximum insurance.
  • Finance ministry is considering stake sale in LIC through public offering i.e. Initial Public Offering.

Manufacturing sector

  • New schemes to encourage the manufacture of mobile phones, electronic equipment and semiconductor packaging being planned
  • Private sector to be encouraged to build Data Centre Parks in the country

Caring Society

Women & Child, Social Welfare

  • More than 6 lakh anagan wadi workers equipped with smartphones
  • Taskforce proposed for recommendations on lowering MMR and improving nutrition levels. Nutrition-related programmes outlay proposed Rs 35600 crore.

Culture and Tourism

  • Tourism promotion outlay proposed at Rs2500 crore
  • Indian Institute of Heritage and conservation proposed
  • Tribal museum to be set up in Ranchi
  • Maritime museum planned at Lothal

Environment & Climate Change

  • The Coalition for Disaster Resilient Infrastructure was launched in September 2019
  • Encouragement to states implementing plans for cleaner air in cities above 1 million population

Conclusion

The budget aims to implement the vision of the government articulated as ‘Sabka Saath, Sab ka vikas’, (Development of all with the cooperation of all).With India emerging as the fifth largest economy in the world, the new thrust of the budget on development of all is a welcome shift in approach.

1. What does the union budget 2020 aim to achieve for the citizen?

The budget with its themes of aspirational India, economic development, and a caring society is aimed at delivering maximum governance with minimum government to enhance the ease of living for citizens.

2. What does the Vivaad se Vishwas Scheme aim to achieve?

The Vivaad se Vishwas Scheme aims to increase the amount of tax the government can net from disputed tax claims. If the taxpayer pays the disputed taxes before 31st March 2020, the interest and penalty will be waived.

3. How do the tax provisions of the budget impact startups?

The tax proposals seek to rationalize provisions of section-IAC for eligible startups by allowing deduction for a period of 10 years from the existing 7 years. Also the condition of turnover of Rs25 crore is sought to be raised to Rs100 crore.

4. How much is the saving potential of 80C for taxpayers in 2020

The provisions of the budget allow taxpayers a deduction of up to Rs1.5 lakh from the total taxable income.

5. How much does the government propose to spend under budget 2020?

The government has proposed Rs30.42 lakh crore as the total budget for 20-21.



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