Top Highlights of the Union Budget 2022

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SOME OF THE INTERESTING FACTS - UNION BUDGET-2022

THE TOP HIGHLIGHTS OF BUDGET-2022: Union Finance Minister NirmalSitharaman is to present herThird Budget in Parliament on February-1, 2022.

The Budget presentation this time justlike last year is expected paperless keeping in view the ongoing COVID pandemic. In 2019, when Shitaramanpresented her first Budget.

She attracted the nation’s attentionreplacing Budget Briefcase with “ Bahi Khata”.Thedecision was taken place to dump the colonial practice of carrying a briefcase

WHO IS NIRMALA SITHARAMAN

She is born on 18^th AUGUST 1959 in a Tamil family. She is an Indian economist and politician serving as the current Minister of Finance and Corporate Affairs of India.

She is a member of Rajya Sabha, Upper House of Indian Parliament. On 31^st May 2019, Nirmala Shitaraman was appointed as the finance and corporate affairs minister.

3She is India,s first-time full-time female finance minister. Sitharaman featured in the Forbes 2020 List of 100 powerful women ranked the 41^st in the World.

TheMainHighLightsofBudgets-2022are:-
Thefirst-ever Union Budget in India was presented by James Wilson, a Scottish economist and politicianin April,7,1860.

·The first Union Budget of Independent India was presented on November 26, 1947, by India,s first finance minister RKShanukham-Chetty.

·The Union Budget was published in English till 1955. But in 1955-56 Budget publishboth Hindi & English.

· Jawaharlal Nehru was the first Prime Minister to present the Budget when he held the finance portfolio back in 1958-59.

· In2017, The Rail Budget was merged with the Union Budget and since then, the Budget has been presented on February 1.

· NirmalaShitaraman in 2019diteched thetraditional Budget Briefcase, instead of
carrying a Red packet with National Emblem wrapped with a ribbon.

·Thistime Nirmala Sitharaman is the first full-time female finance minister to tablethe Budget-2022.

· Till 1950, the Budget was printed at RashtrapatiBhawan till it got leaked and the venue of printing shifted to a press at theMinto Road in New Delhi. In 1980 a government press was set up in the North Block.

A Budget is a financial plan for a defined period, often one year. It may also include
planned sales volume and revenues, resource quantities, costs, and expenses,
assets and liabilities and cash flows.

A Budget of a Government is a summary or plan intended revenues and expenditure of that Government. There are three types of Government budgets. (1)The operating or current Budget (2)The Capital Investment Budget(3) the Cash Flow Budget.

The First Union Budget Finance Minister RKShanmugam Chetty presented the first Budget of independent India. Total Expenditure under this Budget was Rs197.39 Crore. (46%)was allocated for Defense services.

Date of Budget Announcement:-

Date of Budget Announcement:-Until 2016, from the colonial–era tradition of Presenting the Union Budget on the last working day of February month.

In 2017 first time India’s Finance Minister Mr Arun Jaitily in the NDA Government led by the Bharatiya Janata Party(BJP)announced that it will be now presented on February-1. Rail Budget will be merged with Union Budget.

TOP25, Highlights of Union Budget-2022:-

(1). India’s; economic growth in the current year is estimated to be 9.2 per cent. the highest among all large economies.

(2). PM Gatishaktimaster plan for expressways will be formulated in 2022-23 to facilitate faster movement of people and goods. The National Highway network will be expanded by25000 km. and 20000 crores will be mobilized

(3). In 2022-23 fourhanded new generation vande Bharat Trains will be better energy efficiency and 100 PM Gati shakti cargo Terminals for multi-model logistic facilities will be set up during the nextthree years

(4). Implementation of Ken-between Link project, at an estimated cost of Rs.44,605 crore will be taken up aimed at providing irrigation benefits to 9.08 lakhs hectors of farmers land, drinking watersupply for 62lakh people, 103 MWHydro, & 27MW Solar energy.

(5). The Emergency Credit Line Guarantee Scheme(ECLGS) has provided much needed additionalcredit to more than 130Lakh MSME to help them mitigate the adverse impact ofthe pandemic.

The ECLGS will be extended up to March 2023. Mrs Sitaram an informed that theguarantee cover will be expanded by Rs. 50,000 crores to Rs. 5,00,000 Lakh crore exclusively for Hospitality and related enterprises.

(6). Credit Guarantee Trust for Micro and small enterprises (CGTMSE) schemewill be revamped with the required infusion of funds. This will facilitateadditional credit of Rs2 Lakh crore for Micro small enterprises and expand the Employment opportunity.

(7). Due to the pandemic induced closure of schools, children particularly in the rural areas, and those from Scheduled Caste and Scheduled Tribes and other weaker sections,s have lostalmost 2years of informal education and mostly, these are children inGovernment schools.

To impact supplementaryteaching and to build a resilientmechanism for education delivery the Finance Minister informed that one classone TVchannel programme of PM e VIDYA will be expanded from 12 to 200 TV Channels and this will enableall states to provide supplementary education in regional language from class 1to 12.

(8). A Digital University will be established to provide access to students across the counterfort world-class quality universal education with a personalized learningexperience at their doorsteps. This will be made available in different Indian languages and ICT formats

(9). UnderAyushman Bharat Digital Mission, an open platform for the National Digital Health Ecosystem will be rolled out and it will consist of digital registration of health providers and health facilities, unique health identity, consent framework and universal access to health facilities.

(10). The allocation of Rs.60,000Crore to cover 3.8crore households in 2022-23 for Har Ghar Jal.

(11). In 2022-23, 80Lakh houses will be completed for the identified eligible beneficiaries of PM Awas Yojana both rural and urban and Rs48000 crore is allocated for this purpose.

(12). In 2022, 100 per cent of 1.5lakh post offices will come on the core banking system. This enables financial inclusion and access to accounts through 11 net banking, mobile banking, ATMs and also provide online transfer of funds between post office accounts and bank accounts. This will help, especially for farmers and senior citizens in rural areas.

(13). To mark the 75 years of Independence, the government has proposed to set up 75 Digital Banking Units. (DBUs).In 75 districts of the country by scheduled Commercial Banks to ensure that the benefits of digital banking reach every nook and corner of the country.

(14). Smt Sitaraman said that In Telecommunication 5G Technology will enable growth and offer job opportunities. She informed that required spectrum auctions will be conducted in 2022 to facilitate the rollout of 5G Mobile services within 2022-23 by private telecom providers.

(15). To facilitate domestic manufacturing for the ambitious goal of 280GWof installed solar capacity by 2030, an additional allocation of Rs.19,500 crore for production Linked Incentive for the manufacture of high-efficiency modules, with priority to fully integrated manufacturing units from polysilicon to Solar PV modules.

(16). Expenditure-Government proposes to spend Rs. 39,44,909 Crore in 2022-23 which is an increase of 4.6% over the revised estimate of 2020-2021.

(17)Receipts-The receipts other than borrowings in –2022-2023 are expected to be Rs. 22,83,713.Crore, which is an increase of 4.8% of over revised estimate of 2021-22.

(18). GDP-The Government has estimated, India’s GDP at 9.2% for the financial year 2022, which is the highest at all large economies.

(19).Deficites:-Revenue Deficits in 2022-2023 is targeted at 3.8 % of GDP, which is lower than the revised estimate of 4.7% in 2021-22.

(20). Ministery of Allocations:-Among top 13 Ministery with the highest allocation in 2022-2023, the highest percentage increase in allocation is observed in the Ministery of Communication(93%)., followed by Road Transport and Highways (52%)and Ministery of Jal Shakti is (25%).

(21). The Ken-Betwa Link Project will be implemented at an estimated cost of Rs. 44605 crore. Five more river linkage projects are being implemented.

(22). The Reserve bank of India act,1934 is being amended to enable RBI to issue its Digital Currency.

(23)The Digital Ecosystem for skilling and Livelihood (DESH) stack e-portal will be launched. The portal will help citizens learn a skill, acquire credentials and assist the finding relevant jobs.

(24). A battery swapping policy for electric vehicles will be implemented. Four pilot projects for coal gasification and conversion of coal into chemicals required for the industry will be set up.

(25). Capital Expenditure is expected to increase by 24.5% over the revised estimates of 2021-22.to Rs.7,50,246 Crore.

TOP-10 PROPOSALS IN UNION BUDGET-2022 FOR TAXATION:-

The Top Highlights of Budget-2022 are:-

(1). Income Tax:-There is No change in Incomer Tax Rate for Individuals and Corporations.

(2). Surcharge and Long Term Capital Gains:-The surcharge in LTCG on listed equities and equity mutual funds are capped at 15%. The surcharge on other LTCG is 25% of total income is between Rs .2 Crore and Rs. 5Crore and 37% if more than 5 Crore.

(3). Tax on virtual Digital Assets:-Income from the transfer of Cryptocurrencies and non-fungible tokens will be taxed at the rate of 30%.

(4). Updating return of Income:-Taxpayers will be permitted to file an updated return of Income within two years of the assessment year. They will have to pay a 25% penalty on Tax and interest due if it is filed after the assessment year and a 50% penalty in the 2^nd year.

(5). Co-operatives:- Alternate Minimum Tax for the Cooperatives will be reduced from 18.5% to 15%. A surcharge will be reduced from 12% to 7%.

(6). New Companies and startups:-New Demostic companies engaged in manufacturing have an option to pay tax at 15% ( without claiming deductions if they start manufacturing by March 31, 2023.

(7). Change in Custom Duty:-Customs duty on over 500 items have been changed.

(8). List of items is costlier in Budget-2022:-Umbrella, Imitation Jewellery, Headphone, loudspeaker, smart meters, solar cells, solar modules, x-ray machine, electronic toys.

(9)The two main amendments in GST Law, from 1^st Jan-2022, section 16(2)aa was introduced to allow taxpayers to claim inputs credit only if their vendors up load a particular invoice or debit note in their corresponding GSTR-1. This data has to then reflect in the recipient taxpayers in GSTR-2B. Now taxpayers can only claim the input tax credit on invoices that their suppliers upload.

(10). GST registration can also be suspended in cases where there is over n10% difference in liability reported in GSTR-1 VERSUS GSTR 3B.