Just tuning in? Catch up on all the highlights of Budget 2022.

Finance Minister Nirmala Sitharaman announced the Union Budget 2022 today, on February 1.  

Let’s take a look at the major highlights of Union Budget 2022:

Healthcare 

• The outbreak of the COVID‑19 has brought the issue of mental health to the fore. A national tele mental health programme is to be launched. 
• An open platform for the National Digital Health Ecosystem consisting of digital registries of health providers and health facilities, unique health identity and universal access to health facilities will be rolled out.

Additional Reading: PAN-India COVID-19 Resources

Economy and Finance 

• No change in personal tax slabs 
• India’s growth estimated to be at 9.2%, highest among all large economies 
• RBI to launch digital rupee using blockchain in 2022 – 23 
• ECLGS extended up to March 2023, guaranteed cover extended by another Rs. 50,000 crore. Total cover under scheme now Rs. 5 lakh crore. 
• Fiscal Deficit target set at 6.4% for FY23. FY23 total expenditure seen at Rs. 39.45 lakh crore. Total Receipts other than borrowing seen at Rs. 22.84 lakh crore. 
• Inclusion of Post office accounts: 100% of 1.5 lakh post offices will come on the core banking system, enabling financial inclusion and access to accounts through net banking, mobile banking, ATMs, and also provide online transfer of funds between post office accounts and bank accounts. This will be helpful especially for farmers and senior citizens in rural areas, enabling inter-operability and financial inclusion. 
• Bankruptcy Code Amendments: IBC amendments to enhance efficiency of resolution process, facilitate cross-border insolvency resolution and speed up voluntary winding up of companies 
• Launch of sovereign green bonds: Funding for projects that help reduce carbon intensity of the economy. Sovereign green bonds will be part of the government’s borrowing programme in FY23. Proceeds to be deployed in public sector projects. 
• Digital ecosystem for skilling and livelihood will be launched to skill, reskill, and upskill citizens through online training. API based skill credentials, payment layers to find relevant jobs and opportunities.  
• Strategic transfer of ownership of Air India has been completed. 
• LIC IPO expected shortly 

Agriculture 

• MSP direct payments worth Rs. 2.37 lakh crore to wheat and paddy farmers. Rationalised and comprehensive scheme to reduce dependency on oil seed imports 
• Promotion of Chemical-free natural farming   
• Promotion of using Kisan drones for crop assessment, digitization of land records and spraying of insect pesticides  

Education: 

• Revise syllabi of agricultural universities to meet needs of natural, zero-budget & organic farming, modern-day agriculture 
• One class, one TV channel: This PM eVIDYA program will be expanded from 12 to 200 TV channels, enabling all states to provide supplementary education in regional languages for classes 1 to 12. 

Infrastructure 

• Focus on public investment to modernize infrastructure over the medium term, leveraging tech platform of Gati Shakti through a multi-modal approach. 
• Railways: Under the Gati Shakti plan, 400 new-generation Vande Bharat trains will be developed and manufactured in the next 3 years. Plan for 100 cargo terminals in 3 years 
• High-level committee for urban planners and economists: For recommendations on urban capacity building, planning implementation, and governance. 
• PM Awas Yojana: Allotment of Rs. 48,000 crore. 80 lakh houses will be completed for identified beneficiaries in 2022-23. 60,000 houses will be identified as beneficiaries for PM Awas Yojana in rural & urban areas. Rs. 60,000 crore allocated for providing access to tap water to 3.8 crore households 
• Scheme for design led manufacturing to be launched for 5G ecosystem as part of PLI scheme to enable affordable broadband and mobile communication in rural and remote areas. 
• Contracts for laying optical fibre in villages to be awarded under BharatNet project under PPP in 2022-23 
• National Ropeways Development Programme to be taken up in PPP mode with the aim to improve connectivity, besides promoting Tourism. 
• Electric Vehicles: A battery-swapping policy with interoperability standards to boost EV ecosystem 
• E-passports issued using embedded ship and futuristic technology will be rolled out in 2022-23 to enhance the convenience for the citizens in their overseas travel 

Tax 

• A new provision to allow taxpayers to file an updated return within 2 years from the end of the relevant assessment year. 
• Tax breather for cooperative societies: Alternate Minimum Tax to be cut to 15%. Proposal will reduce surcharge on cooperative societies to 7%, for those whose income is between Rs. 1 crore and Rs. 10 crores. 
• The government will tax income from digital asset transfers at 30%. 
• Gift of cryptocurrencies to be taxed at the receiver’s end. 
• Existing tax benefits for startups, which were offered redemption of taxes for 3 consecutive years, to be extended by 1 more year. 
• The gross GST collections for the month of January 2022 are Rs. 1,40,986 crores which is the highest since the inception of GST. 
• 30% tax on proceeds of virtual/digital assets with no deductions other than cost of acquisition 
• 1% TDS to be levied on payments made on transfer of digital assets 
• Tax deduction limit increased to 14% from 10% on employers’ contribution to NPS account of state govt employees 

Additional Reading: 4 Ways To Invest Your Tax Refund

The Impact: In A Nutshell 

Many remarkable measures were announced for several sectors amidst the rising inflation and uncertainties brought about by the ongoing pandemic. There was much-needed focus on healthcare, which also brings the importance of financial health to the fore. A good Credit Score is key to your financial health. You can check it for FREE!