Finance minister Nirmala Sitharaman presented the Union Budget 2022, the fourth budget of Modi 2.0, on 1st February, 2022. There were a host of measures for a number of sectors, aimed at boosting growth amid high & rising inflation and continuing Covid uncertainties. There, however, were remarkably few changes to the personal income tax structure in a year that had seen demands from various quarters for some sort of relief or another in times of a pandemic. Read the key pointers of the Union Budget 2022 here!
Union Budget 2022 - Ministry-Wise Allocation
| Ministry | Amount (In INR ‘000s) |
| Defence | 525.5 |
| Consumer Affairs, Food And Public Distribution | 217.7 |
| Road Transport And Highways | 199.1 |
| Home Affairs | 185.8 |
| Railways | 140.4 |
| Rural Development | 138.2 |
| Agriculture | 132.5 |
| Chemicals And Fertilizers | 107.7 |
| Communications | 105.4 |
Budget 2022 - Impact On Consumers
| What’s Cheaper | What’s Dearer |
| Clothes | Unblended Petrol And Diesel |
| Frozen Muzzles | Umbrella |
| Frozen Squids | Imitation Jewellery |
| Chemicals Needed For Petroleum Products | Single/ Multiple Loudspeakers |
| Camera Lens For Cellular Mobile Phones | Earphones And Headphones |
| Asafoetida | Smart Meters |
| Cocoa Beans | Solar Cells |
| Methyl Alcohol | Solar Modules |
| Acetic Acid | X-Ray Machines |
| Cut And Polished Diamonds | Parts Of Electronic Toys |
| Steel Scrap | |
| Mobile Phone Chargers |
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Budget 2022 - 16 Important Pointers
- The country is expected to grow at 9.27 per cent. The economy stands to recover 101.3 per cent of the pre-pandemic output of 2019-20.
- The fiscal deficit is projected to be higher at 6.9 per cent. The fiscal deficit of the government for 2022-23 is estimated to be at INR 16,61,196 crores.
- Digital Rupee will be issued using blockchain technology by the RBI starting 2022-23.
- Income from the transfer of any virtual digital asset shall be taxed at the rate of 30 per cent, plus 1% tax on the transaction.
- This Union Budget seeks to lay the foundation & give a blueprint of the economy over ‘Amrit Kal’ of next 25 years – from India at 75 to India at 100.
- The gross GST collections for the month of January 2022 are Rs 1,40,986 crore — the highest since the inception of the tax in 2017.
- Income from Long Term Capital Gains will be taxed at 15%.
- Corporate surcharge to be reduced from 12% to 7%
- Rs 48,000 crores allocated for completion of construction of 80 lakh houses under PM Awas Yojana in rural and urban areas in the year 2022-23
- Both Centre and States govt employees’ tax deduction limit to be increased from 10% to 14% to help the social security benefits of state government employees and bring them at par with the Central govt employees.
- Customs on polished diamonds, gemstones cut to 5%. Simply sawn diamonds will be exempted. To facilitate the export of jewellery through e-commerce, simplified regulations will be in place by June this year.
- Coming to agriculture, procurement of wheat in Rabi season 2021-22 and the estimated procurement of paddy in Kharif season 2021-22 will cover 1,208 lakh metric tonnes of wheat and paddy from 163 lakh farmers & Rs 2.37 lakh crores will be the direct payment of MSP value to their accounts.
- Any cess or surcharge on income is not allowed as business expenditure.
- Production Linked Incentive Scheme for achieving Aatmanirbhar Bharat has received an excellent response, with the potential to create 60 lakh new jobs and additional production of 30 lakh crore during the next five years.
- A fund with blended capital raised under the co-investment model facilitated through NABARD to finance start-ups in agriculture and rural enterprises for farm produce value chain will be set up.
- PM Modi’s development initiatives for the North East will be implemented by the North Eastern Council, which will enable livelihood activities for the youth and women.
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