The Union Budget 2022-23 is a surprising and shocking budget for the majority of Indians because Nirmala Sitharaman announced a non-political budget. This is a growth-oriented budget which focuses on building long-term strengths using investment as a lever, while maintaining policy stability and inclusiveness. No doubt, the salaried class was expecting much more in tax concessions but this budget disappointed them. Sitharaman focused on infrastructural development and stated that it was the only way to ensure substantial employment opportunities.
These are the highlights of the Budget 2022- 23:
· GDP growth for financial year 2022 expected to be 9.2 % - the highest for any large economy
· Production Linked Incentive Scheme (PLI) in 14 sectors for Aatmanirbhar Bharat to create six million jobs. Additional allocation of `19500 crore for PLC in Solar PV module manufacturing
· Promoting fintech and digital industries
· 75 digital banks in the selected 75 districts by scheduled commercial banks
· Core banking services to start in post offices
· Total expenditure in financial year 2023 at `39.45 trillion
· Revised fiscal deficit is 6.9% of GDP in the financial year 2022 as against 6.8% in the budget estimates. Fiscal deficit at 6.4 % in FY 2023
· RBI led digital rupee using block chain to be launched in the financial year 2023. 1% TDS on transfer of virtual digital assets and income to be taxed at 30%
· No change in income tax slabs
· Tax exemptions to start- ups extended to March 2023
· Tax deduction limit for state government employees to NPS raised from 10 % to 14%
· Eight million new dwellings in rural and urban areas to be completed under PM Awas Yojana. `48000 crore allocated.
· `2.37 trillion worth of MSP direct payments to wheat and paddy farmers.