Budget 2022-2023 Updates

The Finance Minister began her Budget speech by expressing empathy for those who suffered during the COVID 19 Pandemic. Nirmala Sitharaman estimated India's growth to be at 9.2% which is the highest amongst all the large economies. Here are the top announcements from the Budget 2022-23 proposal:

Agriculture

The domestic scheme was introduced to reduce the dependence on the imports of oilseeds
Fund with blended capital raised under co-investment model for financing the agricultural startups
Infrastructure for small farmers to be developed by the Railway in 2022- 2023

Finance

The emergency credit line guarantee scheme for the SMEs to be extended to March 2023
A Public Issue of the Life Insurance Corporation will be done shortly
SEZ Special Economic Zones will be replaced with new legislation
Amendments to the bankruptcy code to speed up the resolution process.
aims to lower the winding up of companies to 6 months from 2 years.
The long-term capital surcharge is to be capped at 15%.

Infrastructure

A 5G spectrum auction will be conducted in 2022.
The Scheme for Design Manufacturing for 5G to be a part of the Production Link Scheme
Award contract to lay optical fibre in rural parts, project completion by 2025.
480 billion is set aside for affordable housing.
Production linked incentives towards solar equipment manufacturing.

Transport

400 new energy-efficient trains to be manufactured over the next three years
Expansion of National Highway by 25,000 km.
Highway expansion t cost 200 billion rupees

Digital currency

To launch the digital rupee with blockchain technology starting 2022/2023
To launch a scheme for the taxation of virtual digital assets
Loses from the sale of virtual digital assets cannot be offset against other income
Income from virtual digital assets will be taxed at 30%.

Announcement or taxpayers

Taxpayers can file updated returns on the payment of taxes within two years from the end of the relevant assessment year.
New provisions will ensure voluntary tax filing and reduce litigation.
30% tax on the proceeds of virtual assets with no deduction other than the cost.
No set-off is permitted against the other income.
1% TDS levied on the payments made on digital transfer assets.
Deduction for employer contribution to NPS to be increased to 14 from 10% earlier for the State government employees on par with central government employees.

Key Highlights of the Budget

States to be allowed Fiscal deficit of up to 4 % of GSDP.
1 trillion financial assistance to the state to catalyse investments.
The proposed introduction of the digital rupee by RBI using blockchain technology
Measures to set up private capital in the infra sector.
PE/VC investing Rs. 5.5 trillion in startups with an expert committee to suggest measures for new investments.
An international arbitration centre is to be set up in GIFT city to provide fast dispute resolution
World-class universities are to be allowed in GIFT IFSC, which will be free from domestic rules and regulations.
Sovereign green bonds will be issued to mobilize resources as a part of the borrowing program of the government.
Financial support to the farmers to take up agro-forestry.

The Union Budget is the annual report of India and contains the revenue and expenditure for the end of the particular fiscal year, which runs from April 1 to 31^st March.