KEY HIGHLIGHTS:
Finance Minister Nirmala Sitharaman presented a growth-oriented Budget which focused on 4 pillars – productivity, climate action, financing investments and PM Gati Shakti plan. The Budget stepped up the capital expenditure sharply by 35.4 per cent to Rs 7.50 lakh crore to attract more private investment and attract growth.
Total spending and Focus:
To enhance job creation and boost economic activity.
Total government spending will be 4.6 per cent more than the current year and additional support of Rs 1 lakh crore to states has been announced.
The total expenditure in 2022-23 is estimated at Rs 39.45 lakh crore, while the total receipts other than borrowings are estimated at Rs 22.84 lakh crore.
The outlay for capital expenditure is once again being stepped up sharply by 35.4 per cent from Rs 5.54 lakh crore in the current year to Rs 7.50 lakh crore in 2022-23.
Expenditure of major items (in ₹crore)
Ministry of Housing and Urban Affairs- Rs.50040 crore.
Ministry of Health and Family Welfare- Rs.67112
Ministry of Road Transport and Highways- Rs.91823
Ministry of Human Resource Development – Rs. 99312
Ministry of Rural Development- Rs.122398
Ministry of Consumer Affairs, Food and Public Distribution- Rs.124535
Ministry of Agriculture and Farmers’ Welfare- Rs.142762
Ministry of Home Affairs- Rs.167250
Ministry of Defence- Rs. 471378
Ministry of railways- Rs.72216
Tax proposals
- Concessional corporate tax rate of ₹15 per cent to new domestic companies in manufacturing and power sector.
- Tax concession for sovereign wealth fund of foreign governments and other foreign investments.
- Tax benefits to Start-ups by way of deduction of 100 per cent of their profits are enhanced by increasing turnover limit and period of eligibility.
- Concessional tax rate for cooperatives proposed.
- Turnover threshold for audit of MSMEs increased.
- Extension of time limits pertaining to the tax benefits for affordable housing.
- Issuance of Unique Registration Number to all charity institutions for easy tax compliance.
- Health cess to be imposed on imports of medical equipment given these are made significantly in India.
- Dividend Distribution Tax removed and classical system of dividend taxation adopted.
Agriculture, Irrigation and Rural Development
- PM KUSUM to cover ₹20 lakh farmers for stand-alone solar pumps and further 15 lakhs for grid connected pumps.
- Viability gap funding for creation of efficient warehouses on PPP mode.
- SHGs run Village storage scheme to be launched.
- Integration of e-NWR with e-NAM connected pumps.
- “Kisan Rail” and “Krishi Udaan” to be launched by Indian Railways and Ministry of Civil Aviation respectively for a seamless national cold supply chain for perishables.
- Elimination of FMD and brucellosis in cattle and PPR in sheep and goat by 2025.
- Increasing coverage of artificial insemination to 70 per cent.
- Doubling of milk processing capacity by 2025.
- Agricultural credit target of ₹15 lakh crore for 2020-21.
- Fish Production target of ₹200 lakh tonnes by 2022-23.
- Another 45000 acres of aqua culture to be supported.
- Fishery extension through 3477 Sagar Mitras and 500 fish FPOs.
- Raise fishery exports to 1 2lakh crore by 2024-25.
Wellness, Water and Sanitation
- More than 20 000 empanelled hospitals under More than 20,000 empanelled hospitals under PM Jan Arogya Yojana.
- FIT India movement launched to fight NCDs.
- “TB Harega Desh Jeetega” campaign launched to end TB by 2025
- Viability gap funding proposed for setting up hospitals in the PPP mode.
- Expansion of Jan Aushadhi Kendra Scheme to all districts by 2024.
- ODF Plus to sustain ODF behaviour.
- Focus on liquid and grey water management along with waste management.
Education and Skills
- About 150 higher educational institutions will start apprenticeship embedded courses.
- Internship opportunities to fresh engineers by urban local bodies.
- Special bridge courses to improve skill sets of those seeking employment abroad.
- Ind-SAT to be conducted in Asia and Africa under Study in India.
- Degree level online education programmes for students of deprived.
Industry, Commerce and Investment
- Scheme to encourage manufacturing of mobile phones, electronic equipment and semiconductor packaging.
- National Technical Textiles Mission for a period of 4 years.
- NIRVIK Scheme for higher export credit disbursement launched.
- Setting up of an Investment Clearance Cell to provide end to end facilitation.
- Extension of invoice financing to MSMEs through TReDs.
- A scheme to provide subordinate debt for entrepreneurs of MSMEs
- Scheme anchored by EXIM Bank and SIDBI to handhold MSMEs in exports markets.
