Budget 2022 decisions
What is Union Budget?
According to Article 112 of the Indian Constitution, the Union Budget of a year, commonly known as the annual financial statement, is a declaration of the government’s expected revenues and expenditures for that year.
The Union Budget accounts for the government’s finances during the fiscal year that runs from April 1st to March 31st. The Union Budget is divided into two parts: revenue budget and capital budget.
The revenue budget consists of the government’s revenue collections and expenditures. Tax revenue and non-tax income are the two types of revenue receipts. Revenue expenditure is the amount of money spent on the day-to-day operations of the government and the numerous services provided to residents. The government incurs a revenue deficit when revenue spending exceeds revenue collections.
India’s First Budget
The East India Company’s Scottish economist and politician James Wilson presented the Budget to the British Crown for the first time in India on April 7, 1860.
The first budget of independent India was presented on November 26, 1947, by then-Finance Minister RK Shanmukham Chetty.
BUDGET 2022 Expectations
Some expectations after looking at the situation right now that India is going through. Last year India was not successful. An analysis of budget papers reveals that the government has missed or even reduced its overall expenditure objectives over the last two years, as well as failing to reach goals for several of its signature development initiatives.
While boosting government spending is critical to reviving the economy after a pandemic-induced depression, dwindling tax collections mean Sitharaman will have limited resources. Borrowing has already reached a record 13.1 trillion rupees (about $180 billion) in the current fiscal year to March, expanding the budget imbalance and putting the country’s sovereign rating under scrutiny.
Expectations From the BUDGET 2022
- Hike with an 80-degree limit
- Increase the maximum tax exemption for health insurance.
- Increase in the advantage for first-time home purchasers
- Extend the LTA cash voucher plan owing to the ongoing COVID-19
- Employees who work from home must be eligible for tax savings.
- Increased standard deduction and income tax benefit for saving for children’s education
Taxpayers may now amend their I-T returns every two years. India is expected to expand at a 9.27 percent annual rate; the Gati Shakti project will build world-class infrastructure; The PLI plan is expected to generate at least 60 lakh new employment over the next five years.
Main Highlights of 2022
- Life Insurance Corporation is planning a public offering in the near future: FM
- The Union Budget tries to build the groundwork and provide a framework for the economy for the next 25 years – from India at 75 to India at 100.
- The budget will be based on four pillars: productivity, climate action, finance investments, and the PM Gati Shakti plan.
- 400 new generation Vande Bharat trains with improved efficiency would be introduced, and 100 PM Gati Shakti Cargo terminals will be built during the next three years.
- The ECLGS will be extended until March 2023. To assist MSME sector financing requirements, the guaranteed cover would be increased by Rs 50,000 crores to a total cover of Rs 5 lakh crores.
- Draft DPRs for five river linkages have been finalized: Damanganga-Pinjal, Par-Tapi-Narmada, Godavari-Krishna, Krishna-Pennar, and Pennar-Kaveri. Once recipient states have achieved an agreement, the center will offer implementation assistance.
- A 5G spectrum auction will be held in 2022 in order for private firms to put out 5G telecom services in the fiscal year 2022-23.
- To help domestic manufacturing meet the ambitious target of 280 GW of installed solar capacity by 2030, an extra Rs 19,500 cr would be allocated to PLI for the production of high-efficiency modules, with an emphasis on completely integrating manufacturing facilities to solar PV modules.
- A digital rupee will be issued by the RBI beginning in 2022-23, utilizing blockchain and other technologies.
- Income tax relief for cooperative societies, with the rate of surcharge reduced from 12% to 7% for income up to Rs 10 crores.
- Taxpayers may now submit a revised return within two years after the assessment year in question.
- Earnings from virtual digital assets are taxed. Gains are taxed at 30% with no deductions to save the cost of purchase.
- The tax deduction limit for both Centre and State government workers should be raised from 10% to 14% in order to support state government employees with their social security benefits and put them on a level with Central government employees.
- Capital spending would be increased by 35.4 percent, from Rs 5.54 lakh crore in the fiscal year to Rs 7.50 lakh crore in the fiscal year 2022-23. In 2022-23, the expenditure will be 2.9 percent of GDP.
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