Union Budget: Step towards India’s growth

Finance Minister Nirmala Sithraman presented the Union Budget 2022-2023 on 1st February. The Union budget is said to be worth 39.45 crores, 4.6% more than the current year with a steer focus on the infrastructure sector. Also, 1lakh crore is provided to the states to boost the investments in the economy.

The 2022-2023 Union Budget aims to grow the economy for 25 years. “This Budget seeks to lay the foundation and give a blueprint to steer the economy over the Amrit Kaal of the next 25 years – from India at 75 to India at 100. It continues to build on the vision drawn in the Budget of 2021,” said Finance Minister Nirmala Sithraman

The budget has 4 main growth areas PM Gati Shakti, Inclusive Development, Climate Action, and Energy Transition.

Tata Steel CEO and Managing Director T V Narendran appreciated the Union Budget, describing it as yet another progressive, future-focussed and inclusive budget that aimed to position the economy on an accelerated growth trajectory, especially in the backdrop of an encouraging broader economic recovery.

 

Key points of 2022-2023 Union Budget 

  • Virtual assets taxed @ 30%

A tax of 30% is levied on virtual assets such as NFT, cryptocurrency due to an increase in money laundering, tax evasion, and terror financing with cryptocurrencies like Bitcoin, Ether. Further 1% TDS will be charged on any payment made using digital assets. Although losses on such investments will be allowed to set off.

  • Digital Rupee

The Reserve Bank of India will be soon launching Digital Rupee- Central Bank Digital Currency (CBDC) in the upcoming financial year which will be backed by Blockchain technology. A formal announcement will be soon issued by the Reserve Bank of India.

  • MSME in the hospitality sector

Emergency Credit Line Guarantee Scheme (ECLGS) will be extended by March 2023. Under this scheme stressed MSMEs will be provided collateral-free loans. The scheme has been expanded by Rs 50,000 crore amounting to a total of Rs 5 lakh crore.

  • Healthcare

A hike of 16% is been allocated to the healthcare sector from Rs 73,931 crores to Rs 83,200 crores. The ‘National Tele Mental Health Program,’ unveiled by FM Nirmala Sitharaman, would contain a network of 23 tele-mental health centres of excellence.

  • Science and Technology

The Union Budget for 2022-23 allocates Rs 14,217 crore to the Ministry of Science and Technology, a fall of 3.9 percent from the previous fiscal year. Department of Science and Technology (DST), Department of Biotechnology, and Department of Scientific and Industrial Research are the three departments that make up the ministry (DSIR). The Department of Science and Technology will receive Rs 6,000 crore, the Department of Biotechnology will receive Rs 2,581 crore, and the Department of Scientific and Industrial Research will receive Rs 5,636 crore.

  • Financial assistance for capital Investment

To aid states in catalyzing overall investments in the economy, the expenditure for the ‘Scheme for Financial Assistance to States for Capital Investment’ is being boosted to Rs 1 lakh crore in FY23, up from Rs 15,000 crore in the revised estimate for the current year. 

The allotment will be utilized for PM Gati Shakti-related and other productive capital investments, and these 50-year interest-free loans are in addition to the standard borrowings available to states.

  • Digital Education

One Class- One Tv Channel” program by PM Narender Modi is to be increased from 12 channels to 200 channels. Due to the coronavirus pandemic students have lacked the formal mode of education. This program will be available from class 1 to class 12in different Indian languages. 

 

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