Budget Highlights of FY 2022-2023
Finance minister Nirmala Sitharaman said on Thursday that India is the fastest-growing economy despite the pandemic and asserted that the government managed the economy well.
"Our recovery has been fastest and sustained among all economies," she said, adding that the recovery momentum will continue in the coming year. She said the government had focussed on capital expenditure because of its multiplier effect on the economy and to restore growth.
"The Indian economy is projected to grow at 9% in the next financial year; the US is expected to grow at 4%," she said, replying to the debate on the budget in the Lok Sabha.
Here are further budget headlines:
# Corporate surcharge to be reduced from 12% to 7%.
# Alternative Minimum Tax (AMT) to be reduced to 15% for co-operative.
# India’s Economic growth is estimated to be 9.2%
# Societies come from the transfer of digital assets such as crypto to be taxed at 30%. TDS at 1% will be levied above the threshold
# Employers’ contribution to the National Pension Scheme (NPS) Tier-I accounts from 10% to 14%.
# Budget Estimated at 39.45lakh crore rupees in 2022-23
# Any surcharge and cess levied on income are not allowed as business expenditure.
# The parent/guardian of the differently-abled can get a tax deduction on payment of the annuity or lump sum during the lifetime of parent or guardian, once the parent or guardian has attained 60 years
# India Pegs FY23 Fiscal Deficit at 6.4%, gross Borrowings at 14.95 lakh crore.
# Concessional customs duty on import of capital goods to be phased out, the initial rate of 7.5% to be imposed.
# Customs duty on cut and polished diamonds, gems to be reduced to 5%.
# Revised fiscal deficit estimated at 6.9% of GDP
# The outlay for capital expenditure to be stepped up sharply by 35.4% from Rs 4.54 lakh crore to Rs 7.50 lakh crore in 2022-23.
# 2 lakh Anganwadis to be upgraded for improving child health.
# India budget estimates the effective Capital Expenditure of Central Govt at 10.68 lakh Crore in 2022-23, This would be 4.1%of GDP
# No change in Income Tax slabs was announced by the government.
# Defense budget expanded to be 5.25 lakh crore (1.19 lakh crore for defense pension, and 4.06lakh crore for without defense pension)
# Green bonds push for Indigenous solar panels, EV’S: Spotlight on climate change in budget 2022
# India allocates Rs200 crore to Taliban-ruled Afghanistan for their people.
# In 2022, 100% of 1.5lakh post offices.
# Government to promote funds for blended finance (government shares limited to 20%) for sunrise opportunities such as climate action, Agri-tech, etc.
# FM announces Rs 19,500 crore allocations in PLI for solar modules.
# 68% of the capital procurement budget in defense will be earmarked for the domestic industry in 2022-23.
# The value of the increase in infra spend is unclear through PM Gati Shakti plan, unlike the clear 34.5% increase last year to Rs 5.5 lakh crore.
# India Should become a 5 Trillion Dollar economy by FY 2026.
# Defence procurement gets a budget boost, Government gives hike capital outlay to 1.52lakh crore.
Source: Economic Times