The Finance Minister, Nirmala Sitharaman, put forward the Union Budget 2022 today i.e. 1st February 2022. It is the sixth budget session that was conducted since the onset of the coronavirus pandemic in January 2020. Following are the key highlights of the budget:
HIGHLIGHTS OF THE BUDGET 2022
- In the new budget, a 30% tax is being levied on Cryptocurrency. The gifts of digital benefits would also be liable to taxation. This includes any income from the sale or acquisition of virtual and digital assets.
- Digital rupee, using the blockchain technology will be introduced by the Reserve Bank of India, this fiscal year.
- A reduction of 5% has been proposed by the government in import duty on polished and cut diamonds and gemstones.
- The imported items that have been costlier are Unblended petrol and diesel, Umbrella, Imitation Jewellery, Earphones & Headphones, Single/Multiple Loudspeakers, Smart Meters, Solar Cells, Solar Modules, X-Ray Machines, and Parts of Electronic Toys.
- Battery swapping policies will be announced to promote electric vehicles.
- The government has slashed the custom duty, resulting in the goods getting cheaper. The list includes clothes, Methyl alcohol, Acetic acid, Cut and polished diamonds, Frozen mussels, Frozen squids, Chemicals needed for petroleum products, Camera lens for cellular mobile phones, Asafoetida, Cocoa beans, and Steel scrap.
- 3.8 Crore households will benefit from tap water connections with Rs 60,000 crore being allocated for the same.
- The surcharge (extra fee) on long-term capital gains has been capped at 15%.
- The rates of income tax have not been changed this year.
- A parity between central and state government employees has been announced.
- For cooperative societies, tax rates have been reduced to 15%.
- From the fiscal year 2023, RBI will start issuing Digital Money using the blockchain and other similar technologies.
- Capital expenditure has been raised by 35.40 percent, which is from Rupees 5.54 lakh crore to Rupees 7.50 lakh crore.
- In order to scale up financial inclusion, all the post offices are going to be linked to core banking solutions. It has been decided that Spectrum auctions would be conducted to launch 5G mobile services within 2022-23 by private firms.
- One Class One Television channel would be launched to provide additional education for children in order to make up for the loss of formal education borne by the students due to Covid-19.
- A transliteration of the land records would be deployed in 8 different languages.
- Support shall be provided to states for urban capacity building.
- E-passports that consist of embedded chips and other relevant futuristic technology shall be launched.
- 75 digital banking units are to be set up in 75 districts by scheduled commercial banks so that the benefits of digital payments are reaching even the remotest corners.
- An initiative by the PMO would be undertaken to fund infrastructure and social development initiatives for the northeast.
- Better facilities would be provided to around 2 lakh Anganwadi workers.
- Through the use of various application centers, work on Drone technology will be enhanced.
- Around 400 new generations, Vande Bharat trains are being produced. Additionally, around 100 PM Gati Shakti cargo terminals would be introduced.
- MSP of 2.7 lakh crore rupees is being allotted for wheat and paddy.
- It’s been decided that the National Highways are to be expanded by 25,000 km.
- Rupees 35,000 crore is the estimated budget for vaccine expenditure this year.
- The capital expenditure allocation is expected to remain high due to the target of reaching a $5 trillion economy by the fiscal year 2025.
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