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Along with strengthening the economy, the budget will create a number of new opportunities for common Indians, Prime Minister Narendra Modi said in a televised broadcast.
Here's what Modi said:
Budget focused on creating more infrastructure, more investment, more growth, more jobs.
‘Parvatmala Yojana’ will bring advanced transportation and connectivity to villages on India’s borders.
Budget provisions will secure that farming is beneficial with new opportunities arising.
Fund for new agri startups, food processing package will aid in boosting farmer income.
Budget addresses India's current needs, and secures a bright future for India's youth as well.
Budget aims to bring advances and new technology in all aspects of Indians' lives.
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The FY23 allocation for Mahatma Gandhi National Rural Employment Guarantee scheme has been lowered to Rs 73,000 crore from a revised estimate of Rs 98,000 crore in FY22.
Economists had earlier called for increasing MGNREGA allocation as the scheme had failed to keep up with the demand for work.
The government has lowered its disinvestment target for FY23 at Rs 65,000 crore.
That comes after India is set to miss its Rs 1.75 lakh crore target for the current fiscal. The government's revised estimate for FY22 is Rs 78,000 crore.
The government has set gross market borrowing target of Rs 14.95 lakh crore for FY23. A consensus of economist estimates had expected borrowing target to be at Rs 13 lakh crore.
India's 10-year bond yields spiked over 21 basis points on the higher borrowing target.
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Finance Minister Nirmala Sitharman has concluded her budget speech in the Lok Sabha.
Sitharaman proposed to phase out duty exemptions to project import and capital goods gradually, apply moderate tariff of 7.5%, with certain exemptions to advanced machinery.
Sitharaman proposed to cap surcharge on LTCG arising on transfer of any type of assets at 15%. The step will give a boost to startups, she said.
Income tax is not allowable expenditure for computation of business income.
Any surcharge or cess on income and profits is not allowable as business expenditure.
Sitharaman proposed that the government will tax income from digital asset transfers at 30%.
No deduction allowed while computing income except cost of acquisition.
Loss cannot be set off from any other income.
TDS of 1% on payment made for transfer of virtual digital asset, above a monetary threshold.
Gifts of digital assets will be taxed in the hands of the recipient.
The finance minister proposed to allow payment annuity and lump-sum amount to dependents of differently-abled, during lifetime of parent or guardian reaching 60 years.
Sitharaman proposed to cut the Alternate Minimum Tax for cooperative societies to 15% to provide them a level-playing field with companies.
Proposal will reduce surcharge on cooperative societies to 7%, for those whose income is between Rs 1 crore and Rs 10 crore.
New provision will be introduced to provide an opportunity to taxpayers to file updated return, on payment of additional tax, within 2 years of end of relevant assessment year, Sitharaman said.
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India will issue sovereign bonds for funding green infrastructure. Funds will be used for projects that will help reduce carbon intensity of the economy, Sitharaman said.
Sovereign green bonds will be part of government’s borrowing programme in FY23.
Proceeds to be deployed in public sector projects.
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The finance minister allocated an additional Rs 19,500 crore in the PLI scheme for the manufacturing of high-efficiency solar modules.
This will facilitate domestic manufacturing for the ambitious goal of 280 GW of solar capacity, Sitharaman said.
The SEZ Act will be replaced by new legislation that will enable states to become partners in development of enterprise and service hubs, Sitharaman said.
Successor legislation of SEZ Act will cover all large existing and new industrial enclaves to optimally utilise available infrastructure and enhance competitive of exports.
Contracts for laying optical fibre in all villages including remote areas will be awarded under BharatNet project under PPP in 2022 and 2023, completion expected by 2025, Sitharaman said.
Sitharaman said that required spectrum auction will be conducted in 2022 for the rollout of 5G mobile services by private telecom providers.
Scheme for design-led manufacturing will be launched to build strong ecosystem for 5G as part of PLI scheme.
The government will carry out necessary amendments to Insolvency and Bankruptcy Code will be carried out
IBC amendments to enhance efficiency of resolution process, facilitate cross-border insolvency resolution.
To speed up voluntary winding up of companies.
The government will bring out a battery swapping policy to counter the issue of limited coverage of charging stations in states.
Urban planning cannot continue with a business as usual approach.Finance Minister Nirmala Sitharaman
Finance minister said that 75 digital banking units will be set up in 75 districts by scheduled commercial banks.
Financial support for the digital ecosystem announced in previous budget will continue in FY23.
Sitharaman said 'Housing-for-all' and universal tap water coverage will be a big priority in this term
Current coverage of ‘Har Ghar Nal Se Jal’ is 8.7 crore.
Rs 60,000 crore allocation for ‘Har Ghar Jal’ Mission to cover 3.8 crore households in FY23.
Rs 48,000 crore provided for PM Awas Yojana in FY23 to cover 80 lakh houses completed in FY23.
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Sitharaman said that Rs 1,400 crore will be allocated for the Ken-Betwa river interlinking project in FY23.
Plans in the works for five river linking projects.
Finance minister said Rs 2.37 lakh crore will be direct payment of minimum support price value to wheat and paddy farmers.
Rationalised and comprehensive scheme to be implanted to reduce reliance on oil seed imports.
The Indian Railways will offer new products for small farmers and MSMEs, integrate coastal and railway network, finance minister said.
'One station, one product' concept will be popularised to help local businesses.
400 new-generation Vande Bharat trains will be developed and manufactured in next 3 years.
100 PM Gati Shakti cargo terminals will be developed in the next 3 years.
Under the plan, national highways network will be expanded by 25,000 kilometres in FY23, Sitharaman said.
The plan will facilitate faster movement of people and goods.
Rs 20,000 crore will be mobilised through innovative ways of financing to compliment the public resources.
According to Sitharaman, the Budget will focus on:
PM Gati Shakti
Inclusive Development
Productivity Enhancement
Sunrise Opportunities
Energy Transition
Climate Action
Financing of investments
The government will carry out the initial public offering of LIC shortly, the finance minister said. Others too are in the process for FY23, she added.
Performance-linked incentive schemes in 14 sectors have received with potential to create 60 lakh new jobs, and additional new production of Rs 30 lakh crore, Sitharaman said.
Sitharaman said that the budget will set up growth for India over the next 25 years. The aim is complementing macro-growth with micro-all-inclusive welfare, digital economy and fintech, tech-enabled development, energy transition and climate action, she said.
Finance minister said that the sharp rebound and recovery in the economy reflects India’s strong resilience
India in strong position to withstand challenges, she said.
Sitharaman has risen to deliver the Union Budget 2022-23.
#WATCH | Delhi: Union Finance Minister Nirmala Sitharaman arrives at the Parliament. She will present the #UnionBudget2022 today. pic.twitter.com/MQoxC388TZ
— ANI (@ANI) February 1, 2022
Smt Nirmala Sitharaman, Minister of Finance along with Ministers of State for Finance, Dr Bhagwat Kishanrao Karad, Shri Pankaj Chaudhary, and senior officials of the Ministry of Finance, called on President Ram Nath Kovind before presenting the Union Budget 2022-23. pic.twitter.com/5xc3sfwyWr
— President of India (@rashtrapatibhvn) February 1, 2022
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India's Economic Survey for FY21, tabled in parliament on Monday on Budget 2022 eve, said the government has the fiscal capacity to ramp up capital expenditure due to the strong revival in revenues.
Principal Economic Adviser Sanjeev Sanyal pointed that tax and non-tax collections have rebound sharply and have even rose above pre-pandemic levels.
The survey said it expects real GDP growth to be 8-8.5% in FY23, and 9.2% in FY22. That, too, is a conservative estimate.
Read key highlights of the economic survey here.
Growth and fiscal consolidation will have to go hand-in-hand in Budget 2022.
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Expectations for key sectors from top brokerages.
Sajjid Chinoy on the economic 'speedometer' and what it means for policymaking.
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Want a more fun way to know about what to watch? Try your hand at the Budget Wordle!
India’s formal economy is booming, while the informal one, which is the lifeline of over half-a-billion poor citizens, is wrecked, writes Raghav Bahl. And that's the challenge that confronts the Union Budget 2022.
BloombergQuint published a series of stories highlighting that dichotomy in the run up to the budget.
India's rural employment guarantee scheme has failed to keep up with demand. The scheme, which was intended to be a fallback option, has become a primary source of income for many in the country's hinterland. Leelavathi's story is just one of those.
Tales Of The Post-Pandemic Jobs Struggle
There are indications that a large section of the working class has been pushed into self-employment and casual labour as regular salaried work has declined. Across cities, industries and roles, companies cut jobs as one way to save costs. 30-year-old management graduate Avijeet knows this first hand.
Long Walk Back To Cities, Paved With Debt
The pandemic-inflicted pain and struggles of India’s migrant workers may vary but their stories have a common thread—rising indebtedness with no savings or social security to fall back on. Borrowing money to survive was a recurring theme across BloombergQuint's conversations with 12 migrant workers across multiple states.
The Covid crisis forced many small retailers to go digital. It also forced those who couldn't make the transition to shut shop. Stories of Haji Iqbal and S Poddar tell the story of this divergence.
Union Budget 2022 will be the tenth budget presented by Prime Minister Narendra Modi's government, including one interim budget presented in the general election year of 2019. It will be Finance Minister Nirmala Sitharaman's fourth budget presentation.
Sitharaman will begin her budget speech in Lok Sabha at 11.00 am on Feb. 1, soon after a cabinet approval. She has the unenviable task of lifting India from a once-in-a-generation crisis that scarred an already-slowing Indian economy. The country grapples with widening inequalities, diminishing incomes and high unemployment despite an economic recovery. Prime Minister Narendra Modi's government is under pressure to increase spending on everything from infrastructure to healthcare while also managing its finances.
Most economists expect the government to loosen its purse strings and target moderate fiscal consolidation. India's fiscal deficit for financial year 2022-23 is estimated to be between 6-6.3% of the GDP. Sustained momentum in tax collections, asset sales and near-record borrowings may help Sitharaman fund its higher spending.
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