- Saturday, May 04, 2024
By: Shubham Ghosh
INDIAN finance minister on Tuesday (1) presented the central budget for 2022-23 financial year with a focus on putting the economy on a fast track towards growth and employment generation. Among several aspects that were touched in the budget are agriculture, healthcare, small businesses and infrastructure.
“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,” Sitharaman said in her budget speech which lasted an hour and 30 minutes.
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The minister, like last year, also delivered a paperless budget.
Here are some of the major announcements that Sitharaman made in her latest budget:
Targeting fiscal deficit: In fiscal year 2023, India’s total expenditure is estimated around Rs 40 lakh core (£397 billion) while receipts from other borrowings are estimated at Rs 22.84 lakh crore (£227 billion). For fiscal 2023, the fiscal deficit is projected at 6.4 per cent of the gross domestic product.
Digital rupee: India’s central bank – the Reserve Bank of India — will issue a digital currency based on blockchain and other technology starting in fiscal year 23. “Introduction of Central Bank Digital Currency will give a big boost to digital economy,” Sitharaman said.
Tax returns: As per the new budget, Indian taxpayers now can correct errors and file updated returns within a couple of years of the relevant year of assessment.
Taxing digital assets: If anybody makes an income from the transfer of any virtual digital asset, it will be taxed at 30 per cent.
Tax deduction limit: The tax-deduction limit for employees of the state governments on the employer’s contribution to the National Pension System to be raised to 14 per cent from 10 per cent so that they are put at par with the central government staff.
SEZ Act: A new legislation will replace the Special Economic Zones Act that will allow states to join developing enterprise and service hubs.
Digital education: With students having lost almost two years of formal education due to the pandemic, Sitharaman announced that ‘One Class-One TV Channel’ programme of PM eVIDYA will be expanded from 12 to 200 TV channels. This will allow all states to provide supplementary education in regional languages for classes 1 to 12. A digital university will also be set up.
Rail network: As part of Atmanirbhar Bharat (self-reliant India), 2,000 kilometres of network will be brought under ‘Kavach’ — an indigenous, world-class technology for safety and capacity augmentation, in fiscal year 2023.
Vande Bharat trains: Four hundred new-generation Vande Bharat trains to be built over the next three years.
Gati Shakti Master Plan: The PM Gati Shakti National Master Plan is driven by seven engines: roads, railways, airports, ports, mass transport, waterways and logistics infrastructure, pulling the economy forward. The Gati Shakti Master Plan for expressways will be drawn up in fiscal year 2023 and the national highway network will be expanded by 25,000 kilometres in the same period.
Defence: To reduce imports and promote self-reliance among the armed forces, 68 per cent of the capital procurement budget will be kept for the domestic defence industry. The private industry will also be encouraged to take up design and development of military platforms and equipment in tie-up with the Defence Research and Development Organisation and other bodies.
Mental health: A National Tele Mental Health programme will be launched to improve access to quality mental health counselling and care in times of the pandemic.
E-passports: E-passports using embedded chips and futuristic technology will be used in FY23 to facilitate overseas travel.
Housing: The government will allocate Rs 48,000 crore (£4.7 billion) for PM Awas Yojana and complete eight million houses for the scheme’s eligible beneficiaries in rural and urban areas in this fiscal.
Post office banking: All 150,000 post offices in India will become part of a core banking system.
