{"id":39713,"date":"2022-02-01T18:30:38","date_gmt":"2022-02-01T13:00:38","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=39713"},"modified":"2022-02-02T18:51:43","modified_gmt":"2022-02-02T13:21:43","slug":"budget-2022-23-major-highlights-and-key-announcements","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/budget-2022-23-major-highlights-and-key-announcements\/","title":{"rendered":"Budget 2022-23: Major Highlights and Key Announcements"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Budget 2022-23 has finally come to effect after being introduced by Finance Minister today. The said budget comes up with major announcements, including PLI extension for major sectors, tax relaxations for startups, state funding, etc. The union budget 2022 underlined the nation&#8217;s focus on long-term growth support. Focus on raising capital expenditure and the future growth drivers, like clean energy, are the key highlight of the budget. According to the Finance Minister the fiscal deficit and the budgeted expenses &amp; receipts are under control as projected. While presenting the Union Budget in Lok Shabha, the FM said that the nation is projected to thrive @ 9.27 % in the coming year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key highlights of the Budget 2022-23<\/h2>\n\n\n\n<div class=\"mt-3 mb-3 embed-responsive embed-responsive-16by9\"><iframe class=\"embed-responsive-item\" src=\"https:\/\/www.youtube.com\/embed\/rz5ke9UzgEA\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen=\"\"><\/iframe><\/div>\n\n\n\n<p>While presenting Union Budget 2020-23, the Honorable Finance\nMinister came up with the following announcements: <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Necessary amendments to IBC to advocate cross border insolvency resolutions<\/h3>\n\n\n\n<p>Budget 2022-23 proposes necessary\namendments to IBC to advocate cross-border insolvency resolutions. This will be\nlikely to reduce the burden on lenders who struggle to recover their loans.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Introduction of digital rupee <\/h3>\n\n\n\n<p>The union budget 2022-23 ensures the release of blockchain-powered digital rupee in the current FY. <strong>Blockchain technology<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Blockchain\"><strong>[1]<\/strong><\/a><\/sup> also powers digital currency, NFTs (non-fungible tokens), and it is a distributed ledger that is updated in real-time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Levy of 30% tax on digital assets<\/h3>\n\n\n\n<p>The levy of tax @ 30% on the digital\nasset, paired with the government releasing its own digital currency, implies\nthat the GOI aims to discourage the same and would seek that only the HNIs make\nsuch investments and that the GOI shall not allow crypto as currency. The\ncapping of surcharge @ 15% seems fair, and though no individual relaxation was\naccessible to HNIs, this would also be beneficial to such HNIs with high\ncapital gains income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Enhanced Capex allocation<\/h3>\n\n\n\n<p>The GOI has announced a considerable jump of 35.4 % in capital expenditure for funding various infra-related projects in 2022-23. According to the FM, the GOI shall invest Rs 7.50 lakh crore as capital expenditure in the subsequent year, a significant spike from Rs 5.5 lakh crore in the prevailing year. Depending upon its deployment, Capex spending will facilitate a massive thrust to investment undertaking and bolster economic growth in the subsequent year. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Increased Relaxation to Starts-up from Taxation viewpoint<\/h3>\n\n\n\n<p>To promote startups in India, Finance Minister proposes to extend the eligibility for claiming tax holiday for eligible startups by one more year until March 31, 2023. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Atmanirbhar Defence<\/h3>\n\n\n\n<p>Finance Ministry has earmarked 68% of the capital procurement budget for domestic industry to reduce the dependency on imports and strengthen <em>Aatmanirbharta<\/em>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">New legislation for Special Economic Zones <\/h3>\n\n\n\n<p>The new legislation will soon replace the\nSpecial Economic Zones Act to develop entities and hubs. It will encompass the\nprevailing industrial enclaves &amp; improve the competitiveness of exports.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Introduction of DESH e-portal <\/h3>\n\n\n\n<p>Reorientation of the Skilling programs shall take place in the current year. According to the FM, the government is all set to release the new web portal called <strong>Digital DESH e-portal for<\/strong> skilling, upskilling &amp; reskilling of the nation&#8217;s youth.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Introduction of Battery swapping policy <\/h3>\n\n\n\n<p>The FM has confirmed releasing a battery swapping policy for boosting the EV ecosystem in India. The EV sector has witnessed massive growth in the past five years. Battery swapping policy will likely resolve the issues concerning space constraints in urban areas for establishing a charging station at scale. <strong>Besides, said policy is most likely to entail <\/strong>interoperability standards that compel EV manufacturers to produce EVs with standardized, removable\/disposable batteries. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5G Spectrum auctions <\/h3>\n\n\n\n<p>Required spectrum auctions shall be\nconducted in the current year to ensure the 5G mobile services roll out by\nprominent telecom organizations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ken Betwa linking project to worth around Rs 44,605 crore<\/h3>\n\n\n\n<p>FM announced that the implementation of\nthe Ken-Betwa river linking project worth Rs 44 605 crores would be taken up.\nThe project is projected to benefit more than 9 lakh hectare farmland spread\nacross the drought-prone region of Bundelkhand, 13 districts in UP, &amp;\nMadhya Pradesh,<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Supplementary corpus amounting 19,500 crores for OEMs of solar modules<\/h3>\n\n\n\n<p>FM has announced the additional\nallocation of Rs 19,500 crore for Production Linked Incentive to scaling up the\nproduction of high-efficiency modules. The corpus is earmarked to facilitate\ndomestic manufacturing of 280 GW of installed solar capacity by the year 2030.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Taxpayers can now update I-T returns within 2 years<\/h3>\n\n\n\n<p>In a bid to ensure error-free <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>filing income tax returns<\/strong><\/a>, the IT department shall enable the taxpayers to file an updated return within two years from the assessment year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Tax deduction limit to be raised from 10 percent to 14 percent for state govt. Employees<\/h3>\n\n\n\n<p>FM has confirmed to raise the tax\ndeduction limit from 10 % to 14% for both state and central government\nemployees. The announcement shall bring the social security benefits of state\ngovernment employees at par with the Central govt employees.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Rs 48,000 crore allocated for housing scheme falling under PM AwasYojana<\/h3>\n\n\n\n<p>FM has earmarked the corpus worth Rs\n48,000 crores to construct 80 lakh houses falling under PM AwasYojana in urban\nand rural regions in the year 2022-23.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Other Key Announcements under Union Budget 2022-23<\/h2>\n\n\n\n<ul><li>The\nunion budget 2022 estimates the effective capital expenditure of the Central\ngovernment at Rs 10.6 lakh crore in 2022-23, making up nearly 4 % of the\nnation&#8217;s GDP.<\/li><li>The\nnet GST collection for January 2022 has been stood at 1,40,986 crore, which is\nthe highest ever.<\/li><li>Union\nbudget 2022 has proposed to slash down the import duty on cut and polished\ndiamonds and gemstones by 2.5 percent.<\/li><li>The\nFM also confirmed to release of a Simplified Regulatory framework for exporting\njewelry via an e-commerce platform. <\/li><li>E-passport\nwith integrated digital chip shall be rolled in 2022-23.<\/li><li>Manufacturing\nof 400 Vande Bharat trains shall be completed by three years from now.&nbsp; All these trains are expected to equip with\nenergy-efficient technology and facilities to ensure world-class travelling\nexperiences. <\/li><li>Use\nof drones to be promoted for digitization of land records, crop assessment,\nspraying of insecticides and nutrients. The Nodal agency NABARD will serve as a\nfunding source for startups and rural firm which are relevant to the farm\nproduce value chain.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>It can be concluded from the above, the Union Budget 2022 revolves around the following factors with sustainable growth as its primary objective. <\/p>\n\n\n\n<ul><li>Clean\nenergy <\/li><li>Boosting\nEV ecosystem <\/li><li>No\nincrement on taxes for general taxpayers<\/li><li>Empowering\nAgri sector via Drone system <\/li><li>Strengthening\nroad infrastructure<\/li><li>Increased\nproduction for solar modules <\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Budget 2022-23 has finally come to effect after being introduced by Finance Minister today. The said budget comes up with major announcements, including PLI extension for major sectors, tax relaxations for startups, state funding, etc. The union budget 2022 underlined the nation&#8217;s focus on long-term growth support. Focus on raising capital expenditure and the future [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":39718,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153],"tags":[2098],"acf":{"service_id":"215"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":4111,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39713"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=39713"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39713\/revisions"}],"predecessor-version":[{"id":39772,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39713\/revisions\/39772"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/39718"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=39713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=39713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=39713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}