Union Finance Minister Nirmala Sitharaman on Tuesday presented the Union Budget for the fiscal year beginning April 1,2022. Infrastructure emerged as the topmost priority for the Narendra Modi government as the finance minister said that the budget for 2022/2023 will lay the foundation for economic growth through public investment as Asia’s third-largest economy emerges from a pandemic-induced slump.
Government has projected GDP (Gross Domestic Product) growth at 8 per cent to 8.5% compared with an estimated 9.2 per cent for the current fiscal year and a 6.6 per cent contraction the previous year. India will allocate an additional Rs 19,500 crore to boost investment in solar equipment manufacturing.
Sitharaman said that their goal is complementing macro-growth with micro-all-inclusive welfare, digital economy and fintech, tech-enabled development, energy transition and climate action
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.
According to Sitharaman, the Budget will focus on: PM Gati Shakti Inclusive Development Productivity Enhancement
Focus areas of Budget:
- For farmers to adopt to natural farming, comprehensive package for participation of State governments & MSMEs to be introduced.
- Hospitality services by the small & medium sector are yet to bounce back, therefore, the government has decided to extend the ECGL service for this sector by March 2023 with an increased cover of Rs 50,000
- Skilling programs will be reoriented. For skilling, upskilling & reskilling of our youth, Digital DESH e-portal will be launched.
- ‘One Class One TV Channel’ will be increased from 12 to 200 TV Channels to provide supplementary education in regional languages for class 1-12.
- A digital university will be developed to provide access to students for world-class quality education with ISTE Standards.
- For mental health counselling, a National Tele Mental Health Program will be launched
- Our government is committed towards Atma Nirbhar Bharat in armed forces. 68% of capital procurement budget will be earmarked for domestic industry for 2022-23 up from 58% in 2021-22, the FM said
- Rs 19,500 crore marked for PLI for manufacturing of high efficiency module for polysilicon.
- Financial support will be provided to farmers wanting to take up Agro-Forestry.
- 5-7% biomass pellets will be co-fired in thermal power plants resulting in carbon dioxide savings of 38 mmt annually.
- Outlay for capital expenditure increased by 35.4% from previous year to 7.50 lakh crore in 2022-23.
- Sovereign Green Bonds to be issued in public sector projects to reduce carbon footprint initiatives in the economy.
- To further electronics manufacturing, duty concessions given for high growth of electronics items.
- Customs duty on cut & polished diamonds, gems to be reduced to 5%.
- Duty concessions on parts of mobile phones.
- To levy 7.5% customs duty on select capital goods
- Gradually to have customs duty of 7.5% on projects imports
Many commonly used items, including headphones, earphones, loudspeakers, smart meters, imitation jewellery, solar cells, and solar modules will become more expensive due to a hike in customs duties on imported parts, as proposed by Finance Minister Nirmala Sitharaman in the Union Budget for 2022-23.
However, imported cut and polished diamonds, frozen mussels, frozen squids, asafoetida, cocoa beans, methyl alcohol and acetic acid will become cheaper because of rationalisation in customs duties.
The Centre will be reducing duty on certain inputs required for shrimp aquaculture to promote its exports. Tariff measures will be introduced to encourage the blending of fuel. Meanwhile, petrol and diesel could get more expensive as unblended fuel will attract an additional differential excise duty of Rs 2/ litre from October 1, 2022, to further encourage the blending of fuel.
Big capital expenditure for infrastructure push is a welcome step….. Focus should also be on more consumer spending…. Nothing on taxation front is a big let down… Budget is all about macro economics……
Deepak Banyal, Partner, Banjosh Enterprises, Kotdwar
Nothing good in particular for jewellery market… 5% polishing charges of diamond reduced ..hardly makes the costing of jewellery any less
Rakesh Prakash Agarwal, Raghunandan Jewellers, Meerut
Being a common woman of a country I can proudly say that this budget belongs to us (common man of the country).The govt. considered all aspects while announcing the budgets, be it individual, businessman, industrialist & even the farmers of the country. I am happy that the taxes are not hiked during this budget session which directly impact our disposable income so this budget is definately a people-friendly budget.
Bhawna Gurnani, Homemaker, Noida
The Union government has allocated Rs 1,04,278 crore for the education sector, Rs 11,054 crore higher than in 2021-22. Compared to infrastructure, this is not a meaningful increase. The focus is on providing access to students, expand the present PM eVidya Scheme and the launch of a Digital University. Higher budgetary allocations will be needed for faster implementation of NEP 2020 which has the potential to change our education system for the better.
Devaki Sahasrabudhe, Markerting Professional, Banglore
A progressive country needs at least 6% of GDP to be spent on Education. India has been averaging between 2 and 3 % between the years 2014 to 2019.
The 2022-23 budget unveiled by Finance Minister Nirmala Sitharaman brought into focus the long-term plans to transform our nation, from India @ 75 to India @ 100. Unexpectedly, there were no populistic measures, even though many important state elections are round the corner. The budget has been Growth oriented with focus on Capital Expenditure to boost the economy.
Sreekanteswar Shankarnarayan, Managing Director – DIGIKIT
Thought there is not much cheers for the common man and individual tax payers, as there are no Direct Tax Cuts, but the budget lays ground for multi-year boom in the economy. Push is given to the modern era products like the EV’s, Fintech and Digital economy.
Overall, it is a Positive budget with no gimmicks and a big push towards DIGITAL.
We at DIGIKIT welcome the push toward DIGITAL and are here to support our clients to reap the benefits of Digital Transformation in India.
( Part of Global Trendz Media Pvt. Ltd. ) Banglore
A major push had been made towards digital infrastructure and online education in the Education Sector to achieve universalisation of quality education
Love Jain, Mentor, Young Achievers Learning Center Meerut
One Class, One TV
Supplementary teaching will be imparted under the “One Class, One TV Channel” initiative of PM e-Vidya. This will enable all states to provide supplementary education in regional languages for all classes, from 1 to 12.
Vocational Education
Budget 2022 has paved the way for vocational courses and, to boost crucial critical thinking skills, offer space for creativity to its students. Under this, 750 virtual labs in science and mathematics and 75 skillings e-labs will be set up in the years 2022-23 for simulated learning environments.
Delivery of high-quality e-Content
The Budget also gave way to the delivery of high-quality e-content to be delivered in all spoken languages. This will be delivered through various modes of internet technology and broadcast systems such as the internet, mobile phones, TV and radio. The e-content will also be delivered by Digital Teachers who will be trained beforehand to enhance the quality of learning.
Teacher Training
A competitive mechanism will be worked upon for the development of quality e-content by the teachers which will be set up to empower and equip them with digital tools of teaching and facilitate better learning outcomes for the students.
The parameters stated in the Union Budget 2022 are to be carried out in the coming year.
There has been a definite boost to the mental health sector. The Corona pandemic has accentuated the mental health problems in all age groups and a plan to set National Tele Mental Health Programme in the country is a welcome.
Dr Umang Arora, Meerut
On the other hand Indian Medical device production should have had a boost through domestic manufacturing, which is lacking
Even though it’s an election year the budget is very Progressive and infra focused, with expansive growth and development of the country at large.
Pulak Somani, Director,
Popman – Somani Savory Foods Pvt. Ltd Indore
We haven’t been told what the budget outlay for health infrastructure, education or agriculture is. Why not?
No change in income tax slabs, tax rates in Budget 2022 by BJP govt.
Why not tax exemption limit and tax deduction slabs be linked with inflation?
If MP’s salaries can be linked to inflation then why not income tax slabs linked to inflation?
Middle class also want some relief, not only speeches.
Arnab Acharya, Media Professional, Mumbai
The budget presented by our honorable FM Smt Nirmala Sitaraman is in favor of each and every class, and is a good budget,though no budget is satisfactory to everyone yet she with the team of experts have taken care of every class and the schemes like MSP or ujjawala yojna & the loans facility for MSME and other scheme to boost the economy of India, overall if we look at the FM has tried to keep the GDP for FY 22 to be 9.2% and this is the highest for any large economy
Amit Jain, Director, Amichem Research lab Dehradun
This year Union Budget is a forward-looking budget with a clear focus on Infrastructure, Welfare and Sustainable development. For the logistics sector, this is an encouraging budget as allocation of funds related to asset creation related to transport infrastructure is 6.1 lac cr . This is an increase of 11% for FY23 following the 73% increase of FY22 and out of this 51% capital outlay is for Rail and road infrastructure. Spending on road transport is 58% more than last year. Further, the alignment of PM GatiShakti National Master Plan andNational Investment Pipeline, 4 Multimodal logistic parks through PPP will help in debottlenecking hurdles for faster execution, Improvement in multi-modal connectivity, railways, toreduce transit time and logistic costs however clarity on tax exemptions found no mention in the budget for capital equipment imported under various exemption scheme.
Nilesh Kumar Sinha, Director, Procam Logistics Pvt Ltd. Kolkatta
