Finance Minister Nirmala Sitharaman is presenting her fourth Union Budget in Parliament in a paperless format just like last year.
On Monday, the Economic Survey 2021-22, tabled by Finance Minister Nirmala Sitharaman in Parliament, projected the economy to grow by 8-8.5% in the financial year beginning April 1 and said it was well placed to meet the future challenges on the back of widespread vaccine coverage, supply-side reforms and easing of regulations.
Other key features of Budget 2020 includes :
Measures will be taken to step up private capital in infra sector
PE/VC invested Rs 5.5 trillion in start-up, expert committee will be set up to suggest measures to help attract investment
Data centre and energy storage system to be given infrastructure status; move to provide easy financing
International arbitration centre will be set up in GIFT city to provide faster dispute resolution
World-class university to be allowed in GIFT IFSC free from domestic regulation
Sovereign green bonds to be issued to mobilise resources as part of govt’s borrowing programme
Public investment must take lead to pump prime private investment and support demand
Financial support will be provided to farmers to take up agro-forestry
ON DEFICIT/EXPENDITURE :
Projects fiscal deficit of 6.4% of GDP in 2022/23
Revised fiscal deficit for 2021/22 at 6.9% of GDP
Total expenditure in 2022/23 seen at 39.45 trillion rupees
States will be allowed 4% fiscal deficit to GDP in FY23
50 year interest free loans over and above normal borrowing allocated to states
Scheme for financial assistance to states for capital investment outlay to be 1 trillion rupees in 2022/23
ON TAXATION :
Import duty on certain chemicals are being reduced
Customs duty exemption on steel scrap to be extended for another year for small- and medium-sized businesses
Customs duty on stainless steel, flat products, high steel bars to be revoked
Unblended fuel to get additional duty of 2 rupees per litre from October 2022
ON FINANCE :
Emergency credit line guarantee scheme for small and medium sized businesses to be extended to March 2023
Energy transition and climate action will be a major government priority
Public issue of Life Insurance Corporation expected shortly
Initiatives from last year’s budget have been provided adequate allocations in this budget
Special Economic Zones Act to be replaced with new legislation
To amend bankruptcy code to speed up resolution process
Aims to lower winding up of companies to 6 months from 2 years currently
Long term capital gain surcharge to be capped at 15%
IT-return can be filed within 2-years
ON DIGITAL CURRENCY :
To launch digital rupee using blockchain technology starting 2022/23
To launch scheme for taxation of virtual digital assets
Losses from sale of virtual digital assets cannot be offset against other income
Income from virtual digital assets to be taxed at 30%
ON DEFENCE :
Govt committed to reducing defence imports
ON INFRASTRUCTURE :
5G spectrum auctions to be conducted in 2022
Digital University to be established
Scheme for design-led manufacturing for 5G will be part of production-linked scheme
To award contracts to lay optical fibre in rural areas, completion in 2025
480 billion rupees set aside for affordable housing in 2022/23
To allocate additional 195 billion rupees for production-linked incentives towards solar equipment manufacturing
Rs 60,000 Cr to cover 3.8Cr households for tap-water
5 River-linking projects finalised
ON AGRICULTURE :
Domestic scheme introduced to reduce dependence on oilseed imports
Fund with blended capital raised under co-investment model to finance agriculture startups
Railways to develop infrastructure for small farmers in 2022/23
ON TRANSPORT :
400 energy efficient trains to be manufactured over next three years
National highways network to be expanded by 25,000km in 2022/23
Highways expansion to cost 200 billion rupees in 2022/23
India to bring out battery swapping policy
100 ‘PM Gati Shakti’ Cargo terminals to be developed
