- Date : 04/02/2022
- Read: 4 mins
From digital finance to defence, find out which sectors will benefit the most from Budget 2022.
Two years of pandemic-related uncertainty put brakes on India's economic growth. Finance Minister Nirmala Sitharaman put together Budget 2022 with a focus on revival. The Budget has largely lived up to expectations with an eye on infrastructure development, better telecom connectivity, digital finance, among others. It has also addressed issues related to inflation and unemployment.
The government has made clear that it'll depend on economic growth to drive fiscal consolidation, projecting a fiscal defecit of 6.4 per cent of the GDP for FY 2022-23. The total expenditure is estimated at ₹39.45 lakh crore, and the total receipts other than borrowings are estimated at ₹22.84 lakh crore.
Also Read: Union Budget 2022: Key Highlights
Five sectors received a boost from the government in this Budget. These include:
There was a massive increase in allocation for roads and railways. The Budget outlay for Road Transport and Highways has risen steeply -- a 68.5 per cent to ₹1.99 trillion from ₹1.18 trillion in FY 2021-22. It's a staggering sum on paper, and here's what that means for the country:
- Safety enhancement under KAWACH technology for 2000 km rail network
- The national highway network will be expanded by 25,000 km
- To expand highways, funds worth ₹20,000 crores will be mobilised in addition to budgetary resources
- 400 contemporary Vande Bharat Trains will be launched over the next three years
With digital connectivity in mind, the government made announcements that will give a big push to telecommunication.
- 5G spectrum auction will be conducted in 2022.
- As part of the production-linked incentive scheme, a scheme for design-led manufacturing will be launched. It will help build a strong ecosystem for 5G.
- Allocation to Bharat Sanchar Nigam (BSNL) tripled to ₹44,720 crores for 4G spectrum.
- BharatNet broadband will be ready by 2025. The government plan seeks to bring broadband to 361,000 villages across 16 states.
The government's stance on digital currency was made clear in Budget 2022, putting to rest all speculation.
- By April 2022, India will get its digital currency issued by the Reserve Bank of India.
- Income from the transfer of virtual assets will be taxed at 30 per cent.
- Any other income cannot be adjusted for loss faced in digital investment and trade.
- All crypto transactions will be taxed 1 per cent at the source.
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- Budget announcements take the country a step closer to its "housing for all" dream. This is expected to create revenue and employment opportunities in the real estate sector.
- To promote affordable housing, ₹48,000 crores will be allocated under Pradhan Mantri Awas Yojana urban and rural schemes
- 80 lakh houses to be constructed under PMAY, out of which 60,000 will be for rural beneficiaries
- 3.8 crore households to receive water connection in FY 2022-23. ₹60,000 crores have been allocated for this
The government is eager to reduce dependence on imports in defence, and provisions were made in the Budget keeping this in mind. Constant aggression from China led to an increase in the defence budget.
- The allocation for the defence was ₹5.25 lakh crore, which is ₹47,000 crores more than last year's ₹4.78 lakh crore.
- To promote Atma Nirbhar Bharat, 68 per cent of the capital procurement budget for defence will be earmarked for domestic industry. This is up from 58 per cent last year.
- R&D will be opened up for the industry, startups, and academic. 25 per cent research budget will be allocated for the same
Save for a few sectors like state-run banks, car manufacturers, and steelmakers, the Budget has been largely neutral. The ones that have benefitted are in line with the government's larger plan of development and job creation. If the government sticks to its outlook, a lot is in store for India in the next few years.
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