Union Budget 2022:Schemes announced by the FM Nirmala Sitharaman

The article sums up the schemes announced by the FM in the Union Budget 2022. Read ahead to know more.

Union Budget 2022 Schemes announced by the FM

Budget 2022 is expected to benefit women, farmers, youth, and the backward classes, as the PM Gati Shakti master plan paves the way for the betterment of these segments. The pillars identified for economic growth under the Gati Shakti scheme are inclusive development, productivity enhancement, energy transition, financing investments, and sunrise opportunities. 

The latest budget was particularly significant as it laid the foundation and blueprint for economic growth under the ‘Amrit Kal’ framework, which chalks out the growth of the Indian economy for the next 25 years. 

The Union Budget 2022 was presented in paperless format, and some of the key schemes announced in it are mentioned below:

Also Read: Union Budget 2022: Key Highlights

Economic growth

  • The projected growth rate for India is 9.27% for 2022-23.
  • Sharp increase in investments and CAPEX in 2021-22.
  • Gross collection of GST for January 2022 stood at Rs 1.4 lakh crore, the highest since its introduction in 2017.
  • The production-linked incentive scheme introduced under the Aatmanirbhar Bharat framework is capable of potentially creating 60 lakh new jobs and adding 30 lakh crore worth of production over the next 5 years.
  • Extension of Emergency Credit Line Guarantee Scheme (ECLGS) over the next fiscal in the backdrop of continued credit stress amidst the pandemic. There is an expanded guarantee cover of Rs 5 lakh crore allowed as per the new norms.
  • Proposed launch of Central Bank Digital Currency (CBDC) in the subsequent financial year by leveraging blockchain technology.

Generic schemes

  • 8 million budget houses proposed to be built for the upliftment of the underprivileged in 2022-23 under the PM Awas Yojana. An allocation of Rs 48,000 crore has been made towards this initiative.
  • Rs 60,000 crore allocated towards ‘Nal se Jal’ scheme, a five-river linkage project across various states.
  • Pradhan Mantri Ujjwala Yojana extended to 1 crore households.
  • Extension of financial aid to farmers for taking up agro-forestry.
  • World-class university under the GIFT IFSC, which is proposed to be free of domestic regulation.
  • NABARD funds to finance start-ups in agriculture and rural enterprises, with emphasis on farm produce value chain requirements.
  • Special development initiatives for the development of the north-eastern region, particularly to facilitate livelihood activities for youth and women.

Also Read: 6 Key Takeaways For Working Women From Union Budget 2021-22

Industry-specific schemes

Impetus for clean energy:

  • Many areas likely to be earmarked for electric vehicles only, as an initiative to promote the use of green alternatives. 
  • 400 energy-efficient Vande Bharat trains proposed in the next 3 years.
  • 8 ropeway projects proposed to ease congestion in hilly areas and to boost tourism.

Telecom boost: 

  • 5G services likely to be rolled out in 2022-23. 
  • Proposal to set up 75 digital banking units in 75 districts. 
  • Customs duty on polished diamonds and gemstones slashed to 5%, simply sawn diamonds will be exempted henceforth.
  • To promote export of jewellery via e-commerce, a simplified set of regulations is expected to be in place by June 2022.

Education-related:

  • Emphasis on the need for digital education.
  • Revision of syllabi for agriculture courses to align with natural, zero-budget, organic farming and modern techniques.

Also Read: Highlights Of Union Budget 2021-22

Investments, income tax-related:

  • No change in income tax slabs.
  • Virtual digital assets come under the tax net; transfers to be taxed at 30%+1% on the transaction (this includes cryptocurrencies, NFTs, etc.)
  • Surcharge on the transfer of long-term capital gains capped at 15%.
  • Centre and State government employees’ tax deduction limit set to increase from 10% to 14%. This will provide equal social security benefits to both.
  • Cess, or surcharge on income, will not be allowed as a business expense from 2022-23 onward.
  • IT returns can be revised for any omissions and mistakes. Changes are to be made through a one-minute window, which will be made available for 2 years from the end of the assessment year in which the tax filing was done.
  • 15% corporate tax rate to be levied for newly incorporated manufacturing companies up to March 2024.
  • Minimum Alternate Tax (MAT) for cooperatives has been reduced to 18.5%; surcharge reduced from 12% to 7% for total incomes of Rs 1–10 crore.
  • Reduction of surcharge on exit from unlisted companies from 28.5% to 23%. 

Overall, the budget is a progressive one, with emphasis on pain points pertaining to the ongoing economic situation. It also lays a robust framework to achieve the long-term vision of the Indian economy. 

Budget 2022 is expected to benefit women, farmers, youth, and the backward classes, as the PM Gati Shakti master plan paves the way for the betterment of these segments. The pillars identified for economic growth under the Gati Shakti scheme are inclusive development, productivity enhancement, energy transition, financing investments, and sunrise opportunities. 

The latest budget was particularly significant as it laid the foundation and blueprint for economic growth under the ‘Amrit Kal’ framework, which chalks out the growth of the Indian economy for the next 25 years. 

The Union Budget 2022 was presented in paperless format, and some of the key schemes announced in it are mentioned below:

Also Read: Union Budget 2022: Key Highlights

Economic growth

  • The projected growth rate for India is 9.27% for 2022-23.
  • Sharp increase in investments and CAPEX in 2021-22.
  • Gross collection of GST for January 2022 stood at Rs 1.4 lakh crore, the highest since its introduction in 2017.
  • The production-linked incentive scheme introduced under the Aatmanirbhar Bharat framework is capable of potentially creating 60 lakh new jobs and adding 30 lakh crore worth of production over the next 5 years.
  • Extension of Emergency Credit Line Guarantee Scheme (ECLGS) over the next fiscal in the backdrop of continued credit stress amidst the pandemic. There is an expanded guarantee cover of Rs 5 lakh crore allowed as per the new norms.
  • Proposed launch of Central Bank Digital Currency (CBDC) in the subsequent financial year by leveraging blockchain technology.

Generic schemes

  • 8 million budget houses proposed to be built for the upliftment of the underprivileged in 2022-23 under the PM Awas Yojana. An allocation of Rs 48,000 crore has been made towards this initiative.
  • Rs 60,000 crore allocated towards ‘Nal se Jal’ scheme, a five-river linkage project across various states.
  • Pradhan Mantri Ujjwala Yojana extended to 1 crore households.
  • Extension of financial aid to farmers for taking up agro-forestry.
  • World-class university under the GIFT IFSC, which is proposed to be free of domestic regulation.
  • NABARD funds to finance start-ups in agriculture and rural enterprises, with emphasis on farm produce value chain requirements.
  • Special development initiatives for the development of the north-eastern region, particularly to facilitate livelihood activities for youth and women.

Also Read: 6 Key Takeaways For Working Women From Union Budget 2021-22

Industry-specific schemes

Impetus for clean energy:

  • Many areas likely to be earmarked for electric vehicles only, as an initiative to promote the use of green alternatives. 
  • 400 energy-efficient Vande Bharat trains proposed in the next 3 years.
  • 8 ropeway projects proposed to ease congestion in hilly areas and to boost tourism.

Telecom boost: 

  • 5G services likely to be rolled out in 2022-23. 
  • Proposal to set up 75 digital banking units in 75 districts. 
  • Customs duty on polished diamonds and gemstones slashed to 5%, simply sawn diamonds will be exempted henceforth.
  • To promote export of jewellery via e-commerce, a simplified set of regulations is expected to be in place by June 2022.

Education-related:

  • Emphasis on the need for digital education.
  • Revision of syllabi for agriculture courses to align with natural, zero-budget, organic farming and modern techniques.

Also Read: Highlights Of Union Budget 2021-22

Investments, income tax-related:

  • No change in income tax slabs.
  • Virtual digital assets come under the tax net; transfers to be taxed at 30%+1% on the transaction (this includes cryptocurrencies, NFTs, etc.)
  • Surcharge on the transfer of long-term capital gains capped at 15%.
  • Centre and State government employees’ tax deduction limit set to increase from 10% to 14%. This will provide equal social security benefits to both.
  • Cess, or surcharge on income, will not be allowed as a business expense from 2022-23 onward.
  • IT returns can be revised for any omissions and mistakes. Changes are to be made through a one-minute window, which will be made available for 2 years from the end of the assessment year in which the tax filing was done.
  • 15% corporate tax rate to be levied for newly incorporated manufacturing companies up to March 2024.
  • Minimum Alternate Tax (MAT) for cooperatives has been reduced to 18.5%; surcharge reduced from 12% to 7% for total incomes of Rs 1–10 crore.
  • Reduction of surcharge on exit from unlisted companies from 28.5% to 23%. 

Overall, the budget is a progressive one, with emphasis on pain points pertaining to the ongoing economic situation. It also lays a robust framework to achieve the long-term vision of the Indian economy. 

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