Key Highlights of Union Budget 2022-23

Union Budget 2022-23

Nirmala Sitharaman, the Finance Minister, delivered the Union Budget 2022-23 in Parliament on February 1st. The Finance Minister, while presenting the Union Budget 2022, stated that the economy is likely to grow at a rate of 9.27 percent in the coming year. She also stated that the Budget lays out an economic strategy for India from 75 to 100, highlighting the four pillars of development: inclusive development, productivity enhancement, energy transformation, and climate action. The highlights of Finance Minister Nirmala Sitharaman's Budget speech, as well as an explanation and analysis of it, are presented here.

 

Budget 2021-22, according to the Finance Minister, saw a significant increase in public investment and capital expenditure. The youth, women, farmers, and the poor will profit from the current budget. During her remarks, she emphasized that the PM Gati Shakti master plan will oversee the process. In a big push for digital currency, Sitharaman indicated that the RBI will issue the digital rupee beginning in 2022-23 utilizing blockchain technology. According to the Finance Minister, this will provide a significant boost to the economy. The Union Budget aims to establish the groundwork and provide a framework for the economy for the next 25 years, from India at 75 to India at 100, according to the Finance Minister.

 

• In the fiscal year 2022-23, Rs 48,000 crores have been set aside for the completion of 80 lakh dwellings under the PM Awas Yojana in rural and urban areas.

• Customs on polished diamonds and gemstones trimmed to 5% of their original size. Diamonds that have been sawn will be exempt. Simplified laws will be in place by June of this year to allow the export of jewelry via e-commerce.

• The tax deduction limit for both federal and state government employees will be raised from 10% to 14% in order to help state government employees with their social security benefits and bring them up to level with federal government employees.

 

Expert Opinion on Budget 2022-23

 

“The education sector, which is the cornerstone of progressive economies, expects structural reforms in every budget session. Undoubtedly, the government is working on improving digital learning, but there is a pressing need to strengthen the connectivity issues of the rural and underprivileged areas first. The government's commitment to provide supplementary teaching and establish a resilience mechanism for imparting education is commendable, however, to expand the reach of this initiative, a focus on resolving the internet connectivity challenges in remote areas is required. Furthermore, considering the prevailing crisis caused by the global pandemic, there is an urgent need to exempt students from the existing 18 percent GST rate thereby easing the route to private education. Moreover, establishing a Digital University is a time-taking process, thus, the government could have provided a reduction in internet charges to boost connectivity as an immediate response. Additionally, more efforts could have been put into action to provide relaxation to students preparing for competitive exams thereby reducing the unemployment graph of the country,” said Sir Shishir Dixit, Founder-Director of Centurion Defence Academy.

 

PM GatiShakti National Master Plan

 

• The seven engines for economic transformation, seamless multimodal connectivity, and logistical efficiency will be covered by the PM GatiShakti National Master Plan. It will also cover infrastructure built by state governments in accordance with the GatiShakti Master Plan. Planning, financing, including creative methods, technology, and faster implementation will be the four fundamental structures.

• PM GatiShakti is a game-changing strategy for economic growth and long-term development. Roads, Railways, Airports, Ports, Mass Transportation, Waterways, and Logistics Infrastructure are the seven engines that power the strategy. All seven engines will work together to propel the economy ahead. 

• The complementing responsibilities of Energy Transmission, IT Communication, Bulk Water and Sewerage, and Social Infrastructure support these engines. Finally, Clean Energy and Sabka Prayas - the combined efforts of the Central Government, state governments, and the private sector - power the approach, resulting in massive job and entrepreneurial opportunities for all, particularly the youth.

• We have set the following four goals for moving forward on this parallel track: PM Gati Shakti, inclusive development, productivity enhancement and investment, sunrise opportunities, energy transition and climate action, and investment financing, she added. Sitharaman also stated that the Production Linked Incentive Scheme for Aatmanirbhar Bharat has gotten a positive response, with the potential to create 60 lakh new employment. 

 

Parvatmala: National Ropeways Development Programme

 

• The National Ropeways Development Program will be implemented on a public-private partnership basis as a preferred environmentally friendly alternative to conventional highways in tough hilly terrain. 

• The goal is to improve commuter connectivity and convenience while also encouraging tourism. This might also apply to congested urban areas where a traditional mass transit system would be impractical. In 2022-23, contracts for eight 60-kilometer ropeway projects will be issued.

 

Universalization of Quality Education

 

• Our children, particularly those in rural regions, as well as those from Scheduled Castes and Scheduled Tribes, and other underprivileged sectors, have lost nearly two years of formal education as a result of the pandemic-induced school closures. 

• The majority of these students attend government schools. We understand the importance of providing additional instruction and developing a dependable education delivery system. PM eVIDYA's 'one class-one TV channel' initiative will be expanded from 12 to 200 TV channels for this reason.

 

Digital University

 

• A Digital University will be built to provide students from all across the country with access to world-class universal education and a tailored learning experience right at their doorstep. This will be offered in a variety of Indian languages as well as ICT formats. 

• The University will be developed on a hub-and-spoke network, with the hub developing cutting-edge ICT capabilities. As a network of hub-spokes, the country's leading public universities and institutes will collaborate.

 

A fund will be established with blended capital raised through NABARD's co-investment strategy to support start-ups in agriculture and rural enterprises for the farm product value chain. States will be urged to rewrite agricultural university syllabi to match the needs of modern-day agriculture, including natural, zero-budget, and organic farming, Sitharaman stated. PM Modi's development proposals for the North East, according to the Finance Minister, will be implemented by the North Eastern Council. Youth and women will be able to engage in livelihood activities as a result of this. She went on to say that this programme is not intended to replace existing federal or state programmes.