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Union Budget 2022 Highlights : The Union Budget is the annual report of India as a country. It contains the government of India's revenue and expenditure for the end of a particular fiscal year, which runs from April 1 to March 31. The Union Budget is the most extensive account of the government's finances, in which revenues from all sources and expenses of all activities undertaken are aggregated. It comprises the revenue budget and the capital budget. It also contains estimates
Paperless Budget
Union Budget 2022 will be presented by Finance Minister Nirmala Sitharaman in "paperless form", the government said on January 27, adding that the entire budget document will be released on a mobile application named 'Union Busget Mobile App', for lawmakers and the general public after it is presented in the Parliament on February 1. The mobile app allows complete access to 14 Union Budget documents, including the Budget Speech, Annual Financial Statement (commonly known as Budget), Demand for Grants (DG), Finance Bill etc as prescribed by the Constitution, the ministry stated. The application is bilingual (English & Hindi) and is available on both Android and iOS platforms, it further added.
Budget Presentation through the years
In 2021, for the first time, the Union Budget in India was read out from a tablet. In the customary photo before the presentation of the Budget in Parliament, Finance Minister Nirmala Sitharaman was seen carrying the device in a compact red case.
In the preceding years, finance ministers had carried Budget documents in brown, red or tan briefcases, in keeping with British tradition. That changed in 2019, when Nirmala Sitharaman replaced them with a traditional bahi khata or cloth ledger. “I thought it is high time we move on from the British hangover, to do something on our own,” the finance minister had said. “And well, easier for me to carry too.”
The Union Budget is presented on February 1. With Uttar Pradesh, Punjab, Goa, Manipur and Uttarakhand voting later in the month for Assembly elections, it is to be seen whether the 2022-23 Budget will focus more on populist measures.
The presentation of the Union Budget 2022 will be paperless, the Ministry of Finance announced on January 27.
No Halwa ceremony
This year, to mark the final stage of the Union Budget making process, sweets were provided to the core staff due to undergo “lock-in” at their workplaces, instead of a customary Halwa ceremony held every year in view of the prevailing pandemic situation and the need to observe health safety protocols, the ministry said.
"To maintain the secrecy of Budget, there is a “lock-in” of the officials involved in making the Budget. Budget Press, situated inside North Block, houses all officials in the period leading up to the presentation of the Union Budget. These officers and staff will come in contact with their near and dear ones only after the Budget is presented by the Union Finance Minister in the Parliament," it further noted.
The Finance Minister usually kicks off the celebrations with the 'halwa' ceremony, by stirring the dessert in a traditional kadhai (cauldron) and then serves it to her colleagues. The ministers of state (MoS Finance) and other top officials of the ministry are present during the ceremony. This ritual also sets the stage for a significant event soon after. The North Block becomes Fort Knox for 10-odd days up to the presentation of the Budget, where all officials and staff involved in the Budget-making process isolate themselves to maintain rigid secrecy about the document. The tradition has been carried out for decades in the basement of the North Block that also houses the special printing press, which printed the Budget documents from 1980 until 2020.
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Budget Presentation through the years
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Market LIVE - Update
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No Halwa ceremony this year
Paperless Budget
What is the Budget?
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TDS needs to be trimmed down to 7.5% for all for logistics industry, says BlueKaktus' CEO Gunish Jain
“TDS has been a point of concern across the industry. Currently, a TDS of 10% assumes profitability of 40% which is generally not the case for corporations. With a major chunk of capital being held back in the form of TDS, maintaining big cash flow becomes a challenge. Small and Mid-Sized Enterprises (SMEs) find it challenging to secure loans as most of their money is blocked by the government in the form of TDS. In my experience, the TDS needs to be trimmed down to 7.5% for all whereas for SMEs it should be further reduced to 2.5%.”
“In addition to TDS, the government should also revise the GST on software services to 12%. This will improve the adoption of technology in the industry and urge more companies to move along with the times and digitize.” He further adds, “Amongst exporters too, the cash flow issue persists when it comes to GST refund. The current process of collecting and then refunding leads to massive cash flow issues in the industry. I believe that the government should revise the existing GST refund timeline and devise a mechanism to automatically refund the money within 45 days of a filed request. Moreover, fixing a date on the refunds can help companies align their business objectives accordingly.”
Expectation #1: Regulatory and tax changes for IFSCsA focus on ISFC/GIFT city norms and clarity on regulations there would invite more foreign capital into India. Clarity on the benefits of using the IFSC route over the more commonly used FPI (Mauritius/Singapore) route would be greatly beneficial for Foreign Financial Institutions creating an India entry strategy.
Expectation #2: Regulatory and tax framework for cryptocurrencies. The introduction of a special regulatory and taxation regime for cryptocurrencies and central bank digital currencies to cover various aspects can be expected. I expect cryptocurrencies to be taxed as capital assets and a sale tax od 30% similar to winning the letters can also be expected.