Budget 2022 | Major announcements from FM Nirmala Sitharaman’s Union Budget speech Finance Minister Nirmala Sitharaman is presenting 10th Budget of Modi government. India’s economic growth is estimated to be at 9.27 percent in FY22, highest among all large economies, she said in her speech.
February 01, 2022 / 04:15 PM IST
Finance Minister Nirmala Sitharaman presents Budget 2022 in the Parliament on February 1. She is presenting the 10th Budget of Modi government. The minister began her Budget speech with expressing empathy to all those who have suffered from the COVID-19 pandemic.
While presenting the Budget, FM Sitharaman said that the country is expected to grow at 9.27 percent and is in a strong position to withstand challenges due to higher vaccinations.
The National Highway network will be expanded by 25,000 kms in 2022-23. PM Gati Shakti will encompass the seven engines for multi-modal connectivity for the states with speedier implementation of development projects through technology to facilitate faster movement of people & goods through Rs 20,000 crore financed by the govt to speed up this project.
PM Gati Shakti will pull forward the economy and will lead to more jobs & opportunities for the youth. PM Gati Shakti Master Plan for Expressway will be formulated in the financial year 2022-23 to facilitate faster movement of people and goods.
400 new generation Vande Bharat trains with better efficiency to be brought in during the next 3 years
100 Cargo Terminals under PM Gati Shakti will be developed in the next few years. Railways will develop efficient logistics for small farmers & enterprises. 'One station, one product' to help supply chain of local product.
Procurement of wheat in Rabi season 2021-22 and the estimated procurement of paddy in Kharif season 2021-22 will cover 1208 lakh metric tonnes of wheat & paddy from 163 lakh farmers and Rs 2.37 lakh crores will be the direct payment of MSP value to their accounts. A fund raised under the co-investment model will be facilitated through NABARD to finance startups for agriculture and rural enterprise relevant for farm produce value chain.
FM said that in 2022, 100 percent of 1.5 lakh post offices will come under core banking system. “This will enable financial inclusion and access to accounts through net banking, mobile banking, ATMs and also provide online transfer of funds between post office accounts and bank accounts. This will be helpful especially for farmers and senior citizens in rural areas, enabling interoperability, and financial inclusion,” says Sitaraman.
Government announces Rs 48,000 crore is allotted for PM Awas Yojana and 60,000 houses will be identified as beneficiaries in rural and urban areas.
'One class, one TV channel' program of PM eVIDYA will be expanded from 12 to 200 TV channels. According to the government this will enable all states to provide supplementary education in regional languages for classes 1 to 12.
Emergency Credit Line Guarantee, which has provided additional credit to MSMEs, extended till March 2023. Guarantee cover to be expanded by Rs. 50,000 crore to a total cover of Rs. 5 lakh crores. Additional amount earmarked exclusively for hospitality, related sectors to bring relief.
Rs 1,500 crore will be allotted for development initiatives in the northeast, Finance Minister Nirmala Sitharaman announced as she presented the Union Budget 2022.
A digital university will be set up in India to provide students access to world-class education amid academic disruptions caused by the coronavirus pandemic. “A digital university will be established to provide access to tools across the country for world-class universal education, with personalised learning experience at their doorstep,” Nirmala Sitharaman said in her Budget speech. The university will be built on a networked hub and spoke model, Sitharaman said.
The issuance of e-Passports will be rolled out in FY22-23 to enhance convenience for citizens. The passport jacket will contain an electronic chip which will have important security-related data encoded on it. Currently, India issues passports for its citizens in printed booklets.
The required spectrum auction for 5G rollout will also be conducted in FY22-23. The contracts for laying optical fibres via the PPP mode will be awarded in FY23. This will happen under Bharat Net and its completion is expected in FY2025.
Chemical-free natural farming will be promoted throughout the country with a focus on farmers’ land in the five km wide corridors.
Production Linked Incentive (PLI) Scheme for achieving Aatmanirbhar Bharat has received an excellent response, with the potential to create 60 lakh new jobs and additional production of 30 lakh crore during the next Keycap digit five years.
Reduced alternate minimum tax for cooperatives from 18.5 percent to 15 percent.
Blockchain powered digital rupee by RBI will be introduced in 2022-23 in India.
68 percent of the capital procurement budget for Defence to be earmarked for domestic industry to promote Aatmanirbhar Bharat.
Rs 1.41 lakh crore GST revenue collected.
Rs 19,500 crore marked for PLI for manufacturing of high efficiency module for polysilicon.
Taxpayers can now file an updated return within 2 years from the relevant assessment year. Tax deduction limit to be reduced for central government employees from 18 percent to 15 percent in their contribution to NPAs. Government employees’ tax deduction limit to be increased from 10 percent to 14 percent.