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Highlights of the Union Budget 2022-23!!

Finance minister Nirmala Sitaraman presented the union budget 2022-23 on Feb 1st.
Union Budget 2022-23

Key Features of the Union Budget 2022-23


  • Focus on growth and all inclusive welfare
  • Promoting technology enabled development, energy transition and climate action
  • Virtuous cycle starting from private investment, crowded in by public capital investment


  • PM GatiShakti
  • Inclusive Development
  • Productivity Enhancement and Investment, Sunrise Opportunities, Energy Transition and Climate Action
  • Financing of Investments

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PM GatiShakti

  • Driven by seven engines: Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure.
  • National Master Plan aimed at world class modern infrastructure and logistics synergy
  • Formulation of Master Plan for expressways. Completing 25000 km national highways in 2022-23
  • Unified Logistics Interface Platform allowing data exchange among all mode operators
  • Open Source Mobility Stack for seamless travel of passengers
  • 4 Multimodal Logistics parks through PPP to be awarded in 2022-23
  • Integration of Postal and Railways Network facilitating parcel movement.
  • One Station One Product
  • Extending coverage under Kavach
  • 400 new generation Vande Bharat Trains
  • Multimodal connectivity between mass urban transport and railway stations
  • National Ropeways Development Plan as sustainable alternative to conventional roads.
  • Capacity building for infrastructure Projects

Agriculture and food processing

  • Promoting chemical free natural farming starting with farmers’ lands close to river Ganga
  • Promoting post harvest value addition, consumption and branding of millet products
  • Delivery of Digital and Hi-Tech services to farmers in PPP mode.
  • Use of Kisan Drones to aid farmers.
  • Launching fund with blended capital to finance agriculture start ups
  • Implementation of Ken Betwa Link Project benefitting 9.1 lakh hectare farm land, providing drinking water to 62 lakh people and generating 130MW power.
  • 5 more such projects under process of implementation.

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Universalisation of Quality Education

  • One class One TV channel programme to be expanded to 200 TV channels
  • Virtual labs and skilling e-labs to promote critical thinking skills and stimulated learning environment
  • A Digital University will be established with world class quality universal education
  • High quality e-content will be delivered through Digital Teachers

Skill Development

  • Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to promote online training 
  • Startups will be promoted to facilitate Drone Shakti for Drone-As-A-Service


  • National Digital Health Ecosystem will be rolled out
  • National Tele Mental Health Programme will be launched for quality counselling
  • Integrated architecture: Mission Shakti, Mission Vatsalya, Saksham Anganwadi, and Poshan 2.0 to be launched
  • Two lakh Anganwadis to be upgraded to Saksham Anganwadis

All inclusive welfare focus

  • Har Ghar, Nal Se Jal: 3.8 crore households to be covered in 2022-23
  • PM Awas Yojana: 80 lakh houses to be completed in 2022-23
  • PM-DevINE: To fund infrastructure and social development based on felt needs of the North East
  • Aspirational Blocks Programme: For development of lagging blocks of aspirational districts
  • Vibrant Villages Programme: Targeting development of villages on the Northern Border left out from the development gains
  • Digital Banking by Post Offices: 100% of post offices to come on the core banking system
  • Digital Payments: Scheduled Commercial Banks to set up 75 Digital Banking Units in 75 districts

Productivity enhancement and investment

Ease of Doing Business 2.0

  • Trust based governance
  • Integration of central and state level systems through IT bridges
  • Expanding scope of PARIVESH Portal
  • Unique Land Parcel Identification Number for IT based management of land records.
  • Establishing C-PACE to facilitate voluntary winding up of companies
  • End to end online e-Bill System and utilising surety bonds in government procurement.
  • AVCG promotion task force
  • Support to 5G under PLI scheme
  • Opening up defence R&D for industry, startups and academia

Ease of Living

  • Issuance of chip embedded ePassports
  • Modernisation of building byelaws, implementing Town Planning Schemes and Transit Oriented Development
  • Establishing Centres of Excellence in urban planning
  • Providing a battery swapping policy as an alternative to setting up charging stations in urban areas

Financing of investment

  • Public investment to continue to pump prime private investment and demand in 2022-23
  • Introduction of Digital Rupee by RBI starting 2022-23
  • Providing greater fiscal space to States
  • Enhanced outlay to Scheme for Financial Assistance to States for Capital Investment
  • For 2022-23 States will be allowed a fiscal deficit of 4% of GSDP of which 0.5% will be tied to power sector reforms

Mobilising Resources

  • Green Bonds to mobilise resources for green infrastructure
  • Infrastructure status for Data Centres and Energy Storage Systems
  • Measures to aid investment by Venture Capital and Private Equity Investment
  • Blended Finance for sunrise sectors

Tax proposals

  • Allowing taxpayers to file Updated Return within 2 years for correcting errors
  • Tax relief to persons with disability
  • Reducing Alternate Minimum Tax Rate and Surcharge for Cooperatives.
  • Increasing tax deduction limit on employer’s contribution to NPS account of state government employees
  • Extending period of incorporation of eligible startups for providing tax incentives
  • Income from transfer of virtual assets to be taxed at 30%
  • Better litigation management to avoid repetitive appeals
  • Any Surcharge or Cess on Income and Profits not allowable as business expenditure
  • Customs administration to be fully IT driven in SEZs
  • Phasing out concessional rates in capital goods and project imports gradually and apply a moderate tariff of 7.5%
  • Review of customs exemptions and tariff simplification
  • Customs duty rates are being calibrated to provide a graded rate structure to facilitate domestic electronics manufacturing
  • Rationalisation of exemptions on implements and tools for agri sector manufactured in India
  • Extension of customs duty exemption to steel scrap
  • Reduction of duty on certain inputs required for shrimp aquaculture
  • Unblended fuel shall attract additional differential excise duty

Rupee Comes from

  • Non Debt Capital Receipts 2%
  • Income Tax 15%
  • Borrowings and other Liabilities 35%
  • Union Excise Duties 7%
  • Corporation Tax 15%
  • Non Tax Revenue 5%
  • Customs 5%
  • GST 16%

Rupee Goes to

  • Centrally Sponsored Schemes 9%
  • Pensions 4%
  • Subsidies 8%
  • Defence 8%
  • Interest Payments 20%
  • States' Share of Taxes and Duties 17%
  • Finance Commission and Other Transfers 10%
  • Central Sector Schemes 15%
  • Other Expenditure 9%

Also Check:

Highlights of the Economic Survey 2021-22

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Published date : 01 Feb 2022 03:29PM

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