Union Budget 2022: From India at 75 to India at 100
India is expected to register growth at 9.27% in the current financial year as the economy continues to recover with a sharp rebound from the adverse effects of the pandemic. The Union Budget 2022 lays the foundation for the steer economic developments, benefitting youth, women, farmers, scheduled castes, and the scheduled tribes over the next 25 years. With the effective capital expenditure of the Central Government at INR 10.68 lakh crore in 2022-23 (around 4.1% of the GDP), the government plans to focus on four pillars of development—energy transition, productivity enhancement, inclusive development, and climate action.
PM Gati-Shakti Masterplan to Make World-Class Infra
Under the PM Gati-Shakti Masterplan, the government plans to build modern infrastructure and logistics synergy among different modes of movement for seamless multi-modal connectivity and faster mobility of goods and people. The transformative approach will encompass seven engines -roads, railways, airports, ports, mass transport, waterways, and logistics infrastructure, which would be supported by clean energy. The project under the master plan will provide job opportunities for all, especially youth, as well as enhance international competitiveness by reducing logistics cost and time, assisting just-in-time inventory management, and eliminating tedious documentation.
National Digital Health Ecosystem
The government has planned to allocate INR 64,180 crore for improving healthcare infrastructure and services. The investment is a major relief for the healthcare sector, still struggling to recover from the impact of the pandemic. The National Digital Health Ecosystem aims to expedite medical processes, prevent unnecessary delays, paperless healthcare system, and provide better risk assessments with health insurance. Finance Minister Smt. Nirmala Sitharaman also emphasized upon enhancing universal access for mental health counseling and care service under the National Tele Mental Health Programme.
Emergency Credit Line Guarantee Scheme (ECLGS) Extended to Support MSMEs
The ECLGS scheme has been extended for another year till March 2023, expanding guarantee cover by INR 50,000 to INR 5 lakh crore. The additional amount will be earmarked for hospitality and related segments struggling to regain their pre-pandemic level of business. The ECLGS will facilitate INR 2 lakh crore to support micro and small enterprises as well as create job opportunities.
Push for Zero-Budget Natural Farming Practices
Modi government is ready to take some proactive measures for promoting zero-budget natural farming to prevent land degradation as well as improve farmers’ income by reducing costs of inputs. Agriculture universities in the country would also be encouraged to include organic and chemical-free farming in their syllabus for promoting sustainable agriculture practice in the country.
30% Tax on Digital Assets
The government has decided to levy a 30% tax on the income from the transfer of any virtual digital asset, which is the highest tax band in the country. However, there will be no deduction while computing expenditure or allowance from such income. This is a move towards regulating the trading of cryptocurrency, which was to be banned on the grounds of financial instability. Besides, RBI will be introducing a ‘digital rupee’ based upon blockchain technology in 2022-2023.
New Battery Swapping Policy
With the growing demand for electrification and focus on electric vehicles, the government has introduced a new battery swapping policy to facilitate the faster rollout of batteries. New battery swapping centers will be established for their wider accessibility. The new policy will help electric vehicle owners to save time, reduce initial costs, and maintenance charges.
