Union Budget 2022-23

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Introduction
• The union budget 2022-23 seeks to lay the foundation and give a blueprint to steer
the economy over the Amrit Kaal of the next 25 years – From India at 75 to India at
100
• Goals of Amrit Kaal –
▪ Focus on growth and inclusive welfare
▪ Promoting technology enabled development, energy transition and climate
action
▪ Virtuous cycle starting from private investment, crowded in by public
investments
• Government of India has set 4 priorities through this budget –
▪ PM GATI Shakti
▪ Inclusive development
▪ Productivity enhancement and investment, sunrise opportunities, Energy
transition and climate action
▪ Financing of investments
• Total budgetary estimates of expenditure – Rs.39.44 Lakh Crore
▪ Revenue receipts – 22.04 Lakh Crore
▪ Capital receipts – 17.40 Lakh Crore
▪ Capital expenditure – 7.5 Lakh Crore

Deficit Statistics
Deficit 2020-21 2020-21 (BE) 2020-21 (RE) 2021-22 (BE)
Fiscal Deficit 9.2 6.8 6.9 6.4
Revenue Deficit 7.3 5.1 4.7 3.8
Effective 6.2 4.1 3.7 2.6
Revenue Deficit
Primary Deficit 5.8 3.1 3.3 2.8

➢ BE – Budgetary estimates
➢ RE – Revised estimates

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Newly Launched Schemes

Parvatmala – National Ropeways Development Program

• Objective – To improve connectivity and convenience for commuters, besides

promoting tourism.
• This program will be taken up on PPP mode.
• Contracts for 8 ropeway projects for a length of 60 km will be awarded in 2022-
23

Extension of Emergency Credit Line Guarantee Scheme

• Considering the success of ECLGS scheme, it has been extended up to March

2023
• Its guarantee cover will be extended by Rs.50000 Crore to Rs.5 Lakh Crore

Revamped Credit Guarantee Trust for Micro and Small Enterprises

• This scheme will be revamped with required infusion of funds.

• It will facilitate additional credit of Rs. 2 lakh Crore for Micro and Small Enterprises

RAMP Program (Raising and Accelerating MSME Performance)

• It will be launched with the objective of making MSMEs more resilient, competent
and efficient.
• Total outlay – Rs.6000 Crore
• Period of implementation – 5 years

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Digital Ecosystem for Skilling and Livelihood DESH e-portal

• It is aimed at empowering citizens to skill, reskill or upskill through on-line training.

• It will also provide API-based trusted skill credentials, payment and discovery layers
to find relevant jobs and entrepreneurial opportunities.

Expansion of PM e-Vidya

• One class one TV channel program of PM e-Vidya will be expanded from 12 to 200
TV channels.
• This will enable all states to provide supplementary education in regional languages
for classes 1-12.

National Tele Mental Health Program

• Objective – To enhance the access to quality mental health counselling and care
services.
• This will include a network of 23 tele-mental health centres of excellence
• Nodal agency – NIMHANS
• Technology support - International Institute of Information Technology-
Bangalore

Prime Minister’s Development Initiative for NorthEast, PM-DeVINE

• It will fund infrastructure, in the spirit of PM GatiShakti, and social development

projects based on felt needs of the North-East
• Budget outlay – Rs.1500 Crore
• Implementation agency – North-Eastern Council

Aspirational Block Program

• 95% of 112 aspirational districts have made significant progress in key sectors such
as health, nutrition, financial inclusion and basic infrastructure.
• However, in those districts, some blocks continue to lag. For such blocks an
aspirational block program will be launched.

Vibrant Village Program

• Border villages with sparse population, limited connectivity and infrastructure will be
supported under this program
• Support - Village infrastructure, housing, tourist centres, road connectivity,
provisioning of decentralized renewable energy, direct to home access for
Doordarshan and educational channels, and support for livelihood generation
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Finance and Banking

• Central Bank Digital Currency will be launched by RBI
• An expert committee will be set up to examine and suggest appropriate measures in
the area of venture capital and private equity investment.
• An International Arbitration Centre will be set up in the GIFT City for timely
settlement of disputes under international jurisprudence
• Sovereign Green Bonds will be issued for mobilizing resources for green
infrastructure
• Disinvestment target for 2022-23 – Rs.65000 Crore.
• Targets for disinvestment has been revised for FY 2021-22 to Rs.78000 Crore
• 75 Digital Banking Units in 75 districts of the country will be established by
Scheduled Commercial Banks

Tax Provisions
• Updated Return – In case of any mistake or omission, taxpayers will get a chance
to file updated return on payment of additional tax. It can be filed within two years
from the end of the relevant assessment year
• Alternate Minimum tax for cooperatives has been reduced to 15%
• For cooperatives having total income of more than Rs. 1 crore and up to Rs.10
crores, surcharge will be reduced to 7%
• Tax deduction limit for state government employees will be increased to 14% on
employer’s contribution to the NPS account of State Government
• Tax incentives for start-ups has been extended up to 31st March 2023
• 30% tax on income from transfer of any virtual digital assets.

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Sector Wise Key Announcements

Health and Well-Being

National Digital Health Ecosystem will be rolled out

Mission Shakti, Mission Vatsalya, Saksham Anganwadi and

POSHAN 2.0 will be strengthened

Two lakh anganwadis to be upgraded to Saksham anganwadi

➢ Saksham Anganwadis are a new generation anganwadis that have better

infrastructure and audio-visual aids, powered by clean energy and providing improved
environment for early child development.

Education and Skill Development

• Startups will be promoted to facilitate ‘Drone Shakti’ through varied applications and
for Drone-As-A-Service (DrAAS)
• In vocational courses, to promote crucial critical thinking skills, to give space for
creativity, 750 virtual labs in science and mathematics, and 75 skilling e-labs for
simulated learning environment, will be set-up in 2022-23.
• A Digital University will be established to provide access to students across the
country for world-class quality universal education

Agriculture and Food Processing

• Chemical-free Natural Farming will be promoted throughout the country, with a focus
on farmers’ lands in 5-km wide corridors along river Ganga
• Support will be provided for post-harvest value addition, enhancing domestic
consumption, and for branding millet products
• A comprehensive scheme to increase domestic production of oilseeds will be
implemented.
• Use of ‘Kisan Drones’ will be promoted for crop assessment, digitization of land
records, spraying of insecticides, and nutrients

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Infrastructure
PM GATI Shakti National Master Plan

• PM GATI Shakti will be driven by seven engine – Roads, Railways, Mass Transport,
Airports, Ports, Waterways and Logistics Infrastructure

Roads
• The National Highways network will be expanded by 25,000 km in 2022-23.
• Rs.20000 Crore will be provided for this.

Multimodal Logistics Park

• Contracts will be awarded for implementation of Multimodal Logistics Parks at four
locations through PPP mode in 2022-23

Railways

• ‘One Station-One Product’ concept will be popularized to help local businesses &
supply chains
• 400 new Vande Bharat Trains will be developed and manufactured during the next
three years.
• 2,000 km of network will be brought under Kavach, the indigenous world-class
technology for safety and capacity augmentation in 2022-23.
• One hundred PM GATI Shakti Cargo Terminals for multimodal logistics facilities will
be developed during the next three years
• Multimodal connectivity between mass urban transport and railway stations will be
established.

Telecom

• Required spectrum auctions will be conducted in 2022 to facilitate rollout of 5G mobile

services within 2022- 23 by private telecom providers.
• 5% of annual collections under the Universal Service Obligation Fund will be allocated
to enable affordable broadband.
• 100% reach of optical fibre in all villages and rural areas by 2025

Gems and Jewellery

• Customs duty on cut and polished diamonds and gemstones will be reduced to 5%
• To facilitate export of jewellery through e-commerce, a simplified regulatory
framework shall be implemented by June this year.

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Other Major Announcements

• Implementation of Ken-Betwa link project will be taken up. Allocation of Rs.4300
Crore have been made for this project.
• The issuance of e-Passports using embedded chip and futuristic technology will be
rolled out in 2022-23
• Centre for Processing Accelerated Corporate Exit (C-PACE) with process re-
engineering, will be established to facilitate and speed up the voluntary winding-up of
companies.
• An additional allocation of Rs.19,500 crore for Production Linked Incentive for
manufacture of high efficiency solar PV modules
• Rs.1 Lakh crore financial assistance in the form of 50 years loan will be provided to
states for capital investment.

Sources of Income and Expenditure

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Budgetary Allocations to Important Schemes

Scheme Allocation (in Crores)
MGNREGA 73000
National Social Assistance Program 9652
Rashtriya Swasthya Bima Yojana 7857
Jal Jeevan Mission 60000
National Education Mission 39553
National Health Mission 37800
PM Aatmanirbhar Bharat Health 4177
Infrastructure mission
PM Awas Yojana 48000
PM Gram Sadak Yojana 19500
PM Krishi Sinchayi Yojana 12954
Shyama Prasad Mukherjee Rurban 550
Mission
Swachh Bharat Mission 2300
AMRUT and Smart Cities mission 14100
PM – FME 900
Umbrella ICDS 20263
PM – KISAN 68000
Mission Shakti 3184
Mission Vatsalya 1472
PM POSHAN 10234

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STARS 550
National AIDS and STD control program 2623
PM Kisan Sampada Yojana 900
PM Swasthya Suraksha Yojana 10000
Fame India 2908
Aatmanirbhar Bharat Rozgaar Yojana 6400
PMEGP 2500
PM KUSUM 1716
NHAI 134015
Eklavya Model Residential Schools 2000
Khelo India 974
Atal Bhujal Yojana 700

Ministry wise allocations

Ministry Allocations (in Crores)
Housing and urban affairs 76549
Health & Family welfare 86200
Education 104277
Railways 140367
Road transport and highways 199107
Agriculture and farmer’s welfare 132513
Rural Development 138203
Home affairs 185776
Consumer affairs, food and public 217684
distribution
Defence 525166
Cooperation 900

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