BUDGET 2022

Public Policy Club,

IIM Lucknow
India's growth is estimated to be at
9.27 percent. We are in a strong
position to withstand challenges due
to higher vaccinations.

- FM Nirmala Sitharaman
BUDGET PROFILE
RUPEE COMES FROM
RUPEE GOES TO
 BUDGET THEME
Focus on 4 pillars of Development:
Inclusive development
Productivity enhancement
Energy transition
Climate action
 BUDGET THEME
The Finance Minister's 5 big infra push projects:
1. Highway expansion by 25,000 km
2. Rs 60,000 crore on Nal se Jal scheme
3. Five river link projects across various states
4. Rs 48,000 crore on PM housing scheme
5. North East infrastructure development
DEFICIT TRENDS
 CAPITAL EXPENDITURES
Capital expenditure in the Union Budget is once again being
stepped up sharply by 35.4 per cent from 5.54 lakh crore in the
current year to 7.50 lakh crore in 2022-23. This has increased to
more than 2.2 times the expenditure of 2019-20. This
outlay in 2022-23 will be 2.9 per cent of GDP.

Effective capital expenditure of the Central government is

estimated at Rs 10.68 lakh crore in 2022-23, about 4.1% of GDP
TREND OF CAPEX
COMPOSITION OF EXPENDITURE
EXPENDITURE COMPOSITION
 DIGITAL CURRENCY
Digital Rupee using Blockchain technology will be issued by
RBI starting FY2022-23.
It will lead to cheaper Currency Management and provide a
big boost to the economy.
Income from transfer of digital assets to be charged 30% tax,
plus 1% tax on transaction.
Gifts in virtual digital assets would be taxed in the hands of
the recipient.
 INFRASTRUCTURE
Production Linked Incentive (PLI) Scheme for achieving
Aatma Nirbhar Bharat has received excellent response, with
potential to create 60 lakh new jobs and additional
production of 30 lakh crore during next years.

Continued focus on the need of mobile connection and

broadband for economic growth, particularly in rural India,
will boost the telecommunications and related industries
even more. PLI's inclusion of design-led projects for 5G and
other technologies is a positive step forward.
 INFRASTRUCTURE
Contracts for implementation of Multimodal Logistics Parks at
four locations through PPP mode will be awarded in 2022-23

Multimodal connectivity between mass transport and railway

stations will be facilitated. The aim is to improve connectivity
and convenience for commuters and promote tourism.

For urban capacity building, modernization of building by laws,

town planning schemes and transit oriented development will
be implemented.
 INFRASTRUCTURE
Centres of Excellence will be established with an outlay of
250 crore for urban sector development.

Rs 48,000 crores allocated for completion of construction

of 80 lakh houses under PM Awas Yojana in rural and urban
areas in the year 2022-23.
 PARVATMALA
National Ropeways Development Programme
As a preferred ecologically sustainable alternative to
conventional roads in difficult hilly areas, National Ropeways
Development Programme will be taken up on PPP mode. The
aim is to improve connectivity and convenience for commuters,
besides promoting tourism. This may also cover congested
urban areas, where conventional mass transit system is not
feasible. Contracts for 8 ropeway projects for a length of 60 km
will be awarded in 2022-23.
 PM GATI SHAKTI
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.

1) India's economic growth is estimated to be 9.2% in the

upcoming financial year.

2) Strengthening of Health infrastructure, speedy

implementation of vaccination program are evident for all.
 PM GATI SHAKTI
3) PM Gati Shakti will pull forward the economy and will lead to
more jobs & opportunities for the youth.

4) The National Highway network will be expanded by 25,000

kms in 2022-23. PM Gati Shakti will encompass the 7 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
5) Railways will develop efficient logistics for small farmers &
enterprises. 'One station, one product' to help supply chain of
local product.

6) 100 Cargo Terminals under PM Gati Shakti will be developed in

the next few years.

7) 'Parwatmala' for conventional roads in hilly areas to be taken

in PPP modes.
 EDUCATION
1) A digital university will be developed to provide access to
students for world-class quality education with ISTE Standards.

2) Skilling programs will be reoriented. For skilling, upskilling &

reskilling of our youth, Digital DESH e-portal will be launched.

3) 'One Class One TV Channel' will be increased from 12 to 200

TV Channels to provide supplementary education in regional
languages for class 1-12.
 HEALTH
National Digital Health Ecosystem will be rolled out

Integrated architecture: Mission Shakti, Mission Vatsalya,

Saksham Anganwadi, and Poshan 2.0 to be launched

Two lakh Anganwadis to be upgraded to Saksham

Anganwadis
 MENTAL HEALTH
The pandemic has exacerbated mental health issues among
people of various ages. A 'National Tele Mental Health
Programme' will be developed to improve access to quality
mental health therapy and care services. This would feature a
network of 23 tele-mental health excellence centres, with
NIMHANS serving as the node and the International Institute of
Information Technology-Bangalore (IIITB) providing technology
assistance.
 AGRICULTURE
1) Govt to pay Rs 2.37 lakh crore towards procurement of wheat
and paddy under MSP operations

2) A rationalised scheme to increase domestic oilseed production

will be brought in to cut down imports

3) Use of ‘Kisan Drones’ will be promoted for crop assessment,

digitization of land records, spraying of insecticides, and
nutrients
 AGRICULTURE
4) Implementation of the Ken Betwa Linking project at an
estimated cost of Rs 44,605 crore to be taken up with irrigation
benefits to 9 lakh hectare farmland, drinking water to 62 lakh
people, 103 MW hydropower and 27 MW solar power generation:

5) 2022-23 has been announced as International Year of Millets

6) Chemical-free Natural Farming will be promoted throughout

the country, with a focus on farmers’ lands in 5-km wide
corridors along river Ganga, at the first stage.
 AGRICULTURE
7) For farmers to adopt to natural farming, comprehensive
package for participation of State governments & MSMEs to be
introduced.

8) For delivery of digital and hi-tech services to farmers with

involvement of public sector research and extension institutions
along with private agri-tech players and stakeholders of agri-
value chain, a scheme in PPP mode will be launched.
 NEW INITIATIVES
1) ePassports will be rolled out in 2022-23 for
convenience in overseas travel

2) 'One Nation, One Registration' will be established for

anywhere registration to facilitate ease of living &
doing business.
 EXPORT PROMOTION
Special Economic Zones Act will be replaced with new
legislation for the development of enterprise and hubs.
It will cover the existing industrial enclaves and
enhance the competitiveness of exports.

Customs on polished diamonds, gemstones cut to 5%.

To facilitate export of jewellery through e-commerce,
simplified regulations will be in place by June this year.
 TAX RATE CHANGES
Income from Long Term Capital Gains will be taxed at 15%.

Corporate surcharge to be reduced from 12% to 7%.

Both Centre and States govt employees' tax deduction

limit to be increased from 10% to 14% to help the social
security benefits of state government employees and
bring them at par with the Central govt employees.
 INCOME TAX
To provide an opportunity to correct an error, taxpayers can now
file an updated return within 2 years from the relevant assessment
year.

The Budget has also extended the timelines for benefits under the
new corporate tax regime. The government had announced a 15
per cent corporate tax rate for newly incorporated manufacturing
companies till March 31, 2023, which has now been extended till
March 31, 2024. The period of incorporation for startups to avail tax
benefits has also been extended by a year to March 31, 2023.
TREND IN TAX RECEIPTS
NET RECEIPT OF THE CENTRE
 AYUSHMAN BHARAT
An open platform, for the National Digital Health
Ecosystem will be rolled out. It will consist of digital
registries of health providers and health facilities,
unique health identity, consent framework, and
universal access to health facilities.
 EXPORT PROMOTION
The Special Economic Zones Act will be replaced with a
new legislation that will enable the states to become
partners in ‘Development of Enterprise and Service
Hubs’. This will cover all large existing and new
industrial enclaves to optimally utilise available
infrastructure and enhance competitiveness of
exports.
 ATMANIRBHAR IN DEFENCE
Our Government is committed to reducing imports and promoting
AtmaNirbharta in equipment for the Armed Forces. 68 per cent of the
capital procurement budget will be earmarked for domestic industry
in 2022-23, up from 58 per cent in 2021-22.

Defence R&D will be made available to business, entrepreneurs, and

academia, with 25% of the defence R&D budget set aside. Through
the SPV model, private industry will be encouraged to design and
produce military platforms and equipment in conjunction with DRDO
and other organisations. An independent nodal umbrella agency will
be established to address the diverse testing and certification needs.
 ENERGY TRANSITION AND
CLIMATE ACTION
Five to seven per cent biomass pellets will be co-fired
in thermal power plants resulting in CO2 savings of 38
MMT annually. This will also provide extra income to
farmers and job opportunities to locals and help avoid
stubble burning in agriculture fields.

Four pilot projects for coal gasification and conversion

of coal into chemicals required for the industry will be
set-up to evolve technical and financial viability.
 ENERGY TRANSITION AND
CLIMATE ACTION
Private sector will be encouraged to create sustainable
and innovative business models for battery and energy
as a service, improving the efficiency in the EV
ecosystem.

Battery Swapping Policy will be brought out and inter

operational service will be formulated.
 MSME
Duty on umbrellas is being raised to 20 per cent. Exemption to
parts of umbrellas is being withdrawn. Exemption is also being
rationalised on implements and tools for agri-sector which are
manufactured in India. Customs duty exemption given to steel
scrap last year is being extended for another year to provide
relief to MSME secondary steel producers. Certain Anti-
dumping and CVD on stainless steel and coated steel flat
products, bars of alloy steel and high-speed steel are being
revoked in larger public interest considering prevailing high
prices of metals
THANK YOU!
Email us at ppc@iiml.ac.in
if you have more questions.