BUDGET 2022-23

Constitutional Provisions
1. Article 112-117 talks about the budget. Article 112 talks about
budget which is called annual financial statement.
2. The Budget Division of Department of Economic Affairs under
the Finance Ministry prepares the budget. It was Nirmala
Sitharaman’s 4th Budget.

India’s GDP growth is estimated at 9.2% for 2021-22. According to

Economic Survey of India the estimated GDP Growth for 2022-23 will
be between 8 – 8.5%. So India will become the fastest growing
economies in the world.

PLI (Production Linked Incentive) scheme for 14 sectors will create 60

lakh new jobs in the coming years. It will create production of 30 lakh
crores. The government is focusing on four priorities:

1. PM GATI SHAKTI PLAN

2. INCLUSIVE DEVELOPMENT
3. Productivity Enhancement, Sunrise opportunities and climate
action.
4. Financing the investments

The government is also setting the base for India after 25 years
that is India at 100 known as Amrit Kaal.

Sector wise allocation and important points:

 Taxes
1. No change in the tax slabs.
2. Allowed the tax Payers an additional two years to update their
returns and correct the errors.

 Tax Incentives for start ups

1. Start Ups have been given extensions. For availing tax reliefs ,
Start-ups should be established up to March 23 , 2023 instead of
March 31, 2022
2. Similarly to avail 15% tax concessions start-ups need to start
manufacturing by March 31, 2024 instead of March 31,2023.

 Defense
1. The defense budget has gone up to 5.25 lakh crores. It is 9.8% higher
than the budget estimates of last year. It constitutes 13.31% of the
total GDP.

2. 68% of the allocation will be reserved for the domestic

industry to promote defense production within the country.

 MSME

1. The Extension of Emergency Credit Line Guarantee Scheme till

March 2023. The allocation under the scheme has increased
by 50,000 crores taking total cover to 5 lakh crores.
2. New Programme called RAMP (Raising and Accelerating
 MSME Performance) with an outlay of 6000 crores over 5
years.

 PM Gati Shakti Plan

1. National Highways Network will be expanded by 25,000 km by

2022-23 and 20,000 crores will be mobilized for expansion.
2. It will be driven by seven engines: Roads, Railways, Airports, Ports,
Mass Transport, Waterways and Logistics Infrastructure.
3. Multimodal Logistics Parks at four locations will be awarded in
2022-23 through PPP mode.
4. For railways, “One station One Product” to encourage local
business.
5. 2000 km of railway network will be brought under Kavach for world
class technology.
6. 400 Vande Bharat Trains to be manufactured in the next three
years.
7. 100 PM GatiShakti Cargo Terminals will be developed.

8. Under National Ropeways Development Program or Parvatmala 8

ropeways will be built of 60 km length.

 Agriculture

1. 2.37 lakh crores will be directly paid to 1.63 crores farmers for
procurement of wheat and paddy.
2. Kisan Drones will be used for crop assessment and spraying fertilizers.

3. 1400 crores outlay for Ken – Betwa Link Project.

  HEALTH
1. Around 86,200 crores have been spent on health which includes
83,000 crores for health and 3,200 crores for research.
2. National Tele Mental Health Programme launched under which 23
Tele Mental Health center will open with NIMHANS (National
Institute for Medical Health and Neuro Sciences) Bangalore being
the nodal center and Indian Institute of Technology providing the
technological support.

All other important Points:

1. Fiscal Deficit target of Government to be 6.4%.

2. Education sector – Under One class One TV channel Programme
of PM eVidya to be expanded to 200 TV channels.
3. Under PM Awas Yojana 48,000 crores to be allocated forbuiding
40 lakh houses.
4. New Scheme of PM- DevINE (Development Initiative for North
Eastern Region), 1,500 crores have been allocated.
5. Vibrant Villages Programme to connect Border villages to each
other.
6. Battery Swaping Policy to be brought for electronic Vehicles.
7. AVGC (Animation, Virtual effects, Gaming and Comics)
Promotion task force for recognizing the key areas in gaming
sector.
8. Additional Allocation of 19,500 crores for PLI scheme for
manufacturing solar modules to meet the goals of 280 GW by
2030.
9. Capital Expenditure has stepped up sharply by 35.4% with 7.50
lakh crores in 2022-23.
10. Introduction of Digital Rupee by RBI in 2022-23.
11. Allocation of 1 lakh crores to states and fifty year interest
free loans.

12. Alternative Minimum Tax for cooperative societies have

been reduced from 18.5% to 15%.Surcharges has also been
reduced from 12% to 7%.
13. Any income from transfer of any virtual asset to be taxed
at rate of 30% only excluding the cost of acquisition.
14. Allocation of 73,000 crores for MGNREGS which is 25% less
than the revised estimates of this year.