By Bibhuti Bhusan Dash in Bhubaneswar, February 1, 2022: The Union Budget fo r2022-23 presented by finance minister, Nirmala Sitharman on Tuesday has not taken into account, the individual anticipated tax benefit, change in like- tax slab, and deduction under 80C etc., which at least seen in any previous budgets as per our budget history.

Keeping in the mind the interest of the nation, with the latest figure of the Direct and Indirect Tax collection; probably the union Government did not want to disrupt the present pace of growth, which has been successfully going through even if the hammering of pandemic since last two years.

The efforts of the Union government for the last 7 years, towards many reforms to make our Nation of Five Trillion economy probably in right path…..

These are the major actions initiated by Union Govt. in Budget 2022 presented by Finance minister Mrs. Nirmala Sitharaman in her fourth consecutive budget.

Economy

Total expenditure in FY23 seen at INR 39.45 tn , Total receipts in FY23 seen at INR 22.84 tn

Capital expenditure expected to be INR 7.5tn in FY23 up from INR 6.03tn in FY22 revised estimates, Fiscal deficit for FY22 is revised to 6.9% from 6.8% as per the earlier budgeted estimates (BE), FY23 BE of fiscal deficit is pegged at 6.4%

Taxation: No change in IT slabs, A new provision to allow taxpayers to file an updated return. Updated return can be filed within 2 years from the end of the relevant assessment year, Long term capital gains on listed equity share units subject to maximum surcharge at 15%., Alternate minimum tax to be reduced to 15% for cooperative societies, Custom duty exemption on steel scrap is being extended by a year to help MSME, Propose to increase tax deduction limit to 14% on employers’ contribution to NPS account of state government employees, Custom duty on methanol to be reduced

Real Estate & Infrastructure: The National Highways network will be expanded by 25,000 km in FY23, Implementation of the Ken-Betwa River Link Project, at an estimated cost of Rs. 44,605 cr will be taken up. Allocations of Rs. 1,400 crore in FY23E have been made for this project.

In FY23, 80 lakh houses will be completed for the identified eligible beneficiaries of PM Awas Yojana, both rural and urban and Rs. 48,000 cr has been allocated for the same.

Telecom: Govt expects non-Tax revenues of Rs. 52,806 Cr in FY23 vs Rs. 71,959 Cr in FY22 RE 5G Spectrum auction to be conducted in 2022, Scheme for design led manufacturing to be launched for 5G ecosystem through PLI to enable affordable broadband and mobile connectivity in rural/mountain areas, Fibre connectivity contracts for all villages will be awarded in 2022-23 FY with a completion target by 2025, 5% of USO (Universal Service Obligation) fund will be allocated for speedier rollout in rural and geographically difficult areas.

Defence Sector: Defence R&D will be opened for industry, start-ups and academia with 25% of defence R&D budget allocated to it., Private industry will be encouraged to take up the design & development of defence platforms and equipment along with DRDO through SPV model,. 68% of capital budget for procurement in defence will be for domestic procurement in 2022-23 (vs 58% last fiscal)

Chemicals: Custom duty on methanol is reduced to 2.5% and acetic acid is reduced to 5%, Custom duty on heavy feedstock for petroleum is also reduced, Sodium cyanide duty is increased to 10% due to adequate domestic supply. More than 350 duty exemptions on some agri products, chemicals, drugs, etc are to be phased out.

BFSI: Extension of ECLGS Scheme till March 2023 and amount is increased by INR 50,000cr to INR 5,00,000 cr, covering both Banks and NBFCs, proposed that Schedule Commercial Banks will set up 75 digital centres in 75 districts, Increased allocation under PMAY for affordable housing to INR 48000cr is beneficial for home loan providers. RBI will issue digital currency using block chain technology.

Logistics: Gati Shakti Master Plan formulation will provide clarity on development of multi-modal logistic parks in the country,100 new cargo terminals and 400 Vande Bharat trains to be rolled out in the next three years.

Auto: A battery-swapping policy to be brought out with interoperability standards to boost EV ecosystem, No reduction in custom duty, A battery-swapping policy to be brought out with interoperability standards to boost EV ecosystem, FM announced voluntary vehicle scrapping policy, to phase out old and unfit vehicles. Details of the scheme will be separately shared by the Ministry, Push on Ethanol blending: Additional basic excise duty of Rs. 2 per litre on unblended petrol from Oct 2022.

Agriculture and food processing: Promoting chemical free natural farming starting with farmers’ lands close to river Ganga, Use of Kisan Drones to aid farmers, Implementation of Ken Betwa Link Project benefitting 9.1 lakh hectare farm land, providing drinking water to 62 lakh people and generating 130MW power

*Director; Lotusmint Wealth Private Limited.