Budget 2022: 5G Rollout, Crypto Tax, More Capital Expenditure, Top 10 Highlights of Budget

Finance minister Nirmala Sitharaman has unveiled a Rs 39.45 lakh crore Budget for the financial year 2022-23. This year’s Budget has been touted by the government and several experts as growth oriented, taking India to newer heights by the time the county achieves 100 years of Independence. “This budget 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,” Sitharaman said in her Budget 2022 speech, which was her shortest till date.

Speaking on the Budget, R Mukundan, MD and CEO at Tata Chemicals, said, “This is a growth and infrastructure-focused budget and the Union government has made its intention clear by pushing up capital expenditure to boost robust growth. At the same time, the government has maintained continuity in terms of the policy framework and continued the process of simplification and standardisation including in the area of taxation.”

Here are the Top 10 Highlights of Union Budget 2022:

1. 5G Rollout Soon: The government has in Budget 2022 indicated that India is moving towards better internet connectivity with the rollout of 5G spectrum. In FY 22, a 5G spectrum auction has been proposed, with the launch of a design-led manufacturing scheme. Contracts would be awarded for laying optical fibre inremote areas.
2.  More Budget Allocation and Capex Push: The Budget allocation this year has been set at Rs 39.5 lakh crore, which is more than that of the previous year. The allocation is meant to give a boost over FY22-23, facilitating India’s ‘Amrit Kaal’. The government also projected a 9.2 per cent expansion in GDP in FY22. Additionally, Sitharaman hiked the capital expenditure of the government by 35 per cent to Rs 7.5 lakh crore as India revives its pandemic-battered economy.
3.  Introduction of Digital Currency: The Reserve Bank of India will in FY22-23 launch the Central Bank Digital Currency, which is a centralised digital rupee, Sitharaman said in her Budget 2022 speech.
4. Tax on Virtual Digital Assets: All virtual digital assets will be taxed at 30 per cent rate, while digital gifting will also be charged per the same rates on the receiver’s end.
5. Revised ITR Policy: Taxpayers now have a two-year window to correct errors and file a revised income tax return for the relevant assessment year, Budget 2022 highlighted.
6. Sovereign Green Bonds: Sovereign green bonds will be issued issued for mobilizing resources for green infrastructure. The proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy.
7. SEZ  Act to be Replaced: Special Economic Zones Act will be replaced with a new legislation to enable States to become partners in ‘Development of Enterprise and Service Hubs’, the Budget 2022 said on February 1.
8. Amendments to Insolvency and Bankruptcy Code: Sitharaman in her Budget 2022 speech said that necessary amendments in the Insolvency and Bankruptcy Code would be carried out to enhance the efficacy of the resolution process and facilitate cross border insolvency resolution.
9. Boost to Railways: As part of the PM Gatishakti Masterplan, 2,000 kilometres of railway network will be brought under Kavach, the finance minister said. Also, 400 new-generation Vande Bharat Trains with better energy efficiency and passenger riding experience will be developed and manufactured during the next three years.
10. ECLGS Scheme Extended: Budget 2022 considered the hassles faced by the services sector during the pandemic. Keeping in line with this, the finance minister said 130 lakh MSMEs will be provided additional credit under Emergency Credit Linked Guarantee Scheme, which was extended till March 31 2023. Additionally, a guarantee cover of  Rs 50000 crore was extended to the businesses.

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