Capital expenditure outlay hiked, Income Tax unchanged in new Budget

Finance minister Nirmala Sitharaman presents Union Budget for 2022-23 in Parliament 0n Tuesday. A push for infrastructure and a 30 per cent tax on transfer or sale of digital assets were the highlights of Finance Minister Nirmala Sitharaman's Budget 2022. Income tax rates have been kept unchanged. Presenting her second successive paperless budget, the Finance Minister said the country is marking AzadikaAmritMahotsav, and has entered into AmritKaal, the 25-year-long lead up to India@100. The surcharge on long-term capital gains has been capped at 15 per cent. Budget 2022-23 reflects firm commitment of the Government to boost economic growth by investing in infrastructure development.This is substantiated by increase in capital expenditure by 35.4 per cent that is over one lakh 96 thousand crore rupees over the Budgetary Estimate of  2021-22. Under the budget, the total resources being transferred to the States is Rs16,11,781 crore. Latest GDP estimates and movement in key economic activity indicators confirm strengthened momentum of India’s economic recovery. India’s nominal GDP is expected to grow by 11.1 per cent in the financial year 2022-23 over 2021-22, the Finance Minister said.

She added that 100 PM Gati Shakti terminals would also be set up in the next three years. "Railways will develop new products and efficient logistics services for small farmers and Small and Medium Enterprises, besides taking the lead in integration of Postal and Railways networks to provide seamless solutions for movement of parcels."One Station-One Product concept will be popularized to help local businesses and supply chains," she said.She outlined the goals as complementing the macro-economic level growth focus with a micro-economic level all-inclusive welfare focus, with public capital investment helping to crowd-in private investment..The corporate tax rate too was kept at the same level. However, concessional rate of 15 per cent has been extended by one year for newly incorporated manufacturing units.

Highlights of Union Budget-
· India’s economic growth estimated at 9.2 percent, the highest among all large economies.
· Latest GDP estimates and key indicators confirm strengthened momentum of India’s economic recovery.
· Outlay for Capital expenditure in Union Budget hiked by 35.4 percent.
· Emergency Credit Line Guarantee Scheme (ECLGS) extended up to March 2023. The guarantee cover will be expanded by 50,000 crore rupees.
· Additional credit of 2 lakh crore rupees for MSME to be provided under Credit Guarantee Trust for Micro and Small Enterprises.
· Productivity Linked Incentive in 14 sectors for achieving the vision of AtmaNirbhar Bharat will be strengthened.
· The procurement of wheat and rice from 163 lakh farmers in rabi and kharif seasons 2021-22 has ensured rupees 2.37 lakh crore direct payment of MSP value to their accounts. 
· Use of ‘Kisan Drones’ to be promoted for crop assessment, digitization of land records, spraying of insecticides and nutrients.
· Implementation of the Ken-Betwa Link Project at an estimated cost of 44,605 crore rupees to be taken up.
· Four hundred new-generation Vande Bharat Trains to be developed over the next three years. 
· One Station-One product concept to be popularized to help local businesses and supply chains.
· One hundred PM GatiShakti Cargo Terminals for multimodal logistics facilities to be developed during the next three years.
· PM GatiShakti Master Plan for Expressways to be formulated in 2022-23 to facilitate faster movement of people and goods.
· National Highway network to be expanded by 25 thousand kilometres in 2022-23.
· Allocation of 60,000 crore rupees made for Har-Ghar, Nal-Se-Jal  to cover 3.8 crore households in 2022-23.
· 80 lakh houses to be completed in 2022-23 under PM AwasYojana, both rural and urban. 
· A new Vibrant Villages Programme to be launched to cover border villages with sparse population, limited connectivity and less infrastructure.
· Two lakh Aangawadis to be upgraded under the Saksham Anganwadi Mission.
· A new scheme-Prime Minister’s Development Initiative for North-East, PM-DevINE to be implemented through North-Eastern Council.
· One class-one TV channel’ programme of PM eVIDYA to be expanded from 12 to 200 TV channels.
· A Digital University to be established to provide access to students across the country for world-class quality universal education.
· Government to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled Commercial Banks.
· 100 per cent of post offices to be brought under core-banking system.
· Digital Rupee, using blockchain and other technologies to be issued by RBI from 2022-23.
· E-Passports using embedded chip and futuristic technology to be rolled out in 2022-23.
· Auction of spectrum for rollout of 5G mobile services to be taken up in 2022.
· Additional 19,500 crore rupees allotted under PLI scheme to give a fillip to domestic manufacturing in solar power.
· Revised Fiscal Deficit during current year is estimated at 6.9 percent.
· New provision introduced for taxpayers to file an Updated Return on payment of additional tax. 
· Alternate Minimum Tax for cooperative societies reduced from 18.5 to 15 per cent.
· Last date for Tax incentive for Start-ups extended by one year from 31st March 2023.
· Customs duty on cut and polished diamonds and gemstones is being reduced to 5 per cent.
· Customs duty exemption given to steel scrap last year is being extended for another year.
· Outlay for the ‘Scheme for Financial Assistance to States for Capital Investment’ is being enhanced from 10,000 crore in the Budget Estimates to 15,000 crore rupees. 
· Virtual digital asset to be taxed at the rate of 30 per cent.
· Surcharge on long term capital gains arising on transfer of any type of assets to be capped at 15 per cent.