India Union Budget 2022-2023: A Path to USD 5 Trillion Economy?

Indian Union Budget 2022 LIVE: Finance minister Nirmala Sitharaman on February 1, 2022, pegged the government’s fiscal deficit for the FY 2022-23 at 6.4% of the total GDP (gross domestic product ) as the budget recognized the need and Indian market potential to boost growth in the domestic market. Stay tuned with Market Statsville Group (MSG) for more detailed updates.

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India's Finance Minister expected the country's growth at 9.27 percent in the coming year. She also added, focusing on four major areas: PM Gatishakti, Inclusive Development, Energy Transition & Climate Action, Financing of Investments. The Budget 2022-2023 gives a blueprint of the economy from India at 75 to India at 100. The major aim of the budget is to boost the capital expenditure to be stepped up by 35.4% in 2022-2023. 

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Major highlights on the Indian Union Budget 2022-2023:

Imposed of 30% tax on Virtual Digital Assets - 

Virtual digital assets refer to cryptocurrency, non-fungible tokens, and related digital assets. Any income generated from any virtual digital asset transfer or exchange will be taxed at 30 percent. In addition, the tax must be deducted at source on the payment made with the transfer of a virtual digital asset at 1 percent of such consideration above a monetary threshold.

Launch of Digital Rupee by 2022-23 to boost the digital currency awareness

The Reserve Bank of India (RBI) will issue a digital currency based on blockchain and other technology starting FY23. The introduction of Central Bank Digital Currency will boost the digital economy in India in the forthcoming years.

PM GatiShakti  National  Master  Plan 

The PM Gatishakti program incorporates the infrastructure schemes of various Ministries and State Governments. The PM Gatishakti program emphasizes seven engines of growth (roads, railways, airports, ports, mass transport, waterways, logistics infrastructure). The National Highways Network will be expanded by 25,000 km in FY23. In addition, 100 new cargo terminals will be built in upcoming years, creating employment opportunities. Rs 20,000 crore will be mobilized through innovative ways of financing to complement the public resources. 

The budget promotes Atmanirbhar defense manufacturing

To promote AtmaNirbharta and reduce import activities, the equipment for the armed forces, 68 percent of the capital procurement budget will be set aside for the domestic defense industry. Furthermore, private industries will be encouraged to design and develop military platforms and equipment in collaboration with the Defense Research and Development Organization and other entities. 

Chemical-free natural farming and Kisan drones

Chemical-free natural farming will be implemented across the nation to enhance the agricultural land along with the initiative to clean the river Ganga in the first stage.

The procurement of wheat in Rabi 2021-22 and the estimated paddy procurement in Kharif 2021-22 will add Rs 2.37 lakh crore indirect payment of minimum support prices to farmers’ accounts. Kisan drones will be used to promote crop assessment, spraying of insecticides and nutrients, digitization of land records, and others.

Other important Indian Union Budget Highlights includes:

• Allocation of Rs 60,000 crore in FY2023 for tap water in homes schemes.
• The allotment of Rs 48,000 cr for FY23 under the PM Housing Scheme will contribute to developing India.
• The budget also includes the major health issue, i.e., mental health. With the pandemic accentuating mental health problems, a National Tele Mental Health program will be started to improve access to quality mental health counseling and care services for citizens of India.
• Investment in digital education and digital university to enhance education scenario in India.
• Introduction of a paperless, end-to-end online e-bill system for use by all central ministries for their procurements and transparent transactions
• Promotion of the Animation and gaming industry offers immense potential to youth employment and others

The aforementioned points are the major highlights of the Union budget 2022-2023; for detailed information or insight, shoot an email to sales@marketstatsville.com.