Takeaways from Indian Financial Budget 2022

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is year-end and spectrum allocations will happen. </b>5G cellular technology will be deployed in the country post-spectrum allocation. At the time of publication of the article, Spectrum allocations have already taken place and telecom companies have received their allotted spectrum, now the implementation of the network will be taking place.</li><li><b>A new EV swapping policy was announced. </b>People with old fuel-based cars can now switch to EVs as the new policy has been unveiled. People can easily remotely charge their Electric Vehicle batteries and use them. Now there will be more options for consumers to use efficient techniques in opting for EVs which is good for both environment and people’s wallets.</li><li><b>PLI scheme to create 60 lakh jobs.</b> PLI schemes which are part of 14 sectors will be used to generate employment as India’s unemployment rate has been increasing for the past few years. Hence, the govt plans to create more jobs.</li><li><b>Push for hospitality services post-pandemic. </b>This was the most negatively affected sector in the pandemic, hence to bring those sectors back, prevent layoffs and enhance employment government is incentivising them more. As India is an important tourism destination, it wants to bring back foreigners visiting the country back to the pre-pandemic level.</li><li><b>Post-offices to be an area of focus for banking.</b> Unlike the formal notion, post offices in India are not just for sending and receiving letters but also are important for the economy as they also act like banks, but the push for the same wasn’t like the formal banking sector. Now Post-offices will also be given attention, which will enhance banking for common people, especially in villages where private banks are yet to keep their foot.</li><li><b>PM Awaaz Yojana housing policy to be extended. </b>With elections in mind and also how the pandemic has negatively affected both rural and urban poor, the government has decided to extend the Affordable Housing Project whose deadline was 20 million houses by the end of March 2022, to be extended further till December 2024.</li><li><b>Expected 9.2% growth rate. </b>India expects to grow at a record rate post-pandemic as a sign of recovery and also to be back as the fastest growing big economy.</li></ol><h1 id="43dc">Major Takeaways</h1><ul><li>PLI scheme to create 60 lakh jobs</li><li>Ayush Ministry receives ₹3,000 Cr.</li></ul><h1 id="dc25">Railways</h1><ul><li>Over 2000km of Railway network will be brought under Kavach System</li><li>Over 400 new Vandebharat train services will be started.</li><li>Over 100 cargo terminals over 3 years.</li><li>Metro projects get ₹19,000 Cr.</li></ul><h1 id="b838">Roadways</h1><ul><li>25,000 km expansion with ₹16,000 Cr funds.</li><li>₹1500 Cr for NorthEast</li><li>Parvatmala Project</li><li>Ken Betwa project for ₹1,400 Cr</li><li>Energy as a Service business opportunity and EV swapping policy with interoperability.</li></ul><h1 id="fdaa">Digital Push</h1><ul><li>India’s first digital currency- Digital Rupee will be released next year. This will use Blockchain-based technology.</li><li>E-billing system in Central Ministries.</li><li>Digital Education- One Class One TV. PM E Vidya Scheme.</li><li>DESH upskilling portal launched.</li><li>E-passports to have embedded chip technologies.</li></ul><h1 id="a490">Technology</h1><ul><li>Domestic manufacturing of Solar Cells energy modules.</li><li>Sovereign Green bonds to be issued</li><li>Duty concessions for electronic components.</li><li>Use of Kisan-specific drones for farming</li><li>Optic Fibre Cable rollout in every village by 2025</li><li>Ministry of Science and Technology receives ₹14,000 Cr</li></ul><h1 id="3abe">Criticisms</h1><p id="616d">There is widespread criticism mainly from the opposition that the budget is corporate friendly, anti-poor, anti-farmer, and anti-middle class. Certain states were ignored and received nothing from the budget.</p><h1 id="30fe">Analysis</h1><p id="433e">Irrespective of your opinion regarding the budget, we can see that there is a massive push for infrastructure, development, transportation etc. Apart from that, another notable aspect is that it’s a digital budget, with a lot of push for technology and digital initiatives. This is an important push for progressiveness and modernisation. There has been no change in tax sla

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bs which is a really good consistency. We hope India will achieve good economic growth and this budget will pave for a better future.</p><p id="567e"><i>Credits- MoneyControl, DD News, The Indian Express, Bloomberg Quint. Also special thanks to my friends for helping me compile the data.</i></p><p id="c7b9"><b><i>Also Read</i></b></p><div id="fc1b" class="link-block"> <a href="https://readmedium.com/newscapsule-for-the-month-of-july-2022-c2a8977ca912"> <div> <div> <h2>Newscapsule for the Month of July 2022</h2> <div><h3>Important news saw headlines in Kerala, India, US, World, Sports, Russia-Ukraine, Technology, Commonwealth Games, and…</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/0*96VWN-l9v1fxokOr)"></div> </div> </div> </a> </div><div id="d004" class="link-block"> <a href="https://readmedium.com/how-ping-pong-diplomacy-changed-the-course-of-cold-war-bd1480a35b02"> <div> <div> <h2>How Ping Pong Diplomacy Changed the Course of Cold War</h2> <div><h3>The story of two rival nations becoming allies- the USA and China</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*PDX0xxAdK6r8KXhN4I7TSg.jpeg)"></div> </div> </div> </a> </div><div id="64cb" class="link-block"> <a href="https://readmedium.com/data-communication-made-easy-9da0e56460ef"> <div> <div> <h2>Data Communication Made Easy</h2> <div><h3>Important Science and Engineering subject that comprises analog and digital communication techniques for efficient…</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/0*ByfyMcUUzdUuh4CQ)"></div> </div> </div> </a> </div><div id="807d" class="link-block"> <a href="https://readmedium.com/indias-success-against-the-third-wave-and-the-return-to-normalcy-ffc45e67921"> <div> <div> <h2>India’s Success Against the Third Wave and The Return to Normalcy</h2> <div><h3>Third Wave in India, Omicron, Vaccines, Hospitalisation, Etc.</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/0*uVadD-TSfVLf34Sn)"></div> </div> </div> </a> </div><p id="5700"><b><i>If you enjoy my content and find it informative, do support me at <a href="https://www.buymeacoffee.com/jairamrprabhu">Buy Me a Coffee</a>. My membership is only $1 per month, which means a lot to me and helps me present the best of the article. If you’re financially capable and willing to support me, please consider taking my membership, it means a lot.</i></b></p><p id="28fd"><b><i>I have started a<a href="http://t.me/jokjrp"> Telegram Channel </a>which will contain the record of all my articles. Follow <a href="http://infodailybyjrp.blogspot.com/">my blog</a> for behind-the-scenes and informative content. Do join my <a href="https://jairamrprabhu.medium.com/subscribe">medium mailing list.</a></i></b></p><div id="550c" class="link-block"> <a href="https://jairamrprabhu.medium.com/membership"> <div> <div> <h2>Join Medium with my referral link - Jairam R Prabhu</h2> <div><h3>Read every story from Jairam R Prabhu (and thousands of other writers on Medium). Your membership fee directly supports…</h3></div> <div><p>jairamrprabhu.medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/0*fsINc8YmzWJSiSZD)"></div> </div> </div> </a> </div></article></body>

Deconstructing India’s Budget for the year 2022–2023

On February 1st 2022, the Finance Minister of India, Mrs Nirmala Sitharaman presented the financial budget for the financial year 2021–2022. It was a well sought-after budget this time as the world is recovering from the biggest pandemic of the century as well we had seen a terrible second wave as well as the upcoming state assembly elections. On 31st January, the minister submitted the Economic Survey for the year 2021–2022.

The entire budget was paperless and was readout out from a tablet PC. The theme was the Economic blueprint for the next 25 years — India at 75 to India at 100.

The following article enlists important takeaways from the budget speech readout by the Honourable Minister, explaining its relevance and the politics-policy perspective of the particular that is being discussed.

Major announcements from the Budget Speech

The fiscal deficit target is fixed at 6.4%. For the past few years, India’s annual fiscal deficit has been reducing, but ever since the pandemic struck, the government has to spend more to instil demand in the economy, hence we can see post-pandemic budgets, the government is focusing on spending more and politically it might continue for the next two budgets as well taking into consideration of 2024 General Elections as well.

Error correction in Income Tax fillings to be allowed from here on making it very easy for the common man. Earlier, there was no way for corrections post submission of Income Tax filling allowed, hence this process will encourage more people to file IT Returns as well as enable corrections in the same, which is good news for the public.

Tax deduction limit raised for State govt employees for NPS fund to be increased to 14%. As per National Pension System (NPS), government employees were given Tax exemption. Now, the limit has been further increased to 1.5 lakh, which will increase employees' incentive to direct their money to NPS.

Digital Assets will be taxed at 30% which is a big hit for technical advancements in the future. With countries across the globe bringing in restrictions on bitcoin, NFT etc. India which had earlier banned the same legalised it but now has decided to tax a hefty 30% of it as a way to discourage decentralised payments and assets. With a bright IT future, it will have to be seen if this is for the good or the bad for the country.

Special Economic Zones- SEZ Act to be replaced with new legislation for investment and support to companies. On the one hand, this is a significant improvement which will help Companies to invest more, while there has been no clarity on how far it will reduce unemployment in the country.

The budget laid out a roadmap for Digitisation as a whole as for digital payments. After the 2016 controversial move of Demonetisation, India decided to encourage digital payments. Post-pandemic digital payments in India have shot up thus showing positive signs for the economy which is en route cashless. The entire budget helps push the government’s motive on making the utopia of a Cashless Society a reality.

National Tele Mental Health Program to be launched. In the wake of the COVID-19 pandemic, people were constrained within their homes, unable to seek proper healthcare advice. Telemedicine used to be a privileged concept. With a proper idea and legal framework, this feature will be available to everyone at the national level.

Major push for Transport infrastructure called Gatishakti with seven engines. PM Modi has emphasised the need for building high-end infrastructure mainly Expressways and Railways for fast and efficient movement of goods and services. In addition to that incentives for land and sea connectivity have also been included. Earlier announced projects like Bharatmala, Sagarmala, inland waterways, dry and land ports, UDAN, etc. will also be spearheaded under this umbrella project.

5G is expected to be deployed by this year-end and spectrum allocations will happen. 5G cellular technology will be deployed in the country post-spectrum allocation. At the time of publication of the article, Spectrum allocations have already taken place and telecom companies have received their allotted spectrum, now the implementation of the network will be taking place.

A new EV swapping policy was announced. People with old fuel-based cars can now switch to EVs as the new policy has been unveiled. People can easily remotely charge their Electric Vehicle batteries and use them. Now there will be more options for consumers to use efficient techniques in opting for EVs which is good for both environment and people’s wallets.

PLI scheme to create 60 lakh jobs. PLI schemes which are part of 14 sectors will be used to generate employment as India’s unemployment rate has been increasing for the past few years. Hence, the govt plans to create more jobs.

Push for hospitality services post-pandemic. This was the most negatively affected sector in the pandemic, hence to bring those sectors back, prevent layoffs and enhance employment government is incentivising them more. As India is an important tourism destination, it wants to bring back foreigners visiting the country back to the pre-pandemic level.

Post-offices to be an area of focus for banking. Unlike the formal notion, post offices in India are not just for sending and receiving letters but also are important for the economy as they also act like banks, but the push for the same wasn’t like the formal banking sector. Now Post-offices will also be given attention, which will enhance banking for common people, especially in villages where private banks are yet to keep their foot.

PM Awaaz Yojana housing policy to be extended. With elections in mind and also how the pandemic has negatively affected both rural and urban poor, the government has decided to extend the Affordable Housing Project whose deadline was 20 million houses by the end of March 2022, to be extended further till December 2024.

Expected 9.2% growth rate. India expects to grow at a record rate post-pandemic as a sign of recovery and also to be back as the fastest growing big economy.

Analysis

Irrespective of your opinion regarding the budget, we can see that there is a massive push for infrastructure, development, transportation etc. Apart from that, another notable aspect is that it’s a digital budget, with a lot of push for technology and digital initiatives. This is an important push for progressiveness and modernisation. There has been no change in tax slabs which is a really good consistency. We hope India will achieve good economic growth and this budget will pave for a better future.

Credits- MoneyControl, DD News, The Indian Express, Bloomberg Quint. Also special thanks to my friends for helping me compile the data.

Also Read

If you enjoy my content and find it informative, do support me at Buy Me a Coffee. My membership is only $1 per month, which means a lot to me and helps me present the best of the article. If you’re financially capable and willing to support me, please consider taking my membership, it means a lot.

I have started a Telegram Channel which will contain the record of all my articles. Follow my blog for behind-the-scenes and informative content. Do join my medium mailing list.