Finance Minister delivers Budget 2022: Digital rupee to be issued by RBI starting 2022-23, capital expenditure outlay increased to Rs 7.5 lakh crores and much more

Honourable Finance Minister, Nirmala Sitharaman delivered the Budget for 2022-23 on 1st Feb 2022 at 11:00 am. This budget had a lot of expectations as several new points of improvement were introduced. This budget was termed by market experts as a “well-balanced and growth oriented budget.” This was the Finance Minister’s fourth budget.

The main highlights of the budget were: –

• Growth of Indian economy for FY22 was going to be 9.2%, highest among all large economies.
• IPO of Life Insurance Corporation is expected shortly.
• Union budget seeks to lay the foundation and give blueprint of economy over ‘Amrit Kal’ of next 25 years- from India at 75 to India at 100.
• Budget to focus on 4 main pillars: productivity, climate action, financing investments and PM Gati Shakti.
• 400 new generation Vande Bharat, more efficient, trains to be brought in.
• 100 PM Gati Shakti Cargo termianls to be developed in next 10 years.
• 5G spectrum auction to be conducted in 2022 for rollout of 5G telecom services by telecom companies.
• Digital rupee to be issued using blockchain and other technology in 2022-23.
• Income tax relief to cooperative societies with reduction in rate of surcharge from 12% to 7% for income upto Rs 10 crores.
• Capital expenditure outlay being stepped up sharply by 35.4% from Rs 5.54 lakh crore in CY to Rs 7.50 lakh crore in 2022-23. Outlay in 2022-23 will be 2.9% of the GDP.
• Both Centre and States govt employees’ tax deduction limit to be increased from 10% to 14% to help the social security benefits of state govt employees and bring them at par with the Central govt employees.
• Income from Long Term Capital Gains will be taxed at 15%.
• Corporate surcharge to be reduced from 12% to 7%.
• Both Centre and States govt employees’ tax deduction limit to be increased from 10% to 14% to help the social security benefits of state government employees and bring them at par with the Central govt employees.
• Rs 48,000 crores allocated for completion of construction of 80 lakh houses under PM Awas Yojana in rural and urban areas in the year 2022-23.

The BSE Sensex rose by 1.46% to 58,862 and NSE Nifty rose by 1.37% to 17,576. Several stocks saw a bullish trend where Tata Steel saw an upward movement of 7.51%.

Highlight by Aman Agarwal.