Finance minister Nirmala Sitharaman on Tuesday in the parliament presented her fourth budget including key measures for a number of sectors, aimed at boosting growth amid high & rising inflation and continuing Covid uncertainties.

1. UNION BUDGET 2022
1st February, 2022
www.beacontrustee.co.in
contact@beacontrustee.co.in
+91 9554 49955

2. CONTENT
OVERVIEW OF THE
BUDGET
Focus area of the Budget
Inclusive Development
Productivity Enhancement
& Investments
Financing of Investments
Economy survey
Tax reforms
Direct Proposals
Indirect Proposals
1.
2.

3. FOCUS AREAS OF
THE BUDGET

4. PM GATISHAKTI
PM GatiShakti: A transformative approach driven by Seven engines of Gati Shakti: Roads,
Railways, Airports, Ports, Mass transport, Waterways, Logistics infrastructure
National Infrastructure Pipeline to be aligned with PM Gati Shakti framework
Roads and Highways: Expansion of the National Highways network by 25,000 km in FY23,INR
20,000 crore to be mobilised through innovative ways of financing
Multimodal Logistics Parks at four locations through PPP mode contracts to be awarded in
FY23
Railways:
‣ ‘One Station-One Product’ to help local businesses and supply chains
‣ 400 new Vande Bharat trains to be developed in the next three years
‣ 2,000 km of network to be brought under Kavach for safety and capacity augmentation in
FY23
‣ Development of 100 Cargo Terminals over the next few years

5. INCLUSIVE
DEVELOPMENT

6. AGRICULTURE
Subsidy support of over INR 1 lakh crore continues
Enhancing of agriculture credit and direct payment of MSP value to farmer's
account
PPP Scheme mode to be launched for delivery of digital and hi-tech services to
farmers
Blended capital fund raised under the co-investment model will be facilitated
through NABARD
MSME
Udyam, e-Shram, NCS and ASEEM portals to be interlinked
Raising and Accelerating MSME Performance (RAMP) programme with outlay of
INR 6,000 crore over the next 5 years
Emergency Credit Line Gaurantee Scheme (EClGS) to be extended up to March
2023 and with an extension in its guarantee cover by INR 50,000 crore to total
cover of INR 5 lakh crore

7. ANYTIME-ANYWHERE POST OFFICE SAVINGS
100 per cent of 1.5 lakh post offices to come on the core banking system
enabling financial inclusion by the end of 2022
Online transfer of funds between post office accounts and bank accounts
enabling inter-operability and financial inclusion
DIGITAL BANKING
Scheduled Commercial Banks to set up 75 Digital Banking Units (DBUs) in 75
districts of the country
DIGITAL PAYMENTS
Continuation of financial support for digital payment ecosystem in 2022-23 to
promote use of payment platforms that are economical and user friendly.

8. PRODUCTIVITY ENHANCEMENT &
INVESTMENTS

9. EASE OF DOING BUSINESS 2.0 & EASE OF
LIVING
Over 25,000 compliances were reduced and 1486 Union laws were repealed in
recent years
Ease of Doing Business EODB 2.0 and Ease of Living to be launched to improve
productive efficiency of capital and human resources.
There will an active involvement of the states, digitisation of manual processes, a
single point access for all citizen-centric services and standardization and removal
of overlapping compliances.
INSOLVENCY & BANKRUPTCY CODE
Amendments in the Code to be carried out to enhance the efficacy of the
resolution process and facilitate cross border insolvency resolution

10. TELECOM SECTOR
A scheme for design-led manufacturing will be launched to build a strong
ecosystem for 5G as part of the Production Linked Incentive Scheme.
Contracts to lay optical fibre in rural areas under the BharatNet project through
PPP in 2022-23.

11. FINANCING OF
INVESTMENTS

12. CAPITAL EXPENDITURE & GREEN BONDS
Capital expenditure has stepped up sharply by 35.4 per cent from INR 5.54 lakh
crore in the current year to ` 7.50 lakh crore in 2022-23
‘Effective Capital Expenditure’ of the Central Government is estimated at INR
10.68 lakh crorein 2022-23, which will be about 4.1 per cent of GDP.
Sovereign Green Bonds will be issued for mobilizing resources for green
infrastructure
BLENDED FINANCE
Government Backed Funds NIIF and SIDBI Fund of Funds have provided scale
capital creating a multiplier effect
The government will promote thematic funds for blended finance with the
government share being limited to 20 per cent and the funds being managed by
private fund managers.

13. DIGITAL RUPEE
RBI has proposed to introduce digital currency using blockchain and other
technologies starting 2022-23.
FINANCIAL ASSISTANCE TO STATES FOR CAPTIAL
INVESTMENTS
The Central Government has committed to allocates INR 1 lakh crore to assist the
states in catalysing overall investments in the economy
The allocation will be used for PM Gati Shakti related and other productive capital
investment of the states.

14. FISCAL MANAGEMENT
Total expenditure in 2022-23 is estimated at INR 39.45 lakh crore, while the total
receipts other than borrowings are estimated at INR 22.84 lakh crore.
Fiscal Deficit in 2022-23 is estimated at 6.4 per cent of GDP a broad path to reach
a fiscal deficit level below 4.5 per cent by 2025-26.

15. TAX REFORMS:
DIRECT PROPOSAL

16. INTRODUCING NEW "UPDATED RETURN"
A new provision permitting taxpayers to file an Updated Return on payment of
additional tax, to be filed within two years from the end of the relevant
assessment year.
PARITY BETWEEN EMPLOYEES OF STATE &
CENTRAL GOVERNMENT
An increase in the tax deduction limit from 10 per cent to 14 per cent on
employer’s contribution to the NPS account of State Government employees same
as central government.

17. STARTUPS
•An extension in the period of incorporation of the eligible start-up by one more
year till 31.03.2023 for providing tax incentives
INCENTIVES FOR NEWLY INCORPORATED
MANUFACTURING ENTITIES
An extension of concessional tax regime of 15 per cent tax incentives for newly
incorporated manufacturing entities under section 115BAB by one year i.e. from
31st March, 2023 to 31st March, 2024.

18. TAXATION SCHEME FOR VIRTUAL DIGITAL
ASSETS
Any income from transfer of any virtual digital asset is now taxable at the
rate of 30 per cent
Loss from transfer of virtual digital asset cannot be set off against any
other income.
TDS on payment made in relation to transfer of virtual digital asset is
considered at the rate of 1 per cent
LITIGATION MANAGEMENT
Litigation management is now required to avoid repetitive appeals by the
Department

19. TAX INCENTIVES TO IFSC
income of a non-resident from offshore derivative Instruments or any other
income received from portfolio management services in IFSC shall be
exempted from tax
RATIONALIZATION OF SURCHARGE
15% cap on surcharge on long term capital gains applicable to all capital assets
Any surcharge or cess on income and profits in relation to ‘Health and Education
Cess’ is not allowable as business expenditure.
Introduction of TDS on benefit/ perquisite arising from a business or profession
Benefit or perquisite provided to a resident carrying on business or profession
shall be subject to TDS at the rate of 10% of the value of such benefit/ perquisite
These provisions shall not apply if the value of the benefit or perquisite does not
exceed INR 20,000 in each Financial Year

20. TAX REFORMS:
INDIRECT PROPOSAL

21. CUSTOM REFORMS AND DUTY RATE CHANGES
Several changes to duty rates aligned to “Make-in-India” and “Atmanirbhar
Bharat” policy
The concessional rates in capital goods and project imports to be phase out
gradually and apply a moderate tariff of 7.5 per cent.

22. ECONOMIC SURVEY 2021-22
GDP GROWTH
GDP projected to grow 8.0% - 8.5% in FY23
Indian economy to grow by 9.2% in the current
fiscal
SECTORAL GROWTH
Agriculture to grow by 3.9 % in FY22 as against 3.6% last year
Industrial sector to expand by 11.8% in FY22 as against a
contraction of 7% in FY21
Services to grow 8.6% in FY22 as compared to 6.2 % in 2014-15
STATE OF THE ECONOMY
consumption estimated to grow by 7.0
Gross Fixed Capital Formation (GFCF) by 15
exports by 16.5 percent and imports by 29.4% in 2021-
22.
Revenue receipts from the Central Government have gone
up by 67.2 percent
Sustained revenue collection and a targeted expenditure
policy has contained the fiscal deficit for April to November,
2021 at 46.2 percent of BE.
Central Government debt has gone up from 49.1 to 59.3% of
GDP IN 2020-21
FISCAL DEVELOPMENTS

23. ECONOMIC SURVEY 2021-22
MONETARY MANAGEMENT
Liquidity in the system remained in surplus.
Repo rate was maintained at 4% in FY22.
Bank credit accelerates to 9.2% as on 31
December 2021
CAPITAL MARKET
INR 89,066 crore raised via 75 ipos; significantly higher
than in any year in last decade
PRICE AND INFLATION
CPI-Combined inflation moderated to 5.2 per cent in 2021-
22 till December from 6.6 per cent in the corresponding
period of 2020-21.
Wholesale Price Index (WPI) rose to 12.5 per cent
during 2021-22
India’s external debt rose to US $ 593.1 billion from US $
556.8 billion a year earlier in September 2021.
Foreign exchange reserves stood at US$ 634 billion as on 31
December 2021
India was the fourth largest forex reserves holder in the
world after China, Japan and Switzerland at the end of
November 2021.
EXTERNAL SECTOR

24. THANK YOU!