What is the structure of Union budget of India ? Highlights of Indian union budget 2022-23
The Union budget of India is presented by the Finance Minister of India in the Parliament. The Structure of Indian Union budget comprises of all the data of income and expenditure of the government of India in a financial year time period.
The Finance Minister of India Nirmala Seetharaman presented the Indian union budget of 2022 . The new union budget, worth INR 39.45 lakh crore INR ( 527 Billion USD) outlines government expenditure for the year and is expected to spend 4.6% more than last year. The government projects India’s economy to grow by 9.2 %. India's GDP has already crossed 3 Trillion dollar mark ! Let's see the highlights of Indian union budget of 2022-23 :-
Also read :- What is UPI in India? How does it work ?
Lets see How India EARNS its every RUPEE
(INR)
(1 INR = 100 paisa)
1. 15 Paisa - Corporation Tax
2. 15 Paisa - Income tax
3. 5 Paisa - Custom
4. 7 Paisa - Union Excise Duties
5. 16 Paisa - Goods and service Tax
6. 5 Paisa - Non Tax Revenue
7. 2 Paisa - Non-debt Capital Receipts
8. 35 Paisa - Borrowing and other Liabilities
Lets see how India spends it's every RUPEE (INR)
(1 INR = 100 Paisa)
1. 20 Paisa - Interest Payments.
2. 17 Paisa - States' share of taxes & duties.
3. 10 Paisa - Finance Commission and other transfers.
4. 9 Paisa - Centrally Sponsored Scheme
5. 8 Paisa - defense
6. 8 Paisa - Subsidy
7. 4 Paisa - Pension
8. 9 Paisa - Other Expenditure
Ministry Wise Fund Allocation :-
1. DEFENCE - 5,25,200 Crore INR (70 Billion USD)
2. Consumer Affairs, Food and Public Distribution - 2,17,700 Crore INR (29 Billion USD)
3. Road, Transport and highways - 1,99,100 Crore INR (26.5 Billion USD)
4. Home Affairs - 1,85,800 Crore INR (24.7 Billion USD)
5. Railways - 1,40,400 Crore INR (18.7 Billion USD)
6. Rural Development - 1,38,200 Crore INR (18.4 Billion USD)
7. Agriculture - 1,32,500 Crore INR (17.6 Billion USD)
8. Chemicals & Fertilizer - 1,07,700 Crore INR (14.3 Billion USD)
9. Communications - 1,05,400 Crore INR (14 Billion USD)
Let's take a look at Major Sectors of focus :-
1. Tax
2. Infrastructure
3. Agriculture
4. Defense
5. Health
6. Education
7. Digital Infrastructure development
TAX
1. There was no changes income tax slabs for the year 2022-23 in Indian union budget.
2. Tax reliefs to the persons with disabilities were announced.
3. Provision to file and updated return on payment of additional tax .
4. Virtual digital assets to be taxed at 30%
5. Gifts of virtual assets will be taxed at the receivers end.
6. Tax deduction limit for State Government employees contribution to NPS raised from 10% to 14%.
7. Long term capital gains to be subject to surcharge only at 15% on all assets.
8. Cooperative societies will have to pay only 15% alternative minimum tax.
9. Custom Duty on cut and polished diamonds reduced to 5%.
INFRASTRUCTURE
1. Under the Gati Shakti project, National highways to be extended by 25000 km in the year 2022-23.
2. An outlay of 20000 crores INR(3 billion USD) have been put for that.
3. All the rivers will be interlinked for the proper propagation of the inland waterways.
4. 400 new generation Vande Bharat trains (India's indigenously developed semi High Speed train) to be manufactured in the next 3 years.
5. 60 km of ropeway projects under the parvatmala project.
6. Metro systems, multimodal connectivity will be facilitated on high priority.
7. 100 Gati Shakti cargo terminals in the next 3 years.
8. Integration of postal and railways network facilitating parcel movement was announced.
9. Data Centre's and Energy Storage Systems to be given infrastructure status.
AGRICULTURE
1. Procurement of wheat, paddy ,kharif and Rabi crops benefiting over 1 crore (10 million) farmers.
2. 2.37 lakh crores INR (31 Billion USD) toward direct payments for minimum support price (MSP) for the farmers.
3. Chemical free ,natural farming to be promoted across the country.
4. 2022 to be the year of millet-support for the post harvest value addition millet products.
5. Using Kisan drones for crop assessments and spraying of pesticides.
6.Ken-Betwa river linking project at cost of 44000 crore INR (5.8 billion USD)to benefit 9 lakh hectare of farmland.
DEFENCE
1. 68% capital procurement budget earmarked for domestic procurement.
2. Defense research and development to be opened for startups , private industry and academia.
3. 25% research and development budget to be set aside for this.
4. Private industry will be encouraged to take up design and development of military platform and equipment.
HEALTH
1. National digital health ecosystem to be rolled out.
2. National telemental health program to be set up for the mental health of the citizens.
3. 23 telemental health centre for excellence.
4. Benefits to women and children through mission Shakti, mission vatsalya, saksham anganwadi and poshan 2.0.
5. Rupees 60000 crore (8 billion USD) under "har Ghar nal se jal" to cover 3.8 crore households(38 million) in 2022-23.
EDUCATION
1. Digital University is to be set up in different Indian languages.
2. One class and 1 TV channel with 200 channels to provide supplementary education in all regional languages.
3. Virtual labs and skilling e-labs will be established to promote critical thinking skills and simulated learning environment.
DIGITAL INFRASTRUCTURE DEVELOPMENTS
1. RBI to introduce "digital rupee" using blockchain technology in 2022-23.
2. 75 digital banking units to be set up across 75 districts.
3. E-passports with embedded chip and futuristic technology to be rolled out.
4. Unique land parcel identification number for it based management of land records.
5. 5G Spectrum Auction in 2022.
Conclusion :-
This year's Budget speech was short at least compared to previous one's.
Government capex is slated to increase, fiscal deficit is likely to widen, digital asset transactions will now be taxed heavily . A very positive reactions where seen from the Indian businessman's and CEO's. Everyone heartily welcome the budget and statesmen's were given that soon this will lead India to be one of the top economies of the world by various philanthropists and founders.