On 1st February 2022, Finance Minister Nirmala Sitharaman presented the Union Budget 2022-23 in the parliament. The budget can be considered as a growth-oriented budget looking at the push of the government towards infrastructure development and other CAPEX plans. What’s more in the Budget 2022, let’s know in detail in this article as we move ahead.
Key Highlights of Union Budget 2022-23:
- The government of India will be doing the capital expenditure (CAPEX) of around Rs. 7.5 Lakh Cr. in FY23. This CAPEX plan was Rs. 5.5 Lakh Cr. in the last year. The Government has overachieved this mark by around Rs. 50,000 Cr. and hence total capital expenditure was around Rs. 6 Lakh Cr. in FY22.
- Capital Expenditure (CAPEX) is very crucial for the economy because it leads to infrastructure development like roads, rails, ports, highways, etc.
- Also, the Finance Minister in her presentation of Union Budget has given the ambitious target of construction of highways of 25,000 KM in FY23.
- This infrastructure development will also have a multiplier effect where it will benefit other sectors like FMCG, Retail, etc. Also, with infrastructural development, there will be some kind of employment generation which will amount to a rise in the disposable income of individuals.
2) Fiscal Deficit:
- The Government has set a Fiscal Deficit target of 6.4% for FY23. The same target in FY22 was 6.8%, and the actual figure was 6.9%. Still, the trajectory of the Fiscal Deficit is downwards.
- Finance Minister has announced the disinvestment target of Rs. 65,000 Cr. for FY23.
- The target of disinvestment was Rs. 1.75 Lakh Cr. in FY22 which has not been achieved yet. If the LIC IPO debuts by the end of FY22 and it collects a fair amount, the disinvestment target of FY22 can still be achieved.
4) Virtual Digital Asset Taxation:
- Virtual Digital assets will be taxed at a flat 30% rate. Here, no deduction and exemptions will be allowed.
- Loss in such kinds of assets will not be sett-off against any gains.
- Digital Rupee is to be launched by 2023 using Blockchain Technology.
5) PM Awas Yojana:
- The government will be infusing additional Rs. 48,000 Cr. in Pradhan Mantri Awas Yojana.
The Union Budget 2022-23 was more inclined towards infrastructural development which makes this budget a ‘Growth-Oriented Budget’. Such focus towards infrastructure developments will certainly have multiplier effects on employment generation, increased income, increased disposable income, and benefits to the sectors across the economy.