Finance Minister Nirmala Sitharaman on Tuesday presented the Union Budget for the fiscal year beginning April 1. Here are the main takeaways from the FM’s speech:
Capex Increase: The government has proposed increasing capital expenditure by 35.4 per cent. The outlay for capex will be upped from ₹4.54 lakh crore earlier to ₹7.50 lakh crore in 2022-23 – although it is not sure how this will be done.
‘Gati Shakti’: Sitharaman emphasised the importance of the PM Gati Shakti plan and its “seven engines” of growth (roads, railways, airports, ports, mass transport, waterways, logistics infrastructure). The national highways network will be expanded by 25,000 kilometres in FY23. ₹20,000 crore will be mobilised through innovative ways to complement the public resources.
Also read: FM pegs fiscal deficit for 2022-23 at 6.4% of GDP
ECLGS Scheme for MSMEs: The scheme has been extended to March 2023 and expanded, with an added cover of ₹50,000 crore. The total cover is now at ₹5 lakh crore.
Crypto Tax Provision: Any income from transfer of virtual digital asset will be taxed at 30 per cent. TDS at 1 per cent above a certain monetary threshold.
ITR Filing: Relief for Taxpayers: The government will provide a one-time window to correct omissions in income tax returns (ITRs) filed. The finance minister announced a new tax rule where a taxpayer can file an updated return on payment of taxes within two years from the end of the relevant assessment year.
New SEZ Act: The Special Economic Zone Act will be replaced with a new legislation. It will cover all large existing and new industrial enclaves.
Digital Rupee: The Reserve Bank of India will introduce a digital rupee in FY23.
‘Atmanirbhar’ Defence Manufacturing: The government will earmark 68 per cent of the defence procurement budget for domestic private industry. Defence R&D will be opened for startups, institutes and academic outlets, and a quarter of R&D budget will be allotted towards this.