Union Budget 2022: LIVE updates
Finance Minister Nirmala Sitharaman will be presenting her fourth Union budget today, which is expected to support the economy on path to recovery
Union Budget for the fiscal 2022-23 brought out key measures to encourage startups in the space of drone operations, agri-tech and electric vehicles. Taxation of Long Term Capital Gains tax on equity held in private companies was also brought on par with publicly listed entities at 15 percent.
The budget announced launch of Digital Rupee as well as auction of 5G spectrum in the coming year.
While there was no reference to a bill to regulated Cryptocurrency, the finance minister announced taxation measures on purchase and transfer of digital assets.
Going by the Economic Survey 2021-22, which was released by the Ministry of Finance on Monday, the startup ecosystem in India has been riding the growth curve, with 83 startup unicorns as on January 14, 2022 with a total valuation of $277.7 billion.
Catch all live updates from the Union Budget session here:
The month of January 2022 recorded the highest GST collection at Rs 1.4 lakh crores.
In a relief to taxation on ESOPs in private companies, especially startups, the Long-Term Capital Gains (LTCG) taxes arising on transfer of any form of assets will now be capped at 15 percent. This brings taxation of equity in listed and unlisted entities on par. This is a change from the graded taxation on LTCG from sale of private company ESOPs which could be taxed at up to 37 percent.
Cryptocurrency and other digital assets will be taxed.
“For the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30%. No deduction in respect of any expenditure, or allowance shall be allowed, while computing such income except the cost of acquisition," said the Finance Minister.
She added, "Loss from transfer of virtual digital asset cannot be set-off against any other income. In order to capture the transaction details, I also propose to provide for TDS payment made in relation to transfer of virtual digital assets at the rate of 1% above a certain monetary threshold. The gift of a virtual digital asset is also to be taxed in the hands of the recipient."
Period of incorporation of eligible startups by one more year to March 3, 2023 to provide tax incentives for newly incorporated companies.
Taxpayers can now file updated return within 2 years from the assessment year. This provides an opportunity to correct an error.
“Introduction of a central bank digital currency will give a boost to the digital economy. It is proposed to introduce Digital Rupee using blockchain and other technologies.”
Rs 5.5 lakh crore has been invested by the Venture Capital and Private Equity firms last year in India
Sovereign Green Bonds will be issued to mobilise resources for green infrastructure. The proceeds will be deployed in public sector projects.
Outlay for capital expenditure in the budget is being stepped by 35.4 percent to Rs 7.5 lakh crore for 2022-23. Effective capital expenditure of the central government is estimated at Rs 10.68 lakh crore for 2022-23, around 4.1 percent of the GDP.
Defence R&D to open up for startups, academia and academia with 25% of defence budget earmarked. Private industries will be encouraged to take up development of military platforms in collaboration with DRDO through SPV model.
5G mobile services to be rolled out within 2022-23. Required spectrum auctions will be conducted in 2022 to facilitate rollout of 5G mobile services by private telecom providers
“Our vision is that all villages and the residents should have the same access to e-services, communication facilities, and digital resources as urban areas and their residents.”
Animation, Visual Effects, Gaming and Comics promotion task force with all stakeholders will be set up to build domestic capacity for serving our markets.
For setting up charging stations at scale, Battery Swapping Policy will be brought out and inter-operability standards will be formulated. Private sector will be encouraged to develop innovative business models for battery or energy-as-a-service.
Up to five existing academic institutions in different regions will be designated as Centres of Excellence. These centres will be provided endowment fund of Rs 250 crore each. In addition, the AICTE will help improve syllabi, quality and access of urban planning courses in other institutions.
"It is proposed to set up 75 Digital Banking units in 75 districts of the country by scheduled commercial banks. The financial support for the digital payment ecosystem announced in the previous budget will continue in 2022-23. This will encourage further adoption of digital payments. There will also be a focus to promote the use of payment platforms that are economical and user friendly."
Prime Minister's development initiative for the Northeast will be implemented through the Northeastern Council. It will fund infrastructure in the spirit of PM Gati Shakti and social development projects based on the felt needs of the Northeast. This will enable livelihood activities for youth and women, filling the gaps in various sectors.
Rs 48,000 crore has been allocated to PM Awas Yojana
2 lakh anganwadis will be upgraded under the Saksham Anganwadi Yojana.
National Tele-Mental Health program will be launched to address mental health issues caused by the pandemic. It will include a network of 23 tele-mental health institutions with NIMHANS as nodal centre and IIIT Bengaluru providing technology support.
For education sector
-’One class, One TV Channel’ under PM e-Vidya will be expanded from 12 to 200 channels, to supplement education in regional languages across states from classes 1 to 12
-A digital university will be established to provide access to students. This will be made available across multiple Indian languages and in ICT model.
Startups will be promoted to facilitate Drone Shakti, through varied applications and drone asset service.
Digital ecosystem for skilling and livelihood, the Desh Stack e-portal will be launched for skill, re-skill or upskilling online. This will provide API based trusted skill credentials, payment and discovery layers to find relevant jobs and entrepreneurial opportunities.
Fund with blended capital raised under the co-investment model will be facilitated through the NABARD. This is to finance startups in the sector of agriculture and rural enterprise, relevant for farm produce value chain. The activities of these startups will include support for FPOs, support for farmers on a rental basis at farm level and support for IT based projects
-PPP scheme will be designed for delivery of digital and high tech service to farmers in partnership with private agritech players and stakeholders in agri value-chain.
-Use of Kisaan Drones will be promoted will be promoted for crop assessment, digitisation of land records and spraying insecticide and nutrients
-ECLGS (Emergency Credit Line Guarantee Scheme) extended upto March 2023 and its guarantee cover will be expanded to total cover of Rs 5 lakh crore.
-The additional amount of Rs 50,000 crore has been earmarked exclusively for hospitality and related sectors
-CGT-MSE will be revamped with required infusion of funds. This will facilitate additional credit of Rs 2 lakh crore for micro and small enterprises
For agriculture sector:
-Rs 2.37 lakh crore to be paid directly to farmers towards MSP for wheat and paddy
-2023 has been announced as the international year of millets. Support will be provided for post harvest value addition and branding of millet products nationally and internationally.
Railways will develop new products for MSMEs and logistics. 400 new generation Vande Bharat trains with better efficiency will be developed over the next three years. 100 new cargo terminals will be planned.
Unified logistics interface platform will provide an API for data exchange among all mode operators. This will provide just-in time inventory management and eliminate tedious documentation. Open source mobility stack for organising seamless travel of passengers will also be facilitated. Contract for implementation of multimodal logistics at four location through PPP will be awarded in 2022-23.
PM Gati Shakti master plan for expressways will be formulated in 2022-23 for movement of people and goods, said the minister. She added, National Highways network will be expanded by 25,000 km.
Scope of PM Gati Shakti master plan announced in November 2021 will encompass the seven engines for economic transformation, seamless multimodal connectivity and logistics efficiency. It will also include infrastructure development by state governments as per the plan, said the Finance Minister.
India’s projected economic growth estimated to be at 9.2 percent, highest among all large economies.
Public Sector Enterprise Policy has seen strategic transfer of Air India, selection of strategic partner for Neelachal Ispat Nigam and LIC IPO is in process, said the FM. She added, others are in the process for 2022-23.
“Productivity linked incentive for Aatmanirbhar Bharat has received excellent response with a potential to create 60 lakh new jobs.”
Finance Minister Nirmala Sitharaman commences budget speech, referring to the upcoming 25 years termed by the Prime Minister as Amrit Kaal, to move towards Aatmanirbhar Bharat.
Cabinet meeting concludes, the cabinet approves Budget 2022.
The Prime Minister and Union cabinet ministers arrive at the Parliament to attend cabinet meeting ahead of the Union Budget 2022.
Sensex surged 600 points and Nifty advanced 159 points in opening trade on Tuesday ahead of the Union Budget 2022 announcement.
Finance Minister Nirmala Sitharaman arrives at the Parliament after meeting the President.