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Sector-wise Key Takeaways from Budget 2022

02 Feb 2022 0 COMMENT

Introduction

The Union Budget 2022 was a growth-driven budget that focused on expenditure to boost infrastructure and digitization in the country. In her Budget speech, Finance Minister Nirmala Sitharaman emphasized giving the country a boost over the next 25 years, steering India at 75 to India at 100.

Here are some major sector-wise announcements made in that regard:

1. Banking Sector

In a bid to push digitization and improve financial inclusion, the FM announced bringing the country’s 1.5 lakh post offices into the core digital banking realm. Additionally, the Union Budget 2022 has announced the setting up of 75 digital banking units by schedule commercial banks in 75 districts.

The government has also announced the launch of a blockchain-based digital currency that the Reserve Bank of India will issue.

2. Healthcare Sector

The Union Budget 2022 made two significant announcements with regard to healthcare. The government is proposing an open platform for the National Digital Health Ecosystem that will contain digital registries of healthcare providers, health facilities, unique health identity codes and universal access to health facilities.

Taking note of the increased mental health impacts of the pandemic, FM Nirmala Sitharaman has announced a National Tele Mental Health program with a network of 23 tele mental health centres. Apart from this, no substantial concessions or allocations were announced for the healthcare sector.

Additional Read: Missed the Union Budget 2022 Speech? Here’s what you need to know

3. Infrastructure

To propel the country forward and boost national infrastructure, the Union Budget 2022 announced the PM Gati Shakti Master Plan focusing on seven key areas – roads, railways, airports, ports, mass transport, waterways and logistics infrastructure. This includes the expansion of the National Highways Network by 25,000 km over the next year. Under the scheme, 400 new-generation highly-efficient Vande Bharat trains will also be manufactured. Four multimodal Logistics parks through PPP will also be awarded this year.

4. Startups

Tax incentives for startups have been extended from three to four years, bringing in some cheer to the industry that has snowballed over the past two years. The surcharge on long-term capital gains for all listed and unlisted companies has been capped at 15%. The FM also announced the setting up of an expert committee to boost venture capital and private equity investments in startups.

5. Education

In the Union Budget 2022, the government has focused on digital education. The Budget announced the setting up of a digital university, extending the One Class One TV Channel scheme to 200 channels from the current 12, setting up new e-learning content platforms for students in semi-urban and rural areas and allowing foreign universities to set up shop in the Gujarat International Finance Tech-City.

Additional Read: Union Budget 2022: Things that will Get Cheaper and More Expensive for You

Conclusion

This rounds up some of the significant sector-wise announcements made in the Budget. While there were no announcements for individuals and salaried employees, the Union Budget 2022 focused on the overall economic push of the country.

Additional Read: What to Expect From Budget 2022 for Individuals and Salaried People

Sources:

  • 75 digital banks (source – The Economic Times as of Feb 1, 2022)
  • 23 Tele Mental Health Centres (source – MoneyControl as of Feb 1, 2022)
  • 25,000 kilometres in 2022-23 (source – Hindustan Times as of Feb 1, 2022)
  • 400 Vande Bharat Trains (source – The Economic Times as of Feb 1, 2022)
  • LTCG 15% cap (source – The Economic Times as of Feb 1, 2022)
  • 200 channels (source – MoneyControl as of Feb 1, 2022)

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