loader2
Partner With Us NRI

Open Free Demat Account Online with ICICIDIRECT

Missed the Union Budget 2022 Speech? Here’s A Quick Rundown

Introduction

Finance Minister Nirmala Sitharaman tabled the Union Budget 2022-23 today in the Indian parliament. Considered a non-populist budget focused on growth, this bold Budget has many things going to support the Indian economy. From announcing the PM Gati Shakti focus on infrastructure to taxing virtual digital assets, here are 20 things you need to know from the Union Budget speech:

1. At the outset, the Finance Minister said that the Union Budget 2022 would set the tone for the next 25 years of the Indian economy. Driving this would be four central pillars – PM Gati Shakti, Inclusive Development, Productivity Enhancement and Financing of Investments.

2. The fiscal deficit in the current year is expected to be 6.9% of GDP (against 6.8% in Budget estimates) and Fiscal deficitin 2022-23 estimated at 6.4% of GDP.

3. PM Gati Shakti is an infrastructural and logistical boost to the Indian economy. Under the scheme, the government will  undertake a number of measures, such as expanding the National Highways Network by 25,000 kilometres in 2022-23, with a budget allocation of Rs. 20,000 crores.

4. In the Union Budget Speech, the FM mentioned the Indian Railways would develop new products and logistics services to support small farmers and micro, small and medium enterprises. One Station One Product will be popularised to help local businesses and supply chain.

5. Four hundred new-generation energy-efficient Vande Bharat trains will be introduced in India over three years.

6. The Emergency Credit Line Guarantee Scheme (ECLGS) to MSMEs has been expanded to  Rs 5 lakh crore, and the end date has been extended to March 2023.

7. Through the productivity linked incentive scheme, the government is eyeing an additional 60 lakh jobs over the next five years.

8. Under the Nal Se Jal scheme, the FM has allocated Rs. 60,000 crore that will equip an additional 3.8 crore households with tap water.

9. The biggest announcement has come in the space of virtual digital assets, with a tax of 30% levied on their transfer.

10. The virtual digital assets will also attract a 1% TDS. Losses from digital assets cannot be offset against any gains.

11. Tax deduction limit increased from 10 per cent to 14 per cent on employer’s contribution to the NPS account of State Government employees.

12. The Reserve Bank of India will launch a blockchain-based Indian digital rupee in the coming year.

13. A new provision has for updated tax returns has also been announced in the Union Budget Speech. Updated returns can now be filed for up to 2 years from the relevant end date of IT filings.

14. In a boost for the electric vehicle industry, the FM announced a battery swapping policy that will permit more users to swap their EV batteries. Additionally, the FM said the private sector would be encouraged to develop more innovative battery and energy services.

15. A new digital university will be set up to promote digital education. Simultaneously, the One Class, One TV Channel program that imparts education to students of classes 1-12 will be increased from 12 to 200 TV channels to provide children in rural areas and those from scheduled castes and scheduled tribes to access better education.

16. The Union Budget 2022 has introduced the interoperability of post offices and banks. This means that all 1.5 lakh post offices in the country will be equipped with digital services. This will increase digital financial inclusion.

17. Seventy-five districts in the country will get 75 digital banking units by scheduled commercial banks to improve digital payments in the country.

18. In view of the increasing mental health issues in the country on account of the pandemic, the FM has announced a National Tele Mental Health Program in the Union Budget Speech.

19. The FM also announced the launch of more sovereign green bonds as part of the government’s borrowing programme this year to fund more green infrastructure projects.

20. E-passports embedded with e-chips will be rolled out to make overseas travel simpler.

Additional Read: How to explain the Budget to the youth

Conclusion

The Union Budget 2022 did a complete skip on taxation and work-from-home policies that were largely expected by the market. However, as the FM made clear in her Union Budget Speech, this Budget is geared towards the growth of the Indian economy and boosting the country’s progress over the next 25 years.

Disclaimer- ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.

Most Popular

  • 13 May 2022
  • ICICI Securities

The Five-Point Financial Planning Checklist For Your Family

Whether you just got married or planning to have a baby or have dependents, you should have financial plans for every stage in your life to ensure a secured future for your family members. Here are five things you can do financially for your family.   

  • 12 May 2022
  • ICICI Securities

What is a Zero Coupon Bond?

You get fixed returns in the form of interest until maturity when you invest in a bond. Zero-coupon bonds work a little differently. In this article, find out what zero-coupon bonds are, their advantages and whether you should invest in them. 

  • 12 May 2022
  • ICICI Securities

What are Cross Currency Pairs?

The forex market is the largest financial market globally. Currency trading is a lucrative and booming business. While most currencies trading happens in relation to the US Dollar, some don’t. That forms the basis of cross currency pairs. Here’s what you need to know about it. 

  • 12 May 2022
  • ICICI Securities

Investing principles from Benjamin Graham: The Father of Value Investing

Benjamin Graham was a British born economist, professor, and investor who taught at Columbia University. He was also a mentor to some of the most famous investors of the 20th century, including Irving Khan, John Templeton, & Warren Buffett. Buffett called him "the second most influential figure in his life, only after my father". 

  • 12 May 2022
  • ICICI Securities

How to Invest in Nifty 50?

The Nifty 50 is the benchmark index of the National Stock Exchange. It represents the 50 largest companies listed in India. Investing in the Nifty 50 can be a good idea for those looking to make index-linked returns. Here’s how you can invest in the index. 

  • 12 May 2022
  • ICICI Securities

Investment philosophy of Cathie Wood: The most powerful woman on Wall Street

Catherine Duddy Wood, also called Cathie Wood, is an investor who primarily invests in disruptive technologies and is the founder, chief executive officer, and chief investment officer of ARK Investment Management, LLC, an investment management firm mostly active in the United States.

  • 11 May 2022
  • ICICI Securities

How to Use Technology to Improve Your Finances

Technology has made life simpler for everyone. In the realm of personal finance, technology has streamlined many processes—from budgeting to automating your payments. On National Technology Day, let’s look at how technology has transformed our finances. 

  • 11 May 2022
  • ICICI Securities

How to Invest in your Every Goal with Mutual Funds?

Each of us is unique. We have different needs and goals in life. Some of us can ride along swinging markets, while some may need a relatively conservative investment tool. 

  • 11 May 2022
  • ICICI Securities

Four Reasons Why Entrepreneurs should Invest in Equity Mutual Funds

Equity mutual funds provide growth opportunities not just for individual investors but also for entrepreneurs and corporates. They make excellent investments for anyone looking for wealth creation. This article will give you four reasons why businesspeople should consider investing in equity mutual funds.