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BIG ON HOPES, SHORT ON IDEAS
What the article is about?
- Talks about the key highlights of the 2022-23 Budget.
Syllabus: GS-III Government Budgeting, Fiscal Policy
Key Highlights:
- The Budget 2022 states that India’s economic growth is estimated at 9.2% to be the highest among all large economies.
- Entering Amrit Kaal, the 25 year-long lead up to India @100, the budget provides an impetus for growth along with four priorities:
- PM GatiShakti
- Inclusive Development
- Productivity Enhancement & Investment, Sunrise opportunities, Energy Transition, and Climate Action.
- Financing of investments
- Infrastructure: In 5 big infrastructure projects, the government has proposed:
- Master Plan for Expressways: expanding highways in the country by 25,000 kilometres,
- allocating Rs 60,000 crore to the Nal se Jal scheme,
- 5 river link projects across various states,
- an additional Rs 48,000 crore in the PM housing scheme, and
- boosting infrastructure development in the North East.
- The Finance Minister also announced:
- auction of 5G spectrum in 2022;
- proposed setting up 75 digital banking units in 75 districts;
- National programme for mental health, worsened by the Covid-19 pandemic; and
- Brought virtual currencies like cryptocurrency and non-fungible tokens under the tax net.
- The Budget estimates the effective capital expenditure of the Central government at Rs 10.68 lakh crore in 2022-23. This would be about 4.1 per cent of the GDP.
- Also announced allocating 1 lakh crore to assist the states in catalysing the economy.
- There would also be 50-year interest-free loans provided to the states.
- Provision to file an Updated Return on payment of additional tax.
- This will enable the assessee to declare income missed out earlier.
- Can be filed within two years from the end of the relevant assessment year.
- Stable and predictable tax regime;
- Vision to establish a trustworthy tax regime.
- To further simplify the tax system and reduce litigation.
Analysis:
- The budget is not exactly bubbling with new ideas.
- Spending outlays on several key sectors like health care, rural development and the vital jobs and income providing national rural employment guarantee scheme have all shrunk.
- Might be the impact of the Government’s keenness to broadly stick to a fiscal consolidation road map.
