The Key Takeaways from Union Budget 2022

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The Key Takeaways from Union Budget 2022

By Policy Fide

The Finance Minister, Nirmala Sitharaman, presented the Union Budget 2022-23 on 1st February 2022 for the fourth consecutive year and was paperless for the second time. Here are the key takeaways- 

1. Digital Rupee

The budget introduced a digital rupee using blockchain and other technologies, under the Reserve Bank of India (RBI). This Central Bank Digital Currency (CBDC), as defined by the RBI will be rolled out in 2023.

2. Cryptos/ NFTs- 

Cryptocurrency has been a point of contention between the holders and the government. The recent budget has proposed that- the transfer of any virtual digital asset (Cryptos and NFTs) will be taxed at the rate of 30%. 1% TDS will be applicable on loss from transfer and gifts of such assets which will go into effect by 1st April 2022.


However, there would be no deduction in the money spent while managing such income except for the cost incurred while purchasing the assets.


3. The rollout of 5G in India

5G telecom services will be rolled out within 2022-23 and the contracts for laying of optical fibres will be implemented in the next fiscal through a Public-Private Partnership (PPP) model.


4. Expansion or retention in the Education sector?

A digital university will be set up to impart lessons in all regional languages creating a network of ‘hub and spoke’.

An e-learning platform will be launched via the internet, TV and smartphones to help students in rural and semi-urban areas through the scheme 1 class 1 TV channel.

The government has decided to allow the setting up of foreign universities in the Gujarat International Finance Tec-City to provide courses in financial management, fin-tech, mathematics among others.


5. Digitisation of Healthcare and data-driven programs

National Digital Health Ecosystem: This proposed platform will include digital registries of healthcare providers and health facilities, unique health identity and universal access to health facilities.

National Tele Mental Health Program: The program will support the needs of people who require access to quality mental health counselling and care services.


6. Boost To Capital Expenditure

For the Railway infrastructure, the PM Gati Shakti Master Plan is set to give this sector a massive boost as per the FM. This plan for the Expressways will provide faster movement of people and goods along with the higher spending for railways, ports and mass transport. The National Highways network will be expanded by 25,000 kilometres within 2022-23.

400 new Vande Bharat Express trains will be launched in three years. The Vande Bharat trains (also known as Train-18) are indigenously developed semi high-speed trains.

There is one interesting development in the budget- Indian Railways will develop products and improve the supply chain for small farmers and enterprises. The scheme of ‘One Station One Product’ will be popularised to help local businesses and the supply chain.


7. Defence

To reduce the dependence on imports of defence equipment, a 68% budget (58% more than the last year), has been set aside for the domestic industry to promote ‘Atma Nirbharta’.

25 per cent of the budget will be allocated to opening up defence research and development (R&D) which will include big wig companies, startups and academia.

The critics have expressed that India nearly spends 2% of its GDP on defence and has the third-largest defence spending in the world but it lags behind others when it comes to modernisation.


8. Clean Energy and Alternates

Rs 19,500 crore has been allocated to the Production Linked Incentive (PLI) scheme for manufacturing Solar PV modules (Solar panels) to reach the goal of 280 GW of installed solar capacity by 2030.


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