Budget 2022

The term “digital and technology” was the primary focus of the Budget 2022, along with areas such as infrastructure, health, education, and the distribution of e-services to the general public. 

This Union Budget established a basis for and outlined a plan for the economy over the “Amrit Kal” of the next 25 years, which spans the time between India at the age of 75 and India at the age of 100.

The growth of India’s GDP was the highest of any economy in the world, coming in at 9.2 percent. 

We are currently in the middle of the Omicron wave, and the rapidity with which our vaccine programme was carried out has been an enormous aid. 

The FM predicted that the ‘Sabka Prayas’ will maintain a healthy rate of expansion. 

The public investment and capital expenditure provision has been significantly increased as a result of the passage of Budget 2022. 

The ownership of Air India has been successfully transferred to a new strategic entity.

Budget Focus

• PM GatiShakti

•  Inclusive Development 

• Opportunities for Sunrise, 

• Productivity Enhancement and 

• Investment, Energy Transition, and Climate Action.

• Obtaining funding for one’s investments

Public Capital Investment:

In 2022 and 2023, public investment will continue to serve as a pump-priming mechanism for private investment and demand.

The allocation of funds for the expenditure of capital rocketed upward by 35.4% to reach Rs. 7.50 lakh crore in 2022-23, up from Rs. 5.54 lakh crore in the present financial year.

The expenditure in 2022-2023 is projected to account for 2.9 percent of GDP.

In the fiscal year 2022–2023, it is anticipated that the Central Government will have a 

“Effective Capital Expenditure” of Rs. 10.68 lakh crore, which corresponds to around 4.1 percent of GDP.

Fiscal Management

Estimates for the upcoming fiscal year come in at Rs. 34.83 lakh crore.

New Estimates for 2021-22 Come in at Rs. 37,700 Billion Crore.

It is predicted that the total expenditures will amount to Rs. 39.45 lakh crore in 2022-23.

It is anticipated that total receipts, excluding interest on borrowings, will amount to Rs. 22.84 lakh crore in 2022-23.

This year’s budget shortfall is equivalent to 6.9 percent of GDP (against 6.8 percent in Budget Estimates).

It is anticipated that the government will have a deficit equal to 6.4 percent of GDP in 2022-23.

Changes in Budget 2022

On February 1st, 2022, the much-anticipated Union Budget was finally unveiled by the Minister of Finance.

Even while there has been no change to the tax brackets, this time the emphasis seemed to be placed more on being a curator, offering people stability, and promoting voluntary compliance.

The rate of surcharge that is applied to long-term capital gains derived from any long-term capital asset is currently capped at 15%. 

Previously, the cap applied exclusively to long-term capital gains from listed securities (i.e., under section 112A), but now it applies to all gains. On the other hand, this rule did not apply to other forms of LTCG, such as taxable LTCG under section 112 that resulted from the sale of unlisted stocks, property, or other assets.

In these particular circumstances, the surcharge increased to a maximum of 37% in the event that the LTCG was greater than Rs 2 crore. 

Depending on the value of your property at the time of sale, this could result in a savings of between 2 and 4 percent in long-term capital gains taxes. 

The percentage of an employer’s payment to an employee’s National Pension System (NPS) account that can be deducted as a tax was raised from 10 percent to 14 percent, and the increase took effect on January 1, 2018. 

According to the announcement made by the minister of finance, a decision has been made to improve the social security benefits of employees of both the state and the federal governments in order to bring them into parity with one another.

Benefits of Budget 2022

The following are some of the possibilities afforded by the budget for 2022:

• The possibility to submit a “updated return.”

• There will be no need to comply with the new rule that requires filing an amended tax return.

• The taxation of new-age assets, which include virtual digital assets.

• Deductions for contributions made to pension plans on behalf of dependents who are disabled.

• A limit on the surcharge that is applied to long-term capital gains.

• Litigation management/Faceless assessment.

Features of the Budget

It is a prediction of the economic activities of a company or organisation that are connected to a particular time period in the future.

It is required to be written down and given approval by the relevant authority.

Whenever there is a shift in the conditions, it needs to be updated or amended accordingly.

It acts as a business barometer that aids in monitoring the success of the business by comparing actual and budgeted outcomes. 

This is done in order to determine how well the firm is doing.

It is formulated by drawing on previous experiences as well as current trends in the industry.

It is a method in the world of business that is utilised to make projections regarding the operating activities and financial status of the company.

Conclusion

A budget is the total amount of money that has been set aside for a specific objective, as well as an overview of the expenditures that are planned and suggestions for how they might be met. 

Either a budget surplus, which allows for money to be saved for use at a later time, or a deficit, which occurs when expenses exceed revenue, might be included.

A government’s budget is a summary or plan of the projected revenues and expenditures of that government. 

Budgets are also known as financial plans. 

The operational budget, also known as the current budget, the capital budget, also known as the investment budget, and the cash budget, also known as the cash flow budget, are the three different forms of government budgets.