Union Budget 2022–23 presented an ambitious roadmap to accelerate India’s economic recovery while preparing the country for the long-term transformation envisioned in “Amrit Kaal”, the 25-year journey to India@100. The budget -- based on the pillars of PM GatiShakti, Inclusive Development, Productivity Enhancement, Energy Transition and Climate Action, and Financing of Investments -- sought to merge macroeconomic expansion with welfare at the micro level.
The budget projected FY23 GDP growth at 9.2%, one of the highest among large economies. Manufacturing was brought under strong focus, with Production Linked Incentive (PLI) schemes projected to generate 60 lakh jobs and stimulate additional output worth as much as Rs 30 lakh crore.
A key focus area in Budget 2022-23 was the PM GatiShakti National Master Plan, driven by seven engines: roads, railways, airports, ports, mass transport, waterways and logistics.
Targets set for that fiscal year included 25,000 km of new national highways, development of multimodal logistics parks and major upgrades to the railway network -- including 400 new Vande Bharat trains and 100 cargo terminals. Ropeway systems under Parvatmala was also proposed to be rolled out on a PPP basis.
In the budget speech, Sitharaman set out an inclusive development agenda covering agriculture, MSMEs, skill development, education and healthcare. Farmers would get Rs 2.37 lakh crore in direct payments for procurement, it was announced.
Natural farming and drone technology were promoted for sustainability and efficiency. Support for the Ken–Betwa river-linking project would continue, the budget informed.
Benefits were lined up for MSMEs through an expansion of the Emergency Credit Line Guarantee Scheme to Rs 5 lakh crore and fresh credit facilitation through the Credit Guarantee Trust.
Skill development received a digital overhaul through the DESH-Stack platform, while education was set up for new benefits from expanded TV learning under PM eVIDYA, virtual labs, a digital university and enhanced e-content creation.
Health infrastructure was given a strong boost through a National Digital Health Ecosystem and a National Tele Mental Health Programme with 23 specialised centers.
Social welfare initiatives announced in the budget included upgrading two lakh Anganwadis, expanding rural drinking water access and building 80 lakh affordable homes.
The Budget also proposed a significant leg-up for the digital infrastructure: core banking integration for all post offices, rollout of e-passports and establishment of digital banking units.
Urban planning reforms included a battery-swapping policy for EVs and modernisation of land records through a unique parcel identification system.
Support for emerging sectors sought to cover sunrise technologies like AI, semiconductors, genomics and clean mobility. Energy transition got a push with Rs 19,500 crore for high-efficiency solar module manufacturing and biomass co-firing mandates.
As per the budget document, capital expenditure rose sharply to Rs 7.5 lakh crore, with effective spending estimated at Rs 10.68 lakh crore.
A Digital Rupee would be introduced by the RBI, it was announced. The budget also informed that states would receive expanded fiscal support through interest-free loans and higher capital investment allocations.
Part B of Budget 2022-23 covered a number of tax reforms that included updated returns, relief for cooperatives, parity in NPS contributions for state employees, incentives for startups, a 30% tax regime for virtual digital assets and rationalised surcharges.
Changes to the indirect tax regime sought to cover such areas as customs streamlining, promotion of domestic manufacturing and support to export growth.
Source Name : Economic Times