Union Budget 2022 LIVE: Nirmala Sitharaman begins Budget presentation

Abheek Barua, Chief Economist, HDFC Bank on Budget 2022-23:

 "The 2022-23 budget finely balanced fiscal retreat with supporting economic recovery. The budget focussed on a familiar strategy of driving capital expenditure to drive growth, with the intention of crowding in private investment through higher public spending. Although markets could be disappointed with a higher fiscal deficit of 6.4% of GDP for FY23 than expected, it is perhaps prudent to not undertake aggressive fiscal consolidation at this nascent stage of recovery." 

"While elevated market borrowings are likely to pressurise bond yields, the inclusion of green bonds in the borrowing plan are an interesting innovation. In terms of specific policy announcements, the move towards self-reliance through protection for domestic manufacturers (change in custom and import duties) aligns with the long-term goal of Atmanirbhar Bharat."

"Moreover, there is an effort to weave in short term capital spending with the long term 25-year investment plan for India. Specific moves on education and mental health issues are critical and well-recognised in the budget. Lastly, Central Bank Digital Currency is likely to have an impact on banks, but the implications of the same will have to be thought through further."

Reactions are pouring in about FM Nirmala Sitharaman's Budget: 

 

Rajnath Singh, Defence Minister: "It is a Budget which would give a fillip to ‘Make in India’, boost demand and build capacities for a stronger, prosperous and confident India. Substantial amounts have been allocated towards Research and Development in several sectors including Defence. The proposal to reserve 25 per cent of the R&D Budget for Startups and Private entities is an excellent move."

 

"The Budget outlines the Government’s focus on Atamnirbharata and Prime Minister Shri Narendra Modi's vision for development and pro-people reforms. It is a growth-oriented Budget focused on harnessing the energies of New India." 

 

Shashi Tharoor, Congress MP: "Extremely disappointing, a damp squib! There seems to be absolutely nothing in this Budget. It's an astonishingly disappointing Budget. When you listen to the speech, no mention of MGNREGA, of Defence, of any other urgent priorities facing the public. We are facing terrible inflation and there's no tax relief for the middle class. This is a Budget that seems to be pushing the mirage of 'achhe din' even farther away. Now it's India at 100, we'll have to wait for 25 more yrs for 'acche din' to arrive."

Highlights of Nirmala Sitharaman's tax proposals:

 

* Income from transfer of digital assets to be charged 30% tax, plus 1% tax on the transaction

 

* Propose to cap surcharge on the transfer of any long-term cap gains at 15%

 

Highlights of Nirmala Sitharaman's tax proposals:

 

* To provide an opportunity to correct an error, taxpayers can now file an updated return within 2 years from the relevant assessment year

 

* Tax relief to persons with disabilities. The payment of the annuity or lump sum for the disabled dependents will be exempted during the lifetime

 

* Existing tax benefits for Startups which were offered redemption of taxes for 3 consecutive years to be extended by 1 more year

 

* Reduced alternate minimum tax for cooperatives from 18.5% to 15%. Reduce of surcharge of cooperative societies from 12% to 7% for those having income below 1 crore

 

* Govt brings state employees at par with central government employees in deductions on contributions to NPS. Both Centre and States govt employees' tax deduction limit to be increased from 10% to 14% to help the social security benefits of state govt employees.

Highlights of Nirmala Sitharaman's budget presentation:

 

* Digital Rupee to be introduced by RBI starting 2022-23

 

* Outlay for capital expenditure stepped up sharply by 35.4% to Rs 7.50 lakh crore in FY23 from Rs 5.54 lakh crore in FY22

 

* The estimated procurement of wheat in Rabi 2021-22 & paddy in Kharif 2021-22 will cover 1,208 lakh metric tonnes of wheat and paddy from 163 lakh farmers. About Rs 2.37 lakh crores will be direct payment of MSP to their accounts

 

* 5-7% biomass pellets will be co-fired in thermal power plants resulting in carbon dioxide savings of 38 mmt annually

 

* 5 existing academic institutions for urban planning to be designated as Centre for Excellence with endowment fund of Rs 250 crore

 

* Moving towards Zero Carbon Emission is the govt’s vision. It will move country on sustainable development path. An online bill system to be launched for all central ministries.

 

* Voluntary exit for corporates to be cut down to 6 months from 2 years.

 

* Sovereign Green Bonds to be issued in public sector projects to reduce carbon footprint initiatives in the economy

Highlights of Nirmala Sitharaman's budget presentation:

 

* The laying of optical fibre in villages to be completed by 2025

 

* 68% of the capital procurement budget for Defence to be earmarked for domestic industry to promote Aatmanirbharta and reduce dependence on imports of defence equipment. This is up from the 58% last fiscal.

 

* Emergency Credit Line Guarantee, which has provided additional credit to MSMEs, extended till March 2023. Guarantee cover to be expanded by Rs 50,000 Crore to a total cover of Rs 5 lakh crores. Additional amount earmarked exclusively for hospitality, related sectors 

 

* 5G spectrum auction will be conducted and rollout will happen in FY23. Scheme for design-led manufacturing in 5G to be launched as part of PLI scheme.

 

* Urban planning cannot continue with "business as usual" approach; govt to support urban planners

 

* A high-level panel to be set up for urban planning. Modern building by-laws will be introduced

Subhrakant Panda, Senior Vice President of FICCI, thanks Nirmala Sitharaman for extension of ECLGS scheme till March 2023

Extension of ECLGS scheme till Mar 2023 and enhancement of 50k crores exclusively for MSMEs in hospitality & related areas is very welcome; it was a key issue highlighted by in its pre-budget memorandum.

— Subhrakant Panda (@subhrakantpanda)

Highlights of Nirmala Sitharaman's budget presentation:

 

* Issuance of E-passports will be rolled out in 2022-23 to enhance convenience for citizens:

 

* Rs 6,000 crore programme to rate MSMEs to be rolled out over 5 years

 

* In 2022-23, 80 lakh houses will be completed for identified beneficiaries of PM Awas Yojana

 

* 60,000 houses will be identified as beneficiaries for PM Awas Yojana in rural & urban areas

 

* Startups will be facilitated to use Drone Shakti. Strategic transfer of Air India ownership has been completed; strategic buyers for NINL have been selected

 

* 'One Station One Product' to be popularized to help local #Businesses and supply chains 

 

Border villages with sparse population with limited connectivity will be covered under 'New Vibrant Villages Programme'

 

* National Ropeways Development Programme to be taken up in PPP, to improve connectivity, besides promoting Tourism. 8 ropeway projects for 60 km to be awarded in 2022-23

 

* In 2022, 100% of 1.5 lakh post offices will come on core banking system to facilitate financial inclusion

 

* With 1486 union laws repealed, Ease of Doing Business 2.0 will be launched. We will follow the idea of trust based government

 

* The pandemic has accentuated mental health problems in people of all ages. To better the access to quality mental health counseling and care services, a National Tele Mental Health program will be launched. This will include a network of 23 tele mental health centres of excellence with Nimhans being the nodal centre and IIIT Bangalore providing technology support

Highlights of Nirmala Sitharaman's budget presentation:

 

* 400 new generation Vande Bharat trains will better energy efficiency and passenger-riding experience will be developed and manufactured during the next 3 years.

 

* ECLGS extended upto March, 2023 and guarantee cover expanded by Rs. 50,000 Crore to a total cover of Rs 5 lakh crore.

 

* 'One Class One TV Channel' will be increased from 12 to 200 TV Channels to provide supplementary education in regional languages for class 1-12

 

* Skilling programs will be reoriented. For skilling, upskilling & reskilling of our youth, Digital DESH e-portal will be launched

 

* A digital university will be developed to provide access to students for world-class quality education with ISTE Standards

 

* Railways will develop new products for small farmers and MSMEs

Highlights of Nirmala Sitharaman's budget presentation:

 

* Natural farming will be promoted along Ganga corridor

 

* National Bank for Infrastructure Development, National Asset Reconstruction Company have commenced activities

 

* The implementation of the Ken-Betwa link worth Rs 44,605 crore will be taken up at providing irrigation of over 9 lakh hectares of farmers land providing irrigation, farming & livelihood facilities to farmers & local population.

 

* Use of Kisan Drones for crop assessments, land records, spraying of insecticides is expected to drive a wave of technology in Agri & farming sector

 

* For farmers to adopt to natural farming, comprehensive package for participation of state governments & MSMEs to be introduced

 

* A rationalised scheme to increase domestic oilseed production will be brought in to cut down imports

Highlights of Nirmala Sitharaman's budget presentation:

 

* PM Gati Shakti will pull forward the economy and will lead to more jobs and opportunities for the youth.

 

* PM Gati Shakti will encompass the 7 engines for multi-modal connectivity for the states with speedier implementation of development projects through technology to facilitate faster movement of people and goods through Rs 20,000 crore financed by the govt to speed up this project

 

* The National Highway network will be expanded by 25,000 km in 2022-23 

 

* Macroeconomic growth focus + microeconomic welfare focus in promoting digital economy, FinTech, Tech-enabled development, energy transition and climate action.

 

* 100 Cargo Terminals under PM Gati Shakti will be developed in the next few years.

 

* Production Linked Incentive Scheme for achieving Aatmanirbhar Bharat has received an excellent response, with potential to create 60 lakh new jobs and additional production of 30 lakh crore during next five years.

Highlights of Nirmala Sitharaman's budget presentation:

 

* We are marking Azadi ka Amrit Mahotsav, our focus is on:

 

1. Complementing micro & macroeconomy

2. Promoting digital economy 

3. Private & public investments

 

* During Amrit Kaal, our government aims to achieve the vision for India@100 set out by the Prime Minister in his Independence Day Address 

 

* Strengthening of Health infrastructure, speedy implementation of vaccination program are evident for all

 

* With our provision for public investment in the last budget, this budget continues to provide multiplier effect which will benefit youth farmer, SCs, STs, women & poor.

Highlights of Nirmala Sitharaman's budget presentation:

 

* Overall sharp rebound and recovery of the economy is reflective of India's strong resilience

 

* India's growth is estimated to be at 9.27%

According to a LocalCircles poll on the subject, if the government lowers the tax rate by another 2-5 per cent, 40 per cent of taxpayers are inclined to switch to the new income tax system.

 

In the Union Budget 2020, a new tax regime with reduced tax slabs but no exemptions were suggested. The budget also provided an option to maintain the current structure with the same tax rates. Click HERE to read further

Union Cabinet approves the Budget 2022; the meeting underway at the Parliament has now concluded. Union Finance Minister Nirmala Sitharaman will present the Budget shortly.

Ajoy Thomas, VP & Business Head, TeamLease Services 

 

Looking at the increase in online shopping and payment gateways, the e-commerce sector should be looking for an impetus to the digitisation and incentivising digital transactions in the upcoming Union Budget.

 

I also hope that the government cuts the corporate tax rate across the board to spur growth. 

 

To amplify the Make in India initiative now is the time for the government to encourage product companies by introducing incentives that help them become globally competitive and take product innovation to the next level.

The Union Cabinet is meeting in Parliament ahead of the Budget 2022-23 presentation. Prime Minister Narendra Modi is chairing the meeting.

Union Finance Minister arrives at the Parliament

She will present the Union today pic.twitter.com/iZTiIWYY7T

— PIB India (@PIB_India)

National Oil Marketing companies have reduced commercial 19-kg LPG cylinder cost by Rs 91.50 effective from today, 1st February. 19 kg commercial cylinder will cost Rs 1907 in Delhi from today: Sources

Budget Expectations of the FMCG sector

 

1. Struggling with high inflation and tepid rural demand, the FMCG sector seeks the government’s intervention in the upcoming Budget to boost consumption in the economy. The government needs to increase the outlay under MGNREGS and tax reduction for the salaried class that will help in demand regeneration and boost consumption. The government also needs to continue with its other schemes such as direct cash transfer, food subsidies which have supported the rural areas of the country even as COVID-19 wreaked havoc in urban areas.

 

2. PLI scheme for edible oil industry which will boost Atmanirbhar Bharat Scheme, reduce huge dependency on imports and will boost domestic manufacturing, local employment and valuable foreign exchange savings.

 

3. Pandemic has affected many rural industries which in turn has slowed down the expansion plans, hence, an extension of the time limit to 31st March 2025 from 31 March 2023 for setting up manufacturing units to avail lower corporate tax rate under Sec 115BAB of Income Tax Act 1961, will benefit many rural industries to sail through the tough time and establish industry to make India an Atmanirbhar Bharat.

 

4. Interest subvention scheme in respect of term loan for setting up of Edible Oil, Rice and Flour Industry and other agro-commodity industry and working capital requirements to be considered under priority sector lending to encourage setting up of industries in agro-commodities. This will help in the sustainable development of farmers, local community, generation of local employment and creation of vibrant rural economy.

 

5. Reduction in GST rate to 12% from current 28% and removal of 12% compensation cess in respect of 'Carbonated fruit juice beverages' as GST tax along with compensation cess is at the highest slab of 40% which is making the entire carbonated fruit juice industry non-viable as the industry is already in deep stress from the pandemic and rising input costs. The revised GST structure has affected the regional industry players which were trying to build a healthy competition with international players.

Yogendra Yadav's take on what farmers expect from Finance Minister Nirmala Sitharaman's Budget 2022-23

इस बजट से किसान की उम्मीद: इंसाफ, ईनाम, ईमान pic.twitter.com/4gi2kh1ARH

— Yogendra Yadav (@_YogendraYadav)

 

Union Finance Minister Nirmala Sitharaman, along with Ministers of State for Finance Dr Bhagwat Karad and Pankaj Chaudhary, calls on President Ram Nath Kovind, before presenting Budget 2022-23 in Parliament today. Also present at the Rashtrapati Bhavan were senior officials of the Finance ministry.

Martin Schwenk, Managing Director & CEO, Mercedes-Benz India:

 

The Union Budget should aim at long-term holistic growth for the auto industry prioritizing job creation, infrastructure development, the introduction of latest technologies and increased de-carbonization efforts. With stable policies and a clear roadmap for the sector, accelerated growth can be achieved transitioning the industry swiftly into the emerging e-mobility era, putting the Indian auto industry on the global map.

 

A relook into the existing taxation structure with a clear focus on the direct tax changes to boost consumption, export promotion, direct job creation and promotion of digitization is highly desired. 

 

Continued government spending on infrastructure projects would further propel demand for both the passenger and commercial vehicles.

Ahead of the Budget presentation, Sensex soars 582.85 points, currently at 58,597.02. Nifty up by 156.20 points, currently at 17,496.05.

Meanwhile, Finance Ministry informs that Finance Minister Nirmala Sitharaman will be addressing a press conference post the presentation of Union Budget 2022-23 in Parliament at 3.45 PM.

Union Finance Minister Nirmala Sitharaman leaves the North Block office. She will present the Budget in Parliament at 11 AM.

Some likely big-ticket announcements today

* Rs 2,942 crore government spending on the development of the automotive industry in FY23. This includes Rs 2,908 crore under the FAME scheme. 

* Also, Budget could announce further support measures for EVs, Vehicle Testing and Research and Development

 

Finance Minister Nirmala Sitharaman has arrived at the Finance Ministry ahead of the budget presentation at 11am. 

MoS Finance Bhagwat Kishanrao Karad and Pankaj Chaudhary have also reached North Block.

Finance Minister Nirmala Sitharaman leaves her residence for the North Block.

MoS Finance Pankaj Chaudhary tells media persons, "Finance Minister Nirmala Sitharaman will present an inclusive budget, in line with each and every sectors' needs. It will be benefiting everyone. All sectors (including farmers) should have expectations from today's budget."

The Economic Survey 2021-22 which was tabled by Finance Minister Nirmala Sitharaman in Parliament yesterday, noted that Services Sector registered a steady recovery during the first half of the current fiscal year. 

Overall, the Services Sector grew by 10.8 per cent Year on Year (YoY) in the first half (H1) 2021-22. The overall Services sector GVA is expected to grow by 8.2 per cent in 2021-22, although the spread of the Omicron variant brings in a degree of uncertainty for the near term, especially in segments that require human contact, the Survey emphasised.

The Economic Survey noted that the Services Sector was the largest recipient of FDI inflows in India. During H1 2021-22, Services Sector received $ 16.73 billion FDI equity inflows. 

 

The real estate sector has given an extensive wish-list to Finance Minister Nirmala Sitharaman. However, they do not foresee great news coming in for the sector this Budget 2022. Click to read further

For more Budget related stories, Click HERE

The Federation of Indian Export Organisations expects the finance ministry to draw up a roadmap for addressing pressing issues of exporters, including shortage of containers, abnormal increase in freight and space constraints on ships. 

FIEO President A Sakthivel said that Indian exports are on the upswing, and "we are within the range of reaching the milestone of USD 400 billion during the current fiscal year."

Take a look at some key suggestions provided by the FIEO. Click HERE

The US-India Business Council, which represents top global firms operating across the United States, India, and the Indo-Pacific, expects the following from Finance Minister Nirmala Sitharaman's budget:

* Simplifying and expediting tax administration processes, especially pertaining to Advanced Pricing Agreements and Settlement of Disputes to aid Ease of Doing Business in India

* Reduction in tariffs and excise taxes to facilitate raw material imports for high-value manufacturing, helping position India as a preferred destination for Global Supply Chains.

* A finalized legal framework for Direct Overseas Listings of Indian companies to accelerate foreign investment.

* Clarity on key issues, including the definition of beneficial ownership and introducing time limits around the investment application decision process.

* A customs duty exemption should be extended to Liquified Natural Gas and Natural Gas to improve energy affordability for Indians and accelerate the transition to cleaner fuels. 
 
* Aligning certification standards between National Program for Organic Production (NPOP), Participatory Guarantee System (PGS) and global requirements for organic exports.

* Decreasing import duties on olive oil to promote this healthy option and make cooking oils more affordable for Indians. 

* 200 per cent weighted tax exemption covering all R&D related expenses to promote further lifesaving and job-creating innovation

Economic Survey 2022 makes a strong case for the continuation of bold reforms. Here are some highlights: 

* India to be the fastest-growing major economy in the world for 2021-21 and 2023-24

* Positive signs of growth in the Indian economy despite the Covid-19 pandemic.

* Indian economy to grow by 9.2% in real terms in 2021-22

* GDP projected to grow by 8- 8.5% in real terms in 2022-23

* Services sector to grow by 8.2% in 2021-22

* Agriculture and allied sectors to grow by 3.9% in 2021-22

* Consumption to grow by 7% in 2021-22

* Exports to grow by 29.4% 2021-22

Like was the case in the previous year, his time too, the budget documents will be available mostly in digital form. However, some physical copies will also remain available. 

As the country recovers from the clutches of the Coronavirus pandemic, all eyes will be on what Finance Minister Nirmala Sitharaman can offer in her Budget 2022-23 to keep the country on the path of the five trillion dollar economy goal. But do you know the people who were instrumental in bringing out the Budget document? Click HERE to read further

Good Morning. Welcome to Asianet Newsable's coverage of the Union Budget 2022. In a matter of hours from now, Finance Minister Nirmala Sitharaman will present the Union Budget 2022-2023. This will be the fourth consecutive time that Finance Minister Nirmala Sitharaman will delivering the budget. The budget will be presented by the Finance Minister in Parliament on February 1, 2022, at 11 am. She also holds the record for delivering the longest budget speech as a finance minister. As the country emerges from the clutches of the Coronavirus pandemic, a lot of expectations are riding on this budget. Stay tuned to Asianet Newsable for all the live updates, views, commentary and highlights of the Union Budget 2022-2023 presentation.