Union Budget 2022-23 in a Nutshell

Finance Minister Nirmala Sitharaman has presented the Union Budget for the financial year 2022–23 in Parliament. This time, the budget was brief and did not include any major announcements. Big announcements were expected from the budget due to the scheduled state assembly election, however, nothing of that sort was done. So, undoubtedly, this budget is not like an election budget. There are no direct benefits to any stakeholders of the economy, neither were people given exemptions from income tax nor were funds for farmers increased. So if we leave this particular portion, then this budget will be considered as a balanced budget.

The budget is like a ration shop. Some go to buy oil and some spices. Some go to get toothpaste and some soap. Whatever is needed, one reaches out to the shop to get it. In the same way, different hands of the economy also expect their needs to be met from the budget.

What is the size of the budget?

The union budget for fiscal year 2022-23 is 4,61,673 crore higher than the previous year. This time, the total budget is Rs 39,44,909 crore. In the financial year 2021-22, the budget estimate was ₹34,83,236 crore and the revised estimate was ₹37,70,000 crores.Moreover, the fiscal deficit for the current fiscal year is Rs. 16,61,196 crore.

Are cryptocurrencies taxed?

The answer is no. The Finance Bill has mentioned that tax @ 30% and 1% TDS will be levied on digital virtual assets. The first fact that should be made clear to the readers is that the finance bill does not mention the word "crypto," but in the post-budget press conference, FM said that we can't wait for a law to tax the gain on cryptocurrencies, So we are considering it under a 30%+1% tax regime. Secondly, as per the finance bill, this tax will be levied only on NFTs (Non-Fungible Tokens). So it is now clear that the government has not yet given statutory recognition to cryptocurrencies.

No additional funds for the MGNREGA

In the last 2 years, MGNREGA has given strength to the rural areas to face the pathetic challenge of Covid-19. This is a scheme that is present in every village and guarantees 100 days of work to the unemployed. A total of ₹1,11,170 crores was spent in the year 2020-21 as part of it, whereas in the last budget, the government had allocated a budget estimate of ₹73,000 crores. But as per the revised estimate, the budget of MGNREGA has been readjusted to ₹98,000 crores. Despite this fact, the government has again allocated ₹73,0000 crores for it.

A small gain for Pradhanmantri Kisan Samman Nidhi

In this budget, all eyes were on ₹6000, which is to be given under the PM Kisan Samman Nidhi. It was expected that due to farmer displeasure, the government could increase the amount of Samman Nidhi, but nothing like this has been done. There has been an increase of ₹3000 crores in the total fund of Samman Nidhi as compared to the previous year. This time, a total allocation of ₹ 68,000 crores has been made.

Double Money for the National Highways Authority of India

To strengthen the road infrastructure in the country, a network of national highways will be laid. For this, the budget of NHAI has been doubled. A total of ₹57,350 crores were allocated to NHAI in the financial year 2021-22 whereas ₹1,34,015 crore has been allocated in the current budget.

The post office bank as a digital bank

In this budget, the central government has announced plans to connect a total of 1.5 lakh post offices in the country with the government banking sector. Now the post office banks will act as a new fintech bank. This will make digital transactions accessible and customers will be able to operate their accounts through net and mobile banking.

75 new digital banks

Finance Minister Nirmala Sitharaman has announced that 75 digital banks will be opened in 75 districts of the country to mark the 75th anniversary of independence. These digital banks will be opened by the public sector banks.