Budget 2022 seems to indicate that the government continues on their path of inducing an investment led economic recovery. This budget is, just as the previous one was, very clearly supply-side oriented. The CAPEX outlay has been stepped up to Rs 7.5 lakh crores and no major money transfer into the hands of the masses, through tax cuts or otherwise, has been announced.

Here are some of the key highlights from the Finance Minister’s speech:

– Total expenditure in FY 23 estimated at Rs 39.45 trillion. Revised Fiscal Deficit for FY 22 is 6.9% of GDP (as against 6.8% in previous budget estimate). Target fiscal deficit for FY 23 is 6.4%.

– Capital expenditure outlay stepped up sharply by 35.4%. Goes from Rs 5.54 lakh crores in FY 22 to Rs 7.50 lakh crores FY 23. Outlay in FY 23 will be 2.9% of the GDP.

– Digital rupee to be issued using blockchain; to be issued by RBI in FY 23. Income from virtual digital assets brought under tax net. Gains to be taxed at 30%.

– ECLGS to be extended till March 2023. The guaranteed cover will be expanded by Rs 50,000 crores to total cover of Rs 5 lakh crores to aid MSME sector financing needs.

– No change in income tax slabs.

– Public issue of Life Insurance Corporation expected shortly.

– 5G spectrum auction to be conducted in 2022 for rollout of 5G telecom services by private players in FY 23.

– To facilitate domestic manufacturing for an ambitious goal of 280 GW of installed solar capacity by 2030, additional allocation of Rs 19,500 cr for PLI for manufacturing of high-efficiency modules with priority to fully integrate manufacturing units to solar PV modules will be made.

– Taxpayers can now file an updated return within 2 years from the relevant assessment year.

To read the budget document please visit www.indiabudget.gov.in.

Your queries and comments are welcome as always.