The much-awaited Union Budget was at last announced yesterday, i.e on 1st Feb 2022. In comparison to the last 4 budget announcements made by our finance minister, this was the shortest of all. In her 90-minute speech, Nirmala Sitharaman announced various measures through the Union Budget 2022.

 

Before knowing various measures, it is very important to understand what the budget means.

I am pretty sure that you might have a budget for your income i.e a track of your income and expenses and plan your month accordingly (If not, you need to start it right now before it is too late). Similarly, our country too has a budget. On this day, our finance minister shares the following :

1. Ways and means to raise the revenue of our country
2. Estimates of the expenditure in upcoming fiscal
3. The economic and financial policy of the coming year.

Not only this, the budget contains data of 3 fiscal years:

1. The actual number of previous fiscal year
2. The revised number of current fiscal year
3. Estimates of next fiscal year

 

Now let us discuss the top 10 highlights made by the Indian Finance Minister that you should know of: 

1. Changes for income taxpayers

The Union Budget did not announce any new changes in tax slabs for the personal income tax category. It was highly expected that some incremental changes would be introduced to the current income tax regime, but no significant change was announced. You can read more about it here 

If you missed sharing certain tax information while filing ITR, then you can do the same by revising within 2 years from the end of the relevant assessment year. Rest details will be updated soon.

The parents or guardians can take insurance from their children with disabilities. The payment of the annuity or lump sum for the disabled dependent will be exempted during the lifetime.

2. Central Bank’s Digital Currency Introduced

The Reserve Bank of India will introduce the digital rupee in the 2022-2023 financial year which begins on Apr. 1.

“Introduction of Central Bank Digital Currency will give a big boost to the digital economy. Digital currency will also lead to a more efficient and cheaper currency management system,” she said.

“It is, therefore, proposed to introduce Digital Rupee, using blockchain and other technologies, to be issued by the Reserve Bank of India starting 2022-23,” she added.

3. Digital Assets will be taxed at 30% whereas 1% TDS will be levied on payments made on transfer of digital assets - Read here
4. The post office will now be online

All 1.5 lakh post offices in India will be connected to the core banking system that will enable people to access their accounts online and also transfer money within post office accounts and to other banks, Nirmala Sitharaman said.

Something we have personally been rooting for, if you have a PPF account or an MIS account with the post office, you would know this is a great move and much-needed move.

5. E-passports for you

E-passports to be rolled out in 2022-23. The passport jacket will contain an electronic chip that will have important security-related data encoded on it.

In case, anyone tampers with the chip, the system shall be able to identify it, resulting in the failure of the passport authentication.

I have personally been waiting for an e-passport. Long overdue. If they are able to get it rolling, keep security in place. This would be exciting.

6. The government is going green

Sustainable Development is at the core of India’s Development Strategy. The minister announced ₹19,500 crores for Production Linked Incentive for the manufacture of high-efficiency solar modules. 

She also announced sovereign Green Bonds under the government’s overall market borrowings in 2022-23, which will be used to mobilize resources for green or climate-friendly infrastructure. Green Bonds will serve as a transformative step in that direction. 

A green bond is a fixed-income investment used to finance environmental and sustainable projects. Green bonds can be issued by governments, organizations and companies. These bonds can help fund renewable energy (such as wind, solar and hydro), recycling efforts, clean transportation and sustainable forestry.

India has the second-largest Green Bond market in the world and has immense untapped potential. With the recent announcements during the Budget Session, the size and penetration of the Green Bond market are expected to go up.  However, don't go jumping to invest in them, let us share more information on it soon.

7. Centre to formulate battery swapping policy for electric vehicles

In order to scale, promote and use electric vehicles in the country, a policy was announced for the battery as a service or battery swapping that is being prepared and deployed.

During the speech she said, for setting up battery stations at a mass level a battery swapping policy will be brought and interoperability standards will be formulated. With this, private players will be encouraged to develop sustainable and innovative models for the battery as a service which will increase efficiency in the electric vehicle ecosystem.

8. National Tele Mental Health Program

The National Tele Mental Health programme will include a network of 23 Tele mental health centres of excellence. Nimhans is the nodal centre and IIIT Bangalore will provide technological support for the mental health programme.

Where Mental health becomes a part of the budget, we know the efforts are reaching the centre and will help spread the right message across. Again a great move.

9. Education

The education sector is among one of the worst-hit sectors in the Covid-19 pandemic as schools remained closed for nearly two years. Classes were shifted online to adopt alternative ways, making it difficult for many to find the means and infrastructure for remote learning.  Following are the initiatives are taken by the government:

• Govt to expand ‘one class, one TV channel’ from 12 to 200 channels. This expansion has been done in order to enable states to offer supplementary education in regional languages for Classes 1 to 12. 
• 2 lakh anganwadis to be upgraded for improving child health
• Digital university to set up for online education focusing on ICT using the hub and spoke model
• Select ITIs in all states that will offer skilling courses

10. Other Policies

• The budget had an explicit focus on what the finance minister called “Amrut Kaal” which refers to the next 25 years that will take us towards celebrating 100 years of Indian Independence. And the government believes that this budget should lay the groundwork to propel India on to a path of sustained prosperity.
• Recognizing the importance of 'Nari Shakti', she said three schemes were launched to provide integrated development for women and children.
• Defence R&D to be opened for industry and startups.

I hope this was helpful and simplified Budget 2022 for you.