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Budget 2022 & the economy

In the Budget 2022, the finance minister has shed the spotlight on PM Gati Shakti yojana

Budget 2022 & the economy

The central government's Budget is probably the most anticipated and talked about event every year, from board meetings to tea stalls. Why? Because it shows the current financial position of the country and the spending plans for the upcoming year, which in turn will dictate the direction of the economy. The union Budget 2022 comes during the height of the 3rd covid wave and is expected to propel the economy into normalcy.

Here are some key figures related to the Union Budget 2022-23: (figures of Budget 2021-22 added for comparison)

Budget 2022 & the economy

Budget 2022 & the economy

Budget 2022 & the economy

Here are some major announcements in Budget 2022 that may have a significant impact on the overall economy:

  • PM Gati Shakti plan gets the spotlight on seven major areas: roads, railways, airports, ports, mass transport, waterways, and logistics infrastructure.
  • Allocation to major schemes:
    • Rs 68,000 crore for PM Kisan Yojana
    • Rs 60,000 crore allocated for Jal Jeevan Mission
    • Rs 37,800 crore for National Health Mission
    • Rs 19,000 crore for Pradhan Mantri Gram Sadak Yojana
    • Rs 10,000 crore for Pradhan Mantri Swasthya Suraksha Yojana
  • Rs 86,606 crore allocated for health with significant allocation for the following plans:
    • Rs 20,263 crore for Saksham Anganwadi and Poshan 2.0
    • Rs 10,234 crore for PM Poshan
    • Rs 3,184 for Mission Shakti
    • Rs 1,472 crore for Mission Vatsalya
  • Rs 44,000 crore to be spent on 80 lakh affordable houses under PM Awas Yojana
  • Rs 1 lakh crore assistance to states over and above their normal borrowings, to be spent on Gati Shakti plans.
  • Import duty of 7.5 per cent to be charged on capital goods.
  • Implementation of the Ken-Betwa Link Project to benefit 9.1 lakh hectares of farmland, provide drinking water to 62 lakh people and generate 130MW power.
  • ECGLS (Emergency Credit Line Guarantee Scheme) to be extended up to 2023, with an expansion of cover by Rs 50,000 crores.
  • 75 Digital Banking Units to be set up in 75 cities by scheduled banks to promote digital payments.
  • Battery swapping policy to promote adoption of electric vehicles.
  • Domestic industry to be given priority in capital procurement budget of defence with 68 per cent allocation. Up from 58 per cent last year.
  • 5G spectrum auction to be conducted in 2022.
  • Digital rupee to be issued using blockchain technology in FY23.
  • Income from digital assets to be taxed at 30 per cent.
  • Surcharge on cooperative societies to be reduced from 12 per cent to 7 per cent.
  • Allocation under PLI schemes:
    • Large scale electronics and IT hardware: Rs 5,300 crores
    • Telecom and networking products: Rs 528 crores
    • Pharmaceuticals: Rs 1,629 crores
  • Rs 20,000 crore to be mobilised for Master Plan for expressways. The plan will be formulated in FY23. Motorway network to be expanded by 25,000 km.