DEFICIT/EXPENDITURE- Budget 2022

 DEFICIT/EXPENDITURE

Proposes fiscal deficit of 4.5% of GDP by 2025/26

Projects fiscal deficit of 6.4% of GDP in 2022/23

Revised fiscal deficit for 2021/22 at 6.9% of GDP

Total expenditure in 2022/23 seen at 39.45 trillion rupees

States will be allowed 4% fiscal deficit to GDP in FY23

50 year interest free loans over and above normal borrowing allocated to states

Scheme for financial assistance to states for capital investment outlay to be 1 trillion rupees in 2022/23

TAXATION

Import duty on certain chemicals are being reduced

Customs duty exemption on steel scrap to be extended for another year for small- and medium-sized businesses

Customs duty on stainless steel, flat products, high steel bars to be revoked

Unblended fuel to get additional duty of 2 rupees per litre from October 2022

FINANCE

Emergency credit line guarantee scheme for small and medium sized businesses to be extended to March 2023

Energy transition and climate action will be a major government priority

Public issue of Life Insurance Corporation expected shortly

Initiatives from last year's budget have been provided adequate allocations in this budget

Special Economic Zones Act to be replaced with new legislation

To amend bankruptcy code to speed up resolution process

Aims to lower winding up of companies to 6 months from 2 years currently

Long term capital gain surcharge to be capped at 15%

DIGITAL CURRENCY

To launch digital rupee using blockchain technology starting 2022/23

To launch scheme for taxation of virtual digital assets

Losses from sale of virtual digital assets cannot be offset against other income

Income from virtual digital assets to be taxed at 30%

DEFENCE

Govt committed to reducing defence imports

INFRASTRUCTURE

5G spectrum auctions to be conducted in 2022

Scheme for design-led manufacturing for 5G will be part of production-linked scheme

To award contracts to lay optical fibre in rural areas, completion in 2025

480 billion rupees set aside for affordable housing in 2022/23

To allocate additional 195 billion rupees for production-linked incentives towards solar equipment manufacturing

AGRICULTURE

Domestic scheme introduced to reduce dependence on oilseed imports

Fund with blended capital raised under co-investment model to finance agriculture startups

Railways to develop infrastructure for small farmers in 2022/23

TRANSPORT

400 energy efficient trains to be manufactured over next three years

National highways network to be expanded by 25,000km in 2022/23

Highways expansion to cost 200 billion rupees in 2022/23

India to bring out battery swapping policy