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Tag: Union Budget 2022

  • Budget 2022: Armed Forces get 10% hike in capital outlay for modernisation

    The authorities has elevated its defence capital outlay by almost 10 per cent from final yr’s Revised Estimates to Rs 1.52 lakh crore, boosting the Armed Forces’ push for procuring trendy gear.
    If in comparison with the Rs 1.35 lakh crore outlay within the Budget Estimates from 2021-2022, the soar turns into much more pronounced, at almost 13 per cent.

    The elevated allocation comes at a time when the Army, Navy and Air Force are within the strategy of procuring new gear together with submarines, fighter jets, tanks, artillery weapons and drones.
    Of the overall capital outlay, Rs 1.24 lakh crore is for capital acquisition, whereas the remainder is for different capital expenditure.
    The soar of 9.74 per cent over the Revised Estimates, which stood at Rs 1.39 lakh crore in 2021-2022, is important in comparison with the 0.4 per cent rise that was seen the earlier yr.

    There can also be a marginal drop within the share of the general defence finances within the whole finances. This yr, the defence finances stands at Rs 5.25 lakh crore, which is 13.3 per cent of the Rs 39.45-lakh crore finances. The share final yr was 13.73 per cent.
    The defence finances this yr is 9.8 per cent greater than the Rs. 4.78 lakh crore allotted final yr. Compared to final yr’s Revised Estimates of Rs 5.03 lakh crore, the expansion stands at 4.4 per cent.
    However, as has been the case, the income part of the finances, of which pensions is a large value, continues to be greater than the capital outlay.
    The whole income part this yr is Rs 3.6 lakh crore, of which pensions account for Rs 1.19 lakh crore. The pension invoice is greater than final yr’s Budget in addition to Revised Estimates.

    The authorities had allotted virtually Rs. 1.16 lakh crore final yr, whereas the Revised Estimates stood near Rs. 1.17 lakh crore. In 2020-2021, the pension invoice had been even greater, at Rs 1.28 lakh crore.
    Pensions nonetheless account for just below 1 / 4 of the overall defence finances, a priority that governments have been making an attempt to work on through the years.
    Between the forces, in relation to evaluating the Budget Estimates from final yr, the Navy has bought the best soar. Compared to the revised estimates, the widest hole is for the Army. The motive is that the Army’s Revised Estimates are significantly decrease in comparison with the Budget Estimates, which is the reverse for the Navy.
    The Navy was allotted Rs 33,254 crore within the finances, whereas the Revised Estimates went as much as Rs 46,022 crore.
    It has been allotted Rs. 47,591 crore this yr, which is 43 per cent greater than the Budget Estimates from final yr, however solely 3.4 per cent greater than the Revised Estimates.

    The Navy was allotted Rs 33,254 crore within the finances, whereas the Revised Estimates went as much as Rs 46,022 crore.
    It has been allotted Rs. 47,591 crore this yr, which is 43 per cent greater than the Budget Estimates from final yr, however solely 3.4 per cent greater than the Revised Estimates.
    The Navy is making ready to roll out a Rs 43,000-crore challenge to construct six typical submarines in India, and is pushing for constructing a second plane provider. The first one, Vikrant, is predicted to be commissioned this yr.
    The hike for Navy’s finances, the Defence Ministry mentioned in an announcement, has been carried out “underlining the importance of overall maritime security,” and is “aimed at acquisition of new platforms, creation of [Operational] and Strategic Infrastructure, bridging of critical capability gaps and building a credible maritime force for the future.”
    For the Army, the allocation of Rs 32,015 crore is decrease than the Budget Estimate of Rs 36,482 crore in 2021-2022. However, the Revised Estimates for the Army for final yr stood solely at Rs 25,377 crore. While, the soar over the Revised Estimate for the Army is 26 per cent, however in relation to Budget Estimates, there’s an precise discount of greater than 12 per cent.

    Pushed by the navy standoff in jap Ladakh with China, the Army has been compelled to improve its infrastructure alongside your complete 3,488 km-long boundary with the northern neighbour, together with constructing new surveillance, military aviation, billeting and different buildings.
    The Air Force, which has the most important capital outlay among the many forces, has seen a secure although marginal development, because it tries to part out its ageing plane with trendy fighter jets, each produced throughout the nation and from outdoors.
    It has been allotted Rs 55,587 crore this yr, which is 7.2 per cent greater than final yr’s revised estimates at Rs 51,831 crore, however simply 4.5 per cent over the budgeted estimates of Rs 53,215 crore final yr.
    In a lift to frame infrastructure and coastal safety, capital budgets of the Border Roads Organisation and the Coast Guard have additionally seen main hikes. BRO’s capital finances has jumped by 40 per cent, from Rs 2,500 crore final yr to Rs 3,500 crore, whereas the Coast Guard has seen a 60 per cent enhancement, from Rs 2,650 crore in 2021-2022 to Rs 4,246 crore this yr.

  • ‘Zero sum Budget’: Rahul Gandhi says proposals supply no reduction for farmers, center lessons

    Senior Congress chief Rahul Gandhi on Tuesday acknowledged that Finance Minister Nirmala Sitharaman has introduced a “Zero sum Budget” which had nothing for the salaried and center lessons, poor, youth, farmers and MSMEs.

    M0di G0vernment’s Zer0 Sum Budget!
    Nothing for– Salaried class– Middle class– The poor & disadvantaged– Youth– Farmers– MSMEs
    — Rahul Gandhi (@RahulGandhi) February 1, 2022
    The Congress get together additionally criticised the Budget as “insipid” and “uninspiring” with no concepts or proposals to spice up consumption and supply reduction to the poor, salaried class, center class or the farmers.

    Lok Sabha MP Manish Tewari known as the funds “insipid, unimaginative, uninspiring, unrealistic and unimplementable.”
    Congress communication division head Randeep Surjewala mentioned fact of the Budget is that “it was a nothing budget.”
    “The pockets of the poor, salaried class, middle class, farmers had been empty, but there is nothing for them in the budget. The hopes of the youth are broken but there is nothing for them either. And there is nothing to boost consumption and promote small businesses,” he added.

    In 5 massive infrastructure tasks, Finance Minister Nirmala Sitharaman has proposed increasing highways within the nation by 25,000 kilometres, allocating Rs 60,000 crore to the Nal se Jal scheme, 5 river hyperlink tasks throughout varied states, an extra Rs 48,000 crore within the PM housing scheme, and boosting infrastructure growth within the North East.

    The Finance Minister additionally introduced the public sale of 5G spectrum in 2022, proposed organising 75 digital banking models in 75 districts, introduced a nationwide programme for psychological well being and introduced digital currencies like cryptocurrency and non-fungible tokens below the tax web.

    Sitharaman proposed no change in revenue tax slabs. She, nonetheless, proposed that each Centre and states authorities workers’ tax deduction restrict ought to be elevated from 10% to 14%.

  • E-passports with microchips to be rolled out subsequent yr: FM Nirmala Sitharaman in Budget 2022

    Finance Minister Nirmala Sitharaman on Tuesday introduced that e-passports can be rolled out from subsequent yr for added comfort to the general public. The e-passports will use embedded chips and futuristic know-how, she mentioned.
    Indian travellers will get microchip-based e-passports, officers mentioned. This implies that India would get e-passports with safe biometric knowledge. Officials mentioned that the e-passport can be in accordance with the requirements of the International Civil Aviation Organisation (ICAO). India at the moment points solely printed passports to customers.

    The e-passports would guarantee easy passage by immigration posts globally, and would even be ICAO compliant. It will probably be manufactured at India Security Press, Nashik. The Ministry of External Affairs is in talks with the press concerning the microchips.
    Earlier this month, TCS, which had bagged the second contract to run the Passport Seva Programme, had additionally introduced that it could introduce e-passports.

  • Income tax slabs 2022: Here’s what taxpayers count on from Nirmala Sitharaman

    Finance Minister Nirmala Sitharaman will current the Union Budget right this moment (February 1, 2022). Ahead of the important thing upcoming elections in 5 states together with Uttar Pradesh and Punjab, all eyes by the salaried class can be on the announcement concerning private taxation.
    Last 12 months, Sitharaman had introduced the scrapping of revenue tax for senior residents beneath sure situations, new guidelines for removing of double taxation for NRIs, and a discount within the time interval of tax assessments amongst different measures. She had additionally elevated tax audit restrict from Rs 5 crore to Rs 10 crore.

    Here are the highest 5 expectations on direct and oblique taxes.
    Direct taxes
    1. Hiking the Section 80C restrict: Income tax financial savings beneath Section 80C is presently accessible as much as Rs 1.50 lakh in a monetary 12 months which can be revised upwards considerably.
    2. Concessionary tax regime: Making the non-compulsory concessionary tax regime that got here into impact from April final 12 months, extra acceptable, and elevating the brink Rs 15 lakh revenue for laying peak 30 per cent tax fee.
    3. Taxing of crypto belongings: Crypto belongings which include a variety of digital belongings like non fungible tokens (NFT), wrapped asset token and so on, are prone to get super traction within the coming future. It is being anticipated {that a} specialised tax regime for cryptocurrency might be launched in Budget 2022-23.
    4. Long-term capital features tax (LTCG): The long-term capital features tax (LTCG) which was launched via Finance Act 2018, has been a burden for buyers and dented their confidence. Most massive economies don’t have LTCG tax. It is anticipated that LTCG on sale of domestically-listed fairness shares may be exempted as it might increase funding via the inventory market.
    5. Taxes for corporates: Corporate companies count on that the quantity or expenditure incurred for serving to the society and worker welfare throughout Covid-19 may be allowed as deductible expenditure. Additionally, the federal government is anticipated to scale back the tax for these corporates which are engaged in analysis and growth (R&D) actions to fifteen per cent or much less and permit weighted deduction on in-house R&D expenditure.

    Indirect taxes
    1. Customs obligation on EV: A rationalisation of customs obligation for EV and their ancillary parts, renewable power era units and associated parts is anticipated.
    2. Concession for semiconductor makers: Sector particular concessions for semiconductor producers with deal with exports is probably going.

    3. Allocations for PLI schemes: Budget allocations for growth of production-linked incentive (PLI) scheme for sectors reminiscent of leather-based and laminates and extra schemes which may lure companies into organising further manufacturing in these sectors which had been earlier not in focus throughout earlier budgets might help in decreasing the pandemic impression.
    4. Customs obligation exemption: The authorities is presently reviewing 400 customs obligation exemptions (as introduced in earlier funds). The remaining listing is anticipated to be proposed as a part of Budget 2022-23 and corporates are awaiting it in order that there’s no adversarial impression on commerce.

  • Budget 2022 Highlights: Focus of Budget on offering fundamental facilities to poor, center class, says PM Modi

    Nirmala Sitharaman made a press release along with her sartorial decide for Budget 2021. (Express photograph by Praveen Khanna)
    The Budget comes at a time when India’s employment price has plummeted. Historic unemployment and faltering progress not solely exacerbated inequalities of revenue and wealth but additionally led to anincrease within the absolute variety of poor peoplein India — an unprecedented and embarrassing reversal in poverty alleviation. In the years main as much as Covid-led technical recession, there was a lot disagreement in regards to the authorities’s strategy.
    The Economic Survey, tabled only a day earlier than Sitharaman will announce the Union Budget 2022-23, emphasised the necessity for the federal government to supply a buffer towards stresses such because the uncertainty within the world setting, the cycle of liquidity withdrawal by main central banks, and so forth.
    The Survey has pegged that within the authorities’s efforts to construct a post-Covid economic system, demand measures alone is not going to present the answer. This relies primarily on the truth that all kinds of things equivalent to shopper behaviour, technological developments, geo-politics, supply-chains, local weather change may work together in unpredictable methods, and India might want to develop a supply-side technique to cope with the long-term unpredictability of the post-Covid world.
    Last 12 months, the federal government determined to arrange an asset reconstruction firm that may take over the dangerous loans of banks, giving them the pliability to finance the financial restoration. Just days forward of the Union Budget 2022-23, this proposal to arrange a ‘bad bank’ was cleared. State Bank of India Chairman Dinesh Khara mentioned the proposed ‘bad bank’ has “now” obtained all needed permissions together with from the Reserve Bank of India. It is able to begin operations with 15 circumstances value Rs 50,335 crore to be transferred by March 31, he mentioned.
    Must-Reads on Budget 2022-23:

  • Budget 2022 Date: Here’s when Finance Minister Nirmala Sitharaman will current the Budget

    Union Budget 2022 Date: The annual Union Budget is not far away and this 12 months the Budget Session of the Parliament will start on Monday, January 31, 2022. The finances session will start with President Ram Nath Kovind addressing each the homes.
    The session might be held in two components – the primary a part of the session would conclude on February 11, 2022. After a month-long recess, half two of the session would start on March 14, 2022, and conclude on April 8, 2022.

    Economic Survey
    After President Kovind’s tackle to each the homes on Monday, January 31, 2022, the Economic Survey 2021-22 goes to be tabled.

    The Economic Survey is offered by the federal government earlier than the Budget. It describes the state of the economic system through the previous one 12 months, the important thing challenges it anticipates, and their doable options.
    Union Budget 2022-23
    Finance Minister Nirmala Sitharaman will current the Union Budget 2022-23 in Parliament on Tuesday, February 1, 2022, at 11 am.
    The period of a finances speech can typically vary someplace between 90 minutes to 120 minutes. However, in 2020, Sitharaman had delivered the longest finances speech in Indian historical past which lasted round 160 minutes.

  • Parity with ELSS funds: IBA bats for slicing tax-free FD tenure to three years

    Ahead of the Union Budget, banks have pushed for decreasing mounted deposit (FD) tenure from 5 years to 3 years for availing tax advantages as relevant within the case of mutual fund merchandise like equity-linked financial savings scheme (ELSS).
    On the opposite hand, the Association of Mutual Funds in India (AMFI) has requested the federal government to permit the introduction of debt-linked saving scheme (DLSS) with tax advantages on the strains of five-year financial institution deposits.
    In its pre-Budget proposal to the federal government, the Indian Banks’ Association (IBA), the apex physique of banks in India, stated the five-year FD has develop into much less enticing. As of now, the tax break is out there on 5-year tax-saving FD schemes of banks. A depositor can declare earnings tax deduction by investing cash in a five-year FD scheme underneath Section 80C of the IT Act, 1961.
    “As compared to other financial products (such as ELSS) available in the market, the tax-saver fixed deposit (FD) has become less attractive and if the lock-in period is reduced, this would make the product more attractive and provide more funds to the banks,” the IBA stated in a pre-Budget proposal submitted to the federal government. The lock-in interval needs to be diminished to 3 years from the present 5 years, the IBA stated. ELSS funds include a lock-in interval of three years.
    Meanwhile, the AMFI has proposed that mutual funds needs to be allowed to introduce low-cost, decrease threat tax-exemption-linked DLSS on the strains of ELSS.
    In its Budget proposals for 2022-23 to the Finance Ministry, AMFI stated funding of as much as Rs 1.5 lakh underneath DLSS needs to be eligible for tax profit, topic to a lock-in interval of 5 years, as within the case of tax saving financial institution mounted deposits.
    It additionally requested the federal government to carry uniformity in taxation on listed debt securities and debt MFs and convey parity in tax therapy between MFs and unit-linked insurance policy (ULIPs). Both MFs and ULIPs put money into securities. Currently, ELSS qualify for tax advantages underneath Section 80 CCC of the Income Tax Act for an funding restrict of as much as Rs 1.5 lakh in a fiscal 12 months.
    It has proposed to decrease the minimal holding interval for LTCG functions within the case of gold and silver ETFs from three years to 1 12 months.