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BUDGET 2022-23



         The budget highlighted that the Gross Domestic Product growth for the current year (2021-22) is expected to be at 9.2%, which is highest among all the largest economics. Strengthening of health infrastructure and implementation of vaccination programme have been a great achievement.

        As this year marks the 75th year of Independence, government has named it as Azadi ka Amrit Mahotsav. And the next 25 years till 100th Independence Day, is referred to as Amrit Kaal.

Goals set by Government to achieve Vision for India@100

  • Complementing the macro-economic level growth focus with a micro-economic level all inclusive welfare focus.

  • Promoting digital economy, fintech technology enabled development, energy transitions and climate change

  • Relying of virtuous cycle starting from private investment with public capital investment helping to crowd-in private investment.​

Mandate of this year budget

  • To plan a futuristic and inclusive blue print for Amrit kaal. This will benefit youth women, farmers, the scheduled caste and the scheduled tribes.

  • To allow for big public investment for modern infrastructure which will be guided by PM GatiShakti.

4 Priorities Laid down by the Budget

  • PM GatiShakti

  • Inclusive development

  • Productivity enhancement and investment, sunrise opportunities, energy transitions nd climate change

  • Financing of Investments.

PM GatiShakti

What is it?

    A transformative approach for economic growth and sustainable development, which have a potential of creating huge job opportunities for all.

Seven engines of PM GatiShakti:

  • Roads

  • Railways

  • Airports

  • Mass Transport

  • Waterways

  • Logistics Infrastructure


Supported by :  

  • Energy transmission

  • IT communication

  • Bulk water and sewerage

  • Social infrastructure

Powered by: Clean energy and Sabka Prayas ( Government both centre and state and Private sector)


PM GatiShakti National Master Plan

          Master plan for the scheme will encompass 7 engines for economic transformation, seamless multimodal connectivity and logistics efficiency along with the infrastructure developed by the state government. National infrastructure pipeline will be aligned with PM GatiShakti. 


Road infrastructure:

  • In 2022-23, plan for Expressways  will be formulated which will be aimed at faster movement of goods and people.

  • Expansion of National highway network to 25000 km in 2022-23

  • Financing of Rs. 20000 Crore will be done by innovative ways along with public resources.


Seamless Multimodal Movements of Goods and People

  • Unified Logistics Interface Platform (ULIP): Data from all mode operators will be brought to ULIP. 

  • It will assist in 

    • efficient movement of goods from all modes, 

    • decreasing logistics costs and time, 

    • in-time inventory management 

    • elimination of lengthy documentation

    • Real time update to the stakeholders.

  • Open source mobility stack for seamless travel of passengers.


Multimodal Logistics park:

Creation for 4 logistics park will be starting from 2022-23 under PPP models.



  • Postal and railways network will be integrated  to provide seamless solution for parcel movement.

  • New products and efficient logistics services for small farmers and medium, small enterprises will be developed

  • For local business and supply chains: One Station-One Product will be popularised.

  • Kavach, the indigenous world class technology for safety and capacity augmentation, will bring under itself 2000 Km of network under Atmanirbhar Bharat.

  • In next three years 400 new-generation Vande- Bharat trains will be developed with more energy efficiency and passenger experience.

  • By 2025, 100 PM GatiShakti Cargo terminals for multimodal logistics facilities will be developed.


Mass Urban Transport 

  • Metro systems: faster building will be encouraged through innovative ways of financing.

  • Multimodal connectivity between mass urban transport and railways will be kept on priority.


Parvatmala: National Ropeways Development Programme

  • It will be taken up in the difficult hilly areas as a preferred ecological and sustainable alternative to road connectivity on PPP model.

  • It may also be developed in congested urban areas.

  • Contract for 8 such projects for 60 km length will  be given in 2022-23.


  1. Easy travel

  2. To Boost tourism


Capacity Building for infrastructure Projects will be done by Capacity building commissions ( technical support), central ministries, stage govt. and infra-agencies. 




  • Procurement of crops:

    • Wheat (Rabi) 2021-22 will be 1208 lakh metric tonnes

    • Estimated procurement of Paddy (kharif) will be done form 163 lakh farmers

    • MSP: Rs 2.37 Lakh Crore will be transferred to account son farmers as direct payment.

  • Chemical free Natural farming:

    • It will be promoted in entire country.

    • First %-km wide corridors will be created along River Ganga.

  • Millets:

    • 2023 is announced as the International year of Millets by united Nations.

    • Government will be providing support for Post harvest Value addition and increasing domestic consumption and for their national, international branding.

  • Oilseeds:

    • Comprehensive and rationalised scheme will be implemented with dual objective of 

      • Increasing domestic production 

      • Decreasing import dependence

  • Technology in farming:

    • A scheme with PPP model will be launched with involvement of various stakeholders of agri-value chain, private agri-tech and public sector research institutions to provide Digital and high tech services tot he farmers.

    • Kisan Drones will be used for the purpose of:

      • Crop assessment

      • Digitisation of land records

      • Spraying of insecticides and nutrients

  • States will be encourage to change Agriculture syllabus in universities to make it more relevant to sustainable development including Zero budget natural faming, organic farming.

  • A fund to finance start ups for agriculture and rural enterprise, relevant for fair produce. Will be set up under Co-investment model through NABARD. 


To solve the problem of Irrigation

  • Ken-Betwa Project implementation will be taken up in order to provide irrigation benefits to farmers and also for enhancing drinking water supply and hydro power and solar power creation.

  • 5 new river link drafts have been finalised and will be implemented through centre support:

    • Damanganaga-pinjal

    • Par-Tapi-Narmada

    • Godavari-Krishna

    • Krishna-Pennar

    • Pennar -cauvery


Food Processing


A comprehensive package with participation of state will be launched for farmers to adopt suitable varieties of fruits and vegetables, with appropriate production nd harvesting technologies.



  • Interlinking of Udyam, e-Shram, NCS and ASEEM portals with widened scope and will provide live, organic, databases, providing G2C, B2C and B2B support.

  • Emergency Credit Line Guarantee Scheme (ECLGS)

    • It has helped more than 130 lakh MSMEs.

    • It will be extended upto 2023 and guarantee cover increased from 50000 Crore to 5 Lakh Crores.

    • The increased amount is dedicated to hospitality and related enterprises as they are yet to achieve pre-pandemic levels of growth.

  • Credit Guarantee Trust for Micro and small Enterprises (CGTMSE) scheme will be infused with  funds for 2lakh crores for MSME . It will also aid in employment opportunities creation.

  • RAMP programme: Raising and Accelerating MSME performance will be rolled out  in next 5 years aiding MSME to become resilient, competitive and efficient.



  • National Skill qualification Framework (NSQF) will be aligned to industry needs.

  • Launch of DESH-stack e-portal was announced, also known as Digital Ecosystem for skilling and Livelihood

    • It aims to empower citizen to skill, resell and up skill through on line training.

    • It will provide API based skill credentials, payment and to provide jobs.

  • Startup will be encouraged to facilitate “Drone Shakti and Drone-As-A-Service



  • PM eVIDYA  one class-one TV channel’ programme  will be expanded from 12 to 200 TV channels to enable all states to provide supplementary education in regional languages for classes 1-12. To compensate fr the loss of 2 years of formal education.

  • 750 virtual labs in science and mathematics, and 75 skilling e-labs for simulated learning environment, will be set-up in 2022-23. 

    • Aim:

      • to promote crucial critical thinking skills

      • to enhance creativity 

  • High-quality e-content in all spoken languages will be developed and delivered through internet.

  • To empower and equip teachers with digital tools of teaching and facilitate better learning outcomes, acompetitive mechanism for development of quality e-content will be set up.

  • A Digital University will be established to provide access to students across the country for world-class quality universal education with personalised learning experience at their doorsteps 



  • An open platform, for the National Digital Health Ecosystem will be rolled out Consisting of

    • digital registries of health providers and health facilities, 

    • unique health identity, 

    • consent framework, and 

    • universal access to health facilities. 


National Tele Mental Health Programme’ will be launched

  • It will include 23 tele-mental health centres of excellence, 

  • Nodal centre: NIMHANS 

  • Technology support: International Institute of Information Technology-Bangalore (IIITB)



  • Mission Shakti, Mission Vatsalya, Saksham Anganwadis and Poshan 2.0 were recently launched  to provide integrated benefits to women and children. 

  • Saksham Anganwadis, new generation anganwadis with better infrastructure and audio-visual aids, powered by clean energy and providing improved environment for early child development. The upgradation of Two lakh anganwadis will be done.


  • Her Ghar, Nal Se Jal

    • 5.5 crore households were provided tap water in last 2 years itself 

    • 60,000 crore were allocated to cover 3.8 crore households in 2022-23.



Under PM Awas yojana 80 lakh houses will be completed for Rs. 48000 Crores by the combined efforts of centre and state government.


(PM- DevINE) :Prime Minister’s Development Initiative for North East Region

  • It will fund infrastructure, in the spirit of PM GatiShakti, and social development projects based on felt needs of the North-East and will b e implemented by north east council

  • State proposed project will be given priority over the project proposed by Centre 


Aspirational District Programme will be now focused upon the blocks which are left behind in these districts (112 districts have made progress)


Vibrant Villages Programme

  • It will cover northern Border villages with sparse population, limited connectivity and infrastructure with conference. Of existing schemes.

Aims at:

  1. construction of village infrastructure, housing, tourist centres, road connectivity, 

  2. provisioning of decentralized renewable energy, 

  3. direct to home access for Doordarshan and educational channels, and support for livelihood generation. 


Banking reforms:

  1. 100 per cent of 1.5 lakh post offices will come on the core banking system in 2022. This will enable financial inclusion and access to accounts through net banking, mobile banking, ATMs, and also provide online transfer of funds between post office accounts and bank accounts. It aimed at benefiting old and framers.

  2. 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled Commercial Banks will be set up aimed at digital banking inclusion. 

  3. Financial support will be provide to digital payments.

Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition, and Climate Action 

Productivity Enhancement & Investment

  • Ease of Doing Business 2.0 & Ease of Living will be launched for next 25 years aimed at improving productive efficiency of capital and human resources, and ensuring ‘trust-based governance’. 

  • C-PACE: Centre for Processing Accelerated corporate exit (C-PACE) with process process re-engineering, will be established to facilitate and speed up the voluntary winding-up of these companies from the currently required 2 years to less than 6 months. 

  • It will follow:

    • an active involvement of the states, 

    • digitisation of manual processes and interventions, 

    • integration of the central and state-level systems through IT bridges, 

    • a single point access for all citizen-centric services, and a standardisation and removal of overlapping compliances 

    • PARIVESH: The scope of a single window portal for all green clearances launched in 2018 has now been widened to provide information to the applicants and tracking of process through Centralized Processing Centre-Green (CPC-Green). 

    • E-passport: issuance of e-Passports using embedded chip and futuristic technology will be rolled out in 2022-23 to enhance convenience for the citizens in their overseas travel. 

    • Urbanisation: A high level committee of reputed urban planners urban economists and institution for planned urbanisation as India@100, nearly 50% go Indian population will be living in urban.



  • Promotion of shift to public transport in urban areas.

  • Battery as a service: Battery Swapping policy: it will be launched soon as there are lack of space in urban areas for setting up charging station. 

  • States will be encouraged for the adoption of Unique Land Parcel Identification Number to facilitate IT-based management of records 

  • Facility for translation of land records into any of 8th Schedule language will be launched.


Government procurement:

  • Online e-Bill System, which will be a completely paperless, end-to-end will be launched in order to enhance transparency and to reduce delays in payments.  It will be used by all central ministries for their procurements. Also the suppliers and contractors to submit online their digitally signed bills and claims and track their status from anywhere.

  • Surety Bonds could be used as a substitute for bank guarantee in government procurements. 

    • It aims at reduction of indirect cost for suppliers and work-contractors. 

    • Business such as gold imports may also find this useful. 

    • IRDAI has given the framework for issue of surety bonds by insurance companies. 


Animation, Visual effects, Gaming, and Comic (AVGC) sector is a potential sector especially for youth so to tap on its potential a Promotion task force will be launched.


Telecom Sector: 

  • 5G:

    • Required spectrum auctions will be conducted in 2022 to facilitate rollout of 5G mobile services within 2022-23 by private telecom providers. 

    • Scheme for design-led manufacturing will be launched for strong ecosystem of 5G as part of PIL scheme.


Internet inclusion:

       To provide affordable broadband and mobile service proliferation in rural areas and to promote R&D and commercialisation of technologies five per cent of annual collections under the Universal Service Obligation Fund will be allocated, to reduce urban-rural digital divide.

       The contracts for laying optical fibre in all villages, including remote areas, will be awarded under the Bharatnet project through PPP in 2022-23. Completion is expected in 2025. 


Export Promotion

      A new law will come in place of Special Economic Zone Act making states partner in Development of Enterprise and Service Hubs



  • Mandate: reduce dependence on imports  and promoting AtmaNirbharta. 

  • Financial allocation: 68% of capital procurement budget is allocated for domestic industry in 2022-23, which is an increase from last year 58%. 

  • 25% of Defence budget will be allocated to R&D activities by industry, startups and acdemia. Private industry will be encouraged to go for design and development of military platforms and equipment in collaboration with DRDO and other organizations through SPV model. 

  • An independent nodal body will also be set up.




          Sunrise sectors  which have potential to assist sustainable development at scale and modernise the country and provide employment opportunities, includes:

  • Artificial Intelligence, Geospatial Systems and Drones, 

  • Semiconductor and its eco-system, 

  • Space Economy, Genomics and Pharmaceuticals, 

  • Green Energy, and Clean Mobility Systems 


    Government is intended to bring in Supportive policies, light-touch regulations, facilitative actions to build domestic capacities, and promotion of research & development (with collaboration of all the stake holders) for these sectors.


Energy Transition and Climate Action 


          India’s vision at COP26 summit in Glasgow is to be mindful and deliberate utilisation, instead of mindless and destructive consumption. It announced ‘Panchamrit’  as the low carbon development strategy. 


Solar Power 

    India Goal is to achieve 280 GW of installed solar capacity by 2030 and to boost  domestic manufacturing for this goal, an additional allocation of 19,500 crore for Production Linked Incentive (PIL) for manufacture of high efficiency modules, with priority to fully integrated manufacturing units from polysilicon to solar PV modules is made in the budget.


Circular Economy 

        A circular economy entails markets that give incentives to reusing products, rather than scrapping them and then extracting new resources. In such an economy, all forms of waste, such as clothes, scrap metal and obsolete electronics, are returned to the economy or used more efficiently. It is expected to help in productivity enhancement as well as creating large opportunities for new businesses and jobs.

  • The action plans for ten circular economy sectors such as electronic waste, end-of-life vehicles, used oil waste, and toxic & hazardous industrial waste are ready. 

  • Sectors with new focus will be infrastructure, reverse logistics, technology upgradation and integration with informal sector which are the issue cutting across multiple sectors.

  • It will be supported by active public policies covering regulations, extended producers’ responsibilities framework and innovation facilitation.   


Transition to Carbon Neutral Economy 

Steps that will be taken to reduce CO2 emissions:

  • 5 to 7% biomass pellets will be co-fired in thermal power plants resulting in CO2 savings of 38 MMT annually. 

      • Additional benefit:

        • extra income to farmers

        • job opportunities to locals

        • To help avoid stubble burning in agriculture fields. 

    • Promotion of energy efficiency and savings measures;

      • This will be done in large commercial buildings through the Energy Service Company (ESCO) business model. It will facilitate capacity building and awareness for energy audits, performance contracts, and common measurement & verification protocol.

      • Four pilot projects for coal gasification and conversion of coal into chemicals required for the industry will be set-up for the purpose to evolve technical and financial viability. 

      • The policies and required legislative changes to promote agro forestry and private forestry will be brought in along with financial support for farmers belonging to Scheduled Castes and Scheduled Tribes, who want to take up agro-forestry. 

Financing of Investments

Public Capital Investment 

Envisaged benefit of Capital investment:

  • key to speedy and sustained economic revival 

  • Consolidation through its multiplier effect. 

  • Creating employment opportunities, 

  • inducing enhanced demand for manufactured inputs from large industries and MSMEs, services from professionals

  • help farmers through better agri-infrastructure.


Budget Provisions:

  • The outlay for capital expenditure in the Budget is again increased sharply by 35.4 per cent from 5.54 lakh crore in the current year to ` 7.50 lakh crore in 2022-23. 

  • This is increased to more than 2.2 times the expenditure of 2019-20. This outlay in 2022-23 will be 2.9 per cent of GDP. 

  • the ‘Effective Capital Expenditure’ of the Central Government is estimated at 10.68 lakh crore in 2022-23, which will be about 4.1 per cent of GDP ( including Grants-in-Aid to States).


Green Bonds 

  • Government’s overall market borrowings in 2022-23, Sovereign Green Bonds will be issued for mobilising resources for green infrastructure. 

  • The proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy. 



      In the GIFT City, World-class foreign universities and institutions will be allowed to offer courses in Financial Management, FinTech, Science, Technology, Engineering and Mathematics free from domestic regulations, except those by IFSCA to facilitate availability of high-end human resources for financial services and technology. 

An International Arbitration Centre will be set up in the GIFT City aimed at timely settlement of disputes under international jurisprudence. 

Services for global capital for sustainable & climate finance in the country will be facilitated in the GIFT City. 


Infrastructure Status 

New entries to the Harmonised list of Infrastructure:

  • Data Centres 

  • Energy Storage Systems including dense charging infrastructure and grid-scale battery systems


  • To facilitate credit availability for digital infrastructure and clean energy storage. 

  • Credit availability could be Venture capital and Private equity Investment.


Blended Finance

  • For encouraging sunrise sectors such as Climate Action, Deep-Tech, Digital Economy, Pharma and Agri-Tech, thematic funds for blended finance with the government share being limited to 20 per cent and the funds being managed by private fund managers will be launched witnessing the success of Government backed Funds NIIF and SIDBI Fund of Funds


Financial Viability of Infrastructure Projects 

Measures will be taken to enhance financial viability of projects including PPP, with technical and knowledge assistance from multi-lateral agencies, by adopting global best practices, innovative ways of financing, and balanced risk allocation. 


Digital Rupee 

       A Central Bank Digital Currency (CBDC) in form of digital rupee will be launched na dis expected to give boost to digital economy. It will be using Blockchain and other technologies


  • More efficient and cheaper currency management system. 


      In 2022-23, in accordance with the recommendations of the 15th Finance Commission, the states will be allowed a fiscal deficit of 4 per cent of GSDP of which 0.5 per cent will be tied to power sector reforms.


Fiscal Management 

  • The estimated total expenditure  for 2021-22 was Rs. 34.83 lakh crore and the Revised Estimate is Rs. 37.70 lakh crore. 

  • The Revised Estimate of capital expenditure is ` 6.03 lakh crore. 

Budget Estimates:

  • The total expenditure in 2022-23 is estimated at Rs. 39.45 lakh crore.

  • The total receipts other than borrowings are estimated at Rs. 22.84 lakh crore. 

Fiscal deficit:

  • The revised Fiscal Deficit in the 2021-22 is estimated at 6.9 per cent of GDP as against 6.8 per cent projected in the Budget Estimates. 

  • The Fiscal Deficit in 2022-23 is estimated at 6.4 per cent of GDP, which is consistent with path of fiscal consolidation to reach a fiscal deficit level below 4.5 per cent by 2025-26.


Direct Tax 

  • A new updated tax return norm have been put in place. Now a tax payer can fill updated return in case any arrears in the previously filed return within 2 years from the end of assessment year. Thus bypassing the lengthy mechanism of adjudication.

  • Alternate Minimum Tax for cooperative societies have been brought down to 15%  from earlier 18.5% to do away with he disparity between cooperative societies and companies.

    • Surcharge on cooperative societies have been brought down to 7% from 12% on income between 1 crore to 10 crore.

    • These steps are aimed at benefitting rural and farming community.


    Tax deduction limit is now increased from 10 per cent to 14 per cent on employer’s contribution to the NPS account of State Government employees which makes it now equal to centre.


Differentially abled people:

  • Now the differentially abled will be allowed to use the payment of annuity and lump-sum during the lifetime of parents/guardians after attaining the age of 60 years.



          Eligible start-ups established before 31.3.2022 had been provided a tax incentive for three consecutive years out of ten years from incorporation It has now been extended by one more year, that is, up to 31.03.2023 for providing such tax incentive. 

          To establish a globally competitive business environment for certain domestic companies, a concessional tax regime of 15 per cent tax was introduced for newly incorporated domestic manufacturing companies. The last date for commencement of manufacturing or production under section 115BAB by one year i.e. from 31st March, 2023 to 31st March, 2024. 



  • Any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent. 

  • No deduction in respect of any expenditure or allowance is allowed while computing such income except cost of acquisition.

  • It provided for TDS on payment made in relation to transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary threshold.

  • Gift of virtual digital asset will also be taxed in the hands of the recipient. 



Tax incentives to IFSC
      To promote the IFSC, income of a non-resident from offshore derivative instruments, or over the counter derivatives issued by an offshore banking unit, income from royalty and interest on account of lease of ship and income received from portfolio management services in IFSC shall be exempt from tax, subject to specified conditions. 


  • Surcharge on the companies of consortium have been reduced to 15% from earlier 37%

  • Clarification in relation to ‘Health and Education cess’ as business expenditure 

  • Any surcharge or cess ( for example: ’Health and Education Cess’ ) on income and profits is not allowable as business expenditure. 

  • Budget provided to provide for tax deduction by the person giving benefits, if the aggregate value of such benefits exceeds ` 20,000 during the financial year. This aims at reducing tax evasion in the name of business promotion strategy in which they transfer the income to the agent.

Reforms in SEZ:

        From  30 September 2022 onwards, the Customs Administration of SEZs will be fully IT driven and function on the Customs National Portal with a focus on higher facilitation and with only risk-based checks. This will ease doing business by SEZ units considerably. 




  • A graded rate structure of Customs duty rates is designed to facilitate domestic manufacturing of wearable devices, hearable devices and electronic smart meters. 

  • Duty concessions are also being given to parts of transformer of mobile phone chargers and camera lens of mobile camera module and certain other items.


Gems and Jewellery 

To give a boost to the Gems and Jewellery sector: 

  • Customs duty on cut and polished diamonds and gemstones is being reduced to 5 per cent. 

  • Simply sawn diamond would attract nil customs duty. 

  • A regulatory framework shall be implemented by June this year. 

  • To disincentivise import of undervalued imitation jewellery, the customs duty on imitation jewellery is being prescribed in a manner that a duty of at least Rs.400 per Kg is paid on its import. 



  • For promotion of exports, exemptions are being provided on items such as embellishment, trimming, fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging boxes that may be needed by bonafide exporters of handicrafts, textiles and leather garments, leather footwear and other goods. 

  • Duty is being reduced on certain inputs required for shrimp, aquaculture to promote its exports. 

Tariff measure to encourage blending of fuel 

  • To encourage the efforts for blending of fuel an additional differential excise duty of Rs 2/ litre from the 1 October 2022 have been imposed on unblended fuel 

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