UNION BUDGET 2022-23 Analysis | UPSC

      HEADLINES:

UNION BUDGET 2022-23 Analysis

      WHY IN NEWS:

SUMMARY OF UNION BUDGET 2022-23

MINISTRY? :-Ministry of Finance
SYLLABUS COVERED: GS 2 : Budget

      ISSUE: 

UNION BUDGET 2022-23 ANALYSIS

  • India’s economic growth in the current year is estimated to be 9.2 per cent, highest among all large economies.
  • The overall, sharp rebound and recovery of the economy from the adverse effects of the pandemic is reflective of our country’s strong resilience.

UNION BUDGET 2022-23 Analysis | UPSC

SOURCES : PIB

India aims to attain the vision of  Prime Minister outlined in his Independence Day address and they are:

  • Complementing the macro-economic level growth focus with a micro-economic level all-inclusive welfare focus.
  • Promoting digital economy  & fintech, technology enabled development, energy transition, and climate action, and
  • Relying on virtuous cycle starting from private investment with public capital investment helping to crowd-in private investment.

  • FM informed that the Productivity Linked Incentive in 14 sectors for achieving the vision of AtmaNirbhar Bharat has received excellent response, with potential to create 60 lakh new jobs, and an additional production of  Rs 30 lakh crore during next 5 years.

VISION

India at 100 shall be guided by PM GatiShakti and be benefited by the synergy of multi-modal approach. FM outlined the following four priorities:

  • PM GatiShakti
  • Inclusive Development
  • Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition, and Climate Action
  • Financing of Investments

PM GATISHAKTI

  • PM GatiShakti is a transformative approach for economic growth and sustainable development.
  • The approach is driven by seven engines, namely, Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure.
  • All seven engines will pull forward the economy in unison.
  • These engines are supported by the complementary roles of Energy Transmission, IT Communication, Bulk Water & Sewerage, and Social Infrastructure.
  • Finally, the approach is powered by Clean Energy and Sabka Prayas – the efforts of the Central Government, the state governments, and the private sector together – leading to huge job and entrepreneurial opportunities for all.

UNION BUDGET

SOURCES : PIB

  • Similarly, PM GatiShakti Master Plan for Expressways will be formulated in 2022-23 to facilitate faster movement of people and goods.
  • The National Highways network will be expanded by 25,000 km in 2022-23 and Rs 20,000 crore will be mobilized through innovative ways of financing to complement the public resources.

AGRICULTURE

  • FM informed that Chemical-free Natural Farming will be promoted throughout the country, with a focus on farmers’ lands in 5-km wide corridors along river Ganga, at the first stage.
  • Use of ‘Kisan Drones’ will be promoted for crop assessment, digitization of land records, spraying of insecticides, and nutrients.
  • To reduce dependence on import of oilseeds, a rationalised and comprehensive scheme to increase domestic production of oilseeds will be implemented.

UNION BUDGET 2022-23

SOURCES : PIB

  • The Ken-Betwa Link Project, at an estimated cost of Rs 44,605 crore will be taken up aimed at providing irrigation benefits to 9.08 lakh hectare of farmers’ lands, drinking water supply for 62 lakh people, 103 MW of Hydro, and 27 MW of solar power.

MSME

  • The FM underlined that the Emergency Credit Line Guarantee Scheme (ECLGS) has provided much-needed additional credit to more than 130 lakh MSMEs to help them mitigate the adverse impact of the pandemic.
  • Its guarantee cover will be expanded by Rs 50,000 crore to total cover of Rs 5 lakh crore, with the additional amount being earmarked exclusively for the hospitality and related enterprises.
  • Similarly, Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme will be revamped with required infusion of funds.
  • This will facilitate additional credit of Rs 2 lakh crore for Micro and Small Enterprises and expand employment opportunities.

  • Udyam, e-Shram, NCS and ASEEM portals will be interlinked and their scope will be widened.

EDUCATION

  • Dwelling on the subject of Skill development and Quality Education, the Finance Minister said that Startups will be promoted to facilitate ‘Drone Shakti’ through varied applications and for Drone-As-A-Service (DrAAS).

  • 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.
  • This will be made available in different Indian languages and ICT formats.
  • The University will be built on a networked hub-spoke model, with the hub building cutting edge ICT expertise.

Budget UPSC

SOURCES : PIB

HEALTH

  • An open platform for the National Digital Health Ecosystem will be rolled out and it will consist of digital registries of health providers and health facilities, unique health identity, consent framework, and universal access to health facilities.

  • This will include a network of 23 tele-mental health centres of excellence, with NIMHANS being the nodal centre and International Institute of Information Technology-Bangalore (IIITB) providing technology support.

DEFENCE

On the Defence front, the Government reiterates committed to reducing imports and promoting AtmaNirbharta in equipment for the Armed Forces.

  • 68 per cent of the capital procurement budget will be earmarked for domestic industry in 2022-23, up from 58 per cent in 2021-22.
  • Defence R&D will be opened up for industry, startups and academia with 25 per cent of defence R&D budget earmarked.

FINANCE

  • Sovereign Green Bonds will be issued for mobilizing resources for green infrastructure.
  • The proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy.

The Government proposed to introduce Digital Rupee, using blockchain and other technologies, to be issued by the Reserve Bank of India starting 2022-23 for more efficient and cheaper currency management system.

  • The Central Government enhanced the outlay for the ‘Scheme for Financial Assistance to States for Capital Investment’ from Rs 10,000 crore in the Budget Estimates to Rs 15,000 crore in the Revised Estimates for the current year.
  • Moreover, for 2022-23, the allocation is Rs 1 lakh crore to assist the states in catalysing overall investments in the economy.

TAXATION

  • Rationalization of exemptions on implements and tools for agri sector manufactured in India will be undertaken.
  • Customs duty exemption to steel scrap will be extended. Unblended fuel will attract additional differential excise duty.
  • Customs duty on certain critical chemicals namely methanol, acetic acid and heavy feed stocks for petroleum refining are being reduced, while duty is being raised on sodium cyanide for which adequate domestic capacity exists.
  •  Duty on umbrellas is being raised to 20 per cent. Exemption to parts of umbrellas is being withdrawn.
  • Certain Anti- dumping and CVD on stainless steel and coated steel flat products, bars of alloy steel and high-speed steel are being revoked.

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

      IASbhai WINDUP: 

  • 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.
  • To facilitate export of jewellery through e-commerce, a simplified 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.
     SOURCES:   PIB  | UNION BUDGET 2022-23 Analysis | UPSC

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