Question – On February 1, 2022, Union Finance and Corporate Affairs Minister, Nirmala Sitharaman presented the Union Budget for the financial year 2022-23 in the Parliament. Consider the following statements concerning the union budget.
(i) According to this, Digital Rupee will be launched by the Reserve Bank of India in the year 2022-23.
(ii) The economic growth rate of the country is estimated to be 9.2 per cent in the current financial year.
(iii) It is proposed to cover 1.5 lakh post offices 100% in the main banking system.
(iv) It is proposed to increase the limit of deduction of tax on employer’s contribution to the NPS account of state government employees from 10 per cent to 14 per cent.
Which of the above statement(s) is/are correct?
(a)only (i)‚(ii) and (iii)
(b) only (i) and (vi)
(c) only (iii) and (iv)
(d) All of the above
Answer—(d)
Related facts
- Finance Minister Nirmala Sitharaman on February 1 presented the Union Budget 2022.
- The government has projected growth at 8% to 8.5% compared with an estimated 9.2% for the current fiscal year and a 6.6% contraction the previous year.
- India’s economy had been faltering even before the Covid-19 pandemic struck. The pace of growth had slowed down and output had started declining. The Covid-19 pandemic pushed gross domestic product (GDP) to its worst levels ever. India experienced its first-ever technical recession in the financial year 2020-21 with two successive quarters of negative growth.
- Major Highlights of Union Budget in a nutshell:
- There is no change in personal income tax slabs.
- ” Virtual digital asset: The government has proposed to issue a Digital Rupee, or Central Bank Digital Currency (CBDC), in the fiscal year 2022-23.
- ” Additionally, the Budget also proposed imposing a tax of 30 per cent on virtual assets, effectively legitimising trading of private cryptocurrencies and non-fungible tokens.
- ” This is broadly in line with the Centre’s plans to have a fiat digital currency, while disallowing use of private virtual coins as legal tender.
- A TDS of 1% will be levied for transactions above a certain threshold.
- No deductions and new scheme, titled PM Atma Nirbhar Swasthya Bharat Yojana, to be launched to develop primary, secondary and tertiary healthcare .
- Mission POSHAN 2.0: It is to improve nutritional outcomes across 112 aspirational districts .
- There will be operationalisation of 17 new public health units at points of entry .
- 100 new Sainik Schools is to be set up.
- 750 Eklavya schools are to be set up in tribal areas.
- A Central University will come up in Ladakh .
- There will be a Vehicle scrapping policy to phase out old and unfit vehicles – all vehicles to undergo a fitness test in automated fitness centres every 20 years (personal vehicles), every 15 years (commercial vehicles) .
- National Asset Monetising Pipeline launched to monitor asset monetisation process.
- National Rail Plan created to bring a future-ready Railway system by 2030 .
- 100% electrification of Railways to be completed by 2023.
- It is proposed to cover 1.5 lakh post offices 100% in the main banking system.
- It is proposed to increase the limit of deduction of tax on employer’s contribution to the NPS account of state government employees from 10 per cent to 14 per cent.
- Metro services announced in 27 cities, plus additional allocations for Kochi Metro, Chennai Metro Phase 2, Bengaluru Metro Phase 2A and B, Nashik and Nagpur Metros .
- National Hydrogen Mission to be launched to generate hydrogen from green power sources .
- Recycling capacity of ports to be doubled by 2024 .
- Gas pipeline project to be set up in Jammu and Kashmir .
- Pradhan Mantri Ujjwala Yojana (LPG scheme) to be extended to cover 1 crore more beneficiaries .
- No IT filing for people above 75 years who get pension and earn interest from deposits
- Reopening window for IT assessment cases reduced from 6 to 3 years. However, in case of serious tax evasion cases (Rs. 50 lakh or more), it can go up to 10 years .
- Affordable housing projects to get a tax holiday for one year .
- Compliance burden of small trusts whose annual receipts does not exceed Rs. 5 crore to be eased .
- Duty of copper scrap reduced to 2.5% .
- Custom duty on gold and silver to be rationalised .
- Duty on naphtha reduced to 2.5%.
- Duty on solar inverters raised from 5% to 20%, and on solar lanterns from 5% to 15% .
- All nylon products charged with 5% customs duty .
- Tunnel boring machines to attract customs duty of 7% .
- Customs duty on cotton raised from 0 to 10% .
- Agriculture infrastructure and development cess proposed on certain items including urea, apples, crude soyabean and sunflower oil, crude palm oil, kabuli chana and peas.
- Fiscal deficit stands at 9.5% of the GDP; estimated to be 6.8% in 2021-22
- Proposal to allow States to raise borrowings up to 4% of GSDP this year .
- A Unified Securities Market Code to be created, consolidating provisions of the Sebi Act, Depositories Act, and two other laws .
- Proposal to increase FDI limit from 49% to 74% .
- An asset reconstruction company will be set up to take over stressed loans .
- Deposit insurance increased from Rs 1 lakh to Rs 5 lakh for bank depositors .
- Proposal to decriminalise Limited Liability Partnership Act of 2008 .
- Two PSU bank and one general insurance firm to be disinvested this year .
- An IPO of LIC to debut this fiscal .
- Strategic sale of BPCL, IDBI Bank, Air India to be completed .
- Agriculture infrastructure fund to be made available for APMCs for augmenting their infrastructure .
- 1,000 more Mandis to be integrated into the E-NAM market place .
- Five major fishing hubs, including Chennai, Kochi and Paradip, to be developed .
- A multipurpose seaweed park to be established in Tamil Nadu .
- A portal to be launched to maintain information on gig workers and construction workers .
- Social security to be extended to gig and platform workers .
- Margin capital required for loans via Stand-up India scheme reduced from 25% to 15% for SCs, STs and women.
- 400 new generation Vande Bharat trains to be manufactured in next 3 years.
By: AMIT GUPTA