- According to the Fiscal Policy statements the Nominal GGP is projected to grow at 15.4 % year-on-year (Y-o-Y) in FY2022-23 as against 19.5% in 2021-22. The real GDP is projected to grow by 7% (Y-o-Y) relative to 8.7% in 2021-22.
- Indian agriculture sector is projected to grow by 3.5 per cent in FY 2022-23.
- The industry sector to witness modest growth of 4.1 per cent in FY 2022-23 relative to 10.3 per cent in FY 2021-22.
- The services sector to rebound with y-o-y growth of 9.1% in FY 2022-23 over 8.4 % in 2021-22.
- Exports are estimated to grow at 12.5 per cent in FY 2022-23 despite sustained supply chain disruptions and an uncertain geopolitical environment.
Entering Amrit Kaal, the 25 year long lead up to India @100, the budget provides impetus for growth along four priorities:
- Economic Empowerment of Women: Deendayal Antyodaya Yojana National Rural Livelihood Mission has achieved remarkable success by mobilizing rural women into 81 lakh Self Help Groups and we will enable these groups to reach the next stage of economic empowerment through formation of large producer enterprises or collectives with each having several thousand members and managed professionally.
- PM VIshwakarma KAushal Samman (PM VIKAS): For centuries, traditional artisans and craftspeople, who work with their hands using tools, have brought renown for India and they are generally referred to as Vishwakarma. The art and handicraft created by them represents the true spirit of Atmanirbhar Bharat.
- Tourism: The promotion of tourism will be taken up on mission mode, with active participation of states, convergence of government programmes and public-private partnerships.
- Green Growth: India is implementing many programmes for green fuel, green energy, green farming, green mobility, green buildings, and green equipment, and policies for efficient use of energy across various economic sectors. These green growth efforts help in reducing carbon intensity of the economy and provides for largescale green job opportunities.
The seven priorities of the Union Budget that complement each other and act as the ‘Saptarishi’ guiding the nation through the Amrit Kaal are as follows:
- Inclusive Development
- Reaching the Last Mile
- Infrastructure and Investment
- Unleashing the Potential
- Green Growth
- Youth Power
- Financial Sector
Health, Education and Skilling
- taxpayers and the department.
Tax incentives to IFSC
- Subject to specified conditions, the following to be exempt from taxIncome of a non-resident from offshore derivative instruments.
- Income from over the counter derivatives issued by an offshore banking unit.
- Income from royalty and interest on account of lease of ship.
- Income received from portfolio management services in IFSC.
Rationalization of Surcharge
- Surcharge on AOPs (consortium formed to execute a contract) capped at 15 per cent.
- Done to reduce the disparity in surcharge between individual companies and AOPs.
- Surcharge on long term capital gains arising on transfer of any type of assets capped at 15 per cent.
- To give a boost to the start up community.
Health and Education Cess
Any surcharge or cess on income and profits not allowable as business expenditure.
Deterrence against tax-evasion
No set off, of any loss to be allowed against undisclosed income detected during search and survey operations.
Rationalizing TDS Provisions
- Benefits passed on to agents as business promotion strategy taxable in hands of agents.
- Tax deduction provided to person giving benefits, if the aggregate value of such benefits exceeds Rs 20,000 during the financial year.
Source : https://www.indiabudget.gov.in/