FM gives a ‘booster shot’ for growth, big digital push, no change in tax rate, slabs
■ Total govt spending set to be 4.6% more than current year ■ PM calls it ‘people-friendly’, brings ‘hope to all sections’ ■ GatiShakti plan has ‘7 engines’; Budget lays futuristic blueprint
The Union Budget 2022-23 presented by finance minister Nirmala Sitharaman on Tuesday brought smiles for some and worries for others, but the government claimed it was a booster shot Budget to push growth amid rising inflation and the ongoing uncertainties due to the Covid-19 pandemic. In order to create jobs, the government has taken a host of measures for a number of sectors in the Budget, especially in the social sector to benefit farmers, women, children, backward classes in rural areas and capital expenditure spending for key sectors such as defence, the railways, roads, housing, education, etc.
The government also laid emphasis on a big digital push by the rollout of digital currency, e-passports for individuals, 5G services, drone management for farmers’ crop assessment, etc. This is the fourth Budget tabled by Ms Sitharaman, which talks about futuristic micro-all-inclusive growth in welfare, digital economy, fintech and tech-enabled services. What the government has prioritised the most in this Budget are seven
I apologise for not being able to come out with any cut in the tax slabs. But there are times when the tax can be cut and there are times when the public will have to wait.
— Nirmala Sitharaman Finance minister
engines of growth in the PM’s “GatiShakti” plan, among others.
In a major taxation initiative, the government has introduced a “huge” 30 per cent tax from all incomes via digital assets, probably including the much talked-about crypto currency transactions. However, in a major disappointment for salaried individuals and the middle class, there is no tax concession for them, with the tax slabs and rates left unchanged.
In this Budget, the items that will now become cheaper include clothes, mobile phones and chargers, gemstones, diamonds, imitation jewellery, agriproducts, chemicals needed for petroleum products, steel scrap. What has become dearer included umbrellas and all imported items as the duty has been increased for these items.
In her budget speech, Ms Sitharaman said: “India’s growth is the highest among all major economies; we are now in a strong position to withstand challenges. This Budget continues to provide impetus for growth.