Tue, 01 February 2022
Budget Live! Sitharaman introduces Finance Bill 2022
13:42 Sitharaman introduces Finance Bill 2022
Union Finance Minister Nirmala Sitharaman introduced the Finance Bill 2022 in Parliament on Tuesday following which the Lok Sabha has been adjourned till tomorrow.
The Finance Bill 2022 will give effect to the financial proposals of the central government for the financial year 2022-23.
The Union Budget delivered today in Parliament was the fourth presented by Sitharaman.
In her address today, Sitharaman said that Goods and Services Tax played a remarkable reform in India's GDP.
"GST revenues are buoyant despite the pandemic, gross GST collection for the month of January are over Rs 1.4 lakh crore. The highest since the inception of GST," she said.
Taking together with provision for the creation of capital assets through grants and aids to states, the minister said, "Effective capital expenditure of central government is estimated at Rs 10.68 lakh crore in 2022-23, which will be around 4.1 per cent of GDP."
The minister also spoke about the introduction of a central bank digital currency that will give boost to digital economy and thereby lead to cheaper currency management system. Blockchain and other technologies will be used by RBI to issue the same from 2022, the finance minister said.
12:26 TDS limits for state govt employees raised to 14%
Among other announcements made by Finance Minister Sitharaman are:
Both Centre and states govt employees' tax deduction limit to be increased from 10% to 14% to help the social security benefits of state govt employees and bring them at par with the Central govt employees
Any income from transfer of any virtual digital asset shall be taxed at the rate of 30%. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except cost of acquisition
12:17 Data storage, energy solutions get infra status
Among other announcements made by Finance Minister Sitharaman are:
- For 2022-23, allocation is Rs 1 lakh cr to assist the states in catalysing overall investments in economy. These 50-yr interest-free loans are over and above normal borrowings allowed to states. It will be used for PM Gati Shakti-related ad other productive capital investments of states
- 4 pilot projects for coal gasification to be set up
- Measures will be taken to step up private capital in infra sector
- Data centre and energy storage system to be given infrastructure status; move to provide easy financing
- Sovereign green bonds to be issued to mobilise resources as part of govt's borrowing programme
- World-class university to be allowed in GIFT IFSC free from domestic regulation
- International arbitration centre will be set up in GIFT city to provide faster dispute resolution
12:07 Voluntary exit for corporates cut to 6 months
Other announcements made by Finance Minister Sitharaman are:
Low carbon development strategy opens up employment opportunity
Rs 19,500 cr additional allocation for PLI for manufacturing high efficiency solar modules has been made
Contracts for laying of optical fibre net to all villages under BharatNet to be provided under PPP mode
Voluntary exit for corporates to be cut down to 6 months from 2 years
Spectrum auction will be conducted to roll out 5G mobile services within 2022-23 by private firms
12:00 E-passport with embedded chip to be rolled out
Among other announcements made by Finance Minister Sitharaman are:
A completely paperless, e-bill system will be launched by ministries for procurement
5 existing academic institutions for urban planning to be designated as Centre for Excellence with endowment fund of Rs 250 cr
75,000 compliances have been eliminated and 1,486 union laws repealed to make it easier for businesses
E-passport with embedded chip will be rolled out
Effective Capital Expenditure of the central government is estimated at Rs 10.68 lakh crores in 2022-23, about 4.1% of GDP
68% of the capital procurement budget for Defence to be earmarked for domestic industry to promote Aatmanirbharta and reduce dependence on imports of defence equipment. This is up from the 58% last fiscal
11:56 All post offices to be linked to banks
All post offices to be linked with Core Banking Solution to push financial inclusion, Finance Minister Sitharaman announced in her Budget speech on Tuesday, and 75 digital banks in 75 districts will be set up by scheduled commercial banks to encourage digital payments.
Among other announcements she made are:
Next phase of ease of doing business, ease of living to be launched
Data exchange among all-mode operators to be brought in on unified logistics interface platform to enable efficient movement of goods
Villages on northern border of India will be covered under a new vibrant village programme to enhance development
To reduce the delay in payment, an online bill system to be launched which will be used by all central ministries
Animation, Visual Effects, Gaming and Comics (AVGC) sector offers immense potential to employ youth. An AVGC promotion task force with all stakeholders will be set up to recommend ways to realise this and build domestic capacity for serving our markets and the global demand
Fund to be facilitated through NABARD to finance startups for agriculture and rural enterprise, relevant for farm produce value chain. Startups will support FPOs and provide tech to farmers
11:52 Special economic zones to be replaced: FM
Special Economic Zones to be replaced with new legislation, announced Sitharaman, for the development of enterprise and hubs. It will cover the existing industrial enclaves and enhance the competitiveness of exports.
Among other announcements made by her are:
- 2 lakh Anganwadis to be upgraded for improving child health
- Digital university to be set up to provide education; to be built on hub and spoke model
- Natural farming will be promoted along Ganga river corridor
- To promote a shift to the use of public transport in urban areas, special mobility zones with zero fossil fuel policy to be introduced
- Considering space constraints in urban areas, a 'Battery Swapping Policy' will be brought in
- The pandemic has accentuated mental health problems in people of all ages. To better the access to quality mental health counseling and care services, a National Tele Mental Health programme will be launched. This will include a network of 23 tele mental health centres of excellence with Nimhans being the nodal centre and IIIT Bangalore providing technology support
- 80 lakh affordable houses will be completed at Rs 44,000 cr under PM Awas Yojna in 2022-23
11:42 National digital health platform to be rolled out
An open platform for the National Digital Health Ecosystem will be rolled out. It will consist of digital registries of health providers and health facilities, unique health identity and universal access to health facilities, Sitharaman announced.
Our government has comprehensively revamped schemes of the ministry of women and child development such as Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0 to provide benefits.
Other announcements she made are:
'One class, one TV channel' program of PM eVIDYA will be expanded from 12 to 200 TV channels. This will enable all states to provide supplementary education in regional languages for classes 1 to 12.
MSMEs such as Udyam, e-shram, NCS & Aseem portals will be interlinked,their scope will be widened. They will now perform as portals with live organic databases providing G-C, B-C & B-B services such as credit facilitation, enhancing entrepreneurial opportunities.
Kisan drones for crop assessment, land records, spraying of insecticides expected to drive a wave of technology in agri sector.
Desh stack e-portal to be launched to promote digital infra. One Station One Product to be popularised to help local businesses and supply chains.
2,000 km of #Rail network to be brought under the indigenous world-class technology KAWACH, for safety and capacity augmentation Rs 6,000 crore programme to rate MSMEs to be rolled out over 5 years.
Govt to pay Rs 2.37 lakh crore towards procurement of wheat and paddy under MSP operations.
11:39 Livelihood boost for women, youth in NE:FM
PM development initiatives for the North-East will be implemented for the North Eastern Council, which will enable livelihood activities for youth and women. The scheme is not a substitute for the existing Centre or state schemes, Sitharaman announced.
11:28 ECLGS scheme to be extended till March 23
- Among other announcements made by Finance Minister Sitharman in her Budget speech are:
- Railways will develop new products for small farmers and MSMEs.
- Contracts for multi-modal parks at 4 locations to be awarded next fiscal.
- ECLGS scheme to be extended till March 2023 and guarantee cover expanded by Rs 50,000 to Rs 5 lakh cr.
- A rationalised scheme to increase domestic oilseed production will be brought in to cut down imports.
- 2022-23 has been announced as International Year of Millets.
- PM Gati Shakti for road transport masterplan to be finalised in 2022-23. PM Gati Shakti is driven by 7 engines: roads, railways, airports, ports, mass transport, waterways. logistics infra, and all 7 engines will pull forward the economy in unison supported by energy transmission, IT communication, bulk water and sewerage and social infra.
11:23 National highways to be extended by 25,000 km in 22-23
Among other announcements made by the finance minister in her budget speech are:
- National Highways will be extended by 25,000 km during 2022-23.
- One product one railway station will be popularised, 400 new Vande Bharat trains to be introduced.
- Strategic buyers for NINL have been selected.
- National Bank for Infrastructure Development, National Asset Reconstruction Company have commenced activities.
11:19 PLI scheme has potential to create 60 lakh jobs: FM
The Production Linked Incentive (PLI) scheme for achieving AatmaNirbhar Bharat has received excellent response, with the potential to create 60 lakh new jobs and additional production of 30 lakh crore during next years, Sitharaman says in her Budget speech.
11:17 Budget to steer India for 25 years: FM
Strengthening of health infra, speedy vaccination programme implementation and nationwide resilient response to current wave of Covid pandmic are evident to all, says Sitharaman in her Budget 2022 speech.
Budget 2022 seeks to lay the foundation to steer the economy over Amrit Kaal of next 25 years, from India at 75 to India at 100, continuing to build on the vision of Budget 2021, she says.
11:04 In the midst of an Omicron wave, says FM
FM Nirmala Sitharaman begins her Budget speech with empathising with those who have suffered the effects of the pandemic.
'We are in the midst of an Omicron wave,' she tells Parliament. We are however in a strong position to withstand the impact, Sitharaman says.
10:59 Sitharaman begins reading out Budget speech
Finance Minister Nirmala Sitharaman begins her keenly-awaited Budget speech in Parliament.
This is Sitharaman's 4th Union Budget, and the Narendra Modi government's 10th Budget.
The Budget documents usually include the finance minister's speech in Parliament, highlights, annual financial statement, finance bill containing tax proposals, memorandum explaining the provisions in the financial bill, and macroeconomic framework statement.
They also include the medium-term fiscal policy cum fiscal policy strategy statement, outcome framework for schemes, customs notification, implementation of previous Budget announcements, receipt budget, expenditure budget and statement of budget estimates.
You can also watch the live streaming of Union Budget 2022 on Rediff.com, here.
10:43 Union Cabinet approves Budget 2022
The Union Cabinet at its meeting in Parliament has approved the Uinon Budget 2022-23 to be presented by Finance Minister Nirmala Sitharaman.
Earlier today, Sitharaman met President Ram Nath Kovind ahead of the Budget presentation. She was accompanied by Ministers of State for Finance Pankaj Chaudhary, Bhagwat Karad and other officials from the ministry.
The Budget speech will begin at around 11 am today with Sitharaman beginning it with an address to the speaker of Lok Sabha. Usually, the duration of the presentation ranges from 90 to 120 minutes.
10:36 Sitharaman carries tablet in red pouch
Finance Minister Nirmala Sitharaman on Tuesday again took a digital tablet wrapped in a traditional bahi-khata style pouch as she headed for Parliament to present the Union Budget 2022-23 in a paperless format just like the last year.
She posed for the traditional 'briefcase' picture outside her office along with her team of officials before heading to meet the President.
he, however, was holding a tablet instead of a briefcase to present the Budget in a digital format.
"#AatmanirbharBharatKaBudget | From 'Bahi Khata' to Made in India' Tablet Finance Minister @nsitharaman carrying the Budget in the #paperless format in a tablet kept inside a red cover with National Emblem embossed on it instead of the briefcase or 'Bahi Khata'," Digital India tweeted.
With the tablet carefully kept inside a red coloured cover with a golden coloured national emblem embossed on it instead of the briefcase, she went straight to Parliament after meeting the President at Rashtrapati Bhawan.
Sitharaman, India's first full-time woman finance minister, had in July 2019 ditched the colonial legacy of a Budget briefcase for the traditional Bahi-Khata to carry Union Budget Papers.
She used the same in the following year, and in a pandemic-hit 2021, she swapped traditional papers with a digital tablet for carrying her speech as well as other Budget documents.
Her Budget for the fiscal year beginning April 2022 (FY2022-23) is the Modi government's 10th straight Budget since 2014 (including one interim Budget presented ahead of general elections in 2019).
10:30 PM Modi, other ministers arrive for Cabinet meet
Prime Minister Narendra Modi arrives in Parliament for the Union Cabinet meeting ahead of the presentation of Union Budget 2022.
Defence Minister Rajnath Singh, Union Home Minister Amit Shah, Railways, Communications and IT Minister Ashwini Vaishnaw and Parliamentary Affairs Minister Pralhad Joshi were among other ministers who have arrived for the Cabinet meet.
10:21 Key numbers to watch for in Budget 2022
Finance Minister Nirmala Sitharaman will be presenting her fourth Budget that will aim at maintaining the world's fastest-growing economy tag for India.
Here are the key numbers to watch out for in the Budget for 2022-23, which is widely expected to boost spending towards policies that create jobs, boost manufacturing, helping rural and agri-economy and infrastructure creation.
Sitharaman, who had in her first budget in 2019 replaced leather briefcase -- which had been in use for decades for carrying budget documents -- with a traditional red cloth bahi-khata, has spurt in tax collections to her aid in the budget that is expected to a spend-all budget.
* COVID spending: India had started the world's largest COVID inoculation programme on January 16, 2021. The expenditure on vaccination this fiscal, as well as in the next would be the most-watched figures in the Budget. The Budget estimate for vaccine expenditure for the current fiscal was Rs 35,000 crore.
* Fiscal Deficit: The budgeted fiscal deficit, which is the difference between the government expenditure and income, for the current fiscal ending March 2021 is 6.8 per cent, against 9.3 per cent in the last fiscal. The number for the 2022-23 fiscal would be in focus.
* Disinvestment/Privatisation: The government has rarely met the high disinvestment targets set in Budgets. With a focus on privatisation and keeping in mind fiscal consolidation and capital expenditure, the number would be closely watched.
* Capital Expenditure: The government's planned capital expenditure for this fiscal is budgeted at over Rs 5.5 lakh crore. The government has to push infrastructure creation and this number would be in focus for the next fiscal too.
* Tax revenue: The government has budgeted a 9.5 per cent growth in tax collections at Rs 22.2 lakh crore for the 2021-22 fiscal (April-March, 2022). With Economic Survey projecting a GDP growth of 8-8.5 per cent in the next fiscal, the buoyancy in tax revenue too would be closely watched.
* Borrowing: The government's gross borrowing budget was at Rs 12.05 lakh crore, while net borrowing was pegged at Rs 9.37 lakh crore in the current financial year ending March 31. The government borrows from the market to fund its fiscal deficit and the borrowing number would be watched by the market, especially on the back of expected higher capital expenditures to boost growth.
Photo: Courtesy, Adnan Abidi/Reuters
07:52 All eyes on Nirmala Sitharaman today
Finance Minister Nirmala Sitharaman will present the Union Budget for the year 2022-23 in Parliament today at 11 am.
The Budget session of Parliament began on Monday with the address by President Ram Nath Kovind to both Houses in the Central Hall.
The finance minister tabled this year's Economic Survey, which was centred around the theme of 'Agile approach'.
"The session is scheduled to conclude on April 8 wherein the first part of the session will extend up to February 11," said the Lok Sabha Secretariat on Sunday.
"There will be a break from February 12 to March 13 during which the standing committees will examine demands-for-grants of ministries/departments and prepare reports thereon. In all, there will be 29 sittings; 10 in the first part and 19 in the second part," the Lok Sabha Secretariat's press release stated.
From February 2 to February 11, the House is scheduled to sit from 4 pm to 9 pm.
Thus, five hours have been scheduled per sitting during the first part of the Budget Session. There will be no Zero Hour and Question Hour in both Houses of Parliament during the first two days of the Budget Session.