Reuters has unveiled a budget to boost growth in India

By Alasdair Pal

NEW DELHI (Reuters) – India’s Finance Minister Nirmala Sitharaman on Tuesday unveiled a budget for 2022-23 aimed at boosting growth, amid the continued disruption of COVID-19 and rising inflation.

These are the highlights of Sitharaman’s 2022-23 budget:

DEFICIENCY / EXPENDITURE

* Proposes a fiscal deficit of 4.5% of GDP for 26/25/2025

* Predicts a fiscal deficit of 6.4% of GDP in 2022/23

* Revised fiscal deficit for 2021/22 at 6.9% of GDP

* The total expenditure in 2022/23 was Rs 39.45 trillion

* States will allow a 4% fiscal deficit to GDP in the 23rd year

* 50-year interest-free loans above the ordinary loan allocated to the states

* The financial aid scheme for state capital expenditures will be Rs 1 trillion in 2022/23.

FINANCE

* The guarantee scheme for emergency credit lines for small and medium-sized businesses will be extended until March 2023

* Energy transition and climate action will be key government priorities

* The public issuance of the Life Insurance Corporation is expected soon

* Appropriate allocations have been made to this year’s budget initiatives in this budget

* The Special Economic Areas Act will be replaced by a new law

* Modify the bankruptcy code to speed up the resolution process

* The aim is to reduce the liquidation of companies from 2 years to 6 months

* The long-term profit surcharge will be limited to 15%

DIGITAL CURRENCY

* Using blockchain technology to launch digital rupee from 2022/23

* Implement the tax scheme for digital digital assets

* Losses from the sale of virtual digital assets cannot be offset against other income

* Income from virtual digital assets will be taxed at 30%

DEFENSE

* The government pledged to reduce defense imports

INFRASTRUCTURES

* Auctions of the 5G spectrum will be held in 2022

* The 5G design-oriented manufacturing scheme will be part of the production-related scheme

* Award of contracts for the installation of fiber optics in rural areas, completed in 2025

* Rs 480 billion was put into affordable housing in 2022/23

* Allocate Rs 195 billion to increase production incentives for the manufacture of solar equipment

AGRICULTURE

* An internal scheme was established to reduce dependence on oilseed imports

* Fund with mixed capital raised according to the investment model to finance agricultural startups

* Railways for the development of infrastructure for small farmers in 2022/23

TRANSPORT

* 400 energy-efficient trains will be manufactured over the next three years

* On 2022/23, the 25,000-kilometer national motorway network will be expanded

* The widening of the highways will cost Rs 200 billion in 2022/23

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