Budget 2022 decoded in 10 figures: here's all you need to know

In the Union Budget 2022, the government has made it clear that higher capital expenditure and continuous focus on infrastructure are the need of the hour to keep the growth rate on track. On the other hand, market watchers also believe that PM GatiShakti is a transformative approach for economic growth and sustainable development. Meanwhile, finance minister Nirmala Sitharaman announced a tax on digital assets, while she made no changes in income tax slabs. Below are key numbers you should know from Budget 2022.

1) Rs 39,44,909 crore: The government proposed to spend Rs 39,44,909 crore in 2022-23, while the total receipts other than borrowings are estimated at Rs 22,83,713 crore. As per the revised estimates, the government spent Rs 37,70,000 crore in 2021-22, 8.23 per cent higher than the budget estimate.

Ashishkumar Chauhan, MD & CEO, BSE said, “The Budget of 2022 is very balanced and continues the incremental growth-oriented approach of the last budget. In this budget, the finance minister provided a springboard for an investment cycle with the highest ever share of capex, focus on development of national manufacturing capabilities and clean energy, tax rationalisation with no new taxes while maintaining its continuous growth focus on “Aatmanirbhar Bharat”.”

2) Rs 65,000 crore: The government projected Rs 65,000 crore as disinvestment receipts for the financial year 2023. As per revised estimates, disinvestment receipts stood at Rs 78,000 crore in 2021-22, down 55 per cent than the budget estimates of Rs 1,75,000 crore.

3) Rs 7,50,246 crore: The Budget estimates for FY23 showed that the government proposed Rs 7,50,246 crore as capital expenditure for the year. The revised estimates for FY22 came at Rs 6,02,711 crore, up 8.75 per cent against budgeted estimate.

Vaibhav Agrawal, CIO and founder, Teji Mandi said, “With capex target of 7.50 lakh crore, and incentives and announcements across several different industries, the government is looking to revive growth in the economy. Sectors likely to benefit would be banking, infrastructure and manufacturing exports.”

4) 6.4 per cent: The revised fiscal deficit in the current year (FY22) is estimated at 6.9 per cent of GDP as against 6.8 per cent projected in the Budget Estimates. The fiscal deficit in 2022-23 is estimated at 6.4 per cent of GDP. The government has the target to reach a fiscal deficit level below 4.5 per cent by 2025-26.

Suman Chowdhury, chief analytical officer, Acuité Ratings & Research said, “The revised fiscal deficit is slightly higher than the budgeted print. In our opinion, this reflects the uncertainty on the LIC IPO and also the backloaded revenue and capital expenditure in FY22. With the significant jump in outlay for capex in FY23, the reduction in the fiscal deficit is budgeted to be only moderate at 6.4 per cent next year. This will imply a significant quantum of gross government borrowings as in the current year and will maintain the firmness in bond yields which have already seen a spike."
 

5) 30 per cent: Any income from the transfer of any virtual digital asset shall be taxed at the rate of 30 per cent. FM further said that no deduction in respect of any expenditure or allowance shall be allowed while computing such income except the cost of acquisition. Further, loss from the transfer of virtual digital assets cannot be set off against any other income. The gift of virtual digital asset is also proposed to be taxed in the hands of the recipient, Nirmala Sitharaman said.

6) Rs 48,000 crore: The FM said that around 80 lakh houses will be completed for the identified eligible beneficiaries of PM Awas Yojana, both rural and urban in FY23. For same, Rs 48,000 crore is allocated for this purpose.

7) 25,000 Km: Sitharaman also added that PM GatiShakti Master Plan for Expressways will be formulated in 2022-23 to facilitate faster movement of people and goods. “The National Highways network will be expanded by 25,000 km in 2022-23. Rs 20,000 crore will be mobilised through innovative ways of financing to complement the public resources,” she said.

Chowdhury of Acuité Ratings & Research said, “As expected, infrastructure development is a focus area of Union Budget 2022. The initiatives under infrastructure have been largely grouped under “PM Gati Shakti Master Plan”. The thrust on the faster movement of goods and people will clearly have a positive impact on easing supply constraints and improving export competitiveness. What is noteworthy is the investment in cargo terminals, logistic parks, railways modernisation and importantly, the integration between the transport systems.”

8) 15 per cent : The long-term capital gains on listed equity shares or units are liable to a maximum surcharge of 15 per cent, while the other long term capital gains are subjected to a graded surcharge which goes up to 37 per cent.

9) 75: The FM proposed to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled Commercial Banks.

Commenting on the announcement, Nilaya Varma, co-founder and CEO, Primus Partners said, “75 Digital Banking Units in 75 Districts by Scheduled Commercial Banks is a welcome step. These baby steps need to pave the way for unleashing new banking models which are 100 per cent digital, provides better services, lower cost of lending and higher returns to the depositors.”

10) Rs 19,500 crore: To strengthen domestic manufacturing for the ambitious goal of 280 GW of installed solar capacity by 2030, an additional allocation of Rs 19,500 crore for Production Linked Incentive for the manufacture of high-efficiency modules, with priority to fully integrated manufacturing units from polysilicon to solar PV modules, will be made.

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