Finance Minister's Budget Speech 2022-23 | Indian Economy for UPSC CSE PDF Download

 Page 1


GOVERNMENT OF INDIA
BUDGET 2022-2023
SPEECH
OF
NIRMALA SITHARAMAN
MINISTER OF FINANCE
February 1,  2022
Page 2


GOVERNMENT OF INDIA
BUDGET 2022-2023
SPEECH
OF
NIRMALA SITHARAMAN
MINISTER OF FINANCE
February 1,  2022
CONTENTS 
PART-A 
 Page No. 
? Introduction 1 
? PM GatiShakti 3 
? Inclusive Development  5 
? Productivity Enhancement & Investment, Sunrise Opportunities, Energy 
Transition & Climate Action 
11 
? Financing of Investments 17 
? Fiscal Management 20 
  
PART B 
Direct Tax Proposals 21 
? Introducing new ‘Updated return’  
? Reduced Alternate minimum tax rate and Surcharge for Cooperatives  
? Tax relief to persons with disability  
? Parity between employees of State and Central government  
? Incentives for Start-ups  
? Incentives for newly incorporated manufacturing entities under 
concessional tax regime 
 
? Scheme for taxation of virtual digital assets  
? Litigation management to avoid repetitive appeals by the Department  
? Tax incentives to IFSC  
? Rationalization of Surcharge   
? Clarification in relation to ‘Health and Education cess’ as business 
expenditure 
 
? Deterrence against tax-evasion:   
? Rationalizing TDS Provisions    
  
Indirect Taxes 25 
? Remarkable progress in GST:   
? Special Economic Zones:   
? Customs Reforms and duty rate changes   
? Project imports and capital goods  
? Review of customs exemptions and tariff simplification  
? Electronics  
? Gems and Jewellery  
? Chemicals:  
? MSME  
? Exports  
? Tariff measure to encourage blending of fuel  
  
Annexures  
 Annexures to Part A of the Speech  
? Initial list of projects under PM DevINE 30 
? Statement of Extra Budgetary Resources (EBRs) (Govt. fully serviced 
bonds, NSSF loan and other resources) 
31 
 
Page 3


GOVERNMENT OF INDIA
BUDGET 2022-2023
SPEECH
OF
NIRMALA SITHARAMAN
MINISTER OF FINANCE
February 1,  2022
CONTENTS 
PART-A 
 Page No. 
? Introduction 1 
? PM GatiShakti 3 
? Inclusive Development  5 
? Productivity Enhancement & Investment, Sunrise Opportunities, Energy 
Transition & Climate Action 
11 
? Financing of Investments 17 
? Fiscal Management 20 
  
PART B 
Direct Tax Proposals 21 
? Introducing new ‘Updated return’  
? Reduced Alternate minimum tax rate and Surcharge for Cooperatives  
? Tax relief to persons with disability  
? Parity between employees of State and Central government  
? Incentives for Start-ups  
? Incentives for newly incorporated manufacturing entities under 
concessional tax regime 
 
? Scheme for taxation of virtual digital assets  
? Litigation management to avoid repetitive appeals by the Department  
? Tax incentives to IFSC  
? Rationalization of Surcharge   
? Clarification in relation to ‘Health and Education cess’ as business 
expenditure 
 
? Deterrence against tax-evasion:   
? Rationalizing TDS Provisions    
  
Indirect Taxes 25 
? Remarkable progress in GST:   
? Special Economic Zones:   
? Customs Reforms and duty rate changes   
? Project imports and capital goods  
? Review of customs exemptions and tariff simplification  
? Electronics  
? Gems and Jewellery  
? Chemicals:  
? MSME  
? Exports  
? Tariff measure to encourage blending of fuel  
  
Annexures  
 Annexures to Part A of the Speech  
? Initial list of projects under PM DevINE 30 
? Statement of Extra Budgetary Resources (EBRs) (Govt. fully serviced 
bonds, NSSF loan and other resources) 
31 
 
 
 
Budget 2022-2023 
 
Speech of 
Nirmala Sitharaman 
Minister of Finance 
February 1, 2022 
Hon’ble Speaker,  
I present the Budget for the year 2022-23.   
Introduction 
1. At the outset, I want to take a moment to express my empathy for 
those who had to bear adverse health and economic effects of the 
pandemic.  
2. The overall, sharp rebound and recovery of the economy is reflective 
of our country’s strong resilience. India’s economic growth in the current 
year is estimated to be 9.2 per cent, highest among all large economies.  
3. I recognise we are in the midst of an Omicron wave, with high 
incidence, but milder symptoms. Further, the speed and coverage of our 
vaccination campaign has helped greatly. With the accelerated 
improvement of health infrastructure in the past two years, we are in a 
strong position to withstand challenges.  I am confident that with Sabka 
Prayas we will continue our journey of strong growth. 
4. Hon’ble Speaker, we are marking Azadi ka Amrit Mahotsav, and 
have entered into Amrit Kaal, the 25-year-long leadup to India@100.  
Hon’ble Prime Minister in his Independence Day address had set-out the 
vision for India@100.   
5. By achieving certain goals during the Amrit Kaal, our government 
aims to attain the vision. They are: 
? Complementing the macro-economic level growth focus with a 
micro-economic level all-inclusive welfare focus, 
Page 4


GOVERNMENT OF INDIA
BUDGET 2022-2023
SPEECH
OF
NIRMALA SITHARAMAN
MINISTER OF FINANCE
February 1,  2022
CONTENTS 
PART-A 
 Page No. 
? Introduction 1 
? PM GatiShakti 3 
? Inclusive Development  5 
? Productivity Enhancement & Investment, Sunrise Opportunities, Energy 
Transition & Climate Action 
11 
? Financing of Investments 17 
? Fiscal Management 20 
  
PART B 
Direct Tax Proposals 21 
? Introducing new ‘Updated return’  
? Reduced Alternate minimum tax rate and Surcharge for Cooperatives  
? Tax relief to persons with disability  
? Parity between employees of State and Central government  
? Incentives for Start-ups  
? Incentives for newly incorporated manufacturing entities under 
concessional tax regime 
 
? Scheme for taxation of virtual digital assets  
? Litigation management to avoid repetitive appeals by the Department  
? Tax incentives to IFSC  
? Rationalization of Surcharge   
? Clarification in relation to ‘Health and Education cess’ as business 
expenditure 
 
? Deterrence against tax-evasion:   
? Rationalizing TDS Provisions    
  
Indirect Taxes 25 
? Remarkable progress in GST:   
? Special Economic Zones:   
? Customs Reforms and duty rate changes   
? Project imports and capital goods  
? Review of customs exemptions and tariff simplification  
? Electronics  
? Gems and Jewellery  
? Chemicals:  
? MSME  
? Exports  
? Tariff measure to encourage blending of fuel  
  
Annexures  
 Annexures to Part A of the Speech  
? Initial list of projects under PM DevINE 30 
? Statement of Extra Budgetary Resources (EBRs) (Govt. fully serviced 
bonds, NSSF loan and other resources) 
31 
 
 
 
Budget 2022-2023 
 
Speech of 
Nirmala Sitharaman 
Minister of Finance 
February 1, 2022 
Hon’ble Speaker,  
I present the Budget for the year 2022-23.   
Introduction 
1. At the outset, I want to take a moment to express my empathy for 
those who had to bear adverse health and economic effects of the 
pandemic.  
2. The overall, sharp rebound and recovery of the economy is reflective 
of our country’s strong resilience. India’s economic growth in the current 
year is estimated to be 9.2 per cent, highest among all large economies.  
3. I recognise we are in the midst of an Omicron wave, with high 
incidence, but milder symptoms. Further, the speed and coverage of our 
vaccination campaign has helped greatly. With the accelerated 
improvement of health infrastructure in the past two years, we are in a 
strong position to withstand challenges.  I am confident that with Sabka 
Prayas we will continue our journey of strong growth. 
4. Hon’ble Speaker, we are marking Azadi ka Amrit Mahotsav, and 
have entered into Amrit Kaal, the 25-year-long leadup to India@100.  
Hon’ble Prime Minister in his Independence Day address had set-out the 
vision for India@100.   
5. By achieving certain goals during the Amrit Kaal, our government 
aims to attain the vision. They are: 
? Complementing the macro-economic level growth focus with a 
micro-economic level all-inclusive welfare focus, 
2 
 
 
 
? Promoting digital economy & fintech, technology enabled 
development, energy transition, and climate action, and 
? Relying on virtuous cycle starting from private investment with 
public capital investment helping to crowd-in private 
investment. 
6. Since 2014 our government’s focus has been on empowerment of 
citizens, especially the poor and the marginalised. Measures have included 
programmes that have provided housing, electricity, cooking gas, and 
access to water. We also have programmes for ensuring financial inclusion 
and direct benefit transfers. We are committed to strengthening the 
abilities of the poor to tap all opportunities. Our government constantly 
strives to provide the necessary ecosystem for the middle classes – a vast 
and wide section which is populated across various middle-income brackets 
– to make use of the opportunities they so desire.  
7. This Budget seeks to lay the foundation and give a blueprint to steer 
the economy over the Amrit Kaal of the next 25 years – from India at 75 to 
India at 100. It continues to build on the vision drawn in the Budget of 2021-
22. Its fundamental tenets, which included transparency of financial 
statement and fiscal position, reflect the government’s intent, strengths, 
and challenges. This continues to guide us. 
8. The initiatives of the last year’s Budget have seen significant 
progress and have been provided with adequate allocations in this Budget 
as well.  
9. The strengthening of health infrastructure, speedy implementation 
of the vaccination programme, and the nation-wide resilient response to 
the current wave of the pandemic, are evident for all.  
10. The Productivity Linked Incentive in 14 sectors for achieving the 
vision of AtmaNirbhar Bharat has received excellent response, with 
potential to create 60 lakh new jobs, and an additional production of ` 30 
lakh crore during next 5 years.  
11. Towards implementation of the new Public Sector Enterprise policy, 
the strategic transfer of ownership of Air India has been completed. The 
strategic partner for NINL (Neelanchal Ispat Nigam Limited) has been 
selected. The public issue of the LIC is expected shortly. Others too are in 
the process for 2022-23.  
Page 5


GOVERNMENT OF INDIA
BUDGET 2022-2023
SPEECH
OF
NIRMALA SITHARAMAN
MINISTER OF FINANCE
February 1,  2022
CONTENTS 
PART-A 
 Page No. 
? Introduction 1 
? PM GatiShakti 3 
? Inclusive Development  5 
? Productivity Enhancement & Investment, Sunrise Opportunities, Energy 
Transition & Climate Action 
11 
? Financing of Investments 17 
? Fiscal Management 20 
  
PART B 
Direct Tax Proposals 21 
? Introducing new ‘Updated return’  
? Reduced Alternate minimum tax rate and Surcharge for Cooperatives  
? Tax relief to persons with disability  
? Parity between employees of State and Central government  
? Incentives for Start-ups  
? Incentives for newly incorporated manufacturing entities under 
concessional tax regime 
 
? Scheme for taxation of virtual digital assets  
? Litigation management to avoid repetitive appeals by the Department  
? Tax incentives to IFSC  
? Rationalization of Surcharge   
? Clarification in relation to ‘Health and Education cess’ as business 
expenditure 
 
? Deterrence against tax-evasion:   
? Rationalizing TDS Provisions    
  
Indirect Taxes 25 
? Remarkable progress in GST:   
? Special Economic Zones:   
? Customs Reforms and duty rate changes   
? Project imports and capital goods  
? Review of customs exemptions and tariff simplification  
? Electronics  
? Gems and Jewellery  
? Chemicals:  
? MSME  
? Exports  
? Tariff measure to encourage blending of fuel  
  
Annexures  
 Annexures to Part A of the Speech  
? Initial list of projects under PM DevINE 30 
? Statement of Extra Budgetary Resources (EBRs) (Govt. fully serviced 
bonds, NSSF loan and other resources) 
31 
 
 
 
Budget 2022-2023 
 
Speech of 
Nirmala Sitharaman 
Minister of Finance 
February 1, 2022 
Hon’ble Speaker,  
I present the Budget for the year 2022-23.   
Introduction 
1. At the outset, I want to take a moment to express my empathy for 
those who had to bear adverse health and economic effects of the 
pandemic.  
2. The overall, sharp rebound and recovery of the economy is reflective 
of our country’s strong resilience. India’s economic growth in the current 
year is estimated to be 9.2 per cent, highest among all large economies.  
3. I recognise we are in the midst of an Omicron wave, with high 
incidence, but milder symptoms. Further, the speed and coverage of our 
vaccination campaign has helped greatly. With the accelerated 
improvement of health infrastructure in the past two years, we are in a 
strong position to withstand challenges.  I am confident that with Sabka 
Prayas we will continue our journey of strong growth. 
4. Hon’ble Speaker, we are marking Azadi ka Amrit Mahotsav, and 
have entered into Amrit Kaal, the 25-year-long leadup to India@100.  
Hon’ble Prime Minister in his Independence Day address had set-out the 
vision for India@100.   
5. By achieving certain goals during the Amrit Kaal, our government 
aims to attain the vision. They are: 
? Complementing the macro-economic level growth focus with a 
micro-economic level all-inclusive welfare focus, 
2 
 
 
 
? Promoting digital economy & fintech, technology enabled 
development, energy transition, and climate action, and 
? Relying on virtuous cycle starting from private investment with 
public capital investment helping to crowd-in private 
investment. 
6. Since 2014 our government’s focus has been on empowerment of 
citizens, especially the poor and the marginalised. Measures have included 
programmes that have provided housing, electricity, cooking gas, and 
access to water. We also have programmes for ensuring financial inclusion 
and direct benefit transfers. We are committed to strengthening the 
abilities of the poor to tap all opportunities. Our government constantly 
strives to provide the necessary ecosystem for the middle classes – a vast 
and wide section which is populated across various middle-income brackets 
– to make use of the opportunities they so desire.  
7. This Budget seeks to lay the foundation and give a blueprint to steer 
the economy over the Amrit Kaal of the next 25 years – from India at 75 to 
India at 100. It continues to build on the vision drawn in the Budget of 2021-
22. Its fundamental tenets, which included transparency of financial 
statement and fiscal position, reflect the government’s intent, strengths, 
and challenges. This continues to guide us. 
8. The initiatives of the last year’s Budget have seen significant 
progress and have been provided with adequate allocations in this Budget 
as well.  
9. The strengthening of health infrastructure, speedy implementation 
of the vaccination programme, and the nation-wide resilient response to 
the current wave of the pandemic, are evident for all.  
10. The Productivity Linked Incentive in 14 sectors for achieving the 
vision of AtmaNirbhar Bharat has received excellent response, with 
potential to create 60 lakh new jobs, and an additional production of ` 30 
lakh crore during next 5 years.  
11. Towards implementation of the new Public Sector Enterprise policy, 
the strategic transfer of ownership of Air India has been completed. The 
strategic partner for NINL (Neelanchal Ispat Nigam Limited) has been 
selected. The public issue of the LIC is expected shortly. Others too are in 
the process for 2022-23.  
3 
 
 
 
12. The National Bank for Financing Infrastructure and Development 
(NaBFID) and National Asset Reconstruction Company have commenced 
their activities.    
13. Hon'ble Speaker sir, Budget 2021-22 had provided a sharp increase 
in provision for public investment or capital expenditure. Throughout the 
year, with the Hon'ble Prime Minister, guiding the implementation, our 
economic recovery is continuing to benefit from the multiplier effect.  
14. This Budget continues to provide impetus for growth. It lays a 
parallel track of (1) a blueprint for the Amrit Kaal, which is futuristic and 
inclusive. This will directly benefit our youth, women, farmers, the 
Scheduled Castes and the Scheduled Tribes. And (2) big public investment 
for modern infrastructure, readying for India at 100. This shall be guided by 
PM GatiShakti and be benefited by the synergy of multi-modal approach. 
Moving forward, on this parallel track, we lay the following four priorities:  
? PM GatiShakti 
? Inclusive Development 
? Productivity Enhancement & Investment, Sunrise 
Opportunities, Energy Transition, and Climate Action 
? Financing of Investments 
PM GatiShakti 
15. PM GatiShakti is a transformative approach for economic growth 
and sustainable development. The approach is driven by seven engines, 
namely, Roads, Railways, Airports, Ports, Mass Transport, Waterways, and 
Logistics Infrastructure. All seven engines will pull forward the economy in 
unison. These engines are supported by the complementary roles of Energy 
Transmission, IT Communication, Bulk Water & Sewerage, and Social 
Infrastructure. Finally, the approach is powered by Clean Energy and Sabka 
Prayas – the efforts of the Central Government, the state governments, and 
the private sector together – leading to huge job and entrepreneurial 
opportunities for all, especially the youth.  
PM GatiShakti National Master Plan 
16. The scope of PM GatiShakti National Master Plan will encompass the 
seven engines for economic transformation, seamless multimodal 
connectivity and logistics efficiency. It will also include the infrastructure 
developed by the state governments as per the GatiShakti Master Plan. The