Budget 2022 Live Updates

 

 
  • FY22 GDP growth of 9.2% is the highest among all the nations.

  • Make in India can create 6mn new jobs.

  • World class infrastructure led by Gati Shakti.

  • Rs20,000 crore for financing of public resources.

  • Multi model logistic park being planned.

  • Will expand highways by 25,000kms in FY23.

  • Kavach for safety and capacity augmentation.

  • 100 terminals to be set up under Gati Shakti.

  • Highways expansion very positive for infrastructure, cement and MHCV segments.

  • Gati Shakti plan -- positive for the cargo segment.

  • Strong impetus on PPP model, positive for capital goods and infrastructure companies.

  • 400 new generation trains under Vande Bharat scheme.

  • Domestic production of oil seeds to increase.

  • Direct transfer of Rs4.7 lakh cr in farmers’ account for procurement of grains at a higher MSP.

  • Digitization of land records.

  • Kisan drones to be used.

  • Vande Bharat trains to be manufactured over the next 3 years.

  • Chemical-free natural farming to be promoted.

  • To provide 9 lakh hectares for irrigation and 62 lakh drinking water facilities.

  • Drinking water to be provided for 62 lakh people - key positive for irrigation sector and PVC pipes sector. Companies like Finolex and Astral Pipes under our coverage would be the key beneficiary.

  • ECG ECLGS to be extended to March 2023.

  • To introduce 400 new-generation trains under Vande Bharat - key positive for the railway sector and component suppliers.

  • Additional credit of Rs2 lakh cr for MSME sector. It will be a key booster for small industries and NBFC sector.

  • Rs2.7 lakh crore to be paid as MSP for farmers.

  • Dedicated fund planned for agritech startups.

  • PLI scheme has received excellent response.

  • Education – to impart supplementary teaching in regional languages for classes 1-12.

  • PM Gati Shakti will encompass the 7 engines for multi-modal connectivity for the states, with speedier implementation of development projects through technology to facilitate faster movement of people and goods, with Rs20,000 crore financed by the government to speed up this project.

  • To promote start-ups for drone manufacturing.

  • A National Digital Health Platform to be rolled out. A better mental health programme to be launched in 23 medical health centres.

  • A Digital University to be set up across India.

  • One-class one-TV channel will be increased from 12 to 200 TV channels to provide supplementary education in regional languages.

  • Ministry of Child Development -- a scheme for the empowerment of 2lakh anganwadis will be developed.

  • Nal se Jal – a positive for PVC pipes companies.

  • Digital University -- with a higher focus on online education this will support the digital education sector to a greater extent and the companies under this sector. It would help the upcoming IPOs of few online educators in 2022.

  • Out of Rs8.7cr, Rs5.5cr is already provided for tap water in the past 2 years. Rs60k cr is the allocation for Nal se Jal.

  • Rs60,000 crore allocation for tap water to cover 3.8 crore households.

  • Prime Minister development plan for the North East -- infrastructure to be provided under the Gati Shakti scheme.

  • Nal se Jal outlay -- positive for PVC pipes sector.

  • Rs48,000cr allocated for housing scheme and affordable housing scheme -- positive for the cement companies & sector and for the real estate sector.

  • Development of villages, DTH access of Doordarshan to get additional funding and will be monitored constantly.

  • Innovative funding for Metro Rail projects.

  • Digital banking to be unveiled in a consumer-friendly manner - 75 digital banking units to be formed in 75 districts.

  • Rs1,500cr to be allotted for the development initiatives of the North East region in FY23.

  • Proposal to set up 75 digital banking units by scheduled commercial banks. Digital banking and fintech have grown at a fast pace. Digital banking to reach every corner of the country.

  • Setting up of 75 digital banking units – a positive for the scheduled commercial banks.

  • 1,486 union laws were repealed.

  • 6mn new jobs to be created - positive for consumer companies.

  • E-passports to be issued using embedded chips of future technology. Will be implemented from FY23.

  • Strengthening of health infrastructure and speedy implementation of the vaccination program are evident for all.

  • 100 cargo terminals under the PM Gati Shakti plan will be developed in the next few years.

  • 'Parwatmala' for conventional roads in the hilly areas to be undertaken in the PPP mode.

  • Rs1,400 crore will be allocated for 123MW hydro and 27MW solar projects in FY23.

  • Urban capacity building, town planning schemes will be implemented. Working closer to mass transit systems.

  • Battery swapping policy to be brought out. Inter-operatability standards will be formulated. Battery as a service for the EV ecosystem to be unveiled.

  • For farmers to adopt natural farming, a comprehensive package for the participation of state governments and MSMEs to be introduced.

  • Hospitality services by the small & medium sector are yet to bounce back. Therefore, the government has decided to extend the ECGL service for this sector by March 2023 with an increased cover of Rs50,000.

  • Skilling programs will be reoriented. For skilling, upskilling and reskilling of youth, a Digital DESH e-portal will be launched.

  • For mental health counselling, a National Tele Mental Health Program will be launched.

  • Cleantech and zero fossil fuel policy will be encouraged. Setting up of charging stations and battery swapping policy will be promoted.

  • To promote clean tech in public transport.

  • Necessary amendments to IBC to be carried out.

  • Cleantech and zero fossil fuel policy – a positive for battery management companies - positive for Hero MotoCorp as it has a major holding in Japanese battery swapping company, Gogoro.

  • Provisions for 75% of the running bills.

  • Complete digitization and paperless process at the central office of ministries - negative for the paper segment.

  • Ken Betwa river linking project worth Rs44,605 crore announced.

  • 5G technology spectrum auction will be conducted in 2022 -- positive for RIL and Bharti Airtel.

  • Required spectrum auction to be carried out in FY22-23 -- this would support the government on the revenue front as a sizable amount would come to it from 5G auction.

  • Telecom and 5G to offer jobs, spectrum auction. PLI for telecom companies.

  • All villages to have E-services line urban areas. Optical fibre to be provided for all villages.

  • Bharat Net Project - efficient use of optical fibre.

  • SEZ will be replaced with a new legislation.

  • 68% of capital procurement in defence budget for the domestic industry, up from 58% in FY22 for the defence budget.

  • Optical fibre -- positive for Sterlite Technologies.

  • 68% of the defence capex to be kept for domestic companies -- positive for BEL and BEML.

  • Defence R&D to be opened for private sector with various models like SPV model - very big positive for defence companies and private engineering companies that supply components to defence PSUs. It would help companies like Bharat Forge.

  • Energy transition and climate change -- strong commitment for the development of same. Solar power generation target of 280GW by 2030 -- positive for RIL's new energy business.

  • Necessary amendments in IBC structure to promote cross-border insolvency resolutions. This is a much-needed step and was a key point mentioned in the Economic Survey released ahead of the Budget. As of now, cross-border IBC cases are stuck due to various legal hurdles.

  • Rs19,500cr allocated for solar power under PLI.

  • Extra income for farmers and job creation a positive for Finolex Industries.

  • Promotion of agro forestry and additional support for farmers.\

  • Outlay for capex is up 35.4% from Rs5.54lakh cr to Rs7.5lakh cr; 2.2x of FY20; 2.9% of GDP -- big positive for markets and is higher than expected.

  • Sovereign green bonds to be issued.

  • Rs10.68 lakh cr is the effective capex in FY23.

  • Sovereign green bonds for green infra. Proceeds to be deployed to reduce the carbon intensity.

  • International arbitration centre to be set up in Gift City.

  • Promoting of grid scale battery structure for storage of clean energy -- positive for RIL.

  • Data centres will be given infra status.

  • Digital currency to be introduced using blockchain and will be issued by RBI in FY22-23.

  • To allocate Rs1lakh cr to states as financial assistance in FY23.

  • Fiscal deficit is expected at 6.9% vs. 6.8% -- this is slightly higher than street estimates and investors may react negatively.

  • Need to nurture growth through public investment.

  • Direct tax: new updated system. Correct any error and file the updated return within 2 years.

  • Government is committed on Atma Nirbhar Bharat plan in armed forces. 68% of capital procurement budget will be earmarked for the domestic industry for FY23, up from 58% in FY22.

  • Rs19,500cr marked for PLI for manufacturing of high-efficiency module for polysilicon.

  • Financial support will be provided to farmers who want to take up agro-forestry.

  • 5-7% biomass pellets will be co-fired in thermal power plants, resulting in carbon dioxide savings of 38mmt annually.

  • Alternate minimum tax for cooperative societies down to 15% from 18.5%.

  • Tax incentive for 3 years for startups until Mar 31, 2023.

  • Tax on virtual currency to be at 30%.

  • Taxation of virtual and digital assets at 30%. No deductions allowed except the cost of acquisition.

  • Transfer of virtual currency shall also be taxed at 30% -- introduction of 1% TDS on the transfer of virtual asset.

  • Surcharge on LTCG capped at 15%.

  • GST of Jan'22 is the highest at Rs141,000cr.

  • National capital goods policy proposed. Project import duty for coal mining, power generation, railway and metro projects with make in India. Moderate tariff of 7.5%.

  • Gems and jewellery customs duty on diamonds reduced to 5%.

  • Custom duty on methanol and acetic acid is reduced for petrochemicals.

  • Exemption of duties on embellishments.

  • Concessional duty on steel scrap extended for 1 year.

  • Top focus of the budget this year are: PM Gati Shakti, Inclusive Development, Productivity Enhancement, Sunrise Opportunities, Energy Transition, Climate Action, Financing of investments.

  • Productivity-linked incentive schemes in 14 sectors have received excellent response; received investment intentions worth Rs30lakh cr.

  • Economic recovery benefiting from public investment and capital spending. Budget will provide impetus to growth.

  • Tax deduction limit increased to 14% on employers’ contribution to NPS account of state govt employees.

  • A high-level panel to be set up for urban planning.

  • Govt to promote use of public transport in urban areas.

  • MSMEs such as Udyam, e-shram, NCS and Aseem portals will be inter-linked, 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.

  • A fund with blended capital raised under co-investment model facilitated through NABARD to finance startups in agriculture and rural enterprises for farm produce value chain.

  • Rs1lakh cr financial assistance to states to be provided in 2022-23 to catalyse investments.

  • 100% of 1.5lakh post offices will come on the core banking system, enabling financial inclusion and access to accounts through net banking, mobile banking, ATMs, and also provide online transfer of funds between post office accounts and bank accounts. This will be helpful, especially for farmers and senior citizens in rural areas, enabling inter-operability and financial inclusion.

  • IBC amendments to enhance the efficiency of resolution process.

  • Ease of business — 75,000 compliances have been eliminated and 1,486 union laws repealed to make it easier for businesses.

  • Proposes fiscal deficit of 4.5% of GDP by 2025/26.

  • Budget projects fiscal deficit of 6.4% of GDP in 2022/23.

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

  • Total expenditure in 2022/23 seen at Rs39.45tn.

  • States will be allowed 4% fiscal deficit to GDP in FY23.

  • 50-year interest free loans over and above normal borrowing allocated to states.

  • Scheme for financial assistance to states for capital investment outlay to be Rs1tn in 2022/23.

  • Domestic scheme introduced to reduce the dependence on oilseed imports.

  • Railways to develop infrastructure for small farmers in 2022/23.