Budget 2022: Important Points For UPSC (IAS) Exam 2022 - Check Major Takeaways!
Union Budget 2022 For UPSC CSE Preparation: Nirmala Sitharaman, the Finance Minister of India is presenting the Union Budget 2022 today, which is on February 1, 2022, at the Parliament. Here are some important points every UPSC Civil Services aspirant must know in case they are to appear in the UPSC Civil services exam to be conducted on June 5 this year. So, candidates are advised to go through each point discussed below very closely. There may be a question in the UPSC IAS exam Prelims from the budget.
This year while presenting the Budget, the finance minister said that the country is expected to see a growth of 9.27% in the coming year.
Budget 2022: Major Takeaways for UPSC Civil Services Exam
The four pillars of development on which the budget is focusing are:
i) Inclusive development
ii) Productivity enhancement
iii) Energy transition
iv) Climate action
Indian Economy: Capital Investments
The Budget estimates the effective capital expenditure of the Central government at Rs 10.68 lakh crore in 2022-23. This would be about 4.1 per cent of the GDP.
The Finance Minister announced allocating 1 lakh crore to assist the states in catalysing the economy. There would also be 50-year interest-free loans provided to the states. The money would be useful in aiding schemes like Gati Shakti etc.
Special Economic Zones Act would soon be replaced with new legislation for the development of various enterprises and hubs.
The government would be investing INR 7.50 lakh crore as capital expenditure next year, which is much more than Rs 5.54 lakh crore in the current year. It is a jump of 35.4 per cent in capital expenditure to fund various infrastructure projects in 2022-23
Banking & Digital Currency:
The Government is planning to give a push to Digital Currency. Digital rupee will be issued using blockchain and other technologies by the RBI starting 2022-23.
Emergency Credit Line Guarantee Scheme will be extended up to March 2023 and the guaranteed cover will be expanded by Rs 50,000 crore to cover an amount of Rs 5 lakh crore.
Both Centre and States govt employees' tax deduction limit to be increased from 10% to 14% to help the social security benefits of state government employees and bring them at par with the Central govt employees.
Taxpayers can now update I-T returns within 2 years (counting from the relevant assessment year)
Income from Long Term Capital Gains will be taxed at 15% and corporate surcharge would be reduced from 12% to 7%
Finance Minister announced a reduction of surcharge on unlisted shares from 28.5 per cent to 23 per cent. It will ease exits from startups and Unicorns by facilitating investor exits and investment churns.
As per the FM, 68% of the capital procurement budget for the Defence sector of India would be earmarked for domestic industry. This is being done to promote Aatmanirbharta (Atmnirbhar Bharat Scheme) and reduce India’s dependence on imports. As per Nirmala Sitharaman, this is up from 58% last fiscal year.
Agriculture Sector & Environment:
Ken-Betwa linking project would be implemented costing almost INR 44,605 crore. It would benefit 9 lakh farmers of the region with irrigation facilities, provide drinking water to 62 lakh people and generate power at around 103 MW (Hydro) and 27 MW (Solar).
There would also be an additional allocation of 19,500 crores for the manufacturing of solar modules to facilitate 280-gigawatt domestic power through solar plants by 2030.
Finance Minister Nirmala Sitharaman also announced the formation of a digital university to provide world-class education to Indian students. This university would provide will lessons in all regional languages through a network of ‘hub and spoke’ model. Also, some new e-learning content delivery platforms would be launched using the internet, Television networks and smartphones to help students in rural and semi-urban areas.