The Union Budget 2022-23, recently presented by the Minister of Finance, marks India’s commemoration of 75 years of Independence through Azadi ka Amrit Mahotsav. The budget also lays the groundwork for future developments in the next 25 years, a period dubbed as Amrit Kaal. This article will delve into the constitutional provisions of the budget, key highlight features, and new initiatives introduced.
Budget and Constitutional Provisions
Under Article 112 of the Indian Constitution, the Union Budget of a year serves as the Annual Financial Statement (AFS). The AFS outlines the estimated receipts and expenditure of the Government during the Financial Year that begins on 1st April of the current year and ends on 31st March of the following year.
The budget framework includes estimates of revenue and capital receipts, methods of raising revenue, and estimates of expenditure. Additionally, it provides details of the actual receipts and expenditure of the concluding financial year while explaining any deficit or surplus during that year. The budget also outlines the economic and financial policy for the upcoming year, including taxation proposals, revenue prospects, spending programs, and new scheme introductions.
The Budget Division of the Department of Economic Affairs in the Ministry of Finance is the body responsible for preparing the budget, which typically undergoes six stages in Parliament. Ever since Independence, our first budget was presented in 1947.
Key Highlights of Budget 2022
India’s economic growth for 2021-22 is estimated to be 9.2% of GDP, marking the highest among all major economies. The revised Fiscal Deficit for the current year stands at 6.9% of GDP, slightly higher than the projected 6.8% in the Budget Estimates. The government estimates the Fiscal Deficit for 2022-23 to be 6.4% of GDP, in line with the fiscal consolidation path announced last year.
Introducing Amrit Kaal
Amrit Kaal is the 25-year-long period leading up to India@100. During this time, the government aims to focus on promoting a digital economy and fintech, enabling technology development, energy transition, and climate action. This period also seeks to stimulate private investment with public capital investment as a driving force.
PM GatiShakti and Other Major Initiatives
The government has prioritized four areas under the Amrit Kaal blueprint – PM GatiShakti, Inclusive Development, Productivity Enhancement & Investment, and Energy Transition & Climate Actions. Under the productivity linked incentive scheme, we expect 60 lakh new jobs creation across 14 sectors.
Other Significant Budget Announcements
Several significant initiatives were announced, including the ‘One Station One Product’ concept for railways, the launch of Kisan Drones for crop assessment, the interlinking of Udyam, e-shram, NCS, and ASEEM portals for MSME, and the introduction of the DESH-Stack e-portal for skill development.
In the education sector, the ‘One class-One TV channel’ programme of PM eVIDYA will expand to 200 TV channels. The health sector sees the rollout of an open platform for the National Digital Health Ecosystem.
Upcoming Schemes and Opportunities
New schemes like PM-DevINE were launched for infrastructure and social development in the North-East. The Vibrant Villages Programme will focus on developing Border villages with sparse population and limited infrastructure.
Sunrise opportunities like Artificial Intelligence, Geospatial Systems and Drones, Semiconductor, Space Economy, Genomics and Pharmaceuticals, Green Energy, and Clean Mobility Systems will receive R&D contributions from the government.
Inclusivity is another important focus area, with initiatives like Saksham Anganwadi (New Generation Anganwadi) for integrated benefits to women and children. Lastly, to keep up with the global digitalization trend, the Reserve Bank of India will introduce Digital Rupee in 2022-23.
