Budget and Impact on Sectors
Financial Markets
Crypto push
FM proposes flat 30% tax on income from virtual digital assets
impact
It paves the way for the regulation of digital assets like cryptocurrencies.
stocks to watch for
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1114.7513.25 (1.20%)
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3439.15-36.50 (-1.05%)
Pharma
Improved access to healthcare
An open platform for the national digital health ecosystem will be rolled out. National tele-medicine programme to be launched.
impact
It will improve access to healthcare for people including in remote areas.
stocks to watch for
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4871.4595.75 (2.00%)
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288.70-2.30 (-0.79%)
Auto
EV boost
Boost for EVs with battery swapping policy
impact
Will help mitigate one of the biggest hindrances to adoption of electric vehicles in India - range and charging anxiety.
stocks to watch for
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190.602.35 (1.25%)
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653.107.35 (1.14%)
Information Technology
SEZ made easier
The current SEZ Act to be replaced with a new act, which will allow states to become partners in the zone’s development.
impact
Will make compliance norms easier and thus setting up of SEZs easier. Not clear whether it meets industry demands.
stocks to watch for
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1637.90-19.20 (-1.16%)
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1135.55-0.85 (-0.07%)
Consumer & Retail
More money in farmers’ hands
Procurement of wheat and paddy for 2021 seasons from 16.3 million farmers. In this Rs 2,370 billion will be the direct payment of MSP value to their accounts.
impact
It will improve farmers’ incomes and can drive up consumption.
stocks to watch for
-
783.704.85 (0.62%)
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302.05-1.40 (-0.46%)
Banking
Digital coin crosses one hurdle
FM proposes digital rupee using blockchain technology by the RBI in 2022-23, to boost the digital economy.
impact
This is a big announcement in the run up to the official launch of CBDC.
stocks to watch for
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536.9535.90 (7.16%)
-
240.550.10 (0.04%)
Real Estate
Affordable housing
FM allotted Rs 48,000 crore towards housing projects for FY23 under PM Housing scheme.
impact
The enhanced allocation should further boost affordable housing projects in the country.
stocks to watch for
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105.35-0.95 (-0.89%)
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494.30-7.30 (-1.46%)
Infrastructure
Highway expansion
National Highways will be expanded by 25,000 km. Rs Rs 20,000 crore will be mobilised through innovative ways of financing for national highways.
impact
Road construction stocks rise as FM says highway network to grow by 25,000 km in FY23.
stocks to watch for
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274.55-5.45 (-1.95%)
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258.853.65 (1.43%)
Startups
One more year of tax breaks
Tax rebate on profits made extended for one more year.
impact
It will help young companies in the country, which number over 61,400.
Agriculture
Farmer Focus
Promotion of chemical-free natural farming, oil seed production and millet marketing, and a fund to promote agritech.
impact
It can improve soil health, farmer income and better productivity. Will also reduce edible-oil import bills.
stocks to watch for
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783.704.85 (0.62%)
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914.00-4.50 (-0.49%)
Banking
Wider digital banking
Opening of 75 digital banking units in 75 districts by scheduled commercial banks.
impact
This is good news for digital banking push and related companies.
Banking
Cross border IBC resolution
Necessary amendments in IBC structure to promote cross border insolvency resolutions.
impact
More teeth for the IBC mechanism. This is a much needed step and was a key point mentioned in the Economic Survey.
Defense
Boost for domestic defense manufacturers
68% of defense Budget to be allotted towards domestic industry component of imports in the defence will be brought down further from 58% to 68% in 2022-23.
impact
This will further boost order books of Indian manufacturers in private and public sector.
stocks to watch for
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2774.2518.85 (0.68%)
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2085.50-18.75 (-0.89%)
Energy
Solar push
Additional allocation of Rs 19,500 crore for PLI for solar PV module.
impact
This would boost domestic manufacturing of solar power equipment, subsequently benefit solar power generators.
stocks to watch for
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225.250.40 (0.18%)
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2062.30-51.25 (-2.42%)
Infrastructure
Capex Budget for FY23 gets a big boost
The FM allotted Rs. 7.5 lakh crore for capital expenditure in FY23, almost 2.2 times of the allocation of FY20.
impact
The capex thrust should boost job creation and long-term growth of the economy.
stocks to watch for
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2085.50-18.75 (-0.89%)
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2095.2543.70 (2.13%)
Banking
Digital coin crosses one hurdle
FM proposes digital rupee using blockchain technology by the RBI in 2022-23, to boost the digital economy.
impact
This is a big announcement in the run up to the official launch of CBDC.
stocks to watch for
-
536.9535.90 (7.16%)
-
240.550.10 (0.04%)
Education
Digital push
Budget announces establishment of a Digital University, 200 TV channels for education sector.
impact
To promote technology adoption in education. Will supplement education delivery via vernacular languages
Startups
Drone takes flight
Kisan drones will be used for crop assessment, digitisation of land records and spraying of insecticides.
impact
Startups will be encouraged to launch ‘drone shakti’ and offer drone as a service.
Personal Finance
Filing made easier
Taxpayers can now avail of a 2-year window to file revised returns if they have forgotten or erred in missing returns.
impact
This will help reduce friction with the tax department and also improve compliance.
Real Estate
FDI in realty
Digitisation of land records at a national level.
impact
It will make it easier for FDI participation in real-estate.
Pharma
Concessional tax extended
Govt extends concessional 15 percent income tax for new manufacturing companies till March 31 2024.
impact
Useful for companies who are planning new projects through separate companies whose plans may have been delayed by covid
Consumer & Retail
Shining through for jewellery
Simplified regulation for ecommerce exports in gems and jewellery sector, and duty reduction to 5 percent for cut/polished diamonds and gemstones.
impact
It will improve exports of gems and jewellery.
Startups
Boost for VC and PE investments
Expert committee to be formed for VC & PE investments. More fund of funds managed by private entities to be rolled out, with govt share’s at 20%.
impact
It will help boost investments.
Startups
Unlisted shares LTCG capped
Long term capital gains for unlisted shares remains at 15 percent.
impact
Huge win for startups. Effectively reduces tax for angel investors from 28.5% to 23%. Draws more investments.
Union Budget 2022 Highlights | All the action from FM Sitharaman’s announcements—as it happened
Union Budget 2022 Summary: Presenting Budget 2022-23, Nirmala Sitharaman estimated India's total expenditure at Rs 39.45 lakh crore and projected fiscal deficit at 6.4% of GDP for FY23. What did the budget have for the middle class, taxpayer and investor? Here are the full details, packed with expert views, reported pieces and in-depth analyses.
- 22:50 PM | Feb 01, 2022 Budget 2022 Live Updates | Budget 2022 at a glance – your definitive, quick guide to one and a half hours of FM speech Finance Minister Nirmala Sitharaman on February 1 presented the Union Budget for 2022-23, which pegged the government’s fiscal deficit for the financial year at 6.4% of gross domestic product
- 23:03 PM This blog is now closed. Thank you for being with us
- 22:47 PM Budget 2022 Live Updates | What exactly are green bonds that FM announced in the budget and how are they issued? In the Union Budget speech 2022-23, Finance Minister Nirmala Sitharaman announced that the government will be issuing green bonds ‘for mobilising resources for green infrastructure’
- 22:43 PM View: The Big Positives And One Vital Negative In Budget 2022
- 22:42 PM Budget 2022 Live Updates | What has become cheaper and what’s more expensive; check full list here From a much-awaited cut in long-term capital gains (LTCG) tax on unlisted shares to levying a tax on crypto gains, a sign of legitimising the asset class, there was a lot to unpack
- 22:40 PM Budget 2022: Equities have their day in the sun as dark clouds circle The Budget day action rarely proves to be this good
- 22:39 PM Budget 2022 Live Updates | Budget 2022 will double farmers' income, benefit MSMEs, says PM Modi The Union Budget for financial year 2022-23, presented by Finance Minister Nirmala Sitharaman on February 1, will lead to the doubling of farmers' income and benefit the medium, micro and small entreprises (MSMEs), Prime Minister Narendra Modi said. The fiscal road map unveiled by Sitharaman will benefit every sector of the economy, "with a special focus on agriculture", the prime minister claimed. The announcement of "over Rs 2.25 lakh crore MSP (minimum support price)" is aimed at benefitting the farmers as the amount is "being directly transferred" to them, he said
- 22:38 PM Budget 2022: Builders welcome Rs 48,000 crore outlay for PMAY; upset over no tax sops for homebuyers, industry Real estate developers on February 1 hailed the government's decision to allocate Rs 48,000 crore in Budget under the Pradhan Mantri Awas Yojana (PMAY) and faster approvals for affordable housing in urban areas but rued that no additional tax deduction was allowed on interest paid on home loans. "Allocation of Rs 48,000 crores towards completion of 80 lakh homes under PMAY is a welcome step
- 22:37 PM Budget 2022: Lack of private capex led to spending push in budget, will help lenders: Bankers Challenges posed by the multiple waves of the pandemic have led to a situation where the private capital expenditure is yet to pick up in a big way, and the government has acknowledged this fact while proposing higher spending in the budget, bankers said on Tuesday. The over 35 per cent jump in public capex for FY23 proposed in the budget with thrust on hard infrastructure will also lead to an increase in the sagging domestic demand, industry lobby Indian Banks' Association's chairman and state-owned lender UCO Bank's chief executive AK Goel said. Listing out other welcome proposals in Finance Minister Nirmala Sitharaman's Budget, Goel said when the growth is broad-based, the banking sector will have more avenues to lend. READ MORE HERE
- 22:36 PM Budget 2022 Live Updates | Health sector sees 45% drop in proposed expenses, allocation up 0.2% The government’s proposed expenditure on medical and public health in the coming fiscal is going to see a drastic drop of more than 45 percent from the revised Budget estimate for 2021-22, the fine print of the Budget document shows. The Centre proposes to spend Rs 41,011 crore towards medical and public health in 2022-23, while this expense was Rs 74,820 in the current financial year. The sharp reduction in the head is due to the lower requirement for COVID vaccination, the document explains. Union Finance Minister Nirmala Sitharaman has also pledged Rs 5,000 crore as support to states for COVID vaccination this year, which is Rs 33,000 crore lesser than the 2021-22 allocation
- 22:34 PM Budget 2022 Live Updates | Finance Minister steers clear of announcements for five poll-bound states The Budget 2022-23 tabled by Finance Minister Nirmala Sitharaman on February 1 did not have any special announcements or schemes for five states going to the assembly polls in less than two weeks. This was in contrast to last year’s budget in which the finance minister made substantial allocations for four states going to polls soon after she tabled the budget in the Parliament.In her 90-minute speech, the finance minister on February 1 said the government was aware of the concerns of the youth, women, farmers, the scheduled castes and scheduled tribes but didn’t specifically allocate funds for any of the five poll-bound states of Uttar Pradesh, Uttarakhand, Manipur, Punjab and Goa. READ MORE HERE
- 22:27 PM Budget 2022 Live Updates | Crypto gets a backdoor entry in India On February 1, while announcing the Budget 2022, Finance Minister Nirmala Sithraman announced something that was totally unexpected
- 22:27 PM Budget 2022: AVGC taskforce to boost employment, give regularity clarity, say gaming industry experts Finance Minister Nirmala Sitharaman on February 1 announced the setting up of an animation, visual effects, gaming and comic (AVGC) promotion task force while presenting the Union Budget for 2022-23. "AVGC offers immense potential to employ youth
- 22:22 PM Budget 2022: Here’s what Finance Minister Nirmala Sitharaman said about taxing cryptocurrencies Finance Minister Nirmala Sitharaman, while presenting the 2022-23 Union Budget on February 1, announced a 30 percent tax on income generated from the transfer of any digital asset. However, she was quick to clarify that the Government of India is yet to recognise cryptocurrency
- 22:20 PM Budget 2022: Civil aviation gets Rs 10,667 crore but sees no relief from cost headwinds The Union Budget has allocated Rs 10,667 crore for the civil aviation ministry for 2022-23, according to the document presented by Finance Minister Nirmala Sitharaman on Tuesday. Out of the total allocation, Rs 600.7 crore has been earmarked for the regional connectivity scheme UDAN (Ude Desh ka Aam Naagrik), while Rs 9,259 crore goes to AI Asset Holdings Limited for servicing the loans transferred to the special purpose vehicle (SPV) for the financial restructuring of Air India. An amount of Rs 165 crore has also been set aside for the medical benefits of retired Air India employees, the Budget document said. In 2021-22, the civil aviation ministry was allocated Rs 3,224 crore, however, the government incurred high expenses during the divestment of Air India and, as a result, the revised expense for the civil aviation ministry during 2021-22 stood at Rs 72,652 crore. READ MORE HERE
- 22:20 PM Budget 2022 Live Updates | What the finance minister is doing ‘indirectly’ for consumption The Budget 2022 is expected to revive consumption with its focus on infrastructure among others even though it lacks direct measures such as income tax rebates. “The budget will boost consumption indirectly, rather than directly
- 22:18 PM Budget 2022: After FM's remark on LIC IPO, secretary of DIPAM says 'DRHP likely in two weeks' Shortly after Finance Minister Nirmala Sitharaman referred to the upcoming LIC IPO in her Budget 2022 speech, DIPAM secretary Tuhin Kanta Pandey on February 1 said the DRHP could be filed within the next two weeks. "Draft red herring prospectus (DRHP) of Life Insurance Corporation IPO is expected within two weeks," Pandey, the secretary of the Department of Investment and Public Asset Management, said in the post-budget press briefing. The much-awaited IPO of the life insurance behemoth is expected to be one of the biggest in the country, with the government aiming to raise close to $12 billion by selling a minority stake to the public. READ MORE HERE
- 22:16 PM Budget 2022: MC Interview | No mention of any tax reforms for bonds can be seen as unfavourable for market, says Navin Agarwal of Motilal Oswal AMC Navin Agarwal, who is MD & CEO at Motilal Oswal Asset Management Company, says given the increased focus on capex and the realisation that the government will have to do the heavy lifting, the budget seems to be totally growth-oriented. This budget was an extension of last year's with a significant focus on capex. There were no specific negative announcements but "no mention of any tax reforms for bonds can be construed as unfavourable as the market was expecting them," says Agarwal in an interview with Moneycontrol. READ MORE HERE
- 22:15 PM Budget 2022 Live Updates | From digital currency to e-passports, Budget 2022 opens up more opportunities for Indian IT sector If there is one key focus from the 2022 budget, it is that technology has become a key enabler across sectors from agriculture to health
- 22:13 PM Budget 2022: India may become $5 trillion economy by 2025-26: CEA Nageswaran Chief Economic Advisor V Anantha Nageswaran believes that India can become a $5 trillion economy by the FY 2025-26 or 2026-27. Addressing the press conference that was held after Finance Minister Nirmala Sitharaman tabled the Union Budget 2022-2023, the CEA said that if the GDP continues to grow at around 8 percent, a $5 trillion economy fo India is possible. He said, "If we continue to retain the path of 8 per cent of real GDP growth, it will translate into even 8 per cent dollar GDP growth
- 22:11 PM Budget 2022: Capital expenditure sees 35.4 percent rise to Rs 7.50 lakh crore for FY'23 The central government has set aside Rs 7.50 lakh crore as capital expenditure in the Union Budget for FY 2022-23, a 35.4 percent jump when compared to FY 2021-22, Finance minister Nirmala Sitharaman said today in her Budget speech. Sitharaman added that the effective capital expenditure of the central government is estimated at Rs 10.68 lakh crore in 2022-23, which is about 4.1 percent of GDP. The Rs 10.68 lakh crore allocated for 2022-23 is 27 percent higher than the revised estimate of Rs 8.4 lakh crore spent in 2021-22. READ MORE HERE
- 22:11 PM Budget 2022 Live Updates | A mixed bag for startups Themes around technology, digital and startups found prominent mention in Finance Minister Nirmala Sitharaman's Budget speech on February 1, in what was also the shortest budget speech in her tenure so far
- 22:09 PM Budget 2022: 6 hidden money changes that finance minister did not spell out The 91-minute short speech of Finance Minister Nirmala Sitharaman this morning had many provisions spelt out explicitly, but many were hidden in the detailed Finance Bill
- 22:07 PM Budget 2022: A look at some major tech boost for digital India Finance Minister presented Budget 2022 in the Parliament on February 1
- 22:05 PM Budget 2022 Live Updates | Employment generation a recurring theme; capex push may create jobs but few misses too Job creation seems to be the recurring theme of the Union Budget for 2022-23 as Finance Minister Nirmala Sitharaman enhanced capex allocation to Rs 7.5 trillion and gave a thrust to infrastructure projects, PM housing scheme, and production-linked incentive (PLI) schemes. "Capital investment holds the key to speedy and sustained economic revival and consolidation through its multiplier effect
- 22:05 PM Budget 2022: Nilesh Shah on Budget 2022: Shortest speech with the longest roadmap for the economy In one of the shortest budget speeches in the recent past, the finance minister has laid out one the longest roadmaps for growth
- 22:02 PM Budget 2022: Focus on drones to help create $5 billion market, operators say Finance Minister Nirmala Sitharaman’s mention of Drone Shakti, a mission similar to those aimed at conserving water and building infrastructure, is another step by the government to make India a drone hub by 2030
- 22:01 PM Budget 2022 Live Updates | No respite for restaurants, left to fend for themselves, says NRAI The restaurant industry, which was looking at restoration of input tax credit on the goods and services tax besides some liquidity support, remained disappointed with the Union Budget 2022 at a time when the businesses are reeling under the COVID-induced restrictions. "It was very disappointing to see that no specific announcements were made for the restaurant industry and we are yet again left to fend for ourselves," Kabir Suri, President of the National Restaurant Association of India (NRAI) and co-founder of Azure Hospitality, said in a statement. Multiple state governments have restricted timings for eateries to curb the spread of COVID-19
- 21:56 PM Budget 2022 Live Updates | Petrol may cost more as additional duty of Rs 2/litre to be imposed on unblended fuel from Oct 1 Unblended petrol and diesel could become more expensive as the government plans to impose an additional differential excise duty of Rs 2 a litre on it. The Union Budget left the excise duty on fuel unchanged and introduced an additional differential excise duty of Rs 2 a litre on the unblended variant from October 1. “Blending of fuel is a priority of this government
- 21:54 PM Budget 2022 Live Updates | A breakdown of the key numbers for FY23 Hopes were pinned on Budget 2022 to turn the wobbly Indian economy battered by the pandemic back on the growth track
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Understanding Union Budget 2022 through five easy graphs
Moneycontrol News / FEB 02, 2022 / 08:17 AM -
Crypto finds space in Budget 2022; here's what the industry thinks
Ira Puranik / FEB 01, 2022 / 21:46 PM -
View: The big positives and one vital negative in Budget 2022
Vijay Kumar Gaba / FEB 01, 2022 / 17:42 PM
Given that weapons systems are just another type of machines, India would rather master making these machines themselves, and then move on to those for military purposes
State of The Economy
GDP growth dipped even before COVID...
as private consumption too slowed...
...and manufacturing remained in dire straits
High inflation crimps space for further rate cuts
Although RBI has cut repeatedly during the past 2 years...
...bank credit growth remains tepid
The tax bases has not broadened as much as desired...
.. and the fiscal deficit is putting pressure on interest rates...
The govt's debt burden too is expected to climb
Markets
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Popular Commodities
Name Price %Change OI
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Madras Fert
53.85 0.90 (1.7%)
Fertiliser stocks fall 1-12% after FM's emphasis on Zero Budget farming
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ITC
337.40 -2.15 (-0.63%)
Stocks of cigarettes manufacturers gain 1-2% after less than expected excise duty hike
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Titan Company
2617.40 -21.65 (-0.82%)
Jewellery stocks drop 2-7% after proposal to increase import duty on gold
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HPCL
235.60 -0.75 (-0.32%)
HPCL, BPCL, IOC fall 5-6% after govt proposes additional excise duty on petrol & diesel
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TCS
3439.25 -35.85 (-1.03%)
Govt proposes to reduce promoter shareholdings, over 700 firms to be affected
-
Indiamart Inter
4471.20 31.10 (0.7%)
IndiaMART InterMESH surges 34% to close at Rs 1,302 on Day 1
Budget 2022 | What has become cheaper and what’s more expensive; check full list here
From umbrellas, to unblended fuel to clothes, here is a list of all things that could make your pockets lighter, and heavier.
Budget 2022 | Government rolls out tax regime for all virtual assets, experts hail move 'legalising' crypto
Budget 2022 | FM announces 23 national tele-mental health centers
Budget 2022 | Battery swapping policy, interoperability standard to be introduced for e-vehicles; here are the details
Budget 2022: SEZ Act to be replaced with new legislation, says Nirmala Sitharaman
Budget 2022: Retail sector seeks relief measures, steps to boost consumption
Budget 2022: FM Sitharaman announces Digital Rupee. Here's how it will work
Budget 2022: Affordable housing gets major boost
Budget 2022 | National Highways to be expanded by 25,000 km in 2022-23: Nirmala Sitharaman
Moneycontrol Manifesto
What's Moneycontrol Editors' View About What Needs To Be Done To Revive The Indian Economy?
Budget 2022: FM Sitharaman announces Digital Rupee. Here's how it will work
A CBDC is the digital form of fiat currency and will ease transactions. An RBI report had earlier described CBDC as something that will provides a safe, robust, and convenient alternative to physical cash.
Team India Budget
The team responsible for the budget preparation.-
Nirmala Sitharaman Finance Minister| Government of India
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Ajay Bhushan Pandey Revenue Secretary
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Tarun Bajaj Economic Affairs Secretary
Bajaj has helped shape three `Aatmanirbhar Bharat` sets of relief measures
Conservative budget, but overall capex much ado about nothing
Unlike past exercises, this year’s budget is conservative on many counts, including growth estimates and expenditure projections. The government has also resisted the temptation, again marking a departure, to launch populist measures to coax voters
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Budget energises the EV ecosystem
10 months ago
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Budget 2022: Nurturing the growth recovery
10 months ago
MACROS AND
MARKETS
Experts weigh in on the stock markets and their expectations from the budget
The sale of government's shares in public sector undertaking is called disinvestment.
The government proposals for the levy of new taxes, alterations in the present tax structure or continuance of the current tax structure beyond the period approved by Parliament, are laid down before Parliament in this bill. The Parliament approves the Finance Bill for a period of one year at a time, which becomes the Finance Act.
There are two components of expenditure - plan and non-plan. Of these, plan expenditures are estimated after discussions between each of the ministries concerned and the Planning Commission. Non-plan revenue expenditure is accounted for by interest payments, subsidies (mainly on food and fertilisers), wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, other general services such as tax collection, social services, and grants to foreign governments. Non-plan capital expenditure mainly includes defence, loans to public enterprises, loans to States, Union Territories and foreign governments.
The Budget impacts the economy, the interest rate and the stock markets. How the finance minister spends and invests money affects the fiscal deficit. The extent of the deficit and the means of financing it influence the money supply and the interest rate in the economy. High interest rates mean higher cost of capital for the industry, lower profits and hence lower stock prices. The fiscal measures undertaken by the government affect public expenditure. For instance, an increase in direct taxes would decrease disposable income, thus reducing demand for goods. This decrease in demand will translate into a decrease in production, therefore affecting economic growth. Similarly, an increase in indirect taxes would also decrease demand. This is because indirect taxes are often partially or completely passed on to consumers in the form of higher prices. Higher prices imply a reduction in demand and this in turn would reduce profit margins of companies, thus slowing down production and growth. Non-plan expenditure like subsidies and defence also affect the economy as limited government resources are used for non-productive purposes.
The revenue budget consists of revenue receipts of the government (revenues from tax and other sources), and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues are made up of taxes such as income tax, corporate tax, excise, customs and other duties that the government levies. In non-tax revenue, the government's sources are interest on loans and dividend on investments like PSUs, fees, and other receipts for services that it renders. Revenue expenditure is the payment incurred for the normal day-to-day running of government departments and various services that it offers to its citizens. The government also has other expenditure like servicing interest on its borrowings, subsidies, etc. Usually, expenditure that does not result in the creation of assets, and grants given to state governments and other parties are revenue expenditures. The difference between revenue receipts and revenue expenditure is usually negative. This means that the government spends more than it earns. This difference is called the revenue deficit.
It is a levy imposed on imports into, and exports out of a country, and are paid by the importer and exporter, respectively.
