Budget 2022 Highlights and Analysis - by Assetyogi - YouTube

Friends, how does Budget 2022 will affect the common people?

Cryptos and tax on it is discussed

Some changes in the long term capital gains tax are discussed

Digital Infra, Sustainability, and total Infrastructure is discussed in detail

We'll see all these in detail in this video

This video is divided into 2 parts

First, we'll see the main highlights of the budget

In the second part, we'll try to do some analysis

That what were the hits and what were the misses

The video is going to be unbiased, so stay tuned

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Firstly, let's talk about the Budget Highlights

A big thrust is given to infrastructure enhancement

Under Gati Shakti Project, national highways will be expanded and 25,000 Km will be increased

Rs.20,000 Cr outlay is kept for this by the government

Rivers will be interlinked which can be a very good project

In many countries, in-land waterways are very good ways for people to commute

Secondly, the National Tele-Medicine program will be launched

Many people suffered due to bad mental health during the pandemic

and if the government is recognising it then it is good

Then you might have noticed that Digital Infra was a big theme in the budget

In fact, you might have noticed that for the first time, the Finance minister read the whole budget on a digital tab

So under digital infra, be it Banking, Payments, Fintech innovation-related,

be it a matter of increasing digital infrastructure in the rural areas

A lot of thrust is to be given to all these

Not only in this year, but in the upcoming years as well

So the auction of the 5G spectrum is also to be held this year

Secondly, e-passports will be introduced, i.e Electronic chip

By which we can apply for the passports sitting at home and we'll get the e-passports

5 Centres of Excellence for the planning of urban cities will be made

Only the existing educational institutions will be made the Centres of Excellence

Each institution will get Rs.250 Cr as an endowment fund

Along with the digital infrastructure, another big theme which came out in the budget was Sustainability

Many policies will be made related to electric vehicles and solar

For example, if we talk about electric vehicles, standard operating procedures are very important

because it takes time to charge the battery in the electric vehicles

That means, if the batteries will not be standardised, we have to wait for very long on any charging station

For this, it is very important to make standard sized batteries

That's why Battery Swapping Policy will be introduced and Inter-operable procedures will be made

That means all the manufacturers will make the same type and size of batteries

So that it can be easily swapped on any charging station

So you will visit a charging station, give the discharged battery and take the charged battery

So it will become very fast and according to me,

This will be a great step for electric vehicles

The second example of sustainability is that many investments are going to be there in solar

280 GW installed capacity is being planned till 2030

For that, the outlay decided is of Rs.19,500 Cr

under PLI scheme for solar manufacturing units.

And for all these investments in the infrastructure, the money should come from some source

So Capital Expenditure is increased and a target of Rs.7.5 lakh crores

Which is a jump of 35%

If the government is increasing the Capital expenditure, I consider it as a good step for the economy

So if we talk about the budget estimate in 2022-23, the expenditure budget is kept Rs. 39.45 lakh crores

Against this, the estimate for the revenue receipts is kept Rs.22.84 lakh crores

In expenditure and receipts, that means the revenue of the government is decreasing and the expenditure is going to be more

So it is to be funded from somewhere, i.e government will do many borrowings

And that's why this becomes a Fiscal Deficit in which the expenditure is more but the revenue is less

So the target of the government is to slowly decrease the Fiscal Deficit and bring it down to 4% till 2025

If we talk about today's date, the approximate figure for the current year is 6.9%

If we talk about 2022-23, the target decided is 6.4%

That means we'll first come from 6.9% to 6.4%

So till 2025, maybe we achieve a 4% figure

But after seeing the expenditures planned, the target is a little difficult

So along with infrastructure and Capex,

there was another big highlight in the budget which was related to Crypto Assets

So on the basis of the regulations and the budget discussions,

it can be predicted that the government may not allow cryptos as a currency

But they may allow it as an asset

How we can conclude this?

Because No.1, RBI is going to launch Digital Rupee

Which means if the government want to promote the digital rupee

Then crypto currencies like Bitcoin, Etherium, etc may not be allowed as a currency

That means we cannot buy anything in exchange for it in India

No. 2 is as a digital asset

30% tax rate will be imposed on the crypto-traders

And this tax will be imposed on all digital assets. Nowadays many people are trading in NFT's

So same tax rate will be imposed on that also

And if someone uses crypto as a gift then the tax rate will be applicable on the recipient

So by this, we can assume that the government may recognise cryptos as assets

But the tax rate is going to be high because the government want to take a good share from the one who is earning profits from cryptos

So this was about the tax rates on cryptos. Now let's talk about the remaining Direct Taxes

This is the most important topic for the common people according to me

Under the Direct Tax, we have income tax

There are no changes made in the Income Tax Slabs

There were 2 regimes which were the old and new income tax slab regimes

We can opt for any one of them

I made a detailed video on this so you can watch that

But now let's understand what were the important changes other than the tax slabs

To save income tax, many people show their income less

So if anyone does this, the government is trying to develop some favourable mechanisms

So if you have any undisclosed income and if you receive any notice from the Income Tax Department

Then you can disclose that income and pay tax according to the new income

And you can file your revised return for the coming 2 years after the financial year in which you filed your tax

2nd change is an NPS related change in the direct taxes

Central government employees get up to 40% of tax rebate in the employer's contribution

But in the case of state government employees, it was only 10%

So now you'll get up to 14% rebate on the employer's contribution

It is related to the government employees but if it would include the private employees, it would have been better and more people would get covered

Along with this, tax incentives are also increased for startups

I would not say that they are done extra but the deadline is increased

Till March 2022, all the companies formed as a startup and are recognised

get a rebate from the corporate taxes

So when a startup is incorporated, it can take a tax rebate for any 3 years within the first 10 years

Before this, the deadline to take the tax incentive for that start up was March 2022

But now that deadline is increased till 31st March 2023

Besides this, a small change is done in long term capital gains tax

In shares or equity, it is 10% and some surcharge is also applied to this

That surcharge is less in equity and shares which is around 15%

But if we talk about some other assets like house property or any other asset

It is up to 37% in those

So now the surcharge on all these assets are reduced which is 15% on all

And the finance minister gave one more clarity on income tax

About the surcharge or Cess

See, we have income tax slabs of 25%-30% whatever it is

On that income tax, surcharge and cess is also applied to cover the health and educational expenses by the government

So many businesses claim that as an expense

So the finance minister cleared this that this cannot be claimed as a business expense

So this was about Direct taxes. Now let's talk about the Indirect taxes

For example, about GST

GST collections were highest in January which was around Rs 1.4 lakh crores

And concessional rates are given in some sectors on the custom duties

Especially, the highlights are the electronic manufacturing units

Like wearable, hearable devices, mobile phones

Custom duties are decreased to attract them

There was one more highlight in the Indirect taxes

The government want to promote the blended fuels

That's why extra excise duty will be imposed on the unblended fuels like normal petrol or diesel

From October 2022 which will be Rs.2 per litre

So these were the quick highlights. Now let's talk about hits or misses

Firstly, let's talk about the hits

Much thrust is given to the infrastructure

Capital expenditure is very much increased which is good according to me

Much thrust is given to the digital infrastructure

Optical fibres will be installed in the rural areas

5G spectrum is to be auctioned which is very important according to me

Online education is reaching the rural areas in the educational sector is a good thing

3rd big theme in the budget was Sustainability.

Artificial Intelligence, clean tech, solar, electric vehicles are being discussed

All these things are very important not only for India but for the whole world

So Sustainability theme is a big hit according to me

4th is Crypto related

Nowadays many people are trading in cryptos

So tax is applied on cryptos and digital assets

But the indication is that the government is recognising it

The digital rupee is discussed. That means the government is accepting the latest technology

Many people trade in cryptos nowadays

So indications are that government will accept it as an asset class

So these were some budget-related hits. Now let's talk about misses

Mostly, the common man expects the reduction of the tax rates

But no changes are done in the income tax slabs and it wasn't a populous budget

considering that there are upcoming elections in many states

2nd miss according to me is the target of fiscal deficit

which is 6.4% and can be most likely missed out

Because capital expenditure is planned very high against revenue receipts

In this video, we tried to present the highlights and analysis of the budget

If you liked this video then do like it and share it with your friends and family members

I am sure not all people have time to listen to 1.5 hrs speech of the finance minister

And they want a short analysis.

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So we'll meet in another informative video

Till then keep learning, keep earning, and stay happy as always.