KEY HIGHLIGHTS

• India’s GDP growth is expected to be 9.2% in FY22, to be highest among all large economy.

• Fiscal deficit is estimated at 6.4% of GDP for FY23BE as against the deficit of 6.9% for FY22RE. Budget being plan with an intent to reach a fiscal deficit level below 4.5% of GDP by 2025-26, with a fairly steady decline over the period.

• Total Expenditure is estimated at Rs 39.45 lakh crores, for FY23BE up by 4.6%, whereas the outlay for Capital Expenditure being stepped up sharply by 35.4% from Rs 5.54 lakh crore in the FY22 to Rs 7.5 lakh crore in FY23.

• Nominal GDP for FY23 is expected to be Rs 258 lakh crore 11.1% growth over FY22RE of Rs 232 lakh crore. Experts feel overall budget estimates looks very conservative. Nominal GDP growth assume for the FY23 could have been higher.

• Disinvestment target for FY22RE moved to Rs 0.78 lakh crore from Rs 1.75 lakh crore of FY22BE. FY23 disinvestment targeted at Rs 0.65 lakh crore. As per market experts its fairly pessimistic estimated with big ticket disinvestment is lined up like LIC, BPCL etc.

• Gross borrowing proposed at Rs 14.95 trillion for FY23 and net market loans (including short term borrowings) at Rs 11.59 trillion for FY23 making 70% of the fiscal deficit. A significantly higher level than the market expectation; seen its impact on the Bonds Market both on the Budget day and thereafter. Heavy reliance on small savings is an another areas of concern.

• Telecom sector given a push by declaring 5G spectrum auction in 2022 along with other schemes for the sector.

• RBI to introduce Digital Rupee [Central Bank Digital Currency(CBDC)] using Blockchain and other technologies starting 2022-23. It will result in more efficient and cheaper currency management system. It will boost Digital Economy.

• The issuance of e-Passports using embedded chip and futuristic technology will be rolled out in 2022-23 to enhance convenience for the citizens in their overseas travel.

• Proposes the strategy roadmap to generate huge employment opportunities and a strategic action plan which will take India to a sustainable development path through Energy Transaction, addressing Climate change and reducing Carbon footprint.

• Additional allocation of Rs 195 billion for production-linked incentives towards solar equipment manufacturing.

• Railways capital expenditure allocated to Rs 1.4 lakh crore for FY23, a growth of 17.1% compared to FY22. Development of 400 new generation, Vande Bharat Trains during next 3 years.

• National master plan for world class modern infrastructure, completing 25,000 Km National Highways in 2022-23 and Rs 20,000 crore will be mobilised through innovative way of financing. Outlay of Rs 1.99 lakh crore for Ministry of Road Transport and Highways.

• Digital University with Digital Education, a digital ecosystem for skilling and livelihood. The University will be built on a networked hub-spoke model.

• Special importance being given for Armed Forces modernization and defence security infrastructure development. Capital outlay of Defence Services enhanced to 1.52 lakh crore. 68% of capital procurement budget earmarked for domestic industry in 2022-23. Defence R&D to be opened up for industry, startups and academia with 25% of Defence R&D budget earmarked.

• 100 Cargo Terminals for multimodal logistics facilities will be developed during the next 3 years. Exchange of data among all operators will be brought on under ULIP Platform.

• Virtual Digital Assets to be taxable at 30%. Gift of virtual digital asset will be in the hands of the recipient. TDS at 1% introduced for virtual digital assets transactions.