Small industries & Hospitality sector gets a boost in Budget 2022

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Small industries and hospitality sector, plagued by covid-19 pandemic, have got a shot in the arm when finance minister Nirmala Sitharaman announced a slew of measures in the budget 2022 for their revival and strengthening, which has huge potential to create thousands of jobs for those entering job market every year.

FM Sitharaman announced that the MSMEs portals – Udyam, e-shram, NCS and Aseem will be inter-linked and their scope will be widened so that many more things could come under their ambit, giving support to thousands of small firms hit by the pandemic. Boosted by the announcement, these portals will now be with live organic databases providing G-C, B-C & B-B services such as credit facilitation and augmenting business and entrepreneurial opportunities.

A fund with blended capital raised under co-investment model will be there facilitated through NABARD to finance start-ups in agriculture and rural related small firms and enterprises. It will help the farm produce value chain.

FM also announced a “Drone Shakti” programme for start-ups on drone technology.

Finance minister announced that ‘One Nation, One Registration’ will be established for anywhere registration to facilitate ease of living & doing business.

FM said that now the private sector will be encouraged to create sustainable and innovative business models for battery and energy as a service, improving the efficiency in the EV ecosystem. Settlement of 75% of running bills in 10 days will be established. Besides, to reduce delays in payment, paperless e-bills will be set up by the Ministries.

Introducing the budget in parliament, FM said that PM Gati Shakti is driven by 7 engines- roads, railways, airports, ports, mass transport, waterways and logistics infra. All seven engines will pull forward economy in unison. They will be supported by energy transmission, IT communication, bulk water and sewerage and social infra.

Finance minister said – with the aim to take ‘Digital Banking’ to every citizen- 75 digital banking units in 75 districts of the country will be launched. At the same time, for urban capacity building, modernization of building by laws, town planning schemes and transit oriented development will also be implemented.

FM Sitharaman announced that ‘centres of excellence’ will be established with an outlay of 250 crore for urban sector development.

BUDGET 2022 23: BIG ANNOUNCEMENTS SO FAR

START-UPS

“Drone Shakti” programme for start-ups on drone technology
Defence research to be opened up for start-ups
BANKING/INSURANCE

-75 digital banking units in 75 districts by scheduled commercial banks
SOCIAL WELFARE

-Transliteration of land records in 8 languages will be rolled out
REVENUE/EXPENDITURE

-Rs 20,000 crore to be mobilised with innovative ways of financing
AGRI/FARMERS

-Rs 2.37 lakh crore for buying crops under minimum support price
EDUCATION-

TV channel for Class 1 to give supplementary education amid Covid

RAILWAYS

400 new Vande Bharat trains to be introduced,
Better integration of post and railways for seamless movement
INFRASTRUCTURE

“PM Gati Shakti” to lead 7 engines of growth
Plans for Metro systems at appropriate scale
DIGITAL INDIA

• E-passports using embedded chips and futuristic tech will be rolled out

DEFENCE ALLOCATION

• 68% capital for defence purchases will be for domestic sector

SOCIAL WELFARE

• Transliteration of land records in 8 languages will be rolled out

TAX

• To correct errors by taxpayers, file updated returns within 2 years
• Tax rate for cooperative societies reduced to 15%