Every section of the society was eagerly waiting for the Union Budget 2022. Working individuals, in particular, were excited to know what the new budget entails for them. From the beginning of this year, several predictions were made, and many experts even mentioned their expectations and suggestions on what the budget must include.
Now that the budget has been finally presented, almost every person out there is busy decoding what it means for them. However, it’s getting a bit tricky to segregate what in the budget will impact whom the most and how.
If you are a working professional, curious about budget 2022-23, and wish to easily understand what it offers, this blog can be an excellent read for you.
Here’s what we'll cover:
What were the Expectations of Different Sectors?
Before discussing the Union Budget 2022 highlights, let’s know about some expectations that different sectors hoped were a part of the government’s annual financial statement.
India’s Fintech Sector:
- A push to digital infrastructure
- Conducive policy framework
- Relaxation in tax rates
- Concentration on the skilled talent pool
Startups and Micro, Small & Medium Enterprises:
- Simplified taxation policy
- Digital enablement to enhance the startup ecosystem
- Subsidized programs and access to skilled talent to increase growth
IT and ITeS Sector:
- Support for the transforming nature of work
- More benefits for employees
- Increased investments in modern technologies
Edtech Industry:
- Scaling up allocation to the sector
- Improved digital infrastructure
- Making internet and digital resources more accessible
- Tighter control on edtech
- Decreased tax on the education sector
Now, it’s time to find out whether the Union Budget 2022-23 is favorable for businesses or not.
The Budget Highlights 2022 You Must Know
So, here’s what the budget has in store for working individuals and corporates:
Budget Highlights for Employees and Companies are as follows:
- Extended tax benefits to startup companies
- Established national mental health program
- A digital push to skilling and livelihood
- Production Linked Incentive scheme to make 6 million jobs
Extended Tax Benefits to Startup Companies
It is no news that startups have played a vital role in the growth of the economy. Even the finance minister mentioned this while presenting the budget.
That being said, the government has extended the current tax benefits for new businesses that were provided recovery of duties for three consecutive years, by one more year.
As per a survey, the total number of new businesses in India has expanded to more than 14,000 in 2021-22, from only 733 in 2016-17.
Every qualified startup firm laid out before 31st February 2022 will acquire a tax incentive for three sequential years out of a decade from incorporation.
Taking the Corona pandemic into account, the govt. has also expanded the time of incorporation of the qualified startups by another year, i.e., up to 21st February 2023, for offering such tax incentives.
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Established National Mental Health Program
Considering the significance of good mental healthcare, the Union Budget 2022 placed an extraordinary spotlight on upgrading the mental health foundation in India.
The FM said, “The COVID-19 has emphasized individuals’ emotional well-being issues. To offer quality mental well-being counseling and care benefits, a public tele-mental health project will be designed that incorporates 23 telemedicine and mental well-being centers.”
According to a recent survey, 14 percent of the population of India suffered mental health problems. While 45.7 million people suffered from depression, 49 million faced several anxiety disorders.
Employers, in particular, can make the most out of it in the coming times. We all know how companies have incorporated mental wellness activities for employee engagement lately. Without any doubt, this policy will help curb the increasing mental wellness issues across the corporate world.
A Digital Push to Skilling and Livelihood
Unlike the Employment budget 2021, this year’s budget has also given a digital push to skilling. The govt. has decided to form a digital ecosystem for skilling and livelihood. This will aid people to skill, reskill, and upskill via online training.
It will certainly offer API-based skill credentials and payment layers to secure appropriate positions as well as open enterprising doors for people.
A 2021 report stated that over 9 percent of Indian citizens would be involved in jobs that don’t exist at present, and 37 percent will need new skill sets to meet their job demands.
Additionally, the finance minister even said they would launch skilling programs, and ITIs will begin skilling courses.
Besides, a Digital DESH electronic portal will be set up for the skilling, upskilling, and reskilling of youth. The govt. will also build a digital university to give top-notch schooling to students all over India. This is a bonus for the edtech sector.
Most importantly, One class, One TV channel’ agenda of PM eVIDYA will be extended from 12 to 200 TV channels. This will, undoubtedly, empower every state to give valuable schooling in its local dialects for classes 1 to 12.
Production Linked Incentive Scheme to Make 6 Million Jobs
This announcement gave a ray of light to many young people out there.
India’s PLI scheme in fourteen areas for Atma Nirbhar Bharat will make 6 million works in the coming years. This will not just give a necessary lift to employment generation in India but also take the economy on a growth trajectory.
A recent survey revealed that the rural unemployment rate dropped to 5.84 percent, and urban unemployment declined to 8.16 percent in January 2022.
The productivity-linked incentive programs in 14 areas with the possibility to make 60 lakh new job opportunities will be a clear game-changer in the times to come.
Parting Thoughts
These are the major 2022 budget highlights for salaried employees and businesses.
All the promises made by the govt. have the potential to enhance employability while driving growth for businesses and the economy at the same time.
We will have to wait to see how the govt. make sure a smooth planning of the policies we discussed above and execute them in the time ahead.