From Our Bureau
NEW DELHI: After a number of years, Finance Minister Nirmala Sitharaman has finetuned the next fiscal’s budget, steering clear of the extra budgetary resources or loans from the national small savings fund.
The revenue deficit in 2022-23 is targeted at 3.8% of GDP, lower than the revised estimate of 4.7% in 2021-22. Fiscal deficit in 2022-23 is also targeted at 6.4% of GDP, lower than the revised estimate of 6.9% of GDP in 2021-22. Interest expenditure at Rs 9,40,651 crore is estimated to be 43% of the revenue receipt.
The government has estimated a nominal GDP growth rate of 11.1% in 2022-23 on account of the real growth plus inflation.
EXPENDITURE: The government proposes to spend Rs 39,44,909 crpre om 2022-23, which is an increase of 4.6% over the revised estimate of 2021-22. In contrast the receipts, other than borrowings, in 2022-23 are expected to be Rs 22,83,713 crore, an increase of 4.8% over the revised estimate of 2021-22.
In case of the cooperatives, the alternate minimum tax will be reduced from 18.5% to 15% and the surcharge will be reduced from 12% to 7% for cooperatives whose total income is between Rs 1-10 crore.
NEW COMPANIES AND START-UPS: New domestic companies engaged in manufacturing have an option to pay tax at 15% (without claiming any deductions) if they start manufacturing by March 31, 2023. Certain types of start-ups have an option for tax holiday for three out of the first ten years if they incorporate by April 1, 2022. Both these deadlines have been extended by one year.
CUSTOMS DUTY: Customs duties on over 500 items have been changed. Many customs exemptions are also being phased out.
