Finance Minister Nirmala Sitharaman on Tuesday unveiled a Rs 39.45 lakh crore Union Budget for 2022-23 with a massive outlay for big ticket infrastructure projects to boost economic growth and create more jobs. This year’s growth is expected to clock 9.2 per cent, while the fiscal deficit is pegged at 6.9 per cent against the budget estimate of 6.8 per cent.

The Budget allocates a whopping 35.4 per cent increase in capital expenditure at Rs 7.50 lakh crore, something that will have a multiplier effect in propelling growth and generating employment, she explained.

Presenting her fourth Budget amid the ongoing Covid 19 pandemic, Sitharaman said, “the Production Linked Incentive scheme for achieving Aatmanirbhar Bharat has received an excellent response, with a potential to create 60 lakh new jobs."

The finance minister said that the scheme has received an excellent response.

She also announced an outlay of Rs 20000 crore for a national highway expansion programme and the introduction of 400 new Vande Bharat Express trains which will be manufactured in the country over the next three years.

“Big public investment for modern infrastructure will be guided by the PM’s Gati Shakti," she said.

"PM Gati Shakti is driven by seven engines: roads, railways, airports, ports, mass transport, waterways, logistics infrastructure. All 7 engines will pull the economy forward in unison Supported by energy transmission, IT communication, bulk water and sewerage and social infrastructure," the finance minister explained.

"The touchstone of the master plan will be world-class, modern infrastructure and logistics synergy among different modes of movement of both people and goods, and location of projects," Sitharaman said.

Some key takeaways

• Economic growth for this financial year—9.2%
• Focus is on economic growth and recovery
• Thrust now on Sabka Prayas
• FM lays the economic roadmap for the next 25 years
• Fiscal deficit this FY – 6.9 per cent instead of 6.8%
• Fiscal deficit for 2022-23 pegged at 6.4%
• Outlay for capital expenditure is 34.4% higher for 2022-23
• PM Gati Shakti to be one of the primary growth engines – infrastructure to remain key
• Production Linked Incentive (PLI) Scheme boosting Make in India will create 60 lakh new jobs and additional production of 30 lakh crore in the next five years.
• No changes in direct tax
• Digital rupee to be launched by the Reserve Bank of India
• Income on digital assets introduced for the first time, tax rate at 30%
• 400 Vande Bharat trains to be introduced
• Mental health centres to be introduced under the aegis of NIMHANS
• Supplementary teaching facility for children attending government schools
• New thrust for Northeast