UNION BUDGET 2022 MCQ QUESTIONS

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UNION BUDGET 2022-23

HIGHLIGHTS OF UNION BUDGET 2022-23

Finance Minister Nirmala Sitharaman’s 4th Budget speech
GDP growth in 2021-23 expected to be 9.2%, says Nirmala Sitharaman
PLI in 14 sectors for aatmanirbhar bharat to create 6 million jobs
Budget seeks to set tone for the ‘Amrit kaal’ of the next 25 years
Farm procurement value for FY23 to be Rs 2.37 trillion
HKen-Betwa river link project to be taken at cost of Rs 44,000 cr to benefit 900,000 farmers
Rs 2 trillion outlay for MSMEs
38 mn households to get piped water
75 digital banking systems in 75 districts by scheduled commercial banks
Contracts for implementation of multimodal logistics parks at 4 locations to be awarded in 2022-23 in PPP Mode
IIIT-B to provide support to healthcare infrastructure.
Divestment target for FY23 seen at Rs 65,000 crore.

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India’s economic growth estimated at 9.2% to be the highest among all large economies.
60 lakh new jobs to be created under the productivity linked incentive scheme in 14
PLI Schemes have the potential to create an additional production of Rs 30 lakh
Entering Amrit Kaal, the 25 year long lead up to India @100, the budget provides impetus for growth along four priorities:

Focus areas of Budget

PM GatiShakti
Inclusive Development
Productivity Enhancement & Investment, Sunrise opportunities, Energy Transition, and Climate Action.
Financing of investments

PM GatiShakti

The seven engines that drive PM GatiShakti are Roads, Railways, Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure.

PM GatiShkati National Master Plan

The scope of PM GatiShakti National Master Plan will encompass the seven engines for economic transformation, seamless multimodal connectivity and logistics
The projects pertaining to these 7 engines in the National Infrastructure Pipeline will be aligned with PM GatiShakti framework.

Road Transport

National Highways Network to be expanded by 25000 Km in 2022-23.
Rs 20000 Crore to be mobilized for National Highways Network

Multimodal Logistics Parks

Contracts to be awarded through PPP mode in 2022-23 for implementation of Multimodal Logistics Parks at four

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Railways

One Station One Product concept to help local businesses & supply
2000 Km of railway network to be brought under Kavach, the indigenous world class technology and capacity augmentation in 2022-23.
400 new generation Vande Bharat Trains to be manufactured during the next three
100 PM GatiShakti Cargo terminals for multimodal logistics to be developed during the next three

Parvatmala

National Ropeways Development Program, Parvatmala to be taken up on PPP mode.
Contracts to be awarded in 2022-23 for 8 ropeway projects of 60 Km length.

Inclusive Development

Agriculture

2.37 lakh crore direct payment to 1.63 crore farmers for procurement of wheat and paddy.
Chemical free Natural farming to be promoted throughout the Initial focus is on farmer’s lands in 5 Km wide corridors along river Ganga.
NABARD to facilitate fund with blended capital to finance startups for agriculture & rural
‘Kisan Drones’ for crop assessment, digitization of land records, spraying of insecticides and

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Ken Betwa project

1400 crore outlay for implementation of the Ken – Betwa link project.
9.8 lakh hectares of farmers’ lands to receive irrigation benefits by Ken-Betwa link project.

MSME

Udyam, e-shram, NCS and ASEEM portals to be
130 lakh MSMEs provided additional credit under Emergency Credit Linked Guarantee Scheme (ECLGS)
ECLGS to be extended up to March
Guarantee cover under ECLGS to be expanded by Rs 50000 Crore to total cover of Rs 5 Lakh Crore.
Rs 2 lakh Crore additional credit for Micro and Small Enterprises to be facilitated under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE).
Raising and Accelerating MSME performance (RAMP) programme with outlay of Rs 6000 Crore to be rolled out.

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Skill Development

Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to empower citizens to skill, reskill or upskill through on-line
Startups will be promoted to facilitate ‘Drone Shakti’ and for Drone-As-A-Service (DrAAS).

Education

‘One class-One TV channel’ programme of PM eVIDYA to be expanded to 200 TV
Virtual labs and skilling e-labs to be set up to promote critical thinking skills and simulated learning
High-quality e-content will be developed for delivery through Digital
Digital University for world-class quality universal education with personalised learning experience to be

Health

An open platform for National Digital Health Ecosystem to be rolled out.
‘National Tele Mental Health Programme’ for quality mental health counselling and care services to be
A network of 23 tele-mental health centres of excellence will be set up, with NIMHANS being the nodal centre and International Institute of Information Technology- Bangalore (IIITB) providing technology

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Saksham Anganwadi

Integrated benefits to women and children through Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0.
Two lakh anganwadis to be upgraded to Saksham

Har Ghar, Nal Se Jal

60,000 crore allocated to cover 3.8 crore households in 2022-23 under Har Ghar, Nal se Jal.

Housing for All

48,000 crore allocated for completion of 80 lakh houses in 2022-23 under PM Awas Yojana.

Prime Minister’s Development Initiative for North-East Region (PM-DevINE)

New scheme PM-DevINE launched to fund infrastructure and social development projects in the North-East.
An initial allocation of 1,500 crore made to enable livelihood activities for youth and women under the scheme.

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Vibrant Villages Programme

Vibrant Villages Programme for development of Border villages with sparse population, limited connectivity and infrastructure on the northern border.

Banking

100 per cent of 5 lakh post offices to come on the core banking system.
Scheduled Commercial Banks to set up 75 Digital Banking Units (DBUs) in 75 districts.

e-Passport

e-Passports with embedded chip and futuristic technology to be rolled

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Urban Planning

Modernization of building byelaws, Town Planning Schemes (TPS), and Transit Oriented Development (TOD) will be
Battery swapping policy to be brought out for setting up charging stations at scale in urban

Land Records Management

Unique Land Parcel Identification Number for IT-based management of land

Accelerated Corporate Exit

Centre for Processing Accelerated Corporate Exit (C-PACE) to be established for speedy winding-up of

AVGC Promotion Task Force

An animation, visual effects, gaming, and comic (AVGC) promotion task force to be set-up to realize the potential of this sector.

Telecom Sector

Scheme for design-led manufacturing to be launched to build a strong ecosystem for 5G as part of the Production Linked Incentive

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Export Promotion

Special Economic Zones Act to be replaced with a new legislation to enable States to become partners in ‘Development of Enterprise and Service Hubs’.

AtmaNirbharta in Defence:

68% of capital procurement budget earmarked for domestic industry in 2022-23, up from 58% in 2021-22.
Defence R&D to be opened up for industry, startups and academia with 25% of defence R&D budget earmarked.
Independent nodal umbrella body to be set up for meeting testing and certification

Sunrise Opportunities

Government contribution to be provided for R&D in Sunrise Opportunities like Artificial Intelligence, Geospatial Systems and Drones, Semiconductor and its eco-system, Space Economy, Genomics and Pharmaceuticals, Green Energy, and Clean Mobility

Energy Transition and Climate Action:

Additional allocation of 19,500 crore for Production Linked Incentive for manufacture of high efficiency solar modules to meet the goal of 280 GW of installed solar power by 2030.
Five to seven per cent biomass pellets to be co-fired in thermal power plants:

CO2 savings of 38 MMT annually,
Extra income to farmers and job opportunities to locals,
Help avoid stubble burning in agriculture

Four pilot projects to be set up for coal gasification and conversion of coal into chemicals for the industry
Financial support to farmers belonging to Scheduled Castes and Scheduled Tribes, who want to take up agro-forestry.

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Financing of investments

Public Capital Investment:

Public investment to continue to pump-prime private investment and demand in 2022-23.
Outlay for capital expenditure stepped up sharply by 4% to Rs. 7.50 lakh crore in 2022-23 from Rs. 5.54 lakh crore in the current year.
Outlay in 2022-23 to be 9% of GDP.
‘Effective Capital Expenditure’ of Central Government estimated at 10.68 lakh crore in 2022-23, which is about 4.1% of GDP.

GIFT-IFSC

World-class foreign universities and institutions to be allowed in the GIFT
An International Arbitration Centre to be set up for timely settlement of disputes under international jurisprudence.

Mobilising Resources

Data Centres and Energy Storage Systems to be given infrastructure
Venture Capital and Private Equity invested more than Rs. 5 lakh crore last year facilitating one of the largest start-up and growth ecosystem. Measures to be taken to help scale up this investment.
Blended funds to be promoted for sunrise sectors.
Sovereign Green Bonds to be issued for mobilizing resources for green

Digital Rupee

Introduction of Digital Rupee by the Reserve Bank of India starting 2022-23.

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Providing Greater Fiscal Space to States

Enhanced outlay for ‘Scheme for Financial Assistance to States for Capital Investment’:
- From 10,000 crore in Budget Estimates to Rs. 15,000 crore in Revised Estimates for current year
Allocation of 1 lakh crore in 2022-23 to assist the states in catalyzing overall investments in the economy: fifty-year interest free loans, over and above normal borrowings
In 2022-23, States will be allowed a fiscal deficit of 4% of GSDP, of which 0.5% will be tied to power sector reforms

Fiscal Management

Budget Estimates 2021-22: 34.83 lakh crore
Revised Estimates 2021-22: 37.70 lakh crore
Total expenditure in 2022-23 estimated at Rs. 39.45 lakh crore

Total receipts other than borrowings in 2022-23 estimated at Rs. 84 lakh crore
Fiscal deficit in current year: 9% of GDP (against 6.8% in Budget Estimates)
Fiscal deficit in 2022-23 estimated at 6.4% of GDP

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DIRECT TAXES

To take forward the policy of stable and predictable tax regime:

Vision to establish a trustworthy tax regime.
To further simplify tax system and reduce

Introducing new ‘Updated return’

Provision to file an Updated Return on payment of additional tax.
Will enable the assessee to declare income missed out
Can be filed within two years from the end of the relevant assessment

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Cooperative societies

Alternate Minimum Tax paid by cooperatives brought down from 5 per cent to 15 per cent.
To provide a level playing field between cooperative societies and
Surcharge on cooperative societies reduced from 12 per cent to 7 per cent for those having total income of more than Rs 1 crore and up to Rs 10 crores.

Tax relief to persons with disability

Payment of annuity and lump sum amount from insurance scheme to be allowed to differently abled dependent during the lifetime of parents/guardians, i.e., on parents/ guardian attaining the age of 60

Parity in National Pension Scheme Contribution

Tax deduction limit increased from 10 per cent to 14 per cent on employer’s contribution to the NPS account of State Government employees.
Brings them at par with central government
Would help in enhancing social security

Incentives for Start-ups

Period of incorporation extended by one year, up to 31.03.2023 for eligible start-ups to avail tax
Previously the period of incorporation valid up to 03.2022.

Incentives under concessional tax regime

Last date for commencement of manufacturing or production under section 115BAB extended by one year e. from 31st March, 2023 to 31st March, 2024.

Scheme for taxation of virtual digital assets

Specific tax regime for virtual digital assets
Any income from transfer of any virtual digital asset to be taxed at the rate of 30 per cent.
No deduction in respect of any expenditure or allowance to be allowed while computing such income except cost of acquisition.
Loss from transfer of virtual digital asset cannot be set off against any other income.
To capture the transaction details, TDS to be provided on payment made in relation to transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary
Gift of virtual digital asset also to be taxed in the hands of the

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Litigation Management

In cases where question of law is identical to the one pending in High Court or Supreme Court, the filing of appeal by the department shall be deferred till such question of law is decided by the court.
To greatly help in reducing repeated litigation between taxpayers and the

Tax incentives to IFSC

Subject to specified conditions, the following to be exempt from tax
- Income of a non-resident from offshore derivative instruments.
- Income from over the counter derivatives issued by an offshore banking
- Income from royalty and interest on account of lease of
- Income received from portfolio management services in

Rationalization of Surcharge

Surcharge on AOPs (consortium formed to execute a contract) capped at 15 per
Done to reduce the disparity in surcharge between individual companies and
Surcharge on long term capital gains arising on transfer of any type of assets capped at 15 per
To give a boost to the start up

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Health and Education Cess

Any surcharge or cess on income and profits not allowable as business

Deterrence against tax-evasion

No set off, of any loss to be allowed against undisclosed income detected during search and survey

Rationalizing TDS Provisions

Benefits passed on to agents as business promotion strategy taxable in hands of agents.
Tax deduction provided to person giving benefits, if the aggregate value of such benefits exceeds Rs 20,000 during the financial

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INDIRECT TAXES

Remarkable progress in GST

GST revenues are buoyant despite the pandemic – Taxpayers deserve applause for this

Special Economic Zones

Customs Administration of SEZs to be fully IT driven and function on the Customs National Portal – shall be implemented by 30^th September 2022.

Customs Reforms and duty rate changes

Faceless Customs has been fully During Covid-19 pandemic, Customs formations have done exceptional frontline work against all odds displaying agility and purpose.

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Project imports and capital goods

Gradually phasing out of the concessional rates in capital goods and project imports; and applying a moderate tariff of 5 percent – conducive to the growth of domestic sector and ‘Make in India’.
Certain exemptions for advanced machineries that are not manufactured within the country shall
A few exemptions introduced on inputs, like specialised castings, ball screw and linear motion guide – to encourage domestic manufacturing of capital

Review of customs exemptions and tariff simplification

More than 350 exemption entries proposed to be gradually phased out, like exemption on certain agricultural produce, chemicals, fabrics, medical devices, & drugs and medicines for which sufficient domestic capacity
Simplifying the Customs rate and tariff structure particularly for sectors like chemicals, textiles and metals and minimise disputes; Removal of exemption on items which are or can be manufactured in India and providing concessional duties on raw material that go into manufacturing of intermediate products – in line with the objective of ‘Make in India’ and ‘Atmanirbhar Bharat’.

Sector specific proposals Electronics

Customs duty rates to be calibrated to provide a graded rate structure – to facilitate domestic manufacturing of wearable devices, hearable devices and electronic smart
Duty concessions to parts of transformer of mobile phone chargers and camera lens of mobile camera module and certain other items – To enable domestic manufacturing of high growth electronic

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Gems and Jewellery

Customs duty on cut and polished diamonds and gemstones being reduced to 5 per cent; Nil customs duty to simply sawn diamond – To give a boost to the Gems and Jewellery sector
A simplified regulatory framework to be implemented by June this year – To facilitate export of jewellery through e-commerce.
Customs duty of at least Rs 400 per Kg to be paid on imitation jewellery import – To disincentivise import of undervalued imitation jewellery.

Chemicals

Customs duty on certain critical chemicals namely methanol, acetic acid and heavy feed stocks for petroleum refining being reduced; Duty is being raised on sodium cyanide for which adequate domestic capacity exists – This will help in enhancing domestic value

MSME

Customs duty on umbrellas being raised to 20 per cent. Exemption to parts of umbrellas being
Exemption being rationalised on implements and tools for agri-sector which are manufactured in India
Customs duty exemption given to steel scrap last year extended for another year to provide relief to MSME secondary steel producers
Certain Anti- dumping and CVD on stainless steel and coated steel flat products, bars of alloy steel and high-speed steel are being revoked – to tackle prevailing high prices of metal in larger public

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Exports

To incentivise exports, exemptions being provided on items such as embellishment, trimming, fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging
Duty being reduced on certain inputs required for shrimp aquaculture – to promote its

Tariff measure to encourage blending of fuel

Unblended fuel to attract an additional differential excise duty of Rs 2/ litre from the 1^st of October 2022 – to encourage blending of

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Table of Contents

UNION BUDGET 2022 MCQ QUESTIONS

1. According to Union Budget 2022-23 presented by FM Nirmala Sitharaman, GDP growth in 2021-23 is expected to be ____________.

(a) 7.5%

(b) 8.7%

(c) 9.2%

(d) 10.4%

2. According to the Union Budget 2022-23, Total expenditure in 2022-23 estimated at ____________________.

(a) Rs. 34.83 lakh crore

(b) Rs. 37.70 lakh crore

(c) Rs. 39.45 lakh crore

(d) Rs. 48.55 lakh crore

3. According to the Union Budget 2022-23, the revised Fiscal Deficit was ___________ % of GDP in FY22 as against 6.8% in Budget estimates.

(a) 5.3%

(b) 6.9%

(c) 7.5%

(d) 8.2%

4. How many times Nirmala Sitharaman has presented the budget in parliament till the budget 2022-23?

(a) 1

(b) 2

(c) 3

(d) 4

5. How much amount is allocated for the Aatmanirbhar Bharat Rojgar

Yojana for 2022-23?

(a) 5000 crores

(b) 6400 crores

(c) 3000 crores

(d) 4000 crores

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Q.6 How much amount is allocated for the Ministry of Agriculture and Farmers’

Welfare?

(a) 32513.62 crores

(b) 132513.62 crores

(d) 332513.62 crores

Q.7. As per budget, Har Ghar, Nal Se Jal: ____________ households to be covered in 2022-23.

(a) 1.8 crores

(b) 2.8 crores

(d) 4.8 crores

Q.8. Tax deduction limit increased from 10 percent to _______percent on employer’s contribution to the NPS account of State Government employees.

(a) 11%

(b) 12%

(d) 14%

Q.9. Any income from transfer of any virtual digital asset to be taxed at the rate of _____________.

(a) 18%

(b) 20%

(d) 30%

Q.10. HKen-Betwa river link project will be implemented at cost of __________________ to benefit 900,000 farmers.

(a) Rs 11,000 crores

(b) Rs 22,000 crores

(d) Rs 44,000 crores

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Q.11. Customs duty on cut and polished diamonds and gemstones being reduced to ______________.

(a) 2%

(b) 3%

(d) 7%

Q.12. The Government of India aims to achieve the vision for?

(a) India@25

(b) India@50

(d) India@100

Q.13. What will be the financial outlay for the Prime Minister’s Development Initiative for North-East Region (PM-DevINE) scheme?

(a) Rs 1,000 crore

(b) Rs 1,500 crore

(d) Rs 2,500 crore

Q.14. Total receipts other than borrowings in 2022-23 estimated at Rs. _____________crore.

(a) Rs. 22.84 lakh crore

(b) Rs. 37.70 lakh crore

(d) Rs. 48.55 lakh crore

Q.15. How much amount has been allocated for completion of 80 lakh houses in 2022-23 under PM Awas Yojana scheme?

(a) Rs. 18,000 crores

(b) Rs. 28,000 crores

(d) Rs. 48,000 crores

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Q.16. What per cent of 5 lakh post offices to come on the core banking system?

(a) 25%

(b) 50%

(d) 75%

Q.17. Name the Programme for the development of Border villages with sparse population, limited connectivity and infrastructure on the northern border.

(a) Vibrant Villages Programme

(b) Lively Villages Programme

(d) Pulsating Villages Programme

Q.18. One class-One TV channel’ programme of PM eVIDYA to be expanded from 12 to _____________TV channels.

(a) 25

(b) 50

(d) 150

Q.19. What percent of capital procurement budget earmarked for domestic industry in 2022-23, to promote Atmanirbharta?

(a) 38%

(b) 48%

(d) 68%

Q.20. Additional allocation of _____________ was announced for Production Linked Incentive for manufacture of high efficiency solar modules to meet the goal of 280 GW of installed solar power by 2030?

(a) 9,500 crores

(b) 19,500 crores

(d) 39,500 crores

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Q.21. ‘Effective Capital Expenditure’ of Central Government estimated at ____________ in 2022-23, which is about 4.1% of GDP.

(a) 7.67 lakh crore

(b) 8.18 lakh crore

(d) 10.68 lakh crore

Q.22. What is the capital expenditure target for 2022-23?

(a) Rs. 5 lakh crore

(b) Rs. 7.50 lakh crore

(d) Rs. 15 lakh crore

Q.23. Fiscal deficit in 2022-23 has been estimated at ______ of GDP.

(a) 5.3%

(b) 6.4%

(d) 7.2%

Q.24. Budget 2022 focusses on how many areas or pillars?

(a) 1

(b) 2

(d) 4

Q.25. Emergency Credit Linked Guarantee Scheme (ECLGS) has been extended up to

(a) March 2022

(b) August 2022

(d) August 2023

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Q.26. How many new generation Vande Bharat trains to be manufactured during the next three years?

(a) 100

(b) 200

(d) 400

Q.27. How many PM Gati Shakti Cargo terminals for multimodal logistics to be developed during the next three years?

(a) 100

(b) 200

(d) 400

Q.28. Alternate Minimum Tax paid by cooperatives brought down from 5 per cent to _________________.

(a) 10%

(b) 12%

(d) 17%

Q.29. What will be the Farm procurement value for FY23?

(a) Rs 1.35 trillion

(b) Rs 2.37 trillion

(d) Rs 4.72 trillion

Q.30. Unblended fuel to attract an additional differential excise duty of Rs 2/ litre from the _____________ to encourage blending of fuel.

(a) 1 May 2022

(b) 1 October 2022

(d) 1 May 2023

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c	c	b	d	b
b	c	d	d	d
c	d	b	a	d
e	a	c	d	b
d	b	b	d	c
d	a	c	b	b

UNION BUDGET 2022 MCQ QUESTIONS

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