In the series Sansad TV Perspective, we bring you an analysis of the discussion featured on the insightful programme ‘Perspective’ on Sansad TV, on various important topics affecting India and also the world. This analysis will help you immensely for the IAS exam, especially the mains exam, where a well-rounded understanding of topics is a prerequisite for writing answers that fetch good marks.
In this article, we feature the discussion on the topic: Decoding Budget 2022-23 – Digital Push.
Anchor: Vishal Dahiya
Participants:
- Abhishek Singh, CEO, MyGov, GoI
- Dinesh Tyagi, MD, CSC E-Governance Services India Limited
- Dr. Ajay Data, Co-Chair, ICT & Digital Economy Committee, FICCI
Context:
In the budget 2022-23, various announcements have been made by the Finance Minister that provides a push to the Digital Economy. The article will discuss different aspects of the Budget 2022-23.
Background:
- The Ministry of Electronics and Information Technology outlay for the Digital India program in the Budget for 2022-23 has jumped 67.13 percent.
- This year the allocation for this program is ₹10,676.18 crores, up from ₹6,388 crores last year.
- In her Budget speech, the Finance Minister also proposed to introduce a Digital Rupee based on blockchain and other technologies which will be issued by the Reserve Bank of India.
- Aiming to ensure that the benefits of digital banking reach everyone in a consumer-friendly manner the govt also plans to set up 75 digital banking units in 75 districts of the country by Scheduled Commercial Banks.
- A digital university will be set up in India to provide access to students across the country for world-class quality education at their doorstep amid academic disruption caused by the coronavirus pandemic.
- The government will also conduct required spectrum auctions in 2022 to facilitate the rollout of 5G mobile services by private telecom providers during FY 2022-23.
Initiatives taken in the Budget 2022-23:
The following announcements were made by the Finance Minister in the budget speech to provide a digital boost to the economy:
National Digital Health Ecosystem:
- An open platform for the National Digital Health Ecosystem comprised of digital registries of health providers and health facilities, unique health identities, and universal access to health facilities will broaden access to health and wellness while driving a focus on preventive healthcare.
- A National Tele Mental Health program, particularly in rural areas, will greatly improve accessibility for patients in need of expert guidance for their mental health.
Digital University:
- A digital university will be developed to provide access to schooling across the country for world-class quality education with a personalized learning experience.
- This will be made available in different Indian languages. The university will be built on a networked hub model all the leading public Universities will collaborate on the network.
DESH-Stack:
- Digital Ecosystem for skilling and livelihood, the DESH-Stack e-portal, will be launched to empower citizens to skill, reskill or upskill through online training.
- High-quality e-content in all spoken languages will be developed for delivery via the internet, mobile phones, TV, and radio through Digital Teachers.
- A competitive mechanism for the development of quality e-content by the teachers will be set up to empower and equip them with digital tools of teaching and facilitate better learning outcomes.
E-Vidya:
- Under the PM e-Vidya program, there will be 200 DTH channels dedicated to Classes 1 to 12, which will enable all the states to provide supplementary education in regional languages.
- The Centre launched the PM e-Vidya program, also known as the One Nation Digital Platform, during the first wave of the pandemic in May 2020.
Digital Rupee:
- During the budget presentation, the FM also announced the introduction of a digital currency, which will lead to a more efficient and cheaper currency management system in India.
- The ‘Digital Rupee’ that has been proposed will be based on blockchain technology and will be issued by RBI in 2022-2023.
AVGC:
- The Finance Minister announced the creation of a new task force that will look at ways to build domestic capacity and also to serve the global demand in the Animation, Visual Effects, Gaming, and Comic (AVGC) sector.
- Mrs. Sitharaman said that the Animation, Visual Effects, Gaming, and Comic (AVGC) sector will provide a huge opportunity for the young generation and also create new jobs for the youth.
- Dubbed as the AVGC promotion task force, the stakeholders will look at ways of serving this market and also cater to the global demand.
Digital Banks:
- The government has proposed to set up 75 digital banking units in 75 districts by commercial banks.
- The financial support for the digital payment ecosystem announced in the previous budget will continue, which will encourage further adoption of digital payments.
E-Passport:
- The government will roll out e-Passports from 2022-23 to enhance convenience for citizens.
- This move to introduce E-passport will further streamline the overall citizen experience, enhance security, and facilitate smoother international travel.
E-Billing System:
- To reduce the delay in payment, a completely paperless online end-to-end e-bill system will be launched which will be used by all Central ministries for their procurements.
- The system will enable the suppliers and contractors to submit online their digitally signed e-bills and claims, and track the status from anywhere.
- To reduce indirect costs for suppliers and contractors, the use of surety bonds as a substitute for bank guarantees will be made accepted in government procurement.
Drone in Farming Sector:
- Kisan Drones are said to be entrusted in the deployment of drone technology in the sector, which also includes providing special monetary benefits that allow the purchase or hire of drones for such purposes.
- The primary objectives of bringing drones into the sector are to reduce manpower, increase the efficiency of crop protection with chemicals, reduce the amount of water used for farming, and prevent humans from getting exposed to harmful pesticides.
Pillars of Digital Economy:
5G:
- With 5G being one of the most anticipated announcements during the budget presentation, finance minister announced that the government will roll out 5G telecom services during the financial year 2022-2023.
- The finance minister also said that the spectrum auction for the same will also be conducted in FY 22-23. Mrs. Sitharaman stressed the rollout of 5G services to better internet connectivity across the country and effectively develop the internet economy.
- The government can transform the entire discretion of education, health, administration, etc. with the help of 5G because it leads to speed in Gbps.
Digital Rupee:
-
- The RBI will introduce a digital rupee in the next financial year beginning April 2022 subsequent to amendments proposed in the Finance Bill, 2022.
- Finance minister said in the Budget speech that the introduction of a central bank digital currency (CBDC) will give a big boost to the digital economy.
- Digital currency will also lead to a more efficient and cheaper currency management system.
- CBDC:
-
- The CBDC is a digital form of fiat currency, which can be transacted using wallets backed by the blockchain and is regulated by the central bank.
- It enables the user to conduct both domestic and cross-border transactions, which do not require a third party or a bank.
- The purpose of creating a digital currency is to provide significant benefits, such as reduced dependency on cash, higher seigniorage due to lower transaction costs, and reduced settlement risk.
Digital Inclusion:
- Mrs Sitharaman said that the government will allocate 5 percent of the annual collections under the universal service obligations fund to enable broadband and mobile services in the rural and remote areas of the country.
- She said that this step will provide and promote research and development, and commercialization of technology and solutions.
- The vision of the government is that all villages and their residents should have the same access to e-services, communication facilities, and digital resources as urban areas and their residents.
Benefits of the Digital Theme Budget:
The Budget 2022-23 has come up with many initiatives that are focused on the digitalization of the economy. Hence, we can say that the central theme of the Budget 2022-23 is the digital economy. Following are the benefits of a digital economy:
Driving force for economic growth:
- Digital transformation across the sectors will act as a driving force for economic growth.
Digital inclusion:
- Providing digital services in regional languages will reduce the digital gap in the economy.
More opportunities:
- Transforming the traditional system into a digital economy will require complete structural change. This will lead to more opportunities for the IT sector and the youth.
Way Forward:
- The aggressive push which picked up pace largely after the launch of the Digital India initiative followed by the implementation of other online portals and programs such as GeM, e-NAM, BharatNet, Digital Health mission, and online filing of tax returns among others, has witnessed a transformation in different areas of the Indian economy.
- As the finance minister tabled the union government’s budget for the upcoming financial year, one theme running across this budget and connecting through the past budgets has been the strong push towards realizing a digital future for the country.
- Such a push being led by the government consistently is remarkable in many ways bearing testimony to the fact that the government not only realizes that a major chunk of our future is going to be driven by digital technologies but also understands the massive potential that lies untapped in the Indian market on this aspect.
Read more summaries of Perspective in the link.
Perspective: Decoding Budget 2022-23:- Download PDF Here
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