Budget 2023 Live Updates and Highlights

The major highlight of the Union Budget 2023 is the income tax rebate limit which has increased from Rs. 5 Lakhs to Rs. 7 Lakhs under the new tax regime.

Finance Minister Nirmala Sitharaman has presented the Union Budget for 2023 today in Parliament today, which is said to be the 1st budget in Amrit Kaal. The finance minister addressed some of the major issues like inclusive development, bridging the gap, infrastructural development, investment opportunities, youth power, and the financial sector.

The union budget  2023-24 hopes to build on the foundation laid on the previous budget and the blueprint drawn for India at 100. India has been recognized as the ‘bright star’ globally in its 75th year. According to FM Sitharaman, despite of the massive global slowdown, because of COVID and global political unsettlings, India has managed to surpass all economic expectations, in the current year economic growth stands at a whopping 7%, which is the highest amongst all the major economies, the per capita income has doubled to 1.97 lakhs and the Indian economy has increased from the 10th to the 5th largest in the world.

First budget in Amrit Kaal

The Finance Minister has anticipated the current growth of the economy at 7%. She adds that this is relatively the highest growth among major economies amid the Covid-19 slowdown. She assures that India is on the right track in spite of challenges and foresees a bright future for the country. The major focus for the finance ministry has been on wide-ranging reforms and sound policies through ‘Sabka Prayas’ resulting in ‘Jan Bhagidari’ and targeted support for those in need. The rise of India is indebted towards some of the innovative acts in the form of unique world-class digital public infrastructure such as Aadhaar, Covin, UPI, etc.

The Finance minister spoke highly of the Mission Life and National Hydrogen Mission in their significant contribution towards the upliftment of the country’s sustainable development.

She mentioned about how during the Covid-19 pandemic, the central government ensured that no one goes to bed hungry through the supply of free food grains to over 80 crore people for 28 months. As a part of food and nutritional security, the government has already ensured continuity of supply of free food grains to all Antyodaya and priority households from 1st January 2023 for a year. The scheme will be implemented under the ‘Garib Kalyan Anna Yojana’. The entire expense of INR 2 Lakh Crore will be taken care of by the central government.

New Tax Slabs for Taxpayers

Under the new tax system, the finance minister mentioned that the government is considering raising the cap on income tax rebates to INR 7 lakh. Moreover, there is an effort by the government to make direct taxpayers’ grievance procedures better. Under the new tax system, there is no tax on income up to INR 3 lakh, a 5 percent tax on income between INR 3 lakh and INR 6 lakh, and a 30 percent tax on income over INR 15 lakh. According to the new tax regime, an individual making INR 15 lakh will now only have to pay INR 1.5 lakh in taxes instead of INR 1.87 lakh. The government will increase the cap on cash deposits and loans made by Primary Agricultural Credit Societies to INR 2 lakh per member.

A simplified review of the new tax slab is given below. 

G20 Presidency 2023

With the theme of Vasudeva Kutumbakam, the government aims to implement a people-centric agenda to tackle various global obstacles and to enrich sustainable economic development.

In addition, the Finance minister mentioned about how the Per Capita income has raised to more than INR 1.97 Lakh. Consequently, the Indian economy has risen to 5th largest in the world which is a commendable feat. Moreover, significant progress in achieving various sustainable development goals have been conceptualized and is ready for implementation. Also, FM Nirmala Sitharaman mentioned that EPFO membership has doubled to more than 27 crores and 7,400 crores of digital payments transacting about 127 Lakh crores payment through UPI in 2022.

Vision for the Union Budget 2023-24

The Finance Minister lays down the three factors that will become the central vision for the Union Budget of 2023-24. They are:

• Facilitating ample opportunities for citizens especially the youth to fulfill their aspirations.
• Creating a strong impetus for growth and job creation
• Strengthening macroeconomic stability

In addition to that, FM Nirmala Sitharaman has explained the four major areas where development can be exploited to the country’s advantage. To service these focus areas, four categories of opportunities will be highly transformative. They are as follows.

Economic empowerment of women

• Deen Dayal Antyodaya Yojana National Rural Livelihood Mission
• Mobilization of rural women via 81 Lakhs self-help groups
• Assisting these groups through large producer enterprises and collectives
• Assisted with raw materials and marketing

PM Viswakarma Koushal Samman (PM Vikas)

• A package of assistance for artisans has been conceptualized.
• Enable them to achieve their economic goals
• Provide skill training and efficient technologies.

Tourism

• Mission Mode will be engaged for the boost of the tourism sector by aiding with the active participation of states, public and private partnerships, and so on.

Green Growth

• Various efforts towards promoting green growth include green fuel, green energy, green farming, green mobility, green building, green equipment, and other schemes to systematically utilize energy.
• Aims to reduce carbon emissions
• Increase green job opportunities

Priorities of Union Budget 2023-24

The Finance minister mentioned seven major focus areas that build the foundation of the Union Budget 2023-24.

• Inclusive Development
• Reaching the last mile
• Infrastructure and Investment
• Unleashing the potential
• Green growth
• Youth Power
• Financial Sector

Inclusive Development

This focus area majorly adopts the philosophy of Sabka Sath Sabka Vikas covering citizens that are farmers, women, youth, OBCs, SCs, STs, handicapped, and EWS communities. Inclusive Development mostly focuses on the underprivileged class.

• Building Digital Public Infrastructure for Agriculture
• Settling up Agriculture accelerated funds
• Horticulture Clean plant program to be launched
• Deployment of INR 20 Lakh crore agricultural credit facility
• Making India a major global player in the ‘Millet’ market
• Facilitating massive storage areas
• Boosting the healthcare sector with 157 new nursing colleges
• Launch of Sickle Cell Anaemia elimination mission
• Public and private collaboration for Medical research.
• For the education and Skilling industry, training programs will be launched with a revamped framework.
• The setup of digital libraries will be initiated.

The Union Budget 2023-24 brings in 9 crore drinking water connections to rural areas. Additionally, under the PM Kisan, farmers will get a major boost with cash transfers of INR 2.2 Lakh crores to INR 11.4 Lakh crores. Moreover, insurance covers are introduced for citizens under PMSBY and PMJJBY schemes.

Reaching the Last Mile

Several policies have been mentioned by the Finance Minister under this priority which majorly sums up with the launch of Pradhan Mantri PVTV Development Mission, monetary assistance to drone-prone areas in Karnataka, more teacher recruitments for Eklavya Model Residential Schools, and initiation of Bharat (SHRI) for transcribing ancient inscriptions.

Infrastructure and Investment

A great way to wedge the gap between growth and employment requirements is to create schemes that introduce more investment in infrastructure and productive capacity. Some of the highlights of this mission include:

• 4% increase in capital investment. This means that financial deployment of INR 10 Lakh crore will be provided.
• State governments to receive 50 years of interest-free capital boost
• Railways get a major push with a record INR 2.4 Lakh crores
• Construction of 100 transport infrastructure projects will be initiated.
• UIDF boost for tier 2 and tier 3 cities for infrastructure development.

Unleashing the Potential

Several measures will be taken for ensuring trust-based governance aimed toward unleashing the full capacity of the country’s overall development. As part of this priority, the government plans to take the following steps in consideration.

• AI-backed technological centers to be set up in educational institutions.
• Bringing National Data Governance Policy.
• Major relief schemes for covid hit MSMEs under the Vivad Se Vishwas.
• Moreover, under the Vivad se Vishwas policy, the government ensured faster settlements of contractual disputes.
• Additional push to E-Courts which is to reach phase 3.
• More Digilockers to be introduced.
• Providing 100 labs of 5G services.
• Research and Development centers for Lab Grown Diamonds for boosting domestic production.

Green Growth

With the green growth initiative, the government aims to increase the country’s capacity of growing sustainably. With several of the following initiatives, the government aims to achieve the same.

• PM PRANAM to be launched
• 500 new ‘waste to wealth’ plants will be constructed.
• More Green credit programs will be launched.
• Boost in sustainable ecosystem development with the help of MISHTI program for mangrove plantation and creating an ideal utilization of wetlands.
• Other initiatives include 10,000 bio-input resource centers, battery energy storage facilities, energy efficiency in coastal transportation, and financial aid to assist the replacement of old polluting vehicles.

Fiscal Deficit Targets

Finance Minister has kept the fiscal deficit for the current fiscal year at 5.9% of the GDP. However, the government aims to set the same at 4.5% by 2025-26. As of the current year, the target has been set by the government which is a reduced figure by 50 basis points.

Moreover, revamp schemes for MSMEs to be introduced from 1st April by the government. Also,  additional collateral-free credit will be provided to citizens. Consequently, the cost of credit will be reduced by 1%.

Some to Cheer for Personal Finance Proposals

Women can now participate in a single, innovative savings program with a two-year term that offers 7.5 percent interest with the option of partial withdrawal. The maximum deposit amount for senior citizens will range from 15 lahks to 30 lahks. The investment cap for modest savings programs like Senior Citizen Savings Schemes (SCSS) was raised from INR 15 lakh to INR 30 lakh. The investment cap for a single account under the Monthly Income Scheme (MIS) increased from INR 4.5 lakh to INR 9 lakh. The joint accounts limit has surged from INR 9 lakh to INR 15 lakh.

Ministry-wise Fund Allocations

Further, Nirmala Sitharaman gave a peek into how the budget has been allocated across ministries. The funding is as specified.