The Union Budget 2023 was unveiled in Parliament on Wednesday by Finance Minister Nirmala Sitharaman at a time when the Indian economy is grappling with a number of external issues, including a sharp spike in inflation and a potential slowdown in GDP growth in FY24.
It aims to expand on the framework established by the prior budget and the design created for India at 100, according to Sitharaman, who also noted that this is the first budget in the Amrit kaal. The finance minister stated during her budget speech that the emphasis is still on broadening the scope of economic growth and expanding important sectors like manufacturing, infrastructure, and job creation.
The Indian economy is on the right road and, despite difficulties, is moving in the direction of a bright future, according to Finance Minister Nirmala Sitharaman. “Our emphasis on comprehensive changes and wise policies enabled us to operate successfully during difficult times. India’s growing international recognition is the result of a number of successes, including its exceptional world-class digital public infrastructure, Covid immunisation push, and proactive role in frontier regions.
According to the finance minister, the PM Gaarib Kalyan Anna Yojana is a programme that the government has put into place to provide priority households with free food grains for the upcoming year. According to the finance minister, the government will be responsible for paying the total cost of roughly Rs 2 lakh crore.
The Union Budget will be centred around seven goals, according to the Finance Minister. They are financial sector, infrastructure and investment, unleashing potential, green growth, young power, and inclusive development.
According to the finance minister, this budget will establish the foundation for the Amrit Kaal, which would have a knowledge-based economy and growth that is driven by technology. “A technology-driven, knowledge-based economy with sound public finances and a thriving financial sector is part of our vision for the Amrit Kaal. It is crucial to accomplish this ‘janbhagidari’ through’sabka saath, sabka prayaas,’ she stated.
As anticipated before, the finance minister made a number of statements to support the agriculture industry as a whole, including offering farmers accessible answers to problems they encounter. She unveiled a fund to “accelerate” the agriculture industry.
The goal for agricultural finance would rise to Rs 20 lakh crore, with an emphasis on dairy, fisheries, and animal husbandry. Nirmala Sitharaman stated, “We would introduce a new sub-scheme with planned investment of Rs 6,000 crore to support activities of fishermen, fish merchants, and MSMSEs.
According to the finance minister, 157 new nursing colleges would be built alongside the 157 medical colleges that have already been operational since 2014. To promote collaborative research and innovation, ICMR labs will be made available for use by professors from public and private medical colleges as well as R&D teams from the corporate sector.
She also unveiled a brand-new initiative to support pharmaceutical research and innovation. The government would also compel business to make investments in key sectors for research and development.
According to the finance minister, a national digital library for kids and teenagers would be established to make it easier to access high-quality books across all levels, genres, and languages, as well as across all geographies and device types.
The budget for the Pradhan Mantri Awas Yojana, a government programme in India that would offer affordable homes for the urban poor, is being increased by 66% to more than Rs 79,000 crore.
According to the finance minister’s budget address, the government’s primary objective is still investment and job development. The capital, she claimed
Nirmala Sitharaman, the finance minister, stated during her budget address that the capital investment spending will rise by 33% to Rs 10 lakh crore, or 3.3% of GDP.
She added that the provision for 50-year loans to state governments without interest has been extended by a further year. With an increased budget of Rs. 1.3 lakh crore, this will be done to encourage infrastructure investment and to provide them with incentives for complementary policy actions.
According to the finance minister, the budget for Indian Railways would be Rs 2.40 lakh crore, which is nine times more than the budget for 2013–14.
According to the finance minister, the PAN will be used as a standard identity for all digital systems of the designated government agencies for businesses that are required to have one.
In contrast to FY23, where the fiscal deficit aim was 6.4% of GDP, FY24’s target is now 5.9% of GDP. “I repeat my objective to bring the fiscal deficit below 4.5 percent of GDP by 2025-26,” the finance minister stated.
The finance minister recommended lowering the basic customs duty rates from 21% to 13% for goods other than textiles and agricultural products. The fundamental customs duties, cesses, and surcharges on various commodities, such as toys, bicycles, and cars, will consequently fluctuate slightly. Cigarette import taxes have increased once more.
The finance minister stated, “I propose to grant relief on Customs Tariff on import of specific parts and inputs such camera lens & continue the concessional duty on lithium-ion cells for batteries for another year.
According to the new income tax system, the income tax rebate has been increased to cover income up to Rs 7 lakh, according to Finance Minister Nirmala Sitharaman.
“In 2020, a new personal income tax system with six income slabs, beginning at Rs 2.5 Lakhs, will be established. I suggest decreasing the number of tax slabs in this regime to 5 and raising the threshold for tax exemption to Rs 3 Lakhs,” she said.
She also suggested that the new tax system should allow for more flexibility in tax slabs. According to Finance Minister Nirmala Sitharaman, the new tax rates are as follows: “The new tax rates are 0 to Rs 3 lakhs – nil, Rs 3 to 6 lakhs – 5%, Rs 6 to 9 lakhs – 10%, Rs 9 to 12 lakhs – 15%, Rs 12 to 15 lakhs – 20%, and above 15 lakhs – 30%.
