Union Budget 2023-24 Highlights
Earlier on Jan 31st, economic survey 2022 was tabled. According to data from the RBI, the country’s current account deficit widened to 4.4 % of GDP in the September 2022 quarter. It was 2.2 % of GDP in the April-June quarter.
Union Minister of Finance and Corporate Affairs Smt Nirmala Sitharaman, MoS Dr Bhagwat Kishanrao Karad, MoS Shri Pankaj Chaudhary and senior officials of the Ministry of Finance called on President Droupadi Murmu at Rashtrapati Bhavan before presenting the Union Budget 2023-24.
Seven priorities of the budget 2023-24
- Inclusive development
- Reaching the last mile
- Infra & investment
- Unleashing the potential
- Green growth
- Youth power
- Financial sector
Union Budget Highlights 2023-24
- Budget will be people-centric agenda to take on global challenges, says FM
- Indian economy on the right track, and heading towards a bright future, says Finance Minister Nirmala Sitharaman
- During the COVID pandemic, the govt. ensured that nobody goes to bed hungry with a scheme to supply free foodgrains to over 80 crore persons for 28 months.
- Continuing commitment to food security, from Jan. 1, 2023, a scheme to supply free food grain to all Antyodaya and priority households for one year under PM Garib Kalyan Ann Yojana will be implemented.
- This budget is focused on job creation, upliftment of youth.
- Refund Scheme for failed MSMEs.
- To improve social-economic condition of the Particularly Tribal Groups, PMPBTG Development mission will be launched, to saturate PBTG habitations with basic facilities. Rs 15,000 cr to be made available to implement scheme in next 3 years.
- Capital investment outlay being increased by 33% to Rs 10 lakh crores, which would be 3.3% of GDP.
- Capital outlay of Rs 2.40 lakh crore will be provided for railways, which is nine times over FY14.
- 50-year interest free loan to State governments extended for one more year.
- Govt to provide Rs 5,300 cr assistance to drought-prone central region of Karnataka.
- The PAN will be used as a common identifier for all Digital Systems of specified government agencies. Aadhaar Pan linked to Digilocker to be used for single identification in different govt schemes.
- Government will provide R&D grant in lab grown diamond area as well as consider custom duty reduction on key raw material.
- FM allocated Rs 19,700 crore to the National Hydrogen Mission. Target is to reach an annual production of 5 MMT Green Hydrogen by 2030. This budget provides for Rs 35,000 crore capital investment towards energy transition and net zero objective and energy security by the Ministry of petroleum and natural gas, the FM declared.
- 64 pecrcent has been increased in allocation for PM Awaas Yojana to Rs 79,000 crore.
- Fiscal deficit for 2023-24 has been set at 5.9% of GDP, a reduction of 50 basis points from this year’s fiscal deficit target of 6.4 percent. Fiscal deficit to be reduced to below 4.5% of GDP by 2025-26.
- The calamity cess will be increased by 16% on Cigarettes.
- FM sitharaman has proposed to increase agricultural credit to Rs 20 lakh crore.
- The government will launch the Atmanirbhar Clean Plant Programme to improve availability of disease-free quality planting material for high-value horticultural crops at an outlay of Rs 2,200 crore.
- The budget envisages India becoming a global hub for Sri Ann or Millets.
- An agriculture accelerator fund will be set up to encourage agritech startups by young entrepreneurs in rural areas. Fund will focus on bringing innovative solutions for challenges faced by farmers.
- The government has also initiated computerisation for 63,000 primary agricultural credit societies with an investment of Rs 2,516 crore.
- The government will launch a sub-scheme under PM Matsya Sampada Yojana with an outlay of Rs 6,000 crore to further enable those involved in fisheries.
- Over the next 3 years, one crore farmers will get assistance to adopt natural farming. 10,000 bio input resource centres will be set up.
- The government proposes to set up a national digital library for children and adolescents to make up for the learning loss during the pandemic.
- 157 nursing colleges ill be set.
- In the next 3 years the Centre will recruit 38,800 teachers and support staff for 74 Eklavaya Model Residential Schools serving 3.5 lakh tribal students.
- The government will launch Pradhan Mantri Kaushal Vikas Yojana 4.0, in order to skill the youth for international opportunities, 30 Skill India International Centres will be set up across different States.
- 100 labs for developing apps ike Smart Classrooms, Precision Farming, Intelligent Transports Systems & Healthcare using 5G services will be set up in engineering institutions, to realise new range of opportunities, business models & employment potential, labs will cover among others.
- 50 additional airports, heliports, water aerodromes, and advanced landing zones to be revitalised.
- 100 critical transport infra projects for steel, ports, fertiliser, coal, foodgrain sectors have been identified with an investment of Rs75,000 crore including Rs 15,000 crore from private sources.
- PM Vishwa Karma Kaushal Samman - package of assistance for traditional artisans and craftspeople has been conceptualized, will enable them to improve quality, scale and reach of their products, integrating with MSME value chain.
- Revamped credit guarantee scheme will take effect from April 1, 2023, through the infusion of Rs 9,000 crore in the corpus. This will enable additional collateral-free credit of Rs 2 lakh crore to MSMEs.
- A one-time small savings scheme ‘Mahila Samman Saving Certificate’ has been announced. It will be available for two years. The interest rate has been fixed at 7.5 per cent per annum with partial withdrawal option.
- For senior citizen maximum deposit limit for saving will be from 15 lakh to 30 lakh
- Investment limit in small savings schemes like Senior Citizen Saving schemes (SCSS) increased to Rs 30 lakh from 15 lakh earlier.
- Investment limit in Monthly income scheme (MIS) increased to Rs 9 lakh, up from rs 4.5 lakh, for single account. For joint accounts the limit has gone up to Rs 15 lakh, up from Rs 9 lakh.
- The rebate under section 87A of new income regime hiked to Rs 7 lakh.
- Average processing time for income tax returns reduced from 93 days to 16 days.
- The government intends to roll out next-gen common IT Return forms and strengthen grievance redressal mechanism.
- The highest surcharge rate has been reduced from 37 per cent to 25 per cent in the new tax regime.
- Revised tax slabs under new tax regime
- Under new tax regime, income of Rs 0-3 lakh is nil.
- Income above Rs 3 lakh and up to Rs 5 lakh to be taxed at 5% under new regime.
- Income of above Rs 6 lakh and up to Rs 9 lakh to be taxed at 10% under new regime.
- Income of above Rs 9 lakh and up to Rs 12 lakh to be taxed at 15% under new regime.
- Income above Rs 12 lakh and up to Rs 15 lakh to be taxed at 20% under new regime.
- Income above Rs 15 lakh to be taxed at Rs 30%.
- Propose to reduce the basic customs duty rates on goods other than textile and agriculture from 21 to 13.
- The govt proposed customs duty exemptions on the import of capital goods and machinery required for lithium-ion batteries.
- Govt to reduce customs duty on shrimp feed to promote exports
- Basic import duty on compounded rubber increased to 25 percent from 10 percent.
- Basic customs duty hiked on articles made from gold bars
- Customs duty on kitchen electric chimney increased to 15 percent from 7.5 percent.
- Customs duty on parts of open cells of TV panels cut to 2.5 percent.
- Govt proposes to reduce customs duty on import of certain inputs for mobile phone manufacturing
- The government also proposes to increase customs duty on silver to align with duty on gold and platinum.