The Union Finance Minister started her budget speech at sharp 11 am by saying, “This is the first budget of ‘Amirt Kaal’, which has been been guided ‘Sapthrishis’, defining the seven priority areas.
BUDGET HIGHLIGHTS AT A GLANCE
7 priorities of the Budget 2023-24:
1. Inclusive development
2. Inclusive development
3. Reaching the last mile
4. Infra & investment
5. Unleashing the potential
6. Green growth
7. Youth and financial sector
Aims of the Budget
1. Facilitating ample opportunities for citizens, especially youth
2. Providing strong impetus to growth and job creation
3. Strengthening macro-economic stability
4. To aim for the empowerment of women in Budget 2023
5. To enable women self-help groups to reach next stage of economic empowerment
6. To help self-help groups with raw material supply, branding, marketing of products
Provided some relief to income tax payers, which was not provided last year. Also, there is incentive to adopt the new income tax regime that was unveiled last year. However, people have the option of continuing with the old tax regime
- Income Tax rebate has been extended from ₹5 lakh to ₹7 lakh per year under the new tax regime.
- Income tax slabs has been cut from seven to five
- For income below ₹3 lakh per year no income tax
- New slabs under new tax regimes:
Rs 0 -3 lakh: Nil
Rs 3-6 lakh: 5%
Rs 6-9 lakh: 10%
Rs 9-12 lakh: 15%
Rs 12-15 lakh: 20%
Above ₹15 lakh: 30%
- Income above ₹5 lakh from insurance policies to be taxed
Capital Expenditure increased 33 % to ₹10 lakh crore, which would be 3.3% of GDP making the effective capital expenditure (Capex) of the Centre at ₹13.7 lakh in FY23-24.
- The free foodgrain scheme under PM Garib Kalyan Aan Yojana has been extended fro another year from January 1, 2023 for which the entire expenditure of ₹2 lakh crore will be borne by the centre. This is an important government sop in the last budget before general elections in 2024.
PM Awas Yojna
- Outlay for PM Awaas Yojana enhanced by 66% to over₹79,000 crore.
- An outlay of ₹2.4 lakh crore provided for railways in FY23-24. This is the highest allocation ever for Railways and is nearly nine times over FY14 allocations.
- The revised fiscal deficit for 2022-23 is at 6.4% of GDP
- Fiscal deficit for FY 2023-24 estimated at 5.9% of GDP
- Intention to bring the fiscal deficit below 4.5% of GDP by 2025-26
- Gross market borrowing seen at ₹15.43 lakh cr in FY 24
- Net market borrowing in FY24 estimated at ₹11.8 lakh crore for time-bound debt instruments
- For FY23, net tax receipts revised estimate stands at ₹20.9 lakh crore
- In FY23 total expenditure revised estimate stands at ₹41.9 lakh crore
- In FY23 revised estimate of total receipts other than borrowing at ₹24.3 lakh crore
- In FY24 net tax receipts estimated at ₹23.3 lakh crore
Other key points
- Revamped credit guarantee for MSMEs to take effect from Apr 1, 2023 with infusion of ₹9,000 crore in corpus
- ₹10,000 crore per year for urban infra development fund to be created
- 16% increase in NCCD on certain cigarettes
- Basic customs duty on crude, glycerine is proposed to be reduced to 2.5%.
- Propose to increase import duty on silver bars to align it duties levied on gold and platinum
- Extend customs duty cut on imports of parts of mobile phones by 1 year
- To reduce customs duty on open cells of TV panels to 2.5%
- ₹35,000 crore outlay for energy transition
- Investment outlay ₹19,600 core for producing 5 MMT of green hydrogen by 2030
- ₹20,700 crore outlay for grid development for connecting Ladakh which has the potential to generate 13GW of green electricity.
- ₹19700 crore for green mission
- Outlay of ₹10,000 crore for waste-to-wealth programme under the Gobardhan scheme
- Development of 400 MWH for energy storage will be undertaken
- Outlay of ₹2500 crore for agriculture credit societies I
- Invest ₹75000 crore in transport infra projects, including ports, highways, foodgrain storage, etc.
- Outlay of Rs 7000 crore for third phase of e-courts
- 50 additional airports, helipads, water aero drones, advanced landing grounds will be revived to improve regional air connectivity
- One stop solution for reconciliation and updating identity maintained by various agencies to be established using digi locker and Aadhaar as foundational identity
- PAN will be used as a common identifier for all Digital Systems of specified government agencies
- Set up 100 labs for 5G apps
- Set up three centres for excellence in AI
- National Data Governance policy to be brought out
- To launch PM-Pranam to promote alternate fertilizars in states
- To promotes coastal shipping through viable gap funding
- 5% CBG mandate for companies marketing natural gas and biogas