The presentation of the India Budget 2023 comes while the world’s major advanced economies are suffering from a slowdown. Some economies are even on the verge of a potential recession. The final comprehensive Union Budget of the Modi government is being presented by Union Finance Minister Nirmala Sitharaman. Furthermore, Finance Minister started her Budget Speech today by saying that she hopes that the Budget will build upon the foundation laid last year. The Indian economy is regarded as a bright star worldwide.
Additionally, India has the highest economic growth rate among large economies at 7%. So, despite obstacles, the economy is moving in the right direction. Moreover, Budget 2023 seeks to emphasize 7 Budget 2023–24 priorities. It includes inclusive development, reaching the last mile, infra & investment, unleashing the potential, green growth, youth, and the financial sector. Here are some key observations from the Budget 2023.
Everything About Budget 2023
India’s emphasis on broad reforms contributed to our success during difficult times. As a result, the Indian economy is moving in the direction of a promising future, according to Nirmala Sitharaman. With a scheme to provide free foodgrains, it ensured that no one went to bed hungry during the pandemic. The ministry is also putting into action a plan to start providing food to all priority households from January 1, 2023, for the next 12 months. Additionally, the central government is covering the full cost of the PM Garib Kalyan Anna Yojana, which is estimated to be around Rs 2 lakh crore.
Since 2014, the government has worked to improve everyone’s quality of life. Additionally, per capita income has increased by more than two-fold to Rs 1.97 lakh. The size of the Indian economy has grown during the past nine years, moving up from the 10th to the 5th largest in the world. India has also gained recognition throughout the world as a rising star. Goals for sustainable development have also advanced well. Moving on, the ministry sees a prosperous, diverse India where all people enjoy the benefits of growth.
We have a great opportunity to increase India’s influence in the global economic system due to its G20 presidency. India was able to keep on the course thanks in part to its digital infrastructure and Covid vaccines. According to FM, we have also achieved tremendous progress toward several SDGs. Amrit Kaal’s vision also calls for a knowledge-based economy that is fueled by technology. According to FM Nirmala Sitharaman, “sabka saath, sabka prayaas” is crucial to achieving this “janbhagidari.”
Few Major Takeaways From Budget 2023
The FM proposed to increase the income tax rebate limit from Rs 5 lakh to Rs 7 lakh under the new tax regime. Additionally, 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% under the new tax regime. As a result, an individual earning Rs 9 lakh a year will now only pay Rs 45,000 in taxes, down from Rs 60,000 previously. In addition, capital expenditures rose 33% to Rs 10 lakh crore in FY24. The greatest allocation of capital expenditures ever made. Next, under the PM Awaas Yojana, budget allocations for affordable housing increased to Rs 79,000 crore in FY24.
Additionally, Rs 35,000 crore will be available for the energy transition. Also, the Finance Ministry suggested lowering the customs fee for lab-grown diamonds. Moving forward, the government also suggested providing incentives for the replacement of the old, polluting vehicles used by the state and federal governments. Beginning on April 1, a revised credit guarantee scheme for small and medium-sized firms will be in place. Under the revised scheme, collateral-free credit of Rs 2 lakh crore will also be made available. The maximum surcharge rate was also decreased from 37% to 25% under the new tax regime.
List Of Goods Cheaper And Expensive
What Gets Cheaper
After the Budget 2023, the customs duty will reduce on parts of the TV panel’s open cells to 2.5%. The administration also wants to lower import taxes on some components used to make mobile phones. Additionally, the basic customs charge will reduce on seeds for the production of lab-grown diamonds. The customs duty on shrimp feed will also decrease to encourage exports.
What Gets Expensive
Cigarette taxes have now raised by 16%. Compound rubber is now subject to a 25% basic import duty, up from 10%. Additionally, the basic customs charge on items made from gold bars increased. Furthermore, the customs duty on kitchen electric chimney raised from 7.5 to 15%.
Agricultural And Tourism Reforms As Per Budget 2023
The target for agricultural credit will be rising to Rs 20 lakh crore, with an emphasis on dairy, fisheries, and animal husbandry. A center of excellence will also support the Indian Institute of Millet Research. Young entrepreneurs might benefit from the Agri Accelerator Fund’s assistance in navigating legal requirements. They will also be able to connect all of the network and supply chain participants. In terms of tackling persistent issues in India’s agri value chains, it might be a game changer.
Tourism promotion will be in mission mode with the active involvement of the states, the convergence of government initiatives, and public-private partnerships. The nation has a lot to offer both domestic and international tourists. As a result, there is a lot of available potential in the tourism industry. According to Sitharaman, the sector offers enormous prospects for employment and business, particularly for young people.
PAN To Be A Common Business Identifier
As a single business identifier, the Permanent Account Number will be there, according to Finance Minister Nirmala Sitharaman. It will apply to all digital systems used by the designated government departments. Additionally, this should lessen the burden of compliance on businesses. The systems might automatically collect the information and documents using the PAN, a unique identifier.
Additionally, the user will be freed from having to submit the same documents repeatedly due to an integrated system at the national and state level departments. Furthermore, it will make sure the information is genuine and speed up the processing of requests. Also, the FM disclosed that over 39,000 compliances had been reduced. Moreover, 3,400+ legal cases are decriminalized to make doing business easier.
On The Health And Education Front
157 new nursing colleges will open in conjunction with the 157 medical colleges that have already been operational since 2015. The goal is to completely eradicate sickle cell anemia by 2047. Additionally, public and private medical facilities will have access to the facilities at a few ICMR labs for research. The Centers of Excellence will also implement a new initiative to encourage pharmaceutical research and innovation.
The National Digital Library for Children and Adolescents will be present, which reintroduces us to education. This will make high-quality books in all genres, languages, and regions easier to find. Additionally, states will also establish physical libraries for them. The sources will also give these physical libraries non-curricular titles in English and regional languages. This is to promote reading and make up for the learning loss during the pandemic. This initiative will also involve cooperation with NGOs. The government will also hire 38,800 teachers and support staff over the next three years. According to FM, this will support the 740 Eklavya model schools’ tribal students.
PM Primitive Vulnerable Tribal Groups Mission And A Push For Fisheries And Artisans
The establishment of a PM Primitive Vulnerable Tribal Groups Mission is present in the Budget 2023. Its purpose is to better the socioeconomic standing of tribal communities that are at risk. According to FM, Rs 15,000 crore will be available for the PM Primitive Vulnerable Tribal Group Mission over three years.
With an investment of Rs 6,000 crore, the government will thereafter introduce a sub-scheme under the PM Matsya Sampada Yojana. It will provide fishermen with more opportunities. The traditional artisans and crafters will get help through the PM Vishwa Karma Kaushal Samman. They will be able to increase the quality, scope, and reach of their products due to this concept.
Govt Proposes Rs 2.40 Lakh Crore For Indian Railways
The Indian Railways will receive Rs 2.40 lakh crore, according to Finance Minister Nirmala Sitharaman. She stated that the expenditure is nine times higher than it was in 2013–14. Additionally, the two sectors with increasing capital expenditures during the past several years are roads and railways. They have played a crucial role in the government’s quest for capex. Furthermore, FM announces revitalizing 50 additional airports, water aerodromes, and landing grounds for regional air connectivity. This is to give the regional connection plan momentum.
The budget for this year is of great importance because the country’s next Lok Sabha election is in April or May of 2024. The finance minister met the president in the Rashtrapati Bhawan, as is custom, before going to Parliament.