Last Updated on 2 February 2023, 7:25 PM IST: The Union Budget 2023 was announced by the Finance Minister Nirmala Sitharaman on Wednesday, 1st February 2023 and called it ‘beautifully balanced’. As per the Government, the budget is for the poor, middle class people of the society and farmers. Along with this the budget is a strong foundation for building a developed India. PM Modi calls it the first Amrit Kaal Budget. Let us know about it in detail.
Union Budget 2023 Highlights
- The budget has introduced changes in custom duties and taxes due to which some items are getting cheaper and some costlier.
- Targeted Fiscal deficit FY 2024 is 5.9% of GDP.
- 33% increase in outlay for capital spending to 10 trillion rupees in 2023-24.
- 790 billion rupees has been allocated in the budget for affordable housing FY 2023-24.
- Targeted agricultural credit raised to 20 trillion rupees for 2023-24.
- PM Awas Yojana has been enhanced by 66% to over Rs.79000 crore.
- Rebate limit of Personal income tax has been increased from 5 lakhs to 7 lakhs per annum.
- Personal income tax exemption has been increased to 3 lakhs per annum.
- FY 2023-24, Gross estimated market borrowings are estimated to be 15 lakh crore.
Budget 2023: Changes in Custom Duties and Taxes
Due to changes in custom duties and taxes, some of the items are getting cheaper while some are getting costlier. The imported items which will get costlier after the announcement of the budget 2023 will be:
- Cigarettes: taxes hiked by 16%.
- Kitchen electric chimney: custom duty increased to 15%
- Imported bicycles and toys
- Fully imported cars and Electric Vehicles
- Imitation jewelry
- Import Compounded rubber: Basic import duty hiked to 25%
- Silver dore
However the items whose custom duty has been slashed by government, thus getting cheaper are mentioned below:
- Domestically-manufactured TV sets
- Shrimp feed
- Fish lipid oil used in manufacturing aquatic feed
- Seeds for lab-grown diamonds
- Capital good
- Machinery for manufacturing lithium ion cells to be used in electric vehicles.
Seven Priorities for ‘first budget in Amrit Kaal’
As per the honorable Finance Minister Nirmala Sitharaman the budget is well balanced and has focused on its seven priorities looking at the needs of the nation. Further she explained that this is the first budget in the post pandemic era and after global slowdown, thus expected to maintain a stable growth. Seven priorities called as ‘Saptrishi’ of the budget are:
- Inclusive development
- Reaching the last mile
- Infra & investment
- Unleashing the potential
- Green growth
- Youth power
- Financial sector
“The Indian economy is on the right track, heading to a bright future. Our focus on reforms and sound policies resulting in Jan Bhagidari helped us in trying times, our rising global profile is due to several accomplishments,” FM said.
She added, “It would also be the first normal budget after the Covid pandemic and amid a global slowdown. The priority for Budget 2023 is thus expected to be to maintain a reasonably high but stable growth in the medium term. Alongside, to establish fiscal credibility with a suitable incremental reduction in the fiscal deficit to GDP ratio.”
Budget 2023: Relaxation in Income Tax
Finance Minister Nirmala Sitharaman said that India will lose net tax revenue of Rs. 35000 crore in total from direct and indirect taxes to provide relief to middle income groups.
“Revenue of about Rs. 38,000 crore – Rs. 37,000 crore in direct taxes and Rs. 1,000 crore in indirect taxes – will be forgone while revenue of about Rs. 3,000 crore will be additionally mobilized. Thus, the total revenue forgone is about Rs. 35,000 crore annually,” FM said
- Further to aid the middle income group the budget has raised the personal income tax rebate from INR 5 lakhs to 7 lakhs per annum.
- Exemption limit on personal income tax increased to INR 3 lakhs.
- Along with this the budget has also revised the tax slabs which are detailed as follows:
- Income of Rs 0-3 lakh is nil.
- Income above Rs 3-6 lakh to be taxed at 5%.
- Income above Rs 6 lakh to Rs 9 lakh to be taxed at 10%.
- Income above Rs 12 lakh to Rs 15 lakh to be taxed at 20%.
- Income above Rs 15 lakh to be taxed at Rs 30%.
- Highest surcharge rate is also being reduced to 25% resulting in an overall reduction of income tax to 39%.
Budget 2023: Jal Jeevan Mission Boosted
- Union Budget 2023 allocated a hike of 27% to Jal Jeevan Mission from INR 54,808 crores to INR 69,684 crore this year.
- Swachh Bharat Mission-Rural also received a hike of 28% from INR 60,000 crore to INR 77,000 crore in this budget 2023.
■ Read in Hindi: Budget: केंद्रीय वित्त मंत्री निर्मला सीतारमण ने पेश किया आम बजट, जाने क्या बढ़ा और क्या घटा?
Budget 2023: Allocation of GOBARDhan Scheme
- GOBARDhan stands for Galvanizing Organic Bio-Agro Resources Dhan which aims at promoting organic resources.
- Budget 2023 has allotted Rs. 10,000 crore for it.
- 500 New ‘waste to wealth’ plants will be established under this scheme which will include:
- 200 compressed biogas (CBG) plants.
- 300 community or cluster-based plants.
Budget 2023: Ministry Wise Allocation
Below mentioned is the Ministry wise distribution of the budget FY 2023-24 (in Lakh Crore):
- Ministry of Defence: 5.94
- Ministry of Road Transport & Highways: 2.70
- Ministry of Railways: 2.40
- Ministry of Consumer affair, food & Public Distribution: 2.06
- Ministry of Home Affairs: 1.96
- Ministry of Chemical & Fertilizer: 1.78
- Ministry of Rural development: 1.60
- Ministry of Agriculture & Farmers welfare: 1.25
- Ministry of Communication: 1.23
- Ministry of Education: 1.12
- Ministry of Health: 0.89
Budget 2023: Other Ministries Budget
- Ministry of Civil Aviation: Rs. 3113 crore (earlier 9363.70 crore)
- Information and Broadcasting Ministry: Rs. 4692 crore (earlier 4182 crore)
- Minority Affairs Ministry: Rs 3097 crore (reduced by 38%)
- Department of Space: Rs 12,544 crore (slashed by 8%)
- Ministry of Sports: Rs 3,397.32 crore (highest ever budget)
- Department of Telecommunications: Rs 97,579.05 crore
- Postal Projects: Rs 25,814 crore
Budget 2023: Travel & Tourism
- A total of 50 destinations will be prepared as a complete package to promote tourism.
- A dedicated application will be developed to guide tourists about places to visit, food along with virtual and physical connectivity.
- States will be requested to develop the concept of ‘Unity Mall’ to showcase their products to the visiting tourists.
- Under the programme of ‘Dekho Desh Apna’ sector specific skilling and entrepreneurship development will be promoted.
- Infrastructure and amenities of outskirt villages will be promoted under the Vibrant Villages Programme.
Budget 2023: Reaction of Opposition Parties
Various people of opposition parties have different reactions to the Union Budget 2023:
- Opposition Party Congress President Mallikarjun Kharge said on budget 2023 “big on announcements and short on delivery”
- Congress Leader Rahul Gandhi said in a tweet ” ‘Mitr Kaal’ Budget has:
- NO vision to create Jobs
- NO plan to tackle Mehngai
- NO intent to stem Inequality”
- He further said “This Budget proves Govt has NO roadmap to build India’s future.”
- Congress Leader P. Chidambaram called this budget “callous”.
- This budget will deprive the poor, said West Bengal Mamta Banerjee.
- Punjab Chief Minister Bhagwant Mann said that the state of Punjab has been ignored in the Union Budget 2023.
- Samajwadi Party Chief Akhilesh Yadav has said that this budget has brought ‘nirasha’ rather than ‘asha’.
- Bahujan Samaj Party leader Mayawati said that this budget will be far better if it is being made for the nation rather than the party itself.
- Uddhav Thackeray, former chief minister of Maharashtra is not satisfied with the budget and thinks that the central government is taking away state’s resources.
Budget 2023: Estimates
- The amount of money allocated for a particular ministry or scheme is a Budget estimate.
- Budget estimates highlight the approach and ambition of the government towards development.
- Total receipts other than borrowings are Rs. 27.2 lakh crore.
- Total expenditure is estimated at Rs. 45 lakh crore.
- The net tax receipts are estimated at Rs. 23.3 lakh crore.
- Fiscal deficit is estimated to be 5.9 percent of GDP.
- Net market borrowings from dated securities are estimated to be Rs.11.8 lakh crore.
- The Gross market borrowings are estimated to be Rs. 15.4 lakh crore.
Other Major Announcements
- A budget of INR 2.40 lakh crore is given for Railways being the highest ever and 9 times higher than the budget in 2013-14.
- Rs 9000 crore has been allocated for revamping the credit guarantee scheme for MSME’s which will be applicable from April 1st 2023.
- Maximum deposit limit for Senior Citizen Saving Scheme is raised to Rs.30 lakhs from 15 lakhs.
- Rs 15000 crore has been allocated for Pradhan Mantri PVTJ Development Mission for three years under development action plan for scheduled tribes.
- Mahila Samman Saving Certificate will be launched which will offer the deposit facility of upto 2 lakhs for a period of 2 years upto March 2025 in the name of women or girl. This scheme will offer an interest rate of 7.5 percent with an option of partial withdrawal.
- A sum of Rs 19,518 crore has been allotted to metro projects against Rs 19130 crore in the previous budget.
- Subsidies on Fertilizer and food are Rs 1,75,100 crore (reduced by 22%) and Rs 1,97,350 crore (reduced by 31%) respectively.
- Budget has incorporated income tax benefits to startups.
- 157 nursing colleges will be established along with 157 medical colleges which have already been built since 2014.
- INR 7000 crore has been allocated for the project of phase 3 of E-courts.
- The Finance Minister announced that an Agriculture Accelerator Fund will be established for the people of rural areas. The goal is to encourage youth entrepreneurs and agri-startups so as to bring innovative and affordable solutions for the problems faced by farmers.
- A sum of INR 2200 crore is allocated for Atmanirbhar Clean Plant Programme which will enhance the quality of horticulture crops.
- Under the PM Matsya Sampada Yojana, a sub scheme will be launched with targeted investment of Rs 6000 crore to uplift and enhance the activities of fishermens, fish vendors and small businesses to expand accordingly.
- FM also announced that the agriculture credit will also be increased to Rs. 20 lakh crore.
- 63,000 Primary Agricultural Credit Societies (PACS) will be computerized by a dedicated investment of INR 2516 crore.
- To make everyone aware and promote effective use of fertilizers throughout the nation “PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth” (PM-PRANAM) has been launched.
- For 5G services based applications, 100 labs will be established to examine scope of opportunities and corresponding business models.
- Pradhan Mantri Kaushal Vikas Yojana 4.0 shall be launched to enhance the skills of lakhs of youth in the field of robotics, IOT, 3D Printing, drones and soft skills.
- 30 Skill India International Centres will be established throughout the nation.
- Ease of doing business has been promoted by reducing 39,000 compliances and decriminalizing 3400 legal provisions.
- To lower the dependency on fossil fuels annual production of 5 MMT Green Hydrogen Mission to be targeted by 2030.
- Budget of INR 35000 crore is allocated for energy security, energy transition and net zero objectives.
- Budget of INR 20,700 crore is provided for renewable energy grid integration and evacuation from Ladakh.
- Strict implementation of Amrit Dharohar Scheme is to be done for the next three years to enhance biodiversity, carbon stock and corresponding ecotourism.
- The budget has allocated the states to continue their 50 year interest free loan for one more year.
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It is for us to recognize Him and listen to His spiritual discourses as He is the only Complete Saint and the only one who is extending His hand to save humanity from destruction. For more info order the book ‘Way of Living‘ written by Him.
Budget 2023: FAQ
Answer: Union Ministry of Finance
Answer: Budget making process usually starts in August or September.
Answer: Union Finance Minister of India
Answer: Union Finance Minister of India Nirmala Sitharaman will present it in the Parliament.
Answer: There are 14 key documents. These include annual financial statements, demand for grants, Finance Bill etc.