The Honourable Finance Minister announced the first budget of Amrit Kaal in Parliament. Indian citizens had high hopes from this announcement considering the previous four budgets presented by the Finance Minister. Without any second thought we can say FM Sitharaman didn’t fail to win hearts through Budget 2023.
She kicked off her speech with “India has been recognized as the bright star globally”. Additionally, Nirmala Sitharamn said, “despite the immense global slowdown, India has brilliantly managed surpassing all economic expectations”. It can be witnessed through the whooping economic growth which stands at 7%, highest amongst all other major economies.
First Union Budget in Amrit Kaal
The current economic growth, according to the finance minister, is expected to reach 7%. In light of the Covid-19 recession, she continues, this large economy has experienced relatively the strongest growth. Despite obstacles, she affirms that India is on the right route and predicts a promising future for the nation. The finance ministry has primarily concentrated on broad-based reforms, good policies, and targeted assistance for those in need through “Sabka Prayas,” which has produced “Jan Bhagidari.” Aadhaar, Covin, UPI, and other cutting-edge digital public infrastructure are only a few examples of the innovative activities that India’s rise is due to.
The National Hydrogen Mission and Mission Life were praised by the finance minister for their important contributions to the country’s sustainable development.
She talked about how the national government provided free food grains for 28 months to 80 crore citizens during the pandemic to ensure that nobody went to bed hungry. The government has already guaranteed the ongoing distribution of free food grains towards Antyodaya as well as priority households beginning on January 1, 2023, for a period of one year as part of ensuring food and nutritional security. The programme will be carried out in accordance with the “Garib Kalyan Anna Yojana.” The central government will cover the whole cost of INR 2 lac cr.
Budget Update 2023: New Income Tax Regime for Taxpayers
The FM stated that the government is deciding on increasing the ceiling on income tax rebates to INR 7 lakh under the new tax system. Additionally, the government is working to improve the grievance processes for direct taxpayers. For income up to INR 3 lac, there is no tax; for income between 3 to 6 lac, there is a 5 percent tax; and for income exceeding 15 lac, there is a 30 percent tax. A person earning 15 lakh will now only be required to pay 1.5 lac in taxes, as opposed to 1.87 lac, under the new tax system.
Below is a brief summary of the new tax slab.
| Slab | Income Range (in lakh/p.a.) | Applicable Tax |
| Slab I | 3 to 6 lac | 5% |
| Slab II | 6 to 9 lac | 10% |
| Slab III | 9 to 12 lac | 15% |
| Slab IV | 12 to 15 lac | 20% |
| Slab V | More than 15 lac | 30% |
For income up to INR 3 lakh, no tax will be levied.
Budget 2023 Update: G20 Presidency 2023-24
The administration hopes to incept a people-centric agenda with the Vasudeva Kutumbakam theme in order to overcome many global challenges and to enhance sustainable economic development.
The Finance Minister also spoke about the increase in Per Capita Income to about 1.97 Lakh. As a result, India’s economy has grown to become the fifth largest in the world, which is an impressive accomplishment. Furthermore, tremendous progress has been conceptualised and is all set for execution in reaching numerous sustainable development goals. Additionally, FM Nirmala Sitharaman noted that by 2022, about 127 lakh crores in payments will be made through UPI, with an increase in EPFO membership of over 27 cr and 7,400 cr in digital payments.
Union Budget 2023-24 Vision
The three elements that will serve as the main focus of the Union Budget for 2023–2024 are laid forth by the Finance Minister. These three crucial elements are:
- providing plenty of opportunity for people, especially young people, to achieve their goals
- generating a powerful push for expansion and job development
- building up macroeconomic stability
Additionally, the Finance Minister has outlined the four main areas where progress can be used to the advantage of the nation. These opportunities will be significantly transformative in order to support these key areas. They are listed below.
- National Rural Livelihoods Mission Deen Dayal Antyodaya Yojana
- rural women’s empowerment through 81 lakh self-help groups
- helping these populations through large-scale production facilities and cooperatives
- assistance with marketing and raw materials
- The idea of an aid package for artisans has been developed.
- assist them in achieving their economic objectives
- Give talent development and effective technology.
- Mission Mode will be activated to support the active involvement of states, public along with private partnerships, and other factors in the growth of the tourism industry.
- Green fuel, green farming,, green building, green equipment, and other plans to strategically use energy are only a few of the initiatives being made to promote green growth.
- intends to cut carbon emissions
- More green employment opportunities
Budget Priorities
The Union Budget 2023–24 is built on a foundation of seven primary focal areas, according to the finance minister. These seven primary focus areas are named as
Inclusive Development
The ideology of Sabka Sath Sabka Vikas is largely adopted in this priority area and applies to citizens who are farmers, women, youth, OBCs, SCs, STs, disabled, and EWS populations. The poor are primarily the focus of inclusive development.
- Building Agriculture’s Digital Public Infrastructure
- Setting up expedited funding for agriculture
- Launch of the horticulture Clean Plant Program
- use of a 20 billion rupee agricultural credit facility
- making India a significant player in the international “Millet” market
- allowing for large storage spaces
- 157 new nursing colleges will help the healthcare industry grow.
- launch of the mission to eradicate sickle cell disease
- Coordination of public and private efforts in medical research.
- Training programmes will begin in the education and skilling industries with a new structure.
- Digital libraries will start to be built up.
Budget Update for Infrastructure and Investment in FY 2023-24
Making plans that encourage greater investment across the infrastructure and productive capacity is a fantastic method to bridge the gap between growth and employment demands. The following are some of the mission’s high points:
- An increase in capital expenditure of 4%. To cope with this INR 10 lakh crore will be made available in financial resources.
- State governments will receive a 50-year capital boost that is interest-free.
- The railway sector will receive INR 2.4 Lakh crores resulting in a big boost.
- There will be a start to the construction of 100 transportation infrastructure projects.
- UIDF support for infrastructure development in tier 2 as well as tier 3 cities.
Budget Update 2023 for Green Growth
The government wants to strengthen the ability of the nation to grow sustainably through the green growth initiative. The government seeks to accomplish the same goal with a number of the programmes listed below.
- Five thousand new “waste to wealth” factories will be built as part of PM PRANAM.
- There will be more ‘Green credit’ programmes introduced.
- increase in the creation of a sustainable environment with the aid of the MISHTI programme for planting mangroves and optimising the use of wetlands.
- Ten thousand bio-input resource centres, coastal transportation (energy-efficient), energy storage facilities for batteries, and financial assistance for replacing the obsolete polluting automobiles are some of the further projects.
Budget Update 2023 for Fiscal Deficit
The budget deficit for the ongoing financial year has been held at 5.9% of GDP by the finance minister. By 2025–2026, the government hopes to lower it to 4.5%. The administration has set the target for the current year, which is a 50 basis point lower number.
Moreover, the government will start implementing revamped MSMEs programmes on April 1. Additionally, more credit (collateral-free) will be made available to citizens. As a result, there will be a 1% decrease in the cost of credit.
Unleashing the Potential to Give Major Boost
To ensure trust-based governance and unlock the full potential of the nation’s overall growth, certain steps will be done. The government intends to take the following actions into account as part of this priority.
- There will be technological hubs supported by AI in educational institutions.
- National Data Governance Policy implementation.
- The Vivad Se Vishwas programme includes significant relief programmes for covid-stricken MSMEs.
- Additionally, the government ensured quicker resolutions of contractual issues via the Vivad se Vishwas programme.
- A further push is needed for E-Courts to get to phase 3.
- There will be more Digilockers introduced.
- delivering 5G services to 100 labs.
- R&D centres in order to increase the production of lab-grown diamonds.
Fund Allocations for Various Ministries
The following table depicts the allocation of funds for various ministries:
| Ministry | Fund Allocation in INR Lakh Crore |
| Defense Sector | INR 5.94 Lac Cr |
| Road Transport and Highways | INR 2.70 Lac Cr |
| Railways | INR 2.41 Lac Cr |
| Consumer Affairs, Food, and Public Distribution | INR 2.06 Lac Cr |
| Home Affairs | INR 1.96 Lac Cr |
| Chemicals and Fertilisers | INR 1.78 Lac Cr |
| Rural Development | INR 1.60 Lac C |
| Agriculture and Farmers Welfare | INR 1.25 Lac Cr |
| Communications | INR 1.23 Lac Cr |