Budget 2023 Analysis LIVE: 'You are the best judge of what you want to do with your money,' says FM

The live analysis blog of Budget 2023 has concluded. For more news, views and updates, stay tuned with Moneycontrol.com

IRFC's market borrowing in 2023-24 to be nil

According to Budget documents, the market borrowing arm of Indian Railways, Indian Railway Finance Corporation (IRFC) will not borrow any money in the form of debt in financial year 2023-24.

The government has listed IRFC's Internal and Extra-Budgetary Resources (IEBR) as negligible in 2023-24, indicating it will not look to borrow money to fund its capital expenditure. For more, read here

Tax changes in Budget 2023 to boost consumption & savings

DP Singh writes, "The Budget has affirmed the government’s resolve to stay on the fiscal consolidation course. Other than maintaining macroeconomic stability by operating within means, the budget managed to keep the focus intact on infrastructure, long-term capacity building, and much-needed tweaks to the taxation framework to optimise tax mobilisation, bring more people into the formal economy and boost consumption and higher savings."

Read more, here

FM Nirmala Sitharaman interview: No funding winter, funds waiting to see more innovative startups

"Waiting to see more innovative startups from India and there is no scarcity of funding," says FM.

“I think the funding is always waiting to see more innovative startups. It’s not as if there is a funding winter or scarcity of funds.”

"It’s more about funds looking at the opportunities available for them. The major push for startups happened in 2016 when the honourable Prime Minister announced a policy. And subsequently year after year giving concessions," she added.

Read here

Government bond yield set to trend towards 7%, say experts

“I expect the 10-year benchmark yield range to drift lower to 7.10-7.20 percent. The yield will slowly trend towards 7 percent in the coming two-three months,” said Sandeep Bagla, chief executive officer of Trust Mutual Fund.

“Budget is behind us, giving us clarity on the borrowing. Headline inflation is declining and the rate hike cycle has come to an end. Hence, we feel that over a period of six months to one year, yields will decline,” said Marzban Irani, chief investment officer – of debt, LIC Mutual Fund.

Read in here

LIC, SBI exposure to group within permissible limits

Union Finance Minister Nirmala Sitharaman in an exclusiveinterview with Network18 said that the exposure LIC and State Bank of India (SBI) to the crisis-ridden Adani group is well within the permissible limits as stated by these lenders. “They are not overexposed. Their exposure is very well within permitted limits,” said Sitharaman.

Capping of long-term capital gains tax exemption on acquisition of real estates to INR 100 million is a major speed breaker for luxury real estate projects: Cyril Amarchand Mangaldas

“Capping of long-term capital gains tax exemption on the acquisition of real estate to Rs 100 million is a major speed breaker for luxury real estate projects. Contrary to the intention of these provisions i.e. to mitigate shortage of housing, such provisions exempting capital gains on acquisition of residential house were frequently used by HNI’s/UHNIs for offsetting their gains on sale of prime residential houses or on sale of other eligible capital assets (mainly equity shares). Quite a few unicorn promoters and key management team members holding stock options have taken advantage of these provisions and invested in luxury residential properties. Accordingly, in order to curb these practices, the government has now proposed to curtail the benefits available under these provisions to the extent of Rs 100 million," says Kunal Savani, Partner, Cyril Amarchand Mangaldas

FM says MNREGA is a demand-driven scheme

We add to MNREGA resources depending on demand coming from states. She also said that industries are expanding keeping technology and renewable energy in mind. Both old and new industries are making an energy transition

FM says Cabinet has taken a call to privatise certain entities

The process is on to see the best timing for divestment proposals approved by the cabinet. Have to see what the best time to privatise those entities is. The private sector's capex decision-making may be a bit more complex given the tech & green transition

Recession has hit several of our key export markets: FM 

On exports, FM said that the monthly fluctuations in exports shouldn't worry us. A fall in exports will put some pressure on CAD; recession has hit several of our key export markets

Indian regulators have kept the market in prime condition: FM 

Finance Minister says that the Indian regulators have kept the market in prime condition; they are very stringent about governance practices.

FM speaks about PM Pradhan Mantri Virasat Ka Samvardhan (PM VIKAS)

FM says PM VIKAS will make a huge difference to people who are not covered by other schemes

Note: PM VIKAS is a skilling initiative from the Ministry of Minority Affairs (MoMA) focussing on the skilling, entrepreneurship and leadership training requirements of the minority and artisan communities across the country.

Finance Minister says, “Took all suggestions on board with equal open-mindedness”

FM Sitharaman, in an exclusive interview, says credit goes to people for keeping pace with the government w.r.t pace of decision-making. Had to assess what was relevant for us and in conversation with people for views

There was no precedent for us to tackle COVID, says the Finance

Minister, in her exclusive interview

- Had to engage in conversation with people for views

- There was no precedent for us to tackle COVID

- Did not let go of the opportunity to continuously bring in reforms

- We had to engage in conversations continuously

- Had no precedents before me to handle a situation like COVID & Russia-Ukraine crisis

Who should switch to the new tax regime?

Finance Minister Nirmala Sitharaman made a host of announcements affecting personal income tax for individuals. Keep your calculators ready as Moneycontrol decodes the February 1 announcements to help you decide.

Five big personal income tax changes in Budget 2023

Finance Minister Nirmala Sitharaman has announced crucial changes to the new income tax regime. Here is a look at the measures she spelt out in the budget for FY 24 she presented in Parliament on February 1.

Budget quite positive for HNIs due to reduction in highest income tax rate from 42.74% to 39%: Dhruva Advisors

"At an overall level, the Budget is quite positive for the HNIs due to the reduction in the highest income tax rate from 42.74% to 39%. This would see increased adoption of the new tax regime for individuals. Particularly, the high income bracket founders and professionals will save taxes on their ESOPs. On the other hand, there are a few negative announcements which will impact HNIs and family offices such as the taxability of market linked debentures as short term capital gains and taxation of proceeds of high-premium insurance policies. A very significant change is on limiting the exemption provided for capital gains upon purchase of the new residential property. If proceeds received from offers for sale by selling shareholders in an IPO are invested in purchasing residential property beyond Rs 10 crore, then the capital gains exemption will be available only in the proportion that Rs 10 crore bears to the total proceeds of the share sale," says Vaibhav Gupta, Partner, Dhruva Advisors

Welcome the move of setting up three centres of excellence for AI: Alok Bansal 

"As a representative of the BFSI industry, I am thrilled to know that the budget is envisioning AI-driven interdisciplinary technical research to develop cutting-edge applications as well as scalable problem solutions. In the post-pandemic scenario, AI helped the BFSI industry to improve consumer experience and streamline operational activities and this additional emphasis on AI and Machine Learning will help the banking industry to expand its service delivery capacity and reach the most underserved citizens. I also welcome the setting up of three centers of excellence for AI and hope India's digital transformation story will benefit from it," says Alok Bansal, MD of Visonet Systems and Global Head of BFSI business.

Which tax regime should you use for an income of Rs 15 lakh?

As per the proposed new tax regime announced by Finance Minister Nirmala Sitharaman on February 1, 2023, the tax rate for those earning up toRs 15 lakh would be 20% and that earning above Rs 15 lakh would be 30%. Wondering whether the changes offered under the Union Budget 2023 benefit you at all? Khyati Dharamsi breaks it down for you. Read it here

Overall, it was a good budget, says Motilal

Oswal

According to Motilal Oswal, the budget speech focused on key announcements for hard-working middle-class income-earners, women, and the youth. The fiscal path in FY23 through an across-the-board expansion had been expected and was delivered.

Read Motilal Oswal's take on the Budget 2023

Could more have been done for the real estate sector?

Homebuyers as well as real estate developers had expected certain reliefs and incentives in Budget 2023 that would have given a further boost to the sector. FM Nirmala Sitharaman announced that the outlay for the PM Awas Yojana has been enhanced by 66 percent to over Rs. 79,000 crore. Gaurav Karnik writes about what more can be done for the growth of the fledgling industry.

Saksham Anganwadi takes up 80 per cent of the Ministry’s budget but is hugely under-resourced

The allocation for Saksham Anganwadi at Rs 20,254 crore is one per cent higher than the revised estimates for FY 2022-23 at Rs 20,263 crore, while the inflation rate for the year is about 6.8 per cent. Saksham Anganwadi scheme comprises the Anganwadi services along with the Poshan Abhiyan (national nutrition mission). Dipa Sinha writes that one of the most important programmes in the country addressing the needs of women and young children has always been under-resourced and overlooked.

Startup ecosystem feel the chills of funding winter in FM's Budget speech

Compared to the zealous mention inthe previous year, the startup world felt to be absent in FM Nirmala Sitharaman's Budget 2023 speech. Is it due to the global funding winter cooling down the bloom in the startup ecosystem? Ritesh Baglani breaks it down for us. Read here

Budget analysis: The curious case of National Monetisation Pipeline's omission

- The government’s ambitious plan to monetise fully completed and operational infrastructure to raise funds for financing future projects, National Monetisation Pipeline (NMP), did not find any mention in the Union Budget for 2023-24, leaving sector experts and industry players bewildered.

- Ahead of the Budget, experts had said that the government may miss FY23's target of raising Rs 1.6 lakh crore by a huge margin but were hopeful of an update from the Finance Minister on February 1. Read more

How Budget 2023 paves the way for RBI to pause rate hike after February

If you thought the good news stopped with the Budget 2023 slashing the tax burden on individuals, think again. The budget proposals are also likely to help stop the interest rate hikes by the Reserve Bank of India that have been raising your EMIs since last year. Read

3 negative factors in Budget 

Constant capex spend in rural areas, removal of tax benefit for new life insurance policies and short-term capital gains tax on market-linked debentures are the three negative factors

Old Pension Scheme not a gamechanger for 2023 assembly polls or 2024 Lok Sabha elections

The Himachal Pradesh electoral verdict appears to have created a buzz in political circles about the Old Pension Scheme. If Congress or any party thinks it has found its silver bullet in OPS it is mistaken, writes Prof Sanjay Kumar

Upgrade digital infra in lower courts with the Rs 7,000 crore allocation, say lawyers

While courts in metropolitan cities have benefited in the earlier phases of the e-courts project, lawyers feel that the increased allocation in the Budget should be used to improve courts in tier 2 and 3 cities. Read about it

Too good for the bond market

The budgeted net market borrowings are below Rs 12 lakh crore. Bond market may benefit from tailwinds from (1) fairly balanced bond demand-supply dynamics, (2) moderating global yields and (3) lower crude oil prices, which will provide a softening bias to interest rates. Read

Why should India's salaried class, senior citizens and small investors be happy?

When it comes to savings, salaried were anticipating a rebate and relaxation of some sort in income-tax slabs, which has rightly been taken up in this budget. Read this view

Top govt official on selloff targets

Centre will continue to strive to meet selloff targets subject to market conditions within the next two months, Secretary of Department of Investment and Public Asset Management Tuhin Kanta Pandey told CNBC-TV18 in an exclusive interaction.

Making India the next research, innovation and bio-manufacturing hub of the world 

Higher budgetary allocations suggest progress towards National Health Policy public spending goals. Invitation to industry to invest in pharma R&D must be followed up by appropriate incentives, writes Kiran Mazumdar-Shaw

Budget analysis: Removal of tax exemption of insurance policies with premium over Rs 5 lakh

- Income from traditional insurance policies where the premium is over Rs 5 lakh will no more be exempt from taxes. The proposal intends to limit income tax exemption from proceeds of insurance policies with very high value.

- It has been proposed that in cases where the aggregate premium for life insurance policies — other than unit-linked insurance plans (ULIPs) — issued on or after April 1, 2023, is above Rs 5 lakh, income will not be exempt.