Union Budget 2023 Analysis Highlights: Here's a fineprint of all Budget proposals announced by Finance Minister Nirmala Sitharaman

The Union Budget 2023 did not have any “surprises”, but took a dramatic bet on capex, while continuing the path of fiscal consolidation, said NITI Aayog vice chairman Suman Bery.

Capex increased for infrastructure development to Rs 10 lakh crore in 2023 Budget along with capital outlay of Rs 2 lakh crore for modernising, expanding Railways.

Infrastructure, building and construction sectors together account for nearly 60 percent of end-use steel consumption share in domestic market. So, sustained focus on infra projects will ensure sustained long-term growth in steel demand too, said CareEdge Ratings. It will help both alloy and non-alloy steel producers.

Further, exempting ferrous scrap from basic customs duty and on raw materials for manufacturing CRGO steel will also augment availability of raw materials to the steel sector and save their cost of production.

Expansion in railway network will result in increased steel usage.

Noted industrialist Anand Mahindra says: “…I was gratified to see the higher capex. That’s all about investing for higher growth.”

Adds: “This Budget has lived up to India’s conservative tradition of financial discipline…. finance ministry has embedded in it a strong sense of fiscal discipline and an aversion to profligacy and bankruptcy.”

-- The 16 percent duty hike on cigarettes would increase prices of cigarette sticks by around 7–12 paise per stick

-- The upward revision in the National Calamity Contingent Duty would hardly have any impact on smokers or companies selling cigarettes, say experts.

-- Salaried class with income up to Rs 7 lakhs under new tax regime (NTR) exempted through tax rebate from erstwhile threshold of Rs 5 lakhs, leading to tax saving of Rs 33,800.

-- Basic exemption limit increased from Rs 2.50 lakh to Rs 3 lakh.

-- Proposed change in tax slab rate and standard deduction under NTR would lead to tax saving of Rs 54,600 for salaried persons having income of Rs 15.5 lakh.

-- Tax exemption limit on leave encashment for non-government employees increased from Rs 3 lakh to Rs 5 lakh

-- Budget 2023 tweaks tax exemption on life insurance policies.

-- Tweaks are likely to have a bigger impact on thetopline products compared to the bottomline products, if nothing is done to mitigate the change, HDFC Life CMD said.

Allocations for school education were reduced during the coronavirus pandemic. The increase in allocation for education in Budget 2023 does not help deal with the damage caused to learning during COVID-19, says expert

-- Only one percent rise in allocation for the sector; disabled community continues to be neglected, said National Platform for the Rights of the Disabled (NPRD).

-- Allocations for the scheme for implementation of the (Rights of) Persons with Disabilities Act reduced by Rs 90 crores to Rs 150 crore.

-- Government removed income criteria in PM-JAY for persons with disabilities.

-- Allocations for Indira Gandhi National Disability Pension Scheme not increased.

Some pro-development provisions in Union Budget 2023-24:

-- Sustainable planning and energy transition

-- Inclusive growth through a tech-enabled economy

-- Impetus to the EV sector

-- Exempting Lithium-ion cells from paying custom duty

-- Viability gap funding to support Battery Energy Storage Systems

-- With clause (ix) under section 193 of the Income Tax Act being removed, a 10 percent tax may be levied on all listed and unlisted bonds.

-- So, bondholders will now have to pay TDS on their returns, thereby reducing their returns.

-- “The returns of investors will decrease because of TDS applicable now on all interest on securities be it listed or unlisted,” said Umesh Kumar Tulsyan, Managing Director, Sovereign Global.

-- According to IT industry body Nasscom Said the Union Budget 2023 underscored India's plan to become an engine for global growth and deploy digital as leading India's development.

-- However, Nasscom also said that the Budget 2023 touched upon “all the critical aspects required to position India as a leader in terms of digital offerings, along with a focus on talent and sustainability”.

-- The auto industry's growth is "very highly correlated" with the overall economy, said Maruti Suzuki India Senior Executive Officer, Marketing & Sales, Shashank Srivastava.

-- Hence, he said, the "growth-oriented" Budget 2023 will help in demand creation.

-- The sub-scheme of the PM Matsya Sampada Yojana will support the activities of fishermen, fish vendors, and micro and small enterprises, improve value-chain efficiencies, and expand the market.

-- The duty reduction for key inputs for shrimp feed will also help the seafood industry as marine product exports are facing headwinds in foreign markets because of recession and other problems