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Union Budget 2023 Highlights:
Vision for Amrit Kaal: Opportunities for citizens and youth, job creation, Strong and stale economic environment
Saptarishi-7 priorities: Inclusive development, reaching the last mile, Infra and investment, Youth power, unleashing the potential, financial sector and green growth
Making India global hub for millets: Support to be given to IIMR Hyderabad for promoting research
Agriculture Anaemia elimination mission to be launched Revamped Teachers' training via DIET National Digital Library to be set up for children and adolescents Pradhan Mantri-PVTG Development Mission to be launched More teachers to be recruited for Eklavya Model residential schools Increased capital investment outlay by 33.4% to Rs 10 lakh crore Capital outlay of Rs 2.4 lakh crore for Railways Creating urban infrastructure in Tie 2 and Tier 3 cities via establishment of UIDF 3 specialised AI centres to be set up in colleges National Data Governance Policy for to enable access to data by startups and academia E Courts to be launched R&D grant for Lab grown diamond sector PM Pranam to be launched to incentivize the States/UTs to promote usage of alternative fertilizers 50 destinations to be selected and developed for domestic and foreign tourists Mahila Sammman Bachat Patra: One time new small savings scheme for a two-year period with a deposit facility of up to Rs 2 lakh for women Benefits for Senior Citizens: Enhanced maximum deposit for senior citizens savings scheme from Rs 15 lakhs to R 30 lakhs Targeted fiscal deficit to be below 4.5% by 2025-26 Personal Income Tax: Income limit for rebate of income tax increased from Rs 5 lakh to Rs 7 lakh in the new regime Extension of date of incorporation by 1 year for income tax benefits to startups Jal Jeevan Mission allocated Rs 70000 cr Eklavya Model Residential Schools allocated Rs 5943 cr Pradhan Mantri Awas Yojana allocated Rs 79590 cr Scheme for Faster Adoption and manufacturing of EVs allocated Rs 5172 cr N-E special infrastructure development scheme allocated Rs 2491 cr Allocations: Defence (Rs 5.94 lakh cr); Road transport and Highways (Rs 2.70 lakh cr); Railways (Rs 2.41 lakh cr); Home Affairs (R 1.96 lakh cr); Rural Development (Rs 1.60 lakh cr); Agriculture & Farmers Welfare (Rs 1.25 lakh crore) Accelerator Fund: For encouraging startups in rural areas
157 new Nursing colleges to be established
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Here is a brief look at some of the important personal income-tax changes proposed in the Budget presented before Parliament on February 1, 2023:
New Tax Regime (NTR) gets a boost
Individuals having income up to Rs 7 lakh under NTR is proposed to be exempted through a tax rebate from the erstwhile threshold of Rs 5 lakh. This leads to a tax saving of Rs 33,800.
Under the NTR, hike in basic exemption limit from Rs 2.50 lakh to Rs 3 lakh. Also, subsequent income slabs have been proposed to be amended as follow:
Finance Secretary TV Somanathan said the government had had three things in mind while making the Budget for 2023-2024. They are:
1) India's GDP growth remains high, if global recession comes growth rate remains high
2) While it's done, nothing should happen in our economy causing instability
3) Govt do something for people who aren't taken care of by market economy
For growth, we gave a push to Capital Expenditure and several schemes. For macroeconomic stability, we brought down wasteful expenditure & unproductive expenditure. Due to this, we've lowered Fiscal Deficit. We increased Capital Expenditure but lowered Fiscal Deficit: Finance Secretary TV Somanathan
Budget has several provisions for left-out, weaker sections. A major scheme has been brought for Particularly Vulnerable Tribal Group. For women, SC-ST, several schemes & provisions made. Assistance provided to jailed people who don't have money to pay for bail bond: Finance Secretary TV Somanathan
Karnataka Chief Minister Basavaraj Bommai said the Union budget lays the strong foundation for 'Amrit Kaal', with the farsightedness of the Prime Minister Narendra Modi and focus on micro to macro-level, aimed at fast-paced development of the nation.
"Allocations have been increased in the existing projects. We had a demand to increase the scale of agriculture financing, they have increased it, so it will benefit the State. Also, we had asked for priority to be given to rural infrastructure. This has been done through Jal Jeevan Mission and PM Awas Yojna," Bommai added.
India's Budget 2023-2024 offers a playing ground for the startup community as well, and has highlighted that India is the third largest ecosystem for startups, Nasscom said in a statement.
"Amidst the growing fear of slowdown and global recession, the Union Budget 2023 is growth-oriented and committed budget, that has boosted allocations across sectors," the IT industry association said.
Breaking down his thoughts into three key points, industrialist Anand Mahindra spoke about the emphasis on capital expenditure in Budget 2023. Finance minister Nirmala Sitharaman said the government has increased capital expenditure for FY24 steeply by 33 per cent to Rs 10 lakh crore, which would be 3.3 percent of India's Gross Domestic Product (GDP).
“…I was gratified to see the higher capex. That’s all about investing for higher growth,” Anand Mahindra tweeted.
It is a balanced budget and growth oriented. Given that NBFCs have been playing a pivotal role in providing easy access to credit for MSMEs, we expected to see some incentives being announced for the growth of NBFCs. It is good to see that the Government has rationalized taxation in the MSME sector and other initiatives that will play a decisive role in easing their burden: Rakesh Kaul, Executive Director and CEO, Clix Capital
The salaried class was anticipating a rebate and relaxation of some sort in the income-tax slabs. This has rightly been taken up in Union Budget 2023. The new proposals include raising the rebate limit, reducing the number of tax slabs, and increasing the standard deduction limits.
To support consumption, tax cuts have been proposed. Additionally, investment outlays have been increased to boost economic growth and development.
Finance Minister Nirmala Sitharaman said a sub-scheme of the PM Matsya Sampada Yojana will be launched with a targeted investment of Rs 6,000 crore to further enable activities of fishermen, fish vendors, and micro and small enterprises, improve value-chain efficiencies, and expand the market.
She also announced duty reduction for the key inputs for shrimp feed.
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SpandanaSphoorty
-ShalabhSaxenaofSpandanaSphoortycomenentson themircofinance aspect, with respect to Budget 2023.
-We are going to take the micro finance book to ₹15,000 cr by FY25. This is a budget that wants to bridge the gap between 'India' & 'Bharat', he says.
-RanbirSingh ofGNAAxles speaks about the export demand with respect to the Union Budget 2023.
-New revenue growth guidance for FY23 is 20% vs 8-9% earlier. Export demand is expected to be stable in next 2-3 quarters. Order book to grow by 23% in FY23, he says.
