Budget 2023 Highlights: What's good in it for the salaried class, senior citizens and small investors

The live blog session has concluded. For more news, views and updates, stay tuned withMoneycontrol.com.

Personal tax takeaways from Budget 2023-24

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:

Read more here

For Budget 2023, we had three things in mind, highlights Finance Secretary TV Somanathan

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

Union budget met expectations of Karnataka, State budget to be 'pro-people': CM

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.

Budget 2023 is growth-oriented, underscores role of digital, tech in development: Nasscom

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.

Gratified to see...: Anand Mahindra weighs in on Budget 2023

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.

Read more here

Budget 2023 commentary

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

Budget 2023: Why is this a good budget for the salaried class, senior citizens and small investors

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.

Read more here

Union Budget 2023: Sops to marine products cheer up the seafood industry

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.

READ MORE

Budget 2023 live updates: We are going to take the micro finance book to ₹15,000 cr by FY25:

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.

Budget 2023 Live updates: Lok Sabha Adjourned till 2PM

Budget 2023 live updates: New revenue growth guidance for FY23 is 20% vs 8-9% earlier: GNA Axles

-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.

Budget 2023 Live Updates: Our core focus is on construction and & infrastructure which is seeing good demand momentum: JSPL

-Bimlendra Jha of JSPL Corporte commented on the infrastructural tangent of the Union Budget 2023

"Budget2023 thrust is on infrastructure & development. Our core focus is on construction and & infra which is seeing good demand momentum. Expect sales volumes to continue at around 2 mt per quarter," he says.

Budget 2023 Live updates: Rs 10 lakh crore allocated for capital expenditure; boosts economic growth

-Hitting three targets at a time, the Finance Minister delivered a budget of extremely wide coverage.

-Providing capital expenditure worth Rs 10 lakh crore in FY23, she has risen the target 330% higher than last year, and almost 4 times more than the allocated amount in FY16.

-This achievement will go a long way in boosting economical growth.

The live blog session has concluded. Stay tuned to Moneycontrol.com for extensive coverage of the Union Budget 2023. 

Budget 2023: How are NRIs impacted by the Budget?

In a move to sync the Indian foreign exchange regulations with the Income Tax Act, the government proposed to bring issuance of shares to non-residents above the fair market value within tax purview. This will prevent generation and circulation of unaccounted money from non-resident investors in a closely held company in excess of its fair market value. Read more.

No bad news is good news; pvt capex will take one more year to revive: Bankers

Bankers welcomed Finance Minister Nirmala Sitharaman's budget proposals as being growth accretive, and hailed the focus on capital expenditure while continuing with fiscal consolidation. On the critical question of revival in private capital expenditure, which has been lagging for several years now, private sector lender Kotak Mahindra Bank's whole time director KVS Manian opined that it will take another 12 months to revive even though corporates have been investing off and on lately.

Life insurers stare at 10-12% hit on top-line as Budget proposes tax on higher premium products

The Budget has left the life insurance industry a worried lot with the new tax proposal on higher premium annuity products, a move which the industry fears will hit their top-lines by 10-12 percent. Leading private life insurer HDFC Life's chief executive Vibha Padalkar told PTI that she stares at 10-12 per cent hit on the company's top-line with the Budget proposal to tax life products having annual premium of over Rs 5 lakh.

Budget: Govt announces 150% hike in outlay of Swachh Bharat Mission-Urban; total allocation Rs 5,000 Cr

In a major boost to the Swachh Bharat Mission (Urban), the Centre on Wednesday announced a 150-per cent hike in the outlay of its flagship scheme with an allocation of Rs 5,000 crore in the Union Budget 2023-24. However, there has been a nine-per cent decrease, with an allocation of Rs 2,132 crore, for the construction of non-residential office buildings, including the Central Vista project, Parliament and Supreme Court, as compared to the revised estimates of Rs 2,344.08 crore in the last fiscal.

Budget allocates Rs 4,692 crore for information and broadcasting ministry

Union Finance Minister Nirmala Sitharaman on Wednesday announced a Rs 4,692-crore outlay for the Ministry of Information and Broadcasting for 2023-24 as against Rs 4,182 crore in the revised estimates for the last fiscal. The allocation to the government's autonomous body, Prasar Bharati, has been increased to Rs 2,808.36 crore from Rs 2,764.51 crore allotted to it in the last fiscal.

Union Budget: NPCIL gets Rs 9,410 cr as India seeks to ramp up nuclear power capacity

NPCIL, India's sole nuclear power plant operator, on Wednesday received an allocation of Rs 9,410 crore in the Union Budget for 2023-24 as it sets out to ramp up atomic power generation capacity in the country. The allocation to the Nuclear Power Corporation of India Limited (NPCIL) was an increase of Rs 2,859 crore (more than 43 per cent) over the revised estimate of Rs 6,551 crore of the current fiscal.

What gets costlier and what would be cheaper?

Each year budget provides an occasion to tweak custom duties with an aim to rationalize tax structure and support underlying themes. In recent years, emphasis has been to encourage “Make in India”, de-carbonized economy and China plus themes. Some of these are reflected in the current budget announcements as well.

Here is the list of items which gets costlier and cheaper

Budget 2023 has made almost every payment abroad costlier

Thinking of investing in foreign stocks, mutual funds and crypto currencies abroad or collecting artwork and high-value items investments such as property and sculptures? Be ready to shell out a higher amount as the Budget 2023-24 has enhanced the tax-collection at source (TCS) on foreign remittance through Liberalised Remittance Scheme (LRS) to 20 percent from the existing 5 percent. Read more

Which tax regime should you choose? Old, or new? 

Under the old tax regime, individuals were allowed to claim various deductions and reduce their tax liability. On the other hand, the new tax regime had a better (lower) tax rate, but denied as many as 70 exemptions and deductions available under the income tax laws (including LTC, HRA, standard deduction, deduction under chapter VI A, etc.).However, from the next financial year, i.e. 2023-24, the new tax regime may be considered as the default regime and one will have to opt for the old tax regime, if he wishes to avail the benefit under the same. Read more.

Gurpreet Chhatwal, Managing Director, CRISIL Ratings Ltd: The budget is clearly growth-oriented

"The Budget has a sharp focus on capital spend, tax concessions, spurring consumption demand, and supporting MSMEs. Also, the government’s commitment to the fiscal consolidation path augurs well for the interest rate outlook. These factors should help prepare the economy for the next phase of growth, crowd in private corporate capex and, in turn, fuel credit growth for the financiers. MSMEs, which are yet to recover fully from Covid disruptions, will benefit from the revamped credit guarantee scheme that envisages Rs. 2 lakh crore credit flow at lower interest rates. Additionally, the move to link tax deduction on expenditure of larger companies to making timely payments to MSMEs will improve the liquidity position of these entities.”

Dinesh Khara, Chairman, SBI: The Union Budget is growth accretive, fiscally prudent and consumption supportive

"The huge emphasis on capital expenditure could be the perfect recipe for a private investment cycle that is already visible. Support for MSME and Agriculture will broad base credit growth. Reasonable Government borrowing numbers will support lower interest rates and the move towards a clutter free new tax regime will significantly spur consumption" he said.

Budget Live Updates: Budget 2023-24 is a well-rounded progressive & inclusive budget

Chandrashekhar Gosh, MD & CEO of Bandhan Bank:The focus on important parameters like boosting consumption and inclusion is a welcome measure for our growing economy. The government has laid an important thrust on Capital Investment which will enhance consumption and create employment, both of which have been important areas of attention, especially post the pandemic. Allocation of the Budget to PM Awaas Yojana will further boost the housing sector.Support to MSME sector along with enhancement of credit gaurantee scheme will provide much needed relief to the sector. The new slabs of taxes will further help boost economic parameters like consumption, thus providing more impetus to economic growth.”

Budget Updates Live: ITC cannot be claimed on goods/services used for CSR activities

The Budget proposed certain amendments in GST Act and said that input tax credit cannot be claimed on goods/ services used or intended to be used for Corporate Social Responsibility (CSR) activities. The amendments in the Central GST Act has been brought through the Finance Bill, 2023.The amendments propose to decriminalise certain offences under the indirect tax law and double the threshold for launching prosecution under the tax law to Rs 2 crore. It, however, retained the limit at Rs 1 crore for fake invoicing cases.

Budget 2023 will open avenues and create millions of job opportunities: Apna Founder & CEO

"The central government’s push to skilling in the country for lakhs of youth in the Budget 2023-24 is a welcome move, considering the youth are the pillars of our economy. This initiative will open avenues and create millions of job opportunities in emerging technologies for over 100 million youth in the country – a huge motivation for students and graduates to thrive and succeed in their home country. The vision of empowering youth and MSMEs is a strong blueprint for India@100 which is being built on inclusive India," stated Nirmit Parikh, Founder & CEO, apna.

Puneet Dalmia Managing Director, Dalmia Bharat Ltd: Budget 2023 is the providential threshold for creating the India of the Amrit kaal

"As eloquently portrayed by the Finance Minister as the “Saptrishi” or 7 priorities, the Budget has created a very purposeful direction and vehicles to capture India’s rightful place amongst the 'Top 3' major economies of the world.” he said.

Union Budget 2023 Live Updates: Budget proposals to help boost India's exports: Piyush Goyal

A number of measures such as tweaks in customs duties on certain products announced in the Union Budget for 2023-24 will help boost the country's exports, Commerce and Industry Minister Piyush Goyal said on Wednesday. He said that despite global economic uncertainties, India's goods and services exports together are registering nearly 14-15 per cent growth.

Nalin Negi- CFO and Interim CEO, BharatPe: We warmly embrace the Union budget 2023

"Fintechs have come a long way over the last few years, and the Government’s initiatives to drive financial inclusion and enable digital payments have been one of the key drivers of the growth journey of this sector. Fintech services in India have been facilitated by India's digital public infrastructure including Aadhaar, PM Jandhan Yojna, video KYC, India Stack and UPI, and digital payments have grown by 76% in transactions in 2022. In this budget, FM Nirmala Sitharaman has reimagined the government's Digilocker services for the fintech sector" he said.

Budget 2023: Fully imported cars, including EVs, to cost more

Mercedes-Benz, BMW and Lexus on Wednesday said they would increase prices of some of their luxury vehicle models following a hike in customs duty on fully imported vehicles in the Union Budget 2023-24.Prices of imported vehicles with invoice value less than USD 40,000 are expected to go up by around 2 per cent with Finance Minister Nirmala Sitharaman proposing to increase customs duty on such vehicles from 60 per cent to 70 per cent in the Union Budget 2023-24.

Suchitra Ella, MD Bharat Biotech: This is a feel good kind of budget

"The country seems to be on the right track to fall into place in its long-term goals. As for my sector healthcare, India is a leader in the pharmaceutical & biotechnology area. We have delivered products & vaccines; the world knows it. We have supported other countries with everything we had. Further, skilling in fields of healthcare would help the whole fraternity in the long run" she said.

Budget updates Live: The budget has covered a lot of areas under very difficult circumstances. 

Sunil Mathur, MD & CEO, Siemens limited: I see three important outcomes of this, first there is consistency or continuity of direction in budgets laid out in the past few years. Sustainable, inclusive growth & focus on infrastructure has been continued. Focus on implementation is crucial. While announcements were made left & right earlier, we have seen that the government has stuck to the projections it has made in the past 2-3 years. The increase in railways CapEx is critical, it has done a terrific job in the past few years to address passenger as well as freight traffic. They are going in for technological changes.

Defence gets 5.94 lakh Crore in Budget 2023-24, a jump of 13% over previous year

Shri Rajnath Singh asserted that the Budget demonstrates the government’s commitment towards supporting growth and welfare oriented policies that will benefit all sections of society including small businesses owners, farmers, and professionals alike.The Raksha Mantri exuded confidence that the Union Budget 2023-24 will help in achieving the Government’s goal of making India a $5 trillion economy and among the world’s ‘Top Three’ economies within few years.

Budget 2023 updates: The union budget 2023-24 is a prudent and growth-oriented budget

Ravi Subramanian, MD & CEO of Shriram Housing Finance ltd: The higher capex outlay will have a huge multiplier effect across the economy. The income tax benefits announced will drive consumption by putting more money in the hands of the middle class. The enhanced outlay for the Pradhan Mantri Awas Yojana by 66% to Rs 79,000 cr is great news for affordable housing in urban areas. The Rs 10K cr Urban Infra Development Fund will be used for transforming urban planning and making cities more sustainable and will boost Housing and Housing Finance. Middle-income consumers have benefited significantly from this budget. I believe the announcements made will trigger a pick-up in credit offtake for affordable housing.

Union budget 2023: Emphasis on rural infrastructure is a very positive thing

Piruz Khambatta, Ambassador Make in India initiative and Champion of Change (NITI Aayog): I believe more money should go there. Government is making airports in PPP mode & they should also make best infra projects in PPP as well, especially in rural sector. For the first time I am seeing that agriculture has been linked with technology, this will revolutionize agriculture as this is something that had been missing. But a farmer cannot do this alone, he will have to work will industry. There is a gap for a value added chain here.

Budget 2023 Updates Live: Budget 2023 highlights India’s growth trajectory and ambitions for the Amrit Kaal.

Keshav Murugesh, Group CEO, WNS:It echoes the country’s focus on building a technology-driven and knowledge-based economy through a clear prioritization of infrastructure development, digital upskilling, job creation and sustainable efforts towards achieving green growth. The establishment of three Centers of Excellence for AI and National Data Governance policies will strengthen India’s position as a global innovation hub. The launch of 5G labs will act as a catalyst to drive faster and better expansion of this network, creating more avenues for innovation.

Union Budget 2023: Union Budget remains in line with the Government’s growth objectives

Anup Rau, MD & CEO, Future Generali India Insurance: The focus is on strengthening the foundation regarding inclusive development, reaching the last mile and financial empowerment. Some key areas insurance companies will be closely looking at going forward are the proposed investments by the Government in technology and AI, data governance policy, simplified KYC process, common business identifier and MSME sector-related initiatives. In addition, various announcements related to infrastructure investment, including sustainable cities and green energy, will also open new avenues for the sector to mitigate and insure against potential risks. The additional income in the hands of the taxpayer owing to the expansion of the personal income tax ceiling too is likely to boost consumption. Overall, a very balanced budget.

Budget 2023 Live Updates: 'Hope next budget will look into telecom sector taxes'

Rakesh Bharti Mittal, Vice Chairman of Bharti Enterprises: Telecom is the highest taxed sector today. The only thing we were asking the government to look into were taxes for our sector. That is something we wish for and will look ahead for in the next year budget. However, it has been an inclusive budget and we are happy with it."

Budget 2023 Live Updates: 'Budget will make our economy more competitive'

Sanjeev Puri, MD, ITC: "It is a very good, growth oriented budget. It shows consistency of thought and strategy. Good for business environment. It is inclusive and prudent and touches all sectors of society for development. Public works when combined with growth we are seeing of private capex, though it is nascent right now, it will have a progressive future and good multiplier effect on the economy and make our economy more competitive."

Budget 2023 Live Updates: 'Budget’s focus is on job creation and strengthening New Economy'

Ashish Kumar, Co-founder & General Partner, Fundamentum Partnership: “It is very clear that this budget’s focus is on two fronts, job creation and strengthening the New Economy. The increase in capital outlay, focus on sectors like agriculture, including setting of accelerator fund to encourage rural entrepreneurship in agri-tech space, tourism, and auto will drive job creation. Secondly, the government is focusing on the new economy, strengthening the digital foundations that enabled boom in the start-up ecosystem in India. Setting up Centre for Excellence for Artificial Intelligence, National Data governance policy, simiplification of KYC norms, setting up of Entity DigiLocker for use by MSMEs, and increased focus on clean-tech enabled energy transition are some very forward looking steps in this regard. Overall, the budget is very inclusive growth-oriented and builds on the strengths of India’s economy; the unprecedented digitalisation and unrivalled demographic dividend.”

Budget 2023 Live Updates: 'Capex outlay rising, infrastructure focus welcome steps'

Deepak Shetty, CEO & MD, JCB India limited: "It is a fantastic budget. Primary announcement on capex outlay, growth by 33%, 10 lakh crore with a focus on infrastructure is an excellent and welcome step. Further, enhanced outlays for the Pradhan Mantri Awas Yojna, again is very positive. I think the FM has looked at every segment of the society & the economy."

Budget 2023 Live Updates: 'Emphasis on use of tech as driver of growth'

PN Sudarshan, partner and TMT industry leader, Deloitte India, says: "The continued emphasis on digital infrastructure, fiscal support to digital payments and focus on agri-tech, education and healthcare indicates that the government is keen to use technology as the medium and driver for growth to address the sub-strata of Amrit Kaal initiatives. The sector will witness secondary effects in increased spending and will benefit in our vision towards technology driven & knowledge based economy."

Budget 2023 Live Updates: CEA on private capex

Chief Economic Adviser V Anantha Nageswaran at the post-budget press conference says, "In terms of intent and actual spend, private capex is showing very clear signs of revival."

Budget 2023 Live Updates: Budget 2023 provides a significant boost to capital investment, says FM

FM Sitharaman says, "Budget 2023 gives a big leg-up to capital investment, it also attends to MSMEs as they are the engine of growth, it sustains capital investment and also gives push to private sector while also giving tax reliefs to individuals and middle class."

Budget 2023 Live Updates: 'Robust management of macroeconomics'

FM Sitharaman says, "There has been a very robust management of macroeconomics, we have worked together in such a way that we are taking steps to both bring more people into tax net and on prudent expenditure to make money mean more and get more returns."

Budget 2023 Live Updates: FM lists the budget's four focal points

- Four emphasis points of Budget2023 are on empowering women, emphasis on tourism, and empowerment of Vishakarmas (artisans) who create soft power of India through their craftsmanship, green growth

Budget 2023 Live Updates: Finance Secretary TV Somanathan says ability to lower the fiscal deficit below 4.5% by 2025-26

- The revenue estimates in the FY24 Budget assume a buoyancy of just 1.

- We feel we have the means and ability to lower the fiscal deficit below 4.5 percent by 2025-26

- The Budget does not make any assumption about future crude oil prices.