Budget 2023 Analysis Highlights: The last full Budget of the Modi government before the 2024 Lok Sabha elections has been a pragmatic budget that strikes a delicate balance by focusing on inclusive development, supporting small businesses, boosting income for the middle class, reducing compliances and promoting entrepreneurship. From infra push to tax tweaks in life insurance policies, here's a detailed analysis of all the proposals announced by FM Sitharaman.
New income tax regime is the future, says FM Sitharaman
Union Finance Minister Nirmala Sitharaman said: “The new tax regime offers lower rates, more money in the hands of taxpayers and simplicity. While older tax regime offers incentives to save, the tax rates are far higher. The tax-payer is the best judge to decide where to put her money.”
Although the FM has given a boost to the new income-tax regime, no timeline has been set to phase out the old one.
Budget 2023: CJI hails Rs 7,000-crore allocation to e-courts project
Chief Justice of India (CJI) DY Chandrachud has hailed the allocation of Rs 7,000 crore for phase three of the e-courts project in the Union Budget 2023.
This will help enhance the accessibility of judicial institutions and also improve the efficiency of the justice delivery system in India, he said.
The allocation for the third phase is a four-fold jump from Rs 1,670 crore granted for the second phase of the digital upgrade of courts in 2015.
Budget's main focus is growth, Mumbai should like it: FM
Union Finance MinisterNirmalaSitharamansaid on Saturday growth is the main focus of Budget 2023 has been fiscal consolidation and growth, especially inclusive growth.
“Growth is the main focus. We want to sustain that recovery, sustain that growth,”Sitharamansaid.
She also thanked the Budget-making team for making it possible to devote such a high quantum of resources and said “Mumbai should be liking it (the proposals)”.
Budget 2023 | FY24 FAME outlay revised to Rs 5,172 crore
Finance Minister Nirmala Sitharaman almost doubled the FAME 2 subsidy outlay at Rs 5,172 crore in the 2023 Union Budget. The FAME-2 subsidy accounts for 85 percent of the total Budget allocation of Rs 6,145 crore for the Ministry of Heavy Industries.
FM believes 50% taxpayers will opt for new income tax regime
Union Finance Minister Nirmala Sitharaman believes that with more money in the hands of taxpayers under the new income tax regime, they would be the best judge to decide their own choice for investment.
FM on Adani: Withdrawing FPO had no impact on India’s image
Commenting on the Adani market rout following the release of the controversial Hindenburg report, Union Finance Minister Nirmala Sitharaman said on February 4 that the “withdrawing of FPO has had no impact on India’s image globally.”
She added: “Regulators will do their job in the Adani issue.”
‘National Monetisation Pipeline on good track to reach Rs 1.6-lakh-cr target’
Ajay Seth, Secretary to the Department of Economic Affairs, Ministry of Finance said on February 4 that the National Monetisation Pipeline is on “good track” to achieve the FY23 target of raising Rs 1.6 lakh crore.
The NMP is being executed by various government entities, he said. “The asset monetisation is being done by government entities and the money goes to them, and they use it to invest it further. This amount is not available to finance the budget but the monetisation is very much happening,” Seth added.
FM says regulators monitoring Adani situation
Union Finance Minister Nirmala Sitharaman said on February 4 that regulators are monitoring the developments on the Adani group and that they are functioning independently. Her statement comes a day after banks such as the State Bank of India (SBI) and Life Insurance Corporation (LIC) revealed their exposure to the group currently mired in controversies.
Finance Minister Nirmala Sitharaman's address to the media in Mumbai is concluded.
FM Sitharaman Live
- Speaking on the Adani issue, she said, "It would be the regulators who would do the job. And regulators are independent of the Government."
- Banks and LIC came out with their exposure. RBI released its statement on the same. The market has functioned in prime condition. SEBI has worked on it well.
TK Pandey, Sectretary, DIPAM Live
- Speaking on Vodafone-Idea infusion by Government, he said, "We are not taking a managerial position, it is a rescue. It's a question of support."
FM Sitharaman Live
- Speaking on Vodafone-Idea infusion by Government, she said, "We are not taking their debt. We are buying shares of Vi. We are taking stake in them. And if they profit, we will also profit."
TV Somanathan, Finance Secretary Live
- Speaking on Rs35000 crore earmarked for energy security and energy transition, he said, "(It is) largely for retrofiting of capacities."
- To augment petroleum reserves.
Ajay Seth Live
- Speaking on National Monetisation Pipeline achieving FY23 target, he said, "We are on good track to achieve the target."
Sanjay Malhotra, Revenue Secretary Live
- Speaking on rising home loan rates, he said, "In the last ten years, rates have reduced. For long term, the trend is downward moving."
Ajay Seth Live
- Speaking about cryptocurrency, he said, "the technology, blockchain and others can be used. But its use in the financial sector can have several risks."
- In India, nobody is talking about using crypto as currency. The risks are with using it as a token.
- In the coming time, measures around crypto would be brought out.
FM Sitharaman Live
- Speaking of new tax structure, she said, "(It is) a simple tax structure with better tax rates."
FM Sitharaman Live
- Answering the question as why there is no GST on insurance when it is on other goods like real estate and gold, FM said, "Majority of our population is not covered under insurance."
FM Sitharaman begins the press conference after interacting with stakeholders in Mumbai
FM Sitharaman interacts with stakeholders in Mumbai Live
- Growth is the main focus. We want to sustain that recovery, sustain that growth.
- The finance minister said it was the ”express desire” of Prime Minister Narendra Modi to continue with the elevated public capital expenditure, due to which she has proposed a higher outlay of Rs 10 lakh crore under the head.
TK Pandey, Sectretary DIPAM at the interaction with stakeholders in Mumbai Live
- IDBI disinvestment (is) moving forward with the help of RBI.
FM asks explanation on requests for subsidies to promote exports at the interaction with stakeholders in Mumbai Live
- Given there is recession in the markets that we export to, how does one subsidise here goods for which demand is not there outside.
TV Somanathan at the interaction with stakeholders in Mumbai Live
- Small savings schemes are for middle class and are high costs for the government and not low cost funds.
- The government is paying high interest to help those sections of society.
Budget 2023 Analysis Live: FM Sitharaman on banking sector in an exclusive interview with Network18 Group Editor Rahul Joshi
- Today, the typical problem Indian exporters face is lack of demand in those markets - where they usually have demand - because of a recession there.
- Process of privatisation of PSU banks is on. The amendments will have to be made.
TV Somanathan at the interaction with stakeholders in Mumbai Live
- India's global policy will be on India's terms.
FM Sitharaman interacts with stakeholders in Mumbai Live
- FM asks AMFI representative to share a note on capex and investment planned by the industry as part of the private sector.
Budget 2023 Analysis Live: FM Sitharaman on disinvestment and asset monetisation in an exclusive interview with Network18 Group Editor Rahul Joshi
- We have to see when’s the best time to monetise assets.
- Asset monetisation is part of the document.
- Disinvestment and asset monetisation is still a part of the budget. It may not be a part of my speech. We have to see when is the best time to monetise assets.
Budget 2023 Analysis Live: FM Sitharaman on 80C and 80D in an exclusive interview with Network18 Group Editor Rahul Joshi
- I have not given a time frame to remove exemptions and deductions. Every indian citizen must make her or his own choice.
- The purpose of new tax regime is make it attractive for compliance and tax rates. Everyone should know what amount of taxes they are paying and file the tax returns from their home. At least 50 percent of the taxpayers can shift to the new income tax regime and benefit from reduced rates.
Budget 2023 Analysis Live: FM Sitharaman in an exclusive interview with Network18 Group Editor Rahul Joshi
- In an exclusive interview with Network18 Group Editor Rahul Joshi on February 3, Finance Minister Nirmala Sitharaman gave an indepth analysis of the Budget. Below are some excerpts:
- Rahul Joshi: The RBI governor says that the worst of inflation is behind us. So, can the RBI then take a more relaxed view of monitoring, tightening and support growth in the coming in the coming weeks and months?
- FM Sitharaman: Well, I, realise that if I do comment, it will look as if I'm guiding the RBI. However, yes, the way in which inflation has come down, both by RBI action and by the government's action, which has been steady and at it for some time, I expect since the fall in the inflation doesn't seem to be just a momentary or a one month affair, it should sustain itself in the process of coming down, and therefore there shouldn't be that much pressure on the central bank to keep the pace of increasing the rates. But MPC will take a call.
Budget 2023 Analysis Live: FM Sitharaman in an exclusive interview with Network18 Group Editor Rahul Joshi
- In an exclusive interview with Network18 Group Editor Rahul Joshi on February 3, Finance Minister Nirmala Sitharaman gave an indepth analysis of the Budget. Below are some excerpts:
- Rahul Joshi: Some of the global investors as well you know as a knee jerk reaction seem to have pulled out some money in the last couple of days. Some have put you know, fresh investments on hold what would your message be to the global investors?
- FM Sitharaman: India remains as before, an absolutely well-governed stable government, and also very well, regulated financial market. As a result, I think the investor confidence, which existed before, shall continue even now, our regulators are normally very stringent about certain governance practices, and therefore, one instance however, much talked about globally, it may be, I would think, is not going to be indicative of how well Indian financial markets are governed. So many lessons have been learned over the decades. And therefore, I think our regulators have kept a market when prim and proper condition.
Budget 2023 Analysis Live: FM Sitharaman on taxes in an exclusive interview with Network18 Group Editor Rahul Joshi
- Everyone should know what amount of they are paying and file the tax returns from their home.
- I would prefer a completely acceptable and lower tax rate, there is no reason for someone to avoid paying tax.
- You are the best judge to do what you want to do with your money.
Budget 2023 Analysis Live: FM Sitharaman on startups in an exclusive interview with Network18 Group Editor Rahul Joshi
- Investors looking for better opportunities in startups.
- Not scarcity but funds looking for better options among startups.
Budget 2023 Analysis Live: FM Sitharaman's exclusive interview with Network18 Group Editor Rahul Joshi
- Rahul Joshi: Your Budget was very well received by the markets. In fact, while you were speaking, the markets were really going up. But the rout in Adani stocks somewhat spoiled the party. With a general nervousness in the market, how does your Government see this?
- FM Sitharaman: I look at the Budget for having covered all the sections of the society. And it was the detailing which has consumed a lot of time in preparation of this Budget. Details is what has brought the difference in touching so many different sectors and segments of our society. Therefore, if it's being received very well, I'm glad. But of course, that motivates me to be able to now take it upon myself to better implement it down to the last person. So I would think the immediate impact of the Budget and subsequent to whatever reason it traded back before closing, I think in the next few days the budget's impact will still continue to hold the markets high.
Budget 2023 Analysis Live: Key highlights from FM Sitharaman's interview
Budget 2023 Analysis Live: FM Sitharaman on New Pension Scheme
- Finance minister Nirmala Sitharaman, in an exclusive interview with Network18 Group Editor Rahul Joshi, cautioned against the old pension scheme, aying that states might be paying the current generation of pensioners by loading it onto the future generations.
- “We should look at a reasonable balance and what we are leaving for generations to come. Yes, you need to borrow for the economy to run, but unless we have a complete understanding of the fiscal health of the state, for not just today but future decades, the rush to a conclusion may not be good,” she said.
Budget 2023 Analysis Live: FM Sitharaman on New Pension Scheme
Budget 2023 Analysis Live: FM Sitharaman's exclusive interview with Network18 Group Editor Rahul Joshi
Rahul Joshi: Nirmala ji, coming to this Budget, there is a big push to capital expenditure on the one hand, and on the other, you've also given a lot of money to the middle class and the rich, so that there is a consumption boom. All this while keeping the maintaining fiscal discipline, as you had promised - 5.9%, giving some comfort to everyone. What are the big outcomes you're looking at from this Budget?
FM Sitharaman: If well executed, if the states and the Centre work together, I expect tourism to really see a sea change with a flow of people coming in both from other states and also from abroad. It should actually be a good way of keeping the economy active. I also see the momentum that PM Vikas Scheme is going to come up with. Because what it does, at least from the way in which I've done this work on understanding that scheme, and to see how best it can be tailored, it touches that segment, which is sort of self employed, which has skills, which may be traditional skills, but which are very productively used. And that itself has a huge niche market of its own.
Budget 2023 Analysis Live
Budget 2023 Analysis Live
- In an exclusive interview with Network18 Group Editor Rahul Joshi on February 3, Finance Minister Nirmala Sitharaman gave an indepth analysis of the Budget. Below is an excerpt from the same:
- RahulJoshi:This is your fifth Budget, you are navigating epochal events in the last couple of years. One was the pandemic and the other was the war in Ukraine. What I would like to understand from you is, what was going on in the mind of Nirmala Sitharaman, and how she was dealing with policymaking in these last five historic years?
- FM Sitharaman:I had no precedent before me to handle such a situation, there were no given templates. There were no examples to follow, and there were no theories which would have worked in such a context. So essentially, we were going by continuous conversation with all stakeholders, those who have something to say about the industry and its sufferings, the MSME sector, or even those who are observing it with a more discerning eye. So, we had to engage in conversations continuously with all people, take their view, weigh for ourselves to see which one is right, which is most suitable for us and which is not and also take courage in saying it may not work out for us in one particular way, because eventually all this is what we are answerable for.
Budget 2023 Analysis Live: With inflation falling, pressure on MPC to keep hiking rates now less, says FM
- Finance minister Nirmala Sitharaman, in an exclusive interview with Network18 Group Editor Rahul Joshi, said that with inflation falling on a sustainable basis, the pressure on the Reserve Bank of India (RBI) and monetary policy committee (MPC) to hike interest rates has now eased.
- “I expect since the fall in the inflation doesn’t seem to be just a momentary or a one-month affair, it should sustain itself in the process of coming down and therefore there shouldn’t be that much pressure on the central bank to keep the pace of increasing the rates but the MPC will take a call of course,” FM Sitharaman said.
- These comments from FM come at a time when the RBI has hiked key rates by 225 bps since May 2022 to fight persistently high inflation.
Budget 2023 Analysis Live: Govt committed to disinvestment, asset monetisation
- In an exclusive interview with Network18 Group Editor Rahul Joshi on February 3, Finance Minister Nirmala Sitharaman said the Union government is committed to privatisation and will move forward with disinvestment and asset monetisation plans, especially where cabinet approvals are in place.
- When asked the reason why disinvestment and asset monetisation were omitted from the budget, Sitharaman said: “Disinvestment and asset monetisation is still a part of the budget. It may not be a part of my speech…We have to see when is the best time to monetise assets,” she said.
Budget 2023 Analysis Live: Sustained focus on infrastructure will boost steel demand
- 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% of end-use steel consumption share in domestic market.
- Hence, sustained focus on infra projects will ensure sustained long-term growth in steel demand too, said CareEdge Ratings. It will help both the alloy and non-alloy steel producers.
Good morning and welcome to Moneycontrol's analysis of the Union Budget 2023.
