Budget 2023 key highlights live: The Budget for 2023-24 kept its focus on expanding Capex showing that the Modi government's priorities are building roads, highways, and railway lines. The middle class has been given some relief in terms of tweaks in the new income tax regime clearly pointing out that the government wants a shift towards the new regime from the older one. The FM stuck to the fiscal deficit roadmap in the Budget with a target of 5.9% in FY 24 and adhering to the target for the current year. This is a positive considering a bloated deficit will have caused worries about finding the gap.
The live blog session has concluded. For extensive coverage of the Union Budget 2023 stay tuned with Moneycontrol.com.
Budget 2023 Key Highlights Live: Budget 2023 will boost India’s exports
In the agriculture and allied sector, custom duty on aqua feed has been reduced, which would help in decreasing the inputs costs and promoting export competitiveness of marine products. After witnessing robust growth in 2021-22, exports of marine products from India have witnessed tepid growth during the April-December 2022-23 period. The reduction in custom duty on inputs would infuse vitality to exports from the sector and help tap the potential in the sector. Read More
Budget 2023 Key Highlights Live: Budget focuses on ease of living: Former Himachal CM
According to former Himachal Pradesh chief minister Jai Ram Thakur, the Union Budget has paved the way for ease of living by emphasising opportunities, development, and economic stability.
A global hub for millets, according to the BJP leader, would be a significant step toward increasing farmers' income.
Budget 2023 Key Highlights Live: Budget growth-oriented, underscores role of digital, tech in development: Nasscom
Amid the growing fears of slowdown and global recession, the Union Budget is growth-oriented, boosting allocations across sectors, according to IT industry body Nasscom. The budget 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.
Budget 2023 Key Highlights Live: Union budget met expectations of Karnataka, State budget to be 'pro-people': CM Basavaraj Bommai
Karnataka Chief Minister Basavaraj Bommai said that 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 said.
Budget 2023 Key Highlights Live: China's looming threat and Ukraine war demand updated arms acquisition strategies
The defence budget from Finance Minister Nirmala Sithamaram throws up several interesting insights. The key thing to look at are the capital budget allocations. The Army has received an increase of 16.23 per cent, the Navy, 10.96 per cent and the Air Force, 2.79 per cent.The capital budget is the clearest indication of what the government can fork out in the next financial year to modernisation, while paying for ongoing and new acquisitions.
Budget 2023 Key Highlights Live: Pragmatic growth agenda for Amrit Kaal
The Union Budget has been presented in the backdrop of a strong recovery in the Indian economy post covid, recessionary headwinds for major global economies in 2023 and a turbulent global geopolitical environment.The finance minister has focussed on reinvigorating economic growth, yet done that with a long-term sustainable approach, avoiding falling prey to short-term impulses, given that it was supposedly an election budget.
Budget 2023 Key Highlights Live: Cheers for incentives for fisheries, marine products
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 Key Highlights Live: Salaried class, senior citizens and small investors rejoice
Despite an impressive investment of Rs 2.4 lakh crore for railways, the finance minister managed to strike a delicate balance between increasing capital expenditure by 33 percent to Rs 10 lakh crore. Throughout the country, the budget has focused on improving physical and digital infrastructure. With an anticipated reduction from 6.4 percent to 5.9 percent, the minister has also maintained prudence by keeping the fiscal deficit in check.
Budget 2023 Key Highlights Live: Sickle cell anaemia elimination easier said than done
Sickle cell anaemia is one of a group of inherited disorders known as SCD as it affects the shape of red blood cells, which carry oxygen to all parts of the body.India is among the countries with the highest burden of the disease globally, second only to Nigeria and mostly tribal people are afflicted with it, with some communities reporting as high as 40 percent of the population affected.“A mission to eliminate sickle cell anaemia by 2047 will be launched,” FM said in her budget announcement.
Budget 2023 Key Highlights Live: Malnutrition crisis to get worse as funds for women and children get outstripped by inflation
Even though it has historically been underfunded and ignored, the Mothers and Child Development (WCD) Ministry runs some of the most significant programmes in the nation that cater to the needs of women and young children. This pattern is continued in Budget 2023–23. The Ministry's overall budget allocation is Rs 25,449 crore, or around one-tenth of the budget for "roads and bridges" (Rs 2.45 lakh crore). Read more.
Budget 2023 Key Highlights Live: Pharma industry hails budget’s 'positive thrust on research, innovation'
The pharmaceutical industry has applauded Finance Minister Nirmala Sitharaman's budgetary proposal to support research and innovation in the sector, but is upset that APIs, a critical component of medicines, were not taken into consideration in the Budget 2023–24.
Glenmark Pharmaceuticals chairman and managing director Glenn Saldanha said the plan to start a new programme for research and innovation through centres of excellence was a step in the right direction. Read more.
Budget 2023 Key Highlights Live: Risk of slippage lower, FM has successfully demonstrated fiscal commitment
A senior economist said there is a danger of fiscal slippage when general election campaigning begins in 2024, but the recent success in meeting deficit targets shows the risk is smaller than in the past.
The fiscal deficit objective for the upcoming fiscal year was set at 5.9 percent of gross domestic product (GDP) in the Union Budget, which also maintained the aim for the current fiscal year of 6.4 percent of GDP.Read more.
The curious absence of startups in budget 2023
The startup industry was conspicuously absent from a budget that was chock full of pleasant surprises. The finance minister was enthusiastic about the sector in last year's budget speech, counting the number of unicorns in India, establishing an expert committee to promote VC and PE funds, promoting thematic funds in emerging tech sectors, lowering the surcharge on LTCG tax, and even announcing a crypto tax. This year, nothing. Read more.
Higher capex, lower taxes; positive for equity markets
India's economy rose from being the 10th largest in the world to becoming the fifth largest in the last nine years.
The economic impact of this budget's emphasis on capital spending will be multiplied. According to the Economic Survey, India would continue to have the fastest-growing economy in the world with GDP growth of between 6 and 6.8%.
Nirmala Sitharaman, the finance minister, has also offered a convincing plan for reducing the fiscal deficit, with a goal of 5.9 percent of GDP in FY24. Read more.
What CLSA, Morgan Stanley and other top international brokerages said
The Union Budget for 2023-24 has been lauded for being bold in its vision as the FM ramped up capex to Rs 10 lakh crore at 3.3% of GDP. This is a positive move that will support economic growth and help crowd in private investment.
Here is a quick snapshot of what some of the top international brokerages are saying:
- CLSA hailed the Budget's growth-focussed nature. It said that there weren't any populist measures that many were concerned about due to general elections next year.
- Morgan Stanley in its report called it a 'good' growth Budget that improved the quality of government spending and remained fiscally prudent.
- Bernstein offered an alternate reading as it drew focus on the moderating growth of infrastructure capex which forms the bulk of capex.
- Credit Suisse said that the government's expenditure quality has improved. Savings from subsidies have been utilised in higher capex.
- Nomura in its analysis said that while the higher capex will push growth, the likely surge in revenue expenditure through the year along with slower nominal growth can pose challenged to fiscal deficit.
One tailored for the taxpayers
The economy was already showing signs of health in Economic Survey 2023, the budget's precursor, with GDP growth estimated for this fiscal year at 6.5-7 percent and for FY 24 at 6.5 percent thanks to a recovery in domestic demand and a rise in capital spending. It had been expected that the Budget for FY 24 will lean towards rewarding taxpayers and it did so. Read more.
Union Minister Rajeev Chandrasekhar on Budget 2023
"Budget will give a push to building an ecosystem for semi conductors. We have a lot of interest from fabrication units to set shop in India - India’s aim is to build an ecosystem for AI just like what we have done for UPI," says MoS IT Rajeev Chandrasekhar to Moneycontrol on Budget 2023.Watch here.
The focus is on increasing productivity, efficiency through quality spending
By laying out a realistic pro-growth strategy in the Budget 2023–24, the finance minister has created a road for India to go up to the third-largest global economy by the end of this decade from its current position as the fifth-largest.
The budget was unveiled against the background of a robust economic recovery in India following the impact of Covid, headwinds from a global recession in 2023, and a tumultuous geopolitical climate. Read more.
Nirmala Sitharaman hits three targets in one shot
The significant increase in capital spending, the extension of the free grain programme for all Antyodaya and priority households for an additional year, and an increase in the PMAY housing allocation will all have a major impact. Read more.
Budget 2023 highlights for agricultural sector
Budget 2023 highlights for MSMEs
Budget 2023 highlights for green growth:
Budget 2023: Key numbers
FM's Post-Budget Briefing: Key Highlights
-Fiscal Consolidation Not Put On The Back Burner
-Budget Balances Govt Capex, Push To Private Sector
-Plan To Augment Strategic Petroleum Reserves
-Allocated Rs 30,000 Crore For OMC Capex In FY24
-FY24 Tax Target Assumption Conservative
Budget 2023 highlights for aviation
- Finance MinisterNirmala Sitharamanon Wednesday announced hiking the capital expenditure by 33 per cent to Rs 10 lakh crore for infrastructure development for 2023-24 and will be at 3.3 percent of the GDP.
- Presenting the Budget, she said the newly established infrastructure finance secretariat will assist in attracting more private investment.
- With an aim to further improve regional air connectivity, she said the government will revive 50 additional airports, helipads, water aero drones and advanced landing grounds.
- The Budget also allocated Rs 3,113.36 crore to the union civil aviation ministry.
Budget 2023: New Initiatives
Budget announcements on digital initiatives focuses on artificial intelligence in the education sector
- Three centres of excellence for artificial intelligence will be established in top educational institutions
- 100 laboratories in engineering institutions will be developing applications using 5G services
- A national digital library will be set up for children and adolescents for facilitating the availability of quality books across geographies, languages and genres
- Centre to recruit 38,800 teachers and support staff for 749 Eklavya Model Residential Schools that will service 3.5 lakh tribal students
Budget 2023: Big bonanza for senior citizens
-Budget 2023 has increased the maximum permissible investment in the senior citizen savings scheme, a popular investment among the elderly. The post office monthly income scheme, too, has been made more attractive.
-Finance minister Nirmala Sitharaman doubled the maximum limit under the Senior Citizen Savings Scheme (SCSS) to Rs 30 lakh from Rs 15 lakh. The scheme offers assured interest of Rs 8 percent per annum. The interest is paid quarterly.
-Additionally, the investment limit under the popular Post Office Monthly Income Scheme (POMIS) has been raised to Rs 9 lakh from Rs 4.5 lakh. In case of joint accounts held in POMIS, the investment limit has been hiked to Rs 15 lakh from Rs 9 lakh. The scheme pays monthly interest at the rate of 7.1 percent per annum.
Budget 2023 Highlights for the defence sector
-While the Ministry of Defence has received the highest allocation among all ministries at Rs 5.94 lakh crore, it is not a significant jump from Rs 5.25 lakh crore for this FY
-Shares ofBharat Electronics,Bharat Dynamics,Hindustan Aeronautics, Paras Defence and BEML tumbled 5-9 percent afterFinance Minister Nirmala Sitharaman completed herBudget speech.
-Under its ambitious Atmanirbhar Bharat scheme, the government has banned imports of several items, including crucial parts used in defence equipment. Which means they are being manufactured in India now.
Budget 2023 Highlights: What industry experts have to say
-Radhika Gupta, the Managing Director and Chief Executive Officer, Edelweiss Mutual Fund, says that the thrust of tourism in the Budget is great. "I am most happy to see the thrust on tourism in the budget. India has huge untapped potential as a destination and tourism can make a significant contribution to GDP, in addition to its soft power. Looking forward to seeing and supporting action on the grounds," she tweeted.
-Nilesh Shah, MD, Kotak Mahindra, said the tax exemption going away is a clear negative for the insurance sector, and there will be impact on the business, which is reflected into the prices.
-Colonel Sanjeev Govila, CEO of Hum Fauji Initiatives, said that the new tax regime has been made better, slowly making exemptions of the old tax regime redundant.
- Harsh Goenka, Chairman of RPG Enterprises, said that it was an intelligent budget that focuses on key areas of infrastructure, employment and consumption led demand while keeping fiscal deficit on track. "Builds on strengths of manufacturing, digital talent and the middle class," he tweeted.
-Former NITI Aayog CEO Amitabh Kant said this is a Budget that will drive the consumption story in India. He adds that the real highlight of the Budget was going digital across the economy.
Budget 2023 Highlights for renewable energy sector
- There is a 48% rise in allocation towards renewable energy sector in this budget.
- This year's allocation is Rs 6,900.68 crore (budget estimate) and 45.3% over the revised estimate (RE) of Rs 7,033 crore.
Budget 2023 Highlights
Budget 2023 highlights
- Fully imported cars, including electric vehicles to cost more now.
- Customs duty on vehicles in completely built units (CBUs) costing less than USD 40,000 or with engine capacity less than 3,000 cc for petrol-run vehicles and less than 2,500 cc for diesel-run vehicles has been increased from 60% to 70%.
- Similarly, customs duty on electrically operated vehicles in CBU form, other than with cost, insurance and freight (CIF) value of more than USD 40,000, has also been raised to 70% from the previous 60%.
Budget 2023 Highlights for IT ministry
- The budget estimate for the Ministry of Electronics and Information Technology has been increased to Rs 16, 549.04 crore from the Rs 11,719.95 crore.
- The allocation for the period of 2021-22 stood at Rs 8,118.65 crore, making this year's budget estimate nearly double of what it was two years back.
Budget 2023 Key Updates
- The budget reduced the tax burden for individuals opting for the new tax regime.
- The Government also proposed to cap deduction from capital gains on investment in residential house under sections 54 and 54F to Rs 10 crore.
- Another proposal with similar intent is that of limiting the income tax exemption from proceeds of insurance policies with very high value.
Budget 2023 Key Highlights
- Government to double the deposit limit for Senior Citizen Savings Scheme to Rs 30 lakh and Monthly Income Account Scheme to Rs 9 lakh.
- The government also proposed that the maximum deposit limit for Monthly Income Account Scheme will be enhanced from Rs 4.5 lakh to Rs 9 lakh for a single account and from Rs 9 lakh to Rs 15 lakh for a joint account.
- FM also announced that an integrated IT portal will be established for investors to reclaim unclaimed shares and unpaid dividends from the Investor Education and Protection Fund Authority.
Budget 2023 Highlights for Road ministry
- Allocation for the road transport and highways ministry (MoRTH) has been increase by 36% to around Rs 2.7 lakh crore for 2023-24 in the Budget.
- National Highways Authority of India (NHAI) has been allocated around Rs 1.62 lakh crore as part of MoRTH’s capital expenditure plan for 2023-24
- As per the government's revised estimates the NHAI will spend Rs 798 crore as IEBR in 2022-23.
Budget 2023 Highlights: Here's what the 7 priorities or 'Saptrishi' mean
- Inclusive development
The government's Sabka Saath Sabka Vikas policy has benefitted many sections, including women, SCs, STs, OBCs, and other underprivileged groups.
- Reaching the last mile
Building on the huge success of Aspirational District program, we have recently launched the Aspirational Blocks program, covering 500 blocks for saturation of government services.
- Infrastructure and investment
The capex outlay is being increased steeply by 33% to Rs 10 lakh crore, which would be 3.3% of the GDP.
- Unleashing the potential
A National Data Governance Policy will be brought up enabling access to anonimised data to unleash innovation and research by startups and academia.
- Financial sector
The revamp schemes will take effect from 2023 through an infusion of Rs 9,000 crore in the corpus.
- Green growth
This budget provides for Rs 35,000 crore capital investment towards energy transition and net zero objective and energy security by the Ministry of petroleum and natural gas.
- Youth power
There will be a launch of the PM Kaushal Vikas Yojana 4.0 to skill lakhs of youth. The scheme will cover new age courses.
Union Budget 2023 Highlights: New Tax Regime
Budget 2023 Highlights
- The government announced an 11% hike in agriculture credit target to Rs 20 lakh crore for next fiscal year.
- The government has also announced to provide a 2% interest subsidy to ensure farmers get short-term loans of up to Rs 3 lakh at effective rate of 7% per annum.
- The RBI has decided to raise the limit for collateral-free agriculture loans from the previous ampunt of Rs 1 lakh to Rs 1.6 lakh.
Budget 2023 Highlights for Fintech Sector
- Digital payments rose 76% in transaction and 91% in value terms in 2022
- 7,400 crore digital payments of Rs 126 lakh crore through UPI in 2022.
- Fiscal support for digital public infrastructure (DPI) will continue in 2023-2024
- The scope of documents available in DigiLocker for individuals will be expanded
- An entity DigiLocker will be set up for use by MSMEs and large businesses
- PM VIKAS scheme will now include access to digital payments and social security.
- Subsidy for UPI expected to jump two-folds to Rs 2,137 crore in FY23 over previous fiscal.
- Allocation for digital payments promotion remains stagnant at Rs 1500 crore for last three years
Union Budget 2023 Highlights: Cheaper and Expensive
- What is cheaper?
Aero planes and other aircrafts; Gold (including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder form; Base metals or silver, clad with gold, not further worked than semimanufactured; New or retreaded pneumatic tyres, of rubber, of a kind used on aircraft of heading; Platinum, unwrought or in semimanufactured form, or in powder form; Waste and scrap of precious metal or of metal clad with precious metal; several aquaculture inputs; Some TV, camera parts.
- Which imports are more expensive
Vehicle (including electric vehicles); Silver Dore; Naphtha; styrene, Vinyl Chloride Monomer, Compounded Rubber, Articles of precious metals, Imitation Jewellery, Electric Kitchen Chimney, Bicycles, Toys and parts of toys (other than parts of electronic toys)
Budget 2023 Highlights: New budget tax slab
Under the new personal tax regime, six income slabs have been reduced to six. The government has also increased the tax exemption limits in some of these categories.
0-3 lakh- nil
3-6 lakh -5%
6-9 lakh - 10%
9-12 lakh-15%
12-15 lakh -20%
Above 15 lakh - 30%
People who are earning an income of Rs 9 lakh a year will have to pay only Rs 45,000 a year as tax. That is 5% of their income or a reduction of 25 percent from the Rs 60,000 they were paying earlier.
Budget 2023 Highlights: Health and family welfare ministry
- The Union health and family welfare ministry has been allocated Rs 89, 155 crore in the Union budget FY24 marking a rise of a meagre 12% when compared to the revised budget estimated for FY 23.
- For the upcoming financial year, Rs 86,175 crore has been allocated to the department of health and family welfare while Rs 2,980 crore has been allocated for the department of health research.
- In the ongoing fiscal, the budget spent on the department of health and family welfare is Rs 76, 370 while Rs 2,775 crore had been marked for the department of health research.
Union Budget 2023 Highlights:Key Numbers
FY24 food subsidy seen at 1.97 lakh crore
FY24 fertilizer subsidy seen at 1.75 lakh crore
FY24 divestment target at Rs 51000 crore
FY23 growth estimated at 7%
FY23 divestment target revised to Rs 50,000 crore
FY24 capital expenditure proposed at Rs 10 lk cr, up 33%
Agri credit target increased to Rs 20 lk cr
To spend Rs 2200 crore for high value horticulture
FM raises PM Awas Yojana outlay by 66% to Rs 79,000 crore
Plan to spend Rs 15000 cr vulnerable tribal group (PVTG) over 3 years
Outlay for 3rd phase of e-courts at Rs 7000 crore
Rs 35000 crore investment planned in energy security, energy transition
Green Hydrogen Mission aims for output of 5MMT by 2030
Sugar cooperatives to get benefit of Rs 10,000 crore
Import tax on compounded rubber upped to 25% from 10%
Calamity related duty on cigarettes raised by 16%
Budget highlights: Key takeaways on tax regime
- New tax regime a default regime; will have option to choose old regime
- No tax for income up to Rs 3 lakh/year
- Will cut personal income tax slabs to 5 From 6
- Tax Exemtion up to Rs 7 lakh/year is under new tax regime
- To remove minimum Threshold of Rs 10,000 on TDS
- Exempt tax on income of boards for housing, other activities
- Reduce highest surcharge rate to 25% from 37% in new tax regime
Union Budget 2023 Highlights: Nirmala Sitharaman lists 7 priorities
Inclusive development
Reaching the last mile
Infrastructure and investment
Unleashing the potential
Green growth
Youth power
Financial sector
Union Budget 2023 Highlights: New tax regime
The new tax regime is now the default tax regime. The government has taken a slew of measures to make the voluntary tax regime more attractive and will forego revenue in the process.
