The Union Finance Minister Nirmala Sitharaman presented the last full-fledged Budget of the current government on the 1st of February 2023. According to Article 112 of the Indian Constitution, the Union Budget is referred to as the Annual Financial Statement (AFS). It is a statement of the estimated receipts and expenditure of the Government in a Financial Year.
The Union Finance Minister has listed seven key priorities called as the “Saptarishi” guiding the government
through the Amrit Kaal. They include:
- Infrastructure and Investment
- Inclusive Development
- Reaching the Last Mile
- Unleashing the Potential
- Green Growth
- Youth Power
- Financial Sector
Budget
Estimates 2023-24:
- Total estimated expenditure: Rs 45 lakh crore.
- Total estimated receipts: Rs 27.2 lakh crore
- Net tax receipts: Rs 23.3 lakh crore.
- Fiscal deficit: 5.9% of GDP.
Expenditure: The government proposes to spend Rs 45, 03,097 crore in
2023-24, which is an increase of 7.5% over the revised estimate of 2022-23.
Receipts: The receipts (other than borrowings) in 2023-24 are expected
to be to Rs 27, 16,281 crore, an increase of 11.7% over revised estimate of
2022-23.
Deficits: Fiscal deficit in 2023-24 is targeted at 5.9% of GDP, lower
than the revised estimate of 6.4% of GDP in 2022-23. The Government is
committed to sticking to this plan to reduce the fiscal deficit to below 4.5%
by 2025-26.
Allocation for different Ministries:
- Ministry of Defense: 5.94 lakh crores
- Ministry of Road Transport and Highways: 2.7 lakh crores
- Ministry of Railways: 2.4 lakh crores
- Ministry of Consumer Affairs: 2, 05,764 crores.
- Ministry of Home Affairs: 1, 96,034 crores.
- Ministry of Chemical & Fertilizers: 1, 78,481 crores
- Ministry of Rural Development: 1, 59,964 crores
- Ministry of Agriculture & Farmer’s Welfare: 1, 25,035 crores.
- Ministry of Communications: 1, 23,393 crores.
- Ministry of Education: 1, 12,899 crores.
- Ministry of Health: 89,155 crores
- Ministry of Science & Technology: 16,361.42 crores
Capital expenditure increased significantly by
about 33% to 10 lakh crores as compared to 7.3 lakh crores in FY 2022-23.
Capital expenditure for FY 2023-24 accounts for about 3.3% of the GDP.
The highest percentage increase in allocation is observed in
the Ministry of Railways (49%), followed by the Ministry of Jal Shakti (31%),
and the Ministry of Road Transport and Highways (25%).
A capital of Rs 2.40 lakh crore has been allocated to the
Railways - the highest ever outlay and about 9 times the outlay made in 2013-
14.
Agriculture credit target will be increased to Rs 20 lakh crore with
focus on animal husbandry, dairy and fisheries.
Government to launch a new sub-scheme of PM Matsya Sampada Yojana with targeted
investment of Rs 6,000 crore to further enable activities of fishermen, fish
vendors, and micro & small enterprises.
Atmanirbhar
Clean Plant Program with an outlay of ₹2200 crore to be launched to boost
availability of disease-free, quality planting material for high value
horticultural crops.
Pradhan Mantri Kaushal Vikas Yojana 4.0, to be
launched to skill lakhs of youth within the next three years covering new age
courses for Industry 4.0 like coding, AI, robotics, mechatronics, IOT, 3D
printing, drones, and soft skills.
30 Skill India International Centres to be set
up across different States to skill youth for international opportunities.
To commemorate Azadi Ka Amrit Mahotsav, a one-time new small
savings scheme, Mahila Samman Savings
Certificate to be launched. It will offer deposit facility
up to Rs 2 lakh in the name of women or girls for tenure of 2 years (up to
March 2025) at fixed interest rate of 7.5 per cent with partial withdrawal
option.
157 new nursing colleges will be established in co-location
with the existing 157 medical colleges established since 2014.
Sickle Cell Anemia Elimination Mission to eliminate Sickle
Cell Anemia by 2047.
PM PVTG Development Mission:
To improve socio-economic conditions of the Particularly
Vulnerable Tribal Groups (PVTGs), Pradhan Mantri PVTG Development Mission will
be launched. An amount of Rs 15,000 crore will be made available to implement
the Mission in the next 3 year for the Scheduled Tribes.
The Centre will also recruit 38,800 teachers and support
staff for the 740 Eklavya Model Residential Schools, serving 3.5 lakh tribal
students.
In the drought prone central region of Karnataka, central
assistance of Rs 5,300 crore will be given to the Upper Bhadra Project to
provide sustainable micro irrigation and filling up of surface tanks for
drinking water.
The outlay for PM Awas Yojana is being enhanced by 66% to
over Rs 79,000 crore.
50 additional airports, heliports, water aerodromes and
advanced landing grounds will be revived for improving regional air connectivity.
100 labs for developing applications using 5G services will
be set up in engineering institutions to realize a new range of opportunities,
business models, and employment potential.
An outlay of Rs 19,700 crores has been allocated
to the National Green Hydrogen Mission to facilitate transition of the economy
to low carbon intensity, reduce dependence on fossil fuel imports.
500 new ‘waste to wealth’ plants under GOBARdhan scheme will
be established. Total Investment - Rs 10,000 crore.
TAXES
Rebate limit of Personal Income Tax to be increased to Rs. 7
lakh from the current Rs. 5 lakh in the new tax regime. Persons in the new tax
regime, with income up to Rs. 7 lakh to not pay any tax. The new income tax regime
to be made the default tax regime. However, citizens will continue to have the
option to avail the benefit of the old tax regime.
The new tax slabs in new tax
regime rates are
- 0-3 lakh - nil
- 3-6 lakh - 5%
- 6-9 lakh- 10%
- 9-12 lakh - 15%
- 12-15 lakh - 20%
- above 15 lakh- 30%
The limit for tax exemption on leave encashment on retirement
of non-government salaried employees to increase to Rs. 25 lakh.
Agniveer Fund to be provided EEE status. Payments received by
Agniveers enrolled in Agnipath Scheme, 2022 will be exempt from taxes.
Income from investments in life insurance policies will be taxable if premium of Rs 5 lakh has been paid in any year. The amount paid upon the death of the policy holder will continue to be exempt from income tax.
Allocation to Foreign Countries
India has cut the overall allocation for aid to foreign countries from Rs 6292 crore in Budget 2022 to Rs 5408 crore in Budget 2023- Bhutan: Rs 2,400 crore
- Nepal: Rs 550 crore
- Mauritius: Rs 460 crore.
- Myanmar: Rs 400 crore
- Maldives: Rs 400 crore
- African nations: Rs 250 crore
- Afghanistan: Rs 200 crore
- Bangladesh: Rs 200 crore
- Sri Lanka: 150 crore
- Other developing countries: Rs 150 crore
- Chabahar Port: Rs 100 crore
- Eurasian Countries: Rs 75 crore
- Latin American Countries: Rs 50 crore
- Seychelles: Rs 10 crore
- Mongolia: Rs 7 crore
- Disaster Relief: Rs 5 crore
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