Highlights on the Union Budget 2023-Unveiling a Vision for Prosperity

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Highlights on the Union Budget 2023-Unveiling a Vision for Prosperity

The Union Budget 2023–24, unveiled on February 1, 2023, by Finance Minister Nirmala Sitharaman, placed more of an emphasis on the rural and social sector schemes, infrastructure development, and the middle class. The first half of the Parliamentary Budget Session, which began on February 1, will end on February 13. On March 12, the Parliament will reconvene for the second half of the Budget Session, which will end on April 6.

Prime Minister Narendra Modi hailed the Union Budget 2023 presented by Finance Minister Nirmala Sitharaman, stating it as a budget that caters to the aspirations of the middle class and also provides support to underprivileged, rural communities, and women.

The following are the main announcements made to date by Finance Minister Nirmala Sitharaman:

  • The Union Budget 2023 has allocated a total of Rs. 5.94 lakh crore for the defense industry, including total capital investment for modernization of Rs. 1.62 lakh crore.
  • Indian Railways has been allocated a total capital outlay of Rs. 75,000 crores, and 50 airports will be renovated nationwide.
  • The customs charge on fully constructed units with an engine size of less than 3,000cc for gasoline-powered cars and less than 2,500cc for diesel-powered vehicles has been raised from 60% to 70%.
  • Similarly, the customs tax on electrically powered cars in completely Built Units that do not have a cost, insurance, and freight (CIF) value of more than USD 40,000 has also been increased from 60% to 70%.
  • The amount spent on capital investments would grow by 33% to Rs 10 lakh crores or 3.3% of GDP.

Highlights for Individual Tax slab

  • FM N.Sitharaman has declared that the income tax rebate has increased from Rs. 5 lakhs to Rs. 7 lakhs and that there are now total 6 tax slabs in the new tax system, as follows:
    • Upto Rs 3 lakh – Nil 
    • Rs 3 lakh to Rs 6 lakh – 5%
    • Rs 6 to 9 lakh – 10%
    • Rs 9 to 12 lakh – 15%
    • Rs 12 to 15 lakh – 20%
    • Above 15 lakh – 30%
  • Individuals earning an annual income of Rs 9 lakh will only have to pay Rs 45,000 in taxes.
  • The government recommended a Rs. 10 crore cap on the capital gains tax deduction for investments in residential homes under Sections 54 and 54F.
  • For the Senior Citizens Savings Scheme and the Monthly Income Account Scheme, the government will double the deposit cap to Rs. 30 lakhs and Rs. 9 lakhs, respectively.
  • Additionally, the government suggested raising the maximum deposit amounts for the Monthly Income Account Scheme from 4.5 lakhs to 9 lakhs and from 9 lakhs to 15 lakhs for joint accounts.

Highlights for IT ministry

  • The Ministry of Electronics and Information Technology’s budget projection has increased from Rs 11,719.95 crore to Rs 16,549.04 crore.
  • The allocation for the years 2021–22 was Rs 8,118.65 crore, more than double the budget forecast from two years ago.

Highlights for Road Ministry

  • In the budget 2023–2024, funding for the road transport and highways ministry (MoRTH) has increased by 36% to around Rs 2.7 lakh crore.
  • As part of MoRTH’s capital expenditure plan for 2023–2024, the National Highways Authority of India (NHAI) has received around Rs. 1.62 lakh crore.

Highlights for Agriculture

  • The objective for agricultural finance for the next fiscal year was increased by 11% to Rs 20 lakh crore.
  • In order to guarantee that farmers receive short-term loans up to Rs 3 lakh at an actual rate of 7% annually, the government has also declared to offer a 2% interest subsidy.
  • The cap for collateral-free agricultural loans will now be increased from Rs. 1 lakh to Rs. 1.6 lakh by the RBI.

Highlights for Fintech Sector

  • Digital payments saw a significant surge in 2022, with a 76% increase in transactions and a 91% increase in value.
  • The amount of digital payments processed by UPI in 2022 is expected to reach 7,400 billion rupees.
  • In 2023–2024, financial assistance for digital public infrastructure will continue.
  • Social security and access to digital payments are now included in the PM VIKAS program.
  • Individuals will have access to a wider range of documents using DigiLocker.
  • In comparison to the previous year, UPI subsidies are anticipated to increase by two times up to Rs 2,137 crore.

Highlights for Health and Family Welfare Ministry

  • In the Union budget for FY24, the Ministry of Health and Family Welfare has been given a meager 12% increase from the revised budget estimate for FY 23 to Rs 89,155 crore.
  • The budget 2023 allocated Rs 76,370 for the Department of Health and Family Welfare and Rs 2,775 crore for the Department of Health Research.
  • For the upcoming fiscal year, the department of health and family welfare has been given Rs 86,175 crore, while the department of health research has been given Rs 2,980 crore.

Highlights for Renewable Energy Sector

  • In this budget, funding for renewable energy has increased by 48%.
  • The budget 2023 estimate for this year’s allocation is Rs 6,900.68 crore, which is 45.3% more than the revised estimate (RE) of Rs 7,033 crore.

Highlights for Pradhan Mantri Awas Yojana

  • The Pradhan Mantri Awas Yojana (PMAY) received an allocation of Rs 79,000 crore from the Budget 2023–24, providing a further boost to the Government’s initiative to build homes for poor people in urban areas.

Budget Highlights: 7 Priorities or Saptrishi

  1. Inclusive Development – Many groups have benefited from the government’s Sabka Saath Sabka Vikas plan, including women, SC, ST, OBC, and other marginalized groups.
  1. Infrastructure & Investment – Capital expenditures are set to rise significantly by 33% to reach Rs 10 lakh crore, equivalent to 3.3% of the GDP.
  1. Financial Sector – A corpus investment of Rs 9,000 crore has been allocated to kickstart redevelopment initiatives starting in 2023.
  1. Youth Power – The PM Kaushal Vikas Yojana 4.0 is being introduced to train thousands of young individuals, offering new-age courses.
  1. Green growth – The Ministry of Petroleum and Natural Gas is committed to invest Rs 35,000 crore in capital projects towards realizing the goal of net zero energy, enhancing energy security, and transforming the energy sector.
  1. Unleashing the Potential – A national data governance policy will be proposed, allowing startups and academic institutions to access anonymized data to encourage innovation and research.
  1. Reaching the Last Mile – The focus is on delivering the policies and initiatives to the farthest corners of society, using cutting-edge technology and innovative methods.

Stay tuned with www.northstaracad.com for the latest updates on Budget 2023. Our dedicated team of experts is closely monitoring the developments and analysis of the budget 2023 to bring you the most accurate and up-to-date information. From tax changes to new government initiatives, we will keep you informed of all the significant developments that affect you. 

Our aim is to provide you with a comprehensive understanding of the budget and its impact on your finances. So, stay connected with us for all the latest news, analysis, and insights on Union Budget 2023.

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