The 2023 Union Budget, known as the 'Amrit Kaal' budget, marked a pivotal moment for the government, emphasizing private sector incentives for job creation and economic growth. It was the final full budget for the NDA II government, with an Interim Budget expected before the Lok Sabha elections.
Key Highlights of the 2023 Union Budget:
1. Total Budget: FM Nirmala Sitharaman presented a budget of Rs 45,03,097 crore on February 1, 2023, with revenue expenditure estimated at Rs 35,02,136 crore.
2. Receipts and Expenditure: The government's total receipts, excluding borrowings, were projected at Rs 27.2 lakh crore. Net tax receipts were estimated at Rs 23.3 lakh crore.
3. Fiscal Deficit: The fiscal deficit was targeted at 5.9% of GDP, an improvement from the 6.4% in the current fiscal year.
4. Borrowings: Net market borrowings from dated securities were set at Rs 11.8 lakh crore, with gross market borrowings at Rs 15.4 lakh crore.
5. Sectoral Allocations: Notable allocations included a record capital outlay of Rs 2.4 lakh crore for Indian Railways and increased budgets for road transport, education (Rs 113,000 crore), health (Rs 88,950 crore), and defense (Rs 5.94 lakh crore).
6. Economic Growth: FM Sitharaman anticipated India's economic growth to be between 6-6.8% in 2023/24.
7. Seven Priorities of 'Saptarishi' during Amrit Kaal:
- - Inclusive development for all sections of society
- - Ensuring government policies reach the last mile
- - Infrastructure and investment boost
- - Removing economic hurdles for unleashing growth potential
- - Promoting green growth
- - Tapping into the potential of the youth
- - Strengthening India's financial sector to support growth
8. Income Tax Reforms: The budget brought changes in income tax, including an increase in the income tax rebate limit to Rs 7 lakh and a reduction in the number of slabs from six to five.
- Income Tax Slabs:
- Up to 3,00,000: Nil
- 3,00,001 to 6,00,000: 5%
- 6,00,001 to 9,00,000: 10%
- 9,00,001 to 12,00,000: 15%
- 12,00,001 to 15,00,000: 20%
- Above 15,00,000: 30%
This budget reflected a comprehensive approach to stimulate economic growth, address key sectoral needs, and outline a vision for a sustainable and inclusive future.
In her recent budget announcement, Finance Minister Nirmala Sitharaman introduced several noteworthy changes designed to benefit different segments of the population. Among these changes, she allowed a Rs 50,000 standard deduction for taxpayers under the new tax regime, extending this benefit to the salaried class and pensioners.
Another significant adjustment was the reduction in the highest surcharge rate, decreasing from 37% to 25% for individuals and certain taxpayers under the new tax structure. The indirect tax sector also underwent modifications, including an increase in basic customs duty on articles made from gold and platinum, aligning import duty on silver dore and bars with gold and platinum rates, and a reduction in basic customs duty on crude and glycerine to 2.5 percent.
Moreover, the National Calamity Contingent Duty (NCCD) on specified cigarettes saw an approximate 16% increase. An important extension was the nil customs duty on specified capital goods and machinery for manufacturing lithium-ion cells, which is now applicable until March 31, 2024.
The budget also brought about changes in customs duty rates, such as a reduction in basic customs duty on parts of open cells of TV panels to 2.5% and an increase in electric kitchen chimneys to 15%. Notably, the number of basic customs duty rates for goods, excluding textiles and agriculture, was reduced from 21 to 13.
Looking ahead to Budget 2024, there are high expectations across various sectors. Prime Minister Narendra Modi emphasized Finance Minister Sitharaman presenting the budget with 'disha-nirdeshak baatein' or directional guidance.
Key expectations include continued infrastructure investment, particularly in sectors crucial for women, farmers, the impoverished, and youth. The MSMEs are advocating for streamlined regulatory procedures and improved access to loans and financial aid. Salaried taxpayers are anticipating modifications in income tax brackets, revisions in standard deductions, and Section 80C limits to potentially increase tax benefits.
The middle class is hopeful for policies that enhance employment prospects and provide easier access to housing schemes and healthcare facilities. In terms of skill development, there is an expectation for increased allocation of funds toward faculty development programs, prioritizing reskilling and upskilling initiatives. Collaboration with industries and public-private partnerships are seen as effective strategies to address the evolving demands of the job market.