📌 Key Highlights : Budget 2023

 

📌 Key Highlights : Budget 2023

FM Nirmala Sitharaman has outlined 7 Priorities For first Budget in Amrit Kaal

• Inclusive development

• Reaching the last mile

• Infra & investment

• Unleashing the potential

• Green growth

• Youth power

• Financial sector

📍 India's Economy to grow at 7% in the current year, World recognises India as a bright star, highest among major economies.

📍 Rural Focus - FM announces that the centre will Spend Rs 2 lakh cr on Free Food Grains for all priority households under PM Garib Kalyan Yojana.

📍 Green growth would be one of the priorities of the budget, They will help Reduce carbon intensity and create Green jobs

📍 Agri Sector - The Union Government’s focus on reforming the agriculture sector continues, An open-source digital Infrastructure for agriculture & an agriculture accelerator fund focused on youth in rural areas.

📍 Government to Spend Rs 2200 crore for high-value Horticulture, also increased Agri Credit Target to Rs 20 lakh crore

📍 Health -  Budget 2023 that a mission to Eliminate sickle cell anaemia by 2047 will be launched by the government.

📍 Educational infra - Eklavya Modern Schools in next three, 157 new nursing colleges will be established, Plan to Spend Rs 15000 cr vulnerable tribal group (PVTG) over 3 years.

📍 Capex Big Jump - 

• At Rs 10 lakh crore, the Centre’s capex target for 2023-24 is 33% higher than the budget estimate of Rs 7.5 lakh crore for 2022-23

• Plan to increase PM Housing ( PMAY) outlay to Rs 79,000 crore

• Govt proposes Rs 2.40 lakh crore for Indian Railways which is 9x over FY14.

📍 Digilocker - One stop KYC maintenance system, the legalisation of the permanent account number (PAN) as a single business identification.

📍 50-year Interest Free Loan to State governments extended for 1 more year

📍 MSMEs - The revamp schemes will take effect from 2023 through an infusion of Rs 9,000 crore in the corpus, This will enable another Collateral-free credit of Rs 2 lakh crore,  Further the cost of credit will be reduced by around 1%

📍 DBT scheme for youths - To provide support to 47 lakh youths in 3 years, a Direct Benefit Transfer under a pan India national apprenticeship scheme will be rolled out.

📍 Borrowings - 

• The Centre will borrow Rs 15.43 lakh crore via bonds in 2023-24 on a gross basis - a new all-time high.

• In net terms, the borrowing programme has been fixed at Rs 11.8 lakh crore 

These numbers are broadly in line with market expectations of Rs 15.5 lakh crore and Rs 11.7 lakh crore, respectively.

📍 Custom Duty - 

• Relief in custom duty on Import of certain parts of mobile phones like camera lens and batteries by another year, open cells of TV panels cut to 2.5%, etc

• Taxes on cigarettes Hiked by 16%, compounded rubber increased to 25% from 10% , etc

📍 Personal Income Tax - 

0-3 lakh - NIL

3-6 lakh -5%

6-9 lakh - 10%

9-12 lakh-15%

12-15 lakh -20%

Above 15 lakh - 30%

Major relief to all tax payers in the new regime.

New tax regime to become the default tax regime.

📍 Income tax rate -

Currently, the highest rate is 42.74% income tax under the new regime. 

The FM has proposed to reduce the highest surcharge from 37% to 25% in the new tax regime, max rate of 39%

📍 Direct Taxes -

Processed more than 6.54 cr Returns this year on the tax portal.