Budget 2023: The amount spent on capital investments will increase by 33% to 10 lakh crore or 3.3% of GDP.
Finance Minister Nirmala Sitharaman announced significant tax relief and a massive push for capital spending and infrastructure as she unveiled the government’s final full Budget before the 2024 national election.
Budget 2023 – 10-point checklist
- In the new tax system, which will serve as the default, the government has simplified the slabs. India’s highest applicable tax rate after surcharges has decreased from 42.7% to 39.0%, and there will be no tax on income up to Rs. 7 lakh per year, up from Rs. The new fiscal system is “appealing because it offers a more significant rebate. Additionally, it offers simplified and smaller slabs, “said the minister.
- The new regime will reduce the number of tax slabs from seven to just five. Up to Rs. 3 lakh of income will not be subject to tax. Income between 3 and 6 lakh will be taxed at 5; income between 6 and 9 lakh will be taxed at 10; income between 9 and 12 lakh will be taxed at 15; income between 12 and 15 lakh will be taxed at 20; and income above 15 lakh will be taxed at 30.
- The government will extend its strategy to revive growth after Covid by spending a record-breaking 10 lakh crore, an increase of 33%, on longer-term capital expenditure. In 2023–2024, this will be 3.3% of the GDP.
- The government has identified seven priority areas: unleashing potential, green growth, youth power, infrastructure and investment, and the financial sector.
- The goal for agricultural credit has been raised to 20 lakh crore, and in yet another populist move, funding for the PM Awas Yojna has increased by 66% to more than 79,000 crores. The government has also promised fifty new airports and helipads.
- The minister announced a 2.4 lakh crore outlay for railways, the highest in nearly a decade and four times the previous year’s Budget. “This is about nine times the outlay made in 2013-14,” she said, referring to the final year of the Congress-led UPA administration.
- The Permanent Account Number (PAN) will be used as a unique identifier for all digital systems of the government agencies listed. Through the Digilocker service and Aadhaar, the KYC process will be streamlined, and a one-stop identity update will be established. A ‘Unified Filing Process’ system will be implemented to simplify the current process of duplication for multiple departments.
- The government will implement a new dispute resolution scheme to resolve commercial disputes. According to the minister, there will be a one-stop solution for reconciling IDs maintained by various government agencies.
- Ms Sitharaman stated that the government aims to produce 5 MT of Green Hydrogen by 2030, focusing on switching to green fuel.
- The revised estimate will maintain the current fiscal year’s fiscal deficit target of 6.4%. Ms Sitharaman stated that it will be reduced to 5.9 percent of GDP for the fiscal year 2023-2024.
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Budget 2023: Here is a list of items that will become cheaper and more expensive.
India produces mobile phones and television sets.
Fluorspar of acid-grade Shrimp feed Lab-grown diamonds
Fish lipid oil is used in the production of aquatic feed.
Lithium-ion cell manufacturing machinery for use in electric vehicles
CRGO Steel’s raw materials include ferrous scrap and nickel cathode.
What is more expensive?
Cars that have been fully imported, including electric vehicles (EV)
The kitchen chimney
Bicycles and toys from other countries
Gold and platinum articles
Jewellery that is a replica
Dores, bars, and articles made of silver
Rubber compounded with copper scrap
The Modi government’s second term is ending with the passage of Budget 2023, and the next Lok Sabha election is scheduled for April or May of 2024.
The Indian economy has fully recovered from the Covid-19 pandemic, according to Ms Sitharaman, who submitted the Economic Survey for the Financial Year 2022–23 to the Lok Sabha earlier on Tuesday. She predicted the economy would expand between 6 and 6.8% in the upcoming fiscal year 2023–24. This contrasts with the predicted 7% for this fiscal year and 8.7% for 2021–22.
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