FM Nirmala Sitharaman has outlined 7 Priorities For first Budget in Amrit Kaal
o Inclusive development
o Reaching the last mile
o Infra & investment
o Unleashing the potential
o Green growth
o Youth power
o Financial sector
📍 India's Economy to grow at
7% in the current year. FY24 Fiscal Deficit Target at 5.9%
📍 Rural Focus - FM announces that the Centre will Spend INR 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
📍 National data Governance Policy to be brought out for access to anonymised data
📍 Health - Budget 2023 that a mission to Eliminate sickle cell anaemia by 2047 will be launched by the government.
📍 Mahila Samman Savings Certificate for 2-year period up to March 2025 – Will offer deposit facility up to INR 2 Lakh @ 7.5% with partial Withdrawal option in the name of Women and girl
📍 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
📍 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.
📍 Agricultural Sector
- An open-source digital Infrastructure for agriculture & an agriculture accelerator fund focused on youth in rural areas
- PM PRANAM Scheme to promote balance use of fertilizers.
- INR 2,200 Crore for high-value Horticulture
- Increased Agri Credit Target to INR 20 Lakh Crore
📍 Infrastructure
- 100 critical transport infrastructure
projects for last mile connectivity to be taken up on priority
- 50 additional airports for
improving regional air connectivity
- INR 10,000 Cr per annum for
Urban Infra DVPD Fund
- INR 6,000 Cr for promoting
fisheries
- INR 7,000 Cr for Phase-III of
E-Courts project
📍 Educational Infra
- 740 Eklavya Modern Schools and
157 new nursing colleges will be established
- Plan to Spend INR 15,000 Cr for
vulnerable tribal group (PVTG) over 3 years
- 38,800 teachers to be recruited
for the Centre of Excellence schools
- 36 Skill India centres to be
set up across states
- National Digital Library for
Children and Adolescents to be set up
📍 Research & Development
- 100 labs with 5G services for
developing applications to be set up in Engineering Institutions
- Centres for Excellence for Artificial
Intelligence – 3 centres to be set up in top educational institutions
- New Pharma Program for R&D
through Centre for Excellence
- Lab Grown Diamonds – R&D
grant to be provided to one IIT to reduced Cost of Production
📍 Energy Sector
- INR 35,000 Cr for energy
transition and net zero objective
- Target to reach production of green
hydrogen to 5 MMT by 2030
- INR 20,700 Cr to be invested for
renewable energy production
📍 Capex Big Jump
- At INR 10 Lakh Crore, the Centre’s capex target for 2023-24 is 33% higher than the budget estimate of INR 7.5 Lakh Crore for 2022-23
- Effective Cap Expenditure by centre at INR 13.7 Lakh Cr (4.5% of GDP)
- Plan to increase PM Housing (PMAY) outlay to INR 79,000 Crore
- Govt proposes INR 2.40 Lakh Crore for Indian Railways which is 9x over FY14.
📍 MSMEs
- Ease of Doing Biz - 39,000 compliances reduced
- The revamp schemes will take effect from 2023 through an infusion of INR 9,000 Crore in the corpus. This will enable another Collateral-free credit of INR 2 Lakh Crore. Further the cost of credit will be reduced by around 1%. This is effective from 01-April 2023
📍 Borrowings
- The Centre will borrow INR 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 INR 11.8 Lakh Crore
- These numbers are broadly in line with market expectations of INR 15.5 Lakh Crore and INR 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%
The new tax regime to become the default tax regime. The rebate increased from 5 Lakhs to 7 Lakhs for tax free income in the new 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 INR 6.54 Cr Returns this year on the tax portal
- Revised Estimates – Total Receipts INR 24.3 Lakh Cr
- Net tax receipts – INR 23.3 Lakh Cr
