Union Budget 2023-24 (New Updates)

The Union Budget 2023-24 is hailed as a pro-growth budget that is set to boost the country’s economic activity. It focuses on creating a resilient and self-reliant India through investment in infrastructure, health care, and education. It increased allocation towards digitalization of all government departments to promote transparency in governance.

Nirmala Sitaramn announced first Budget in Amrit Kaal.

The vision of Amrit Kaal:

Opportunities for senior citizens with a focus on the youth.

Growth and job creation.

Strong and stable macroeconomic environment.

 Important announcements on personal income tax

1. Rebate – Rebate limit to 7 lahks in the new tax regime.

2. Tax slabs – the number of slabs in the new tax regime change to five with an increase in the tax exemption limit to ₹3 lakh.

3. Standard deduction – Each employee earning more than Rs.15.5 lakh will receive Rs.52,500.

4. Highest tax rate – Reduction in the highest surcharge rate from 37 percent to 25 percent in the new tax regime. This would result in the reduction of the maximum tax rate to 39 percent.

5. Tax exemption on leave encashment – The limit of ₹3 lahks for tax exemption on leave encashment on the retirement of non-government salaried employees is to be increased to ₹25 lakh.

The new income tax regime 

The basic exemption limit is increased from Rs 3 lakh to Rs 2.5 lakh

 Rebate under section 87A has been increased from Rs 5 lakh to Rs 7 lakh

The income tax slabs under the new income tax regime will be as follows:

 Rs 0 to Rs 3 lakh – 0% tax

 Rs 3 to 6 lakh – 5% tax

 Rs 6 to 9 lakh – 10% tax

 Rs 9 lakh to Rs 12 lakh – 15% tax

 Rs 12 lakh to Rs 15 lakh – 20% tax

 Above Rs 15 lakh above – 30% tax

Individuals earning more than Rs 15.5 lakh were eligible for a standard deduction of Rs 52,500 under the new tax regime of the 2023 budget.

The center proposed to raise the basic ratio of kitchen chimneys from 7.5% to 15% and to reduce the basic ratio of heating coils from 20% to 15%. It also proposes to reduce the basic rate of parts and TV screens to 2.5% to encourage the production of value-added TVs.

Sitharaman announced that the maximum deposit limit for the Senior Savings Program will be increased from Rs.15 lakh to Rs.30 lakh.

Agriculture

Targetted Funding:

Finance Minister Nirmala Sitharaman announced that the target for agricultural financing will be raised to Rs 20 crore, focusing on industries such as livestock, dairy, and fisheries. A sub-program has also been proposed by Prime Minister Matsya Sampada Yojana, with investments targeted at Rs 6000 crore.

Digital Public Infrastructure

A digital public infrastructure for agriculture is built as an open-source, open-standard, and interoperable public good. This will enable a comprehensive, farmer-centric approach through related crop planning and health information services, improved access to agricultural inputs, credit, and insurance, assistance with crop estimation, market information, and support for the growth of the agritech industry and start-ups. 

Agriculture Accelerator Fund

Agriculture accelerator funds will bring innovative and affordable solutions for farmers, and PPP for sustainable cotton and high-value horticultural crops will promote sustainable fashion.

Horticulture Clean Plant Program

A horticultural clean plant program is launched to increase the production of quality horticultural crops.

Global Hub for Millets: ‘Shree Anna’

India is at the forefront of millet adoption and its consumption promotes nutrition, food security, and farmers’ welfare.

Health : Sabka Saath Sabka Vikas – Inclusive Development

• 157 New nursing colleges to be established.
• Sickle Cell Anaemia elimination Mission to be launched
• New program to promote research in pharmaceuticals is to be launched
• Joint public and private research to be encouraged via select ICMR labs

Education and Skilling

• Revision of Teacher Training by the District Education and Training Agency.
• Creation of a national digital library for children and young people.
• States are encouraged to establish physical libraries at panchayat and district levels.

Centres of Excellence for Artificial Intelligence

Three Centers of Excellence in Artificial Intelligence will be established in leading educational institutions to realize the vision of ‘Making AI in India’ and ‘Making AI Work in India’.

National Data Governance Policy

A national data governance policy will be issued to unlock innovation and research from start-ups and universities. This allows access to anonymous data.

Green Growth : Amrit Peedhi – Youth Power

PM-PRANAM

A PM Program to Restore, Awareness, Nourish, and Strengthen Mother Earth was launched, encouraging states and federal territories to promote the balanced use of alternative and chemical fertilizers. 

GOBARdhan scheme

To promote the circular economy, 500 new ‘Waste to Wealth’ plants will be built under the GOBARdhan program (Galvanizing Organic Bio-Agro Resources Dhan). This includes 200 compressed biogas (CBG) plants, including 75 in urban areas, and 300 municipal or cluster-based plants with a total investment of NOK 10,000.

Financial Sector

Setting up National Financial information registry: to enable efficient lending, promote financial inclusion, and enhance financial stability.

Mahila Samman Bachat Patra: New micro savings plan for two years with up to Rs 2 lakh deposit facilities for women.

Setting up Central data processing center: For prompt completion of company legal affairs.

Initiatives to promote business activities in GIFT IFSC.

Create a more educated professional in the securities market by awarding an educational certificate.

Fiscal Management

Allocation for specific ministries

Wrapping Up

With the renewed focus on economic growth, the budget takes a range of steps. In addition to the usual allocations to various sectors, the budget includes provisions for new tax reforms and targeted incentives for industries. It is a budget that determines the direction of the future economic recovery.