Union Budget 2023-2024: Key Features

Union Budget 2023-2024: Union Finance Minister, Nirmala Sitharaman is presenting the Union Budget 2023 for the 5th time in a row. She will present the financial statements and tax proposals for the fiscal year 2023-24 (April 2023 to March 2024). This is the first Budget in Amrit Kaal. This Budget hopes to build on the foundation laid in the previous Budget, and the blueprint drawn for India@100. The government sees the Indian economy growing at 7 percent in the financial year 2023-24 (FY24).

Budget and Constitutional Provisions

• The Union Budget is the yearly financial report estimating the income and expenditure presented to outline future policies to be adopted by the government for sustainable growth and development.
• According to Article 112 of the Indian Constitution, the Union Budget for a year is referred to as the Annual Financial Statement (AFS). 
• It is a statement of the estimated receipts and expenditures of the Government in a Financial Year (which begins on 1^st April of the current year and ends on 31^st March of the following year).
• The Budget Division of the Department of Economic Affairs in the Ministry of Finance is the nodal body responsible for preparing the Budget.
• The first Budget of Independent India was presented in 1947.

Union Budget 2023–24 In Hindi: केंद्रीय बजट 2023-2024 -देखें बजट से जुड़ी मुख्य बातें

Vision For Amrit Kaal

1. Opportunities for Citizens with a focus on the Youth
2. Growth and Job Creation
3. Strong and Stable Macro-Economic Environment

The Budget adopts the following seven priorities. They complement each other and act as the ‘Saptarishi’ guiding us through the Amrit Kaal.

Sabka Saath Sabka Vikas-Inclusive Development

Agriculture and Cooperatives

1. Building Digital Public Infrastructure:- Building an accessible, inclusive, and informative solution for Farmers.
2. Setting up Agriculture Accelerator Fund:- For encouraging innovative start-ups in rural areas.
3. ANB* Horticulture Clean Plant Program to be launched:- To boost production of high-value horticultural crops.
4. Targeted Funding:- 20 lakh crore agricultural credit targeted at Animal Husbandry, Dairy, and Fisheries sector.
5. Making India Global Hub For Millets: ‘Sree Anna’:- Support to be given to IIMR^, Hyderabad for promoting research.
6. Setting up of widely available storage capacity:- Will enhance Farmers’ remuneration by enabling sale at appropriate times.

Health

1. 157 New Nursing Colleges to be established
2. Sickle Cell Anaemia elimination Mission to be launched
3. New Programme to promote research in Pharmaceuticals to be launched
4. Joint Public and Private Medical Research to be encouraged via select ICMR labs

Education and Skilling

1. Revamped Teachers’ training via the District Institutes of Education and Training
2. National Digital Library to be set up for children and adolescents
3. States will be encouraged to set up physical libraries at Panchayat and ward levels

The Big Tent that accommodates all

Inclusive Development Achievements

1. 9 crore drinking water connections to rural houses
2. Cash transfer of 2.2 lakh crore to over 11.4 crore Farmers under PM-KISAN
3. Insurance cover for 44.6 crore persons under PMSBY* and PMJJY^
4. 11.7 crore household toilets constructed under SBM
5. 9.6 crore LPG connections under Ujjawala
6. 47.8 crore PM Jan Dhan bank accounts
7. 220 crore Covid vaccinations of 102 crore persons

Reaching the Last Mile

1. Pradhan Mantri PVTG* Development Mission to be launched
2. Financial assistance to be given for sustainable micro irrigation in drought-prone regions of Karnataka
3. More teachers to be recruited for 740 Eklavya Model Residential Schools
4. Bharat (SHRI)^ to be set up for the digitization of ancient inscriptions

Infrastructure and Investment

1. Incentives to boost Investment in Infrastructure and productivity which will create a multiplier Impact which in turn will give rise to growth and employment
2. Increased capital investment outlay by 33.4% to 10 lakh crore
3. Continuation of 50-year interest-free loans to State Governments to incentivize infrastructure investment
4. Highest ever Capital outlay of ₹2.4 lakh crore for Railways100 transport infrastructure projects identified for end-to-end connectivity for ports, coal, steel, fertilizer sectors
5. Creating Urban Infrastructure in Tier 2 and 3 cities via the establishment of UIDF

Unleashing the Potential-Trust-Based Governance

Green Growth

1. PM-PRANAM(PM Programme for Restoration, Awareness, Nourishment, and Amelioration of Mother Earth) to be launched:- Will incentivize States/UTs to promote usage of alternative fertilizers
2. 500 new ‘Waste to Wealth’ plants:- To be established under the GOBARdhan# scheme for promoting circular economy
3. Green Credit Programme:- To be notified under EPA to incentivize sustainable actions
4. Sustainable Ecosystem development:-

• MISHTI(Mangrove Initiative for Shoreline Habitats and Tangible Incomes) to be taken up for Mangrove plantation along the coastline
• Amrit Dharohar to be implemented for optimal usage of wetlands

5. Other Initiatives:-

• Setting up 10,000 bio- inputs resource centers to facilitate farmers to adopt natural farming
• Promotion of Battery energy storage systems
• Promotion of coastal shipping for energy-efficient transportation
• Funds to be allocated for replacing old polluting vehicles

Amrit Peedhi -Youth Power

1. PMKVY 4.0 will be launched:- Covering new courses like coding, AI, Robotics, 3D printing, etc.
2. Measures to boost the Tourism sector:- At least 50 destinations to be selected, through challenge mode, to be developed as a complete package for domestic and foreign tourists
3. States will be encouraged to set up Unity Malls:- For the promotion and sale of ODOP (One District-One Product), GI, and handicraft products

Financial Sector

1. Setting up of National Financial Information registry:- To enable efficient lending promote financial inclusion and enhance financial stability
2. Setting up of a Central Data processing Centre:- For faster handling of administrative work under the Companies Act
3. Credit Guarantee Scheme for MSMEs:- Expanded corpus under a revamped scheme to enable additional collateral-free guaranteed credit of 2 lakh crore
4. Mahila Samman Bachat Patra:- One-time new small savings scheme for 2 years with a deposit facility of up to 2 lacks for women
5. Benefits for Senior Citizens:- Enhanced maximum deposit limit for senior citizens savings scheme from 15 lacks to 30 lakh
6. Other Initiatives
   • Initiatives to promote business activities in GIFT IFSC
   • Create more trained professionals in Securities Markets via the award of educational certificates

Fiscal Management

1. 50-year Interest-Free Loans to States:- To be spent on Capital Expenditure within 2023-24. Part of the loan is conditional on States increasing actual Capital expenditure and parts of the outlay will be linked to States undertaking several reforms
2. A fiscal Deficit of 3.5% of GSDP allowed for States (0.5% tied to Power sector reforms)
3. Fiscal Consolidation:- Targeted Fiscal Deficit to be below 4.5% by 2025-26.

Tax Proposals

Simplification in Indirect Taxes to deliver

• Higher Exports
• Higher domestic manufacturing
• More value addition in the economy
• Green energy and mobility

Direct Tax Proposals

To reduce the compliance burden, promote the entrepreneurial spirit, and provide tax relief to citizens

• 45% of the returns on tax payers’ portal were processed within 24 hours
• The average processing period reduced from 93 to 16 days in 8 years
• Processed more than 6.5 crore returns this year

Further Simplifying Personal Income Tax

1. The income limit for a rebate of income tax increased from ₹5 lakhs to 7 lakhs in the new regime
2. The highest surcharge rate on income above 5 crores is to be reduced from 37% to 25% under the new regime
3. Extending benefits of the standard deduction to the new tax regime for salaried class and pensioners
4. Increasing tax exemption limit to ₹25 lakh on leave encashment on retirement for non-government salaried employees.

Simplifying Tax Benefits for Industry

MSME

•Enhanced limits for micro-enterprises and professionals to avail benefits of presumptive taxation; 95% of receipts to be noncash.
• Deduction on payments made to MSMEs to be allowed only when payment is made

COOPERATIVES
•Extending 15% corporate tax benefits to new co- operate-operatives manufacturing till 31st March,2024
•Higher limit of 2 lakh per member for deposits & loans in cash by PACS and PCARDBs
•Higher limit of 3 crore cash withdrawal for cooperatives.

STARTUPS
•Extension of the date of incorporation by one year for income tax benefits to start-ups
•Benefit of carry forward of losses change of shareholding of start-ups from seven years of into tion to ten years.

RATIONALISATION
•Income of authorities, boards, and commissions set up by statutes of the Union or State to be exempted from income tax in certain sectors
•Extension of period of tax benefits to funds relocating to IFSC, GIFT City till 31st March, 2025.

Allocation for Specific Ministries

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