Featured in the 2023 Budget: As she delivered the Union Budget 2023 speech, Finance Minister Nirmala Sitharaman met the expectations of the common man by announcing income tax relief for the salaried class with an eye on the massive 2024 elections as well as several state battles. Up to ₹7 lakh would not be subject to income tax.
According to Sitharaman, She also announced changes in the tax slabs under the new tax regime, which is as follows: Income of ₹0-3 lakh – Nil; Income above ₹3 lakh and up to ₹5 lakh will be taxed at 5 per cent; Income above ₹6 lakh and up to ₹9 lakh will be taxed at 10 per cent; Income more than ₹12 lakh and up to ₹15 lakh to be taxed at 20 per cent; Income above ₹15 lakh to be taxed at 30 per cent. In the last full budget in Parliament before the 2024 Lok Sabha election, the finance minister said the country’s economy has grown from 10th to 5th largest in the world and per capita income has more than doubled.
- FM Saptarishi, the seven priorities of the Union Budget 2023, were listed by Nirmala Sitharaman. They are: inclusive development, getting to the last mile, youth power, the financial sector, green growth, releasing potential, and infrastructure and investment.
- In the areas of agriculture and cooperatives, Sitharaman made announcements about expanding farmer storage space, creating an agriculture accelerator fund, making India the world’s centre for millets, and building digital public infrastructure.
- The finance minister announced the establishment of 157 additional nursing colleges, the launch of the sickle cell anaemia elimination mission. a programme to support pharmaceutical research, all of which reflect the government’s emphasis on the health sector.
- The Narendra Modi Sarkar has decided to revamp teacher training through district institutes and establish a National Digital Library for children and teenagers in the field of education and skill development.
- 50 additional airports will be built in India to enhance regional connectivity, which is good news for travellers. In addition, Sitharaman announced the highest-ever railway outlay of Rs 2.40 lakh crore, which is nine times higher than FY-14.
- The PAN will serve as a standard identifier for all digital systems of the designated government agencies for businesses that are required to have one.
- Additionally, MSME support will continue. The government has decreased the cost of credit and added Rs 9,000 crore to the corpus. The credit guarantee programme started out shaky, but over the past two years as banks have been encouraged to lend, the programme has helped to reduce stress in the industry.
A pan-India national apprenticeship programme will implement a Direct Benefit Transfer to support 47 lakh young people over the course of three years.
- The government has significantly increased capital investment outlay by 33.4% to Rs 10 lakh crore. Additionally, it has chosen to continue providing state governments with a 50-year loan that is interest-free and to build urban infrastructure in Tier-2 and Tier-3 cities.
- Sitharaman announced the highest-ever capital outlay for the railways of Rs 2.4 lakh crore, which is nine times higher than FY-14, to offset losses brought on by the Covid-19 pandemic.
- Prior to delivering the Union Budget 2023–24, Nirmala Sitharaman, MoS Dr. Bhagwat Kishanrao Karad, MoS Shri Pankaj Chaudhary, and senior Ministry of Finance officials paid President Droupadi Murmu a visit at Rashtrapati Bhavan.
- Finance Minister Nirmala Sitharaman joins a select group of legends, including Manmohan Singh, Arun Jaitley, and P. Chidambaram, as the sixth minister in independent India to present five consecutive budgets. With a variety of policy measures announced for the poor, India has weathered the Covid-19 pandemic under Sitharaman and maintained its reputation as the fastest-growing major economy and a “bright spot” in the global economy.
The government increased the maximum deposit amount for the savings scheme from Rs 15 lakh to Rs 30 lakh with senior citizens in mind.
- The annual Economic Survey from the Finance Ministry was published on Tuesday. It predicted that the economy could expand by 6–6.8% annually in the upcoming fiscal year, down from the projected 7% growth rate for the current fiscal year. “Compared to the years before the pandemic, India’s growth outlook appears more promising, and the Indian economy is poised to grow at at its potential in the medium term.
- The Indian economy is expected to grow by 6.1% in 2023–2024, down from 6.8% in the current fiscal year, according to the International Monetary Fund (IMF). India’s economy is at risk from the global slowdown just like other economies are. As higher global fuel and commodity prices threaten to stifle economic growth, inflation remains a concern.
- Since May 2022, the Reserve Bank of India has increased its benchmark policy rate by 225 basis points in an effort to control retail inflation, which spiked to over 7% after the Russia-Ukraine war due to an increase in food and energy prices.
- According to party leaders, the BJP will launch a 12-day nationwide campaign on Wednesday to raise awareness of the “pro-people” policies revealed in the Union Budget. Senior BJP leader Sushil Modi will oversee the campaign, which will start the day the budget is presented in Parliament and end on February 12.