Features of the Budget 2K23

Key Features of Budget 2023-2024

Vision for Amrit Kaal

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

 

 

Saptarishi – 7 Priorities are:

• Inclusive Development
• Reaching the Last Mile
• Youth Power
• Financial Sector
• Green Growth
• Unleashing the Potential
• Infrastructure and Investment

 

Agriculture and Cooperatives

• Building Digital Public Infrastructure
• Setting up Agriculture Accelerator Fund
• ANB Horticulture Clean Plant Program to be Launched
• Targeted Funding is ₹ 20 Lakh Crore, agricultural credit targeted at animal Husbandry, Dairy and Fisheries sector.
• Making India Global Hub for Millets “Sree Anna”
• Setting-up of widely available storage capacity

 

Health Sector

• 157 New Nursing Colleges to be Established
• Sickle Cell Anaemia elimination Mission to be Launched
• New Programme to Promote Research in Pharmaceuticals to be launched
• Joint Public and Private Medical Research to be encouraged via select ICMR labs.

 

 

Education and Skilling

• Revamped Teachers’ Training via District institute of Education and Training.
• National Digital Library to be set up for Children and Adolescents.
• States will be encouraged to set up physical libraries at Panchayat and ward levels

 

The Big Tent that accommodates all (Inclusive Development Achievements)

• Cash transfer of ₹2.2 lakh crore to over 11.4crore Farmers under PM-KISAN
• Insurance cover 44.6 crore persons under PMSBY and PMJJY
• 9 crore drinking water connections to rural houses
• 7 crore household toilets constructed under SBM
• 8 crore PM Jan Dhan bank accounts
• 6 crore LPG connections under ujjawala
• 220 crore Covid vaccination of 102 crore persons

 

Reaching the Last Mile

• Pradhan Mantri PVTG (Particularly Vulnerable Tribal Groups) Development Mission to be Launched
• Financial assistance to be given for sustainable micro irrigation drought prone regions of Karnataka
• More teachers to be recruited for 740 Eklavya Model Residential Schools
• Bharat (SHRI) Shared Repository of Incriptions to be set up for digitization of ancient inscriptions.

 

Infrastructure and Investment

• Increased capital investment outlay by 33.4% to ₹10 lakh crore
• Continuation of 50year interest free loan to State Governments to incentivize infrastructure investment
• Highest ever Capital outlay of ₹2.4 lakh crore for Railways
• 100 transport infrastructure projects identified for end-to-end connectivity for ports, coal, steel, fertilizers sectors
• Creating Urban Infrastructure in Tier 2 and 3 cities via establishment of UIDF (Urban Infrastructure Development Fund).

 

 

Unleashing the Potential-Trust Based Governance

• Make AI in India: Three specialized AI Centre’s to be set up in educational Institutes
• National Data Governance Policy to be Introduced
• Vivad se Vishwas I: Less stringent contract execution for MSMEs
• Vivad se Vishwas II: Easier and standardized settlement scheme
• Phase 3 of E-Courts to be launched
• Entity Digi Locker to be set-up for use by business enterprise and charitable trusts
• Setting up of 100 labs for 5G services-based applications development
• R & D grant for Lab Grown Diamonds (LGD) sector

 

Green Growth

• PM PRANAM (PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth) to be launched
• 500 New Waste to Wealth Plants to be Established under GOBARdhan #scheme for promoting circular activities
• Sustainable Ecosystem Development
• Other Initiatives:
• Setting up 10,000 bio-inputs resource centres-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

• PMKVY 4.0 will be launched: covering 3 New courses Like – Coding, AI, Robotics, 3D Printing etc.
• Measure to boost Tourism sector: At Least 50 destinations to be selected, through the challenge mode, to be developed as a complete package for domestic and foreign tourists
• States will be encouraged to set-up Unity Malls: For Promotion and sale of ODOP (One District-One Product), GI and Handicraft Products.

 

 

 

 

Financial Sector

• Setting up National Financial Information registry: To enable efficient lending
• Setting up of a Central Data Processing Centre: For faster handling of administrative work under the Companies Act
• Credit Guarantee Scheme for MSMEs: Expanded corpus under a revamped scheme to enable additional collateral free guarantee credit of ₹2 lakh crore
• Mahila Samman Bachat Patra: One-time new small savings scheme for a 2-year period with a deposit facility of ₹2 lakh per year
• Benefits for Senior Citizens: Enhanced maximum deposit limit for scheme ₹15 lakh to ₹30 lakh
• Other Initiatives
• Initiatives to promote business activities in GIFT IFSC
• Create more trained professionals in Securities Markets via Award of Educational certificates

 

 

Fiscal Management

• 50year 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
• Fiscal Deficit of 3.5% of GSDP allowed for states (0.5% tied to power sector reforms)
• Fiscal Consolidation: Targeted Fiscal Deficit to be below 4.5% by 2025-26

 

Tax Proposals

Simplification in Indirect Taxes to deliver

• Changes to Custom Duty on
• Import of Capital goods for Li-ion battery Manufacturing
• Import of Mobile camera Lens
• Denatured ethyl alcohol
• Key inputs for producing shrimp feed
• Seeds for manufacturing lab grown diamonds
• Continuing concessional basic custom duty on copper scrap
• Compounded rubber to bring it at par with natural rubber

 

 

Direct Tax Proposals

• 45% of the returns on tax payers’ portal were processed within 24 hours
• Average processing period reduced from 93 to 16 days in 8years
• Processed more than 6.5I crore returns this year
• Income limit for rebate of income tax increased from ₹5 lakh to ₹7lakh in the new Regime
• Highest surcharge rate on income above ₹5cr to be reduced from 37% to 25% under new regime
• Increasing tax exemption limit to ₹25 lakh on leave encashment on retirement for non-government salaried employees

 

Exemption Limit increased to ₹3 lakh

₹0-3     Lakh                NIL

₹3-6     Lakh                5%

₹6-9     Lakh                 10%

₹9-12   Lakh                15%

₹12-15 Lakh                20%

>15       Lakh                30%

 

 

Tax Benefits for Industry

• MSMEs
• Enhanced limits for micro enterprise and professionals to avail benefits of presumptive taxation;95% of receipts to be non-cash
• Deduction on payments made to MSMEs to be allowed only when payment is actually made
• COOPERATIVES
• Extending 15% corporate tax benefits to new cooperatives, commencing manufacturing till 31^st March,2024
• Higher limit of ₹2 lakh per member for deposits & loans in cash by PACS and PCARDBs
• Higher limit of ₹3 crore for TDS on cash withdrawal for co-operative societies
• STARTUPS
• Extension of the date of incorporation by one year for the income tax benefits to start-ups
• Benefit of carry forward of losses on change of shareholding of start-ups from seven years of incorporation to ten years

 

 

• RATIONALISATION
• Income of authorities, boards and commissions set up by statues 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 31^st March, 2025

 

Allocation for Specific Ministries

                                                                                                ₹ in Lakh Crore

1. Ministry of Defence 94
2. Ministry of Road Transport and 70

Highways

3. Ministry of Railways 41
4. Ministry of Consumer Affairs, 06

Food & Public Distribution

5. Ministry of Home Affairs 96
6. Ministry of Chemical and 78

Fertilizers

7. Ministry of Rural Development 60
8. Ministry of Agriculture and 25

Farmer’s Welfare

9. Ministry of Communication             23

 

 Blog By: Priyanka Rana