New Delhi, February 1
Union Finance Minister Nirmala Sitharaman hiked capital expenditure by a massive 33 per cent to Rs 10 lakh crore and provided direct tax concessions worth Rs 35,000 crore while presenting the last full Budget before next year’s general elections.
Centre’s record capital investment will be supplemented by its Rs 3.7 lakh crore as grants-in-aid to states for the creation of capital assets. This will raise India’s effective capital expenditure in 2023-24 to Rs 13.7 lakh crore or 4.5 per cent of GDP. Railways with Rs 2.4 lakh crore and roads with Rs 3.44 lakh crore will account for bulk of the outlay.
The Budget also announced 100 projects for last and first mile connectivity for ports, coal, steel, fertiliser and food grains sectors with investment of Rs 75,000 crore, including Rs 15,000 crore from the private sector. It also includes Rs 79,000 crore for PM Aawas Yojna and 50 new airports to boost regional connectivity.
The capital outlay for the defence sector has been hiked by Rs 10,000 crore to Rs 1.62 lakh crore.
Sitharaman said a “Saptarishi” of priorities will guide the Government’s plans. These include inclusive development, Reaching the Last Mile, Infrastructure and Investment, unleashing the potential, green growth, youth power and financial sector. These measures would help achieve GDP growth rate of about 6.5 per cent in 2023-24.
For the aam admi, the Budget has proposed a revision in tax slabs. Among the five major announcements in this respect, the IT rebate limit in the new regime will be up from Rs 5 lakh to Rs 7 lakh along with revision of tax slabs for individuals. The other three pertain to reduction of the highest surcharge rate that would reduce the maximum tax rate and extension of tax exemption limit on leave encashment.
In more gestures to the common man, a one-time Mahila Samman Savings Certificate, valid till March 2025, will offer deposits up to Rs 2 lakh at 7.5 per cent interest. The maximum deposit limit for Senior Citizen Savings Scheme and Monthly Income Account Scheme will be doubled to Rs 30 lakh and Rs 9 lakh, respectively. But in a knock to the common man, insurance policies with premium of over Rs 5 lakh will no longer be tax exempt.
The total Government’s expenditure of over Rs 42 lakh crore will be financed by receipts of Rs 27.2 lakh crore and borrowings of Rs 15.4 lakh crore. The gap or the fiscal deficit will be 5.9 per cent of GDP. In comparison, the current fiscal’s expenditure of about Rs 38 lakh crore has been funded by total receipts of 24.3 lakh crore and borrowings of Rs 14.21 lakh crore.
As a result, debt repayment obligations will increase to Rs 8.95 lakh crore as against Rs 7.27 lakh crore – an increase of almost Rs 1.5 lakh crore. Interest payment next year will be Rs 1.13 lakh crore as against Rs 98,000 crore in the current fiscal – an increase of Rs 15,000 crore.
The Government’s expenditure plans will also be helped by savings – Rs 49,000 crore less on fertiliser subsidy as compared to the revised estimates of the current fiscal and Rs. 76,000 crore less on food subsidy.
Promotion of tourism will be taken up on a "mission mode" with active participation of states, convergence of government programmes, and public-private-partnerships, Finance Minister Nirmala Sitharaman announced in the Union Budget for 2023-24 on Wednesday.
In her speech, she also emphasised that the country offers "immense attraction" for domestic as well as foreign tourists.
Govt proposes to increase income tax rebate limit from Rs 5 lakh to Rs 7 lakh in new tax regime
An individual with annual income of Rs 9 lakh will have to pay only Rs 45,000: FM Sitharaman.
No tax for income up to Rs 3 lakh; 5 pc tax on Rs 3-6 lakh; highest tax rate of 30 pc on income above Rs 15 lakh under new I-T regime: FM.
Mobile phone output rose from 5.8 crore units in 2014-15 to 31 crore units last fiscal
Finance Minister Nirmala Sitharaman said Permanent Account Number (PAN) will be used for common identifier for all digital systems of specified government agencies.
The move would help in further promoting ease of doing business in the country.
PAN is a 10-digit alphanumeric number allotted by the income tax department to a person, firm or entity. She also said that if MSMEs fail to execute contract, 95 per cent of performance security will be returned to small business as part of Vivad Se Vishwas scheme.
Finance Minister announced a 66 per cent hike in the outlay for the Pradhan Mantri Aawas Yojana (PMAY) to Rs 79,000 crore.
The scheme envisages providing houses for rural as well as urban poor and the massive hike in its outlay holds significance keeping in mind the fact that this is the last proper Budget of the NDA government before the 2024 Lok Sabha elections.
Also as many as nine states go to polls this year.
Finance Minister proposed to launch a scheme to improve the socio-economic condition of particularly vulnerable primitive tribal groups.
An amount of Rs 15,000 crore will be made available to implement the Prime Minister Particularly Vulnerable Tribal Groups (PM-PVTG) development mission in next three years under the development action plan for Scheduled Tribes, she said while presenting the Union Budget for 2023-24 in Parliament.
This will saturate PVTG families and habitations with basic facilities such as safe housing, clean drinking water and sanitation, improved access to health, education, nutrition, road and telecom connectivity and sustainable livelihood opportunity, she said.
India's ongoing presidency of the G-20 grouping is a unique opportunity to strengthen the country's role in the world economic order when countries across the globe are facing various challenges, Finance Minister Nirmala Sitharaman said on Wednesday.
India assumed the presidency of the influential bloc G-20 at its annual summit in Bali in November with a promise of striving to ensure that the grouping acts as a global prime mover to envision new ideas and accelerate collective action to deal with pressing challenges.
India is hosting a series of events and meetings ahead of the G-20 summit later this year.
India officially assumed the G-20 presidency on December 1.
India has made significant progress in many Sustainable Development Goals (SDGs) and the per capita income has increased to Rs 1.97 lakh.
Finance Minister Nirmala Sitharaman said the Indian economy has increased in size from being 10th largest to fifth largest in the world in the last nine years.
The efforts of the government since 2014 have ensured better quality of life for citizens of the country, Sitharaman added.
According to the Centre for Science and Environment's 'State of India's Environment Report 2022', the country's overall SDG score was 66 out of 100.
As many as 47.8 crore Jan Dhan accounts have been opened so far, a scheme which was launched in 2014 as a national mission for financial inclusion.
Finance Minister Nirmala Sitharaman said the National Rural Livelihood Mission has achieved remarkable success by mobilising rural women into 1 lakh SHGs (self help groups).
The Jan Dhan Yojana was announced by Prime Minister Narendra Modi in his Independence Day address in 2014, and it was launched on August 28 in the same year.
Finance minister Nirmala Sitharaman said that the Budget adopts seven priorities to guide India through the Amrit Kaal.
"The budget adopts following seven priorities -- inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector," she said.
Amrit Kaal is described by the government as the 25-year period culminating in the centenary of India's independence.
PM Primitive Vulnerable Tribal Group scheme to benefit 3.5 lakh tribals: FM.
Capital outlay of Rs 2.4 lakh cr provided for Railways; highest-ever allocation since 2013-14: FM.
FM says states and cities will be encouraged to take up urban planning.
Govt to provide Rs 5,300 cr assistance to drought-prone central region of Karnataka: FM Sitharaman.
PM Awas Yojana outlay hiked by 66 pc to Rs 79,000 cr: FM Sitharaman.
38,800 teachers will be hired for Ekalavya Model Residential Schools: FM.
Pradhan Mantri Primitive Vulnerable Development Commission being launched; Rs 15,000 cr earmarked for next 3 years: FM
Govt plans to set up massive decentralised storage capacity to help farmers.
To enhance yield of extra long staple cotton, government will adopt a cluster-based and value chain approach: FM.
Four transformative opportunities can be used be in Amrit Kaal for enhancing economic empowerment: FM Sitharaman.
Govt to support Hyderabad-based millet institute as centre of excellence: FM.
Govt to launch a Rs 2,200 crore Aatmanirbhar clean plan programme: FM Sitharaman:
National cooperative database is being created to map cooperative societies: FM Sitharaman.
New programme to promote research in pharmaceuticals: FM Sitharaman.
Govt efforts since 2014 have ensured better quality of life for citizens of the country, says FM Sitharaman.
Our mission is to achieve knowledge-driven economy: FM
Govt made cash transfer of Rs 2.2 lakh crore under PM-KISAN: FM Sitharaman.
National Rural Livelihood Mission has achieved remarkable success by mobilising rural women into 1 lakh SHGs: FM.
9.6 cr LPG connections, 220 cr Covid vax for 102 cr people given, 47.8 cr JanDhan accounts opened: FM Sitharaman.
Four transformative opportunities can be used be in Amrit Kaal for enhancing economic empowerment: FM
Indian economy has increased in size from being 10th to 5th largest in last nine years: FM Sitharaman
We have made significant progress in many Sustainable Development Goals (SDGs), says FM.
Per capita income has increased to Rs 1.97 lakh: FM Sitharaman.
India's growth at 7 pc in current fiscal highest among major economies; Indian economy on right track: Nirmala Sitharaman.
The world appreciates India's achievements
Finance minister says this budget hopes to build on foundation of previous budget and blue print for [email protected]
In 75th year of Independence, world has recognised India as a bright star: FM.
We ensured that no one went hungry during pandemic by providing free foodgrains to 80 cr poor people: FM Sitharaman.
Indian economy on the right track, and heading towards a bright future: Finance Minister Nirmala Sitharaman
Indian economy on the right track, and heading towards a bright future: Finance Minister Nirmala Sitharaman #UnionBudget2023 https://t.co/sXnfHSDRsP— ANI (@ANI) February 1, 2023
The Union Cabinet meeting chaired by Prime Minister Narendra Modi on Wednesday approved the Budget 2023-24 ahead of it being tabled by Finance Minister Nirmala Sitharaman in Parliament.
Before the cabinet meeting, Sitharaman along with Minister of States Pankaj Chaudhary and Bhagwat Karad met President Droupadi Murmu.
Cabinet meeting chaired by Prime Minister Narendra Modi began here on Wednesday. The meeting comes ahead of the Budget 2023-24 which will be tabled by Finance Minister Nirmala Sitharaman in Parliament. Before the cabinet meeting Finance Nirmala Sitharaman met President Droupadi Murmu at the Rashtrapati Bhavan. "Union Minister of Finance and Corporate Affairs Smt Nirmala Sitharaman, MoS Dr Bhagwat Kishanrao Karad, MoS Shri Pankaj Chaudhary and senior officials of the Ministry of Finance called on President Droupadi Murmu at Rashtrapati Bhavan before presenting the Union Budget 2023-24," the President tweeted.
Congress has convened a meeting of its Lok Sabha MPs ahead of the budget presentation in Parliament to devise strategy.
The meeting has been called by Leader in the Lok Sabha Adhir Ranjan Chowdhury. Interacting with the media, Rajya Sabha MP Randeep Singh Surjewala said, "The Budget is not a mere accounting exercise but reflects decisive action and path for India's future. Accountability is an essential part thereof. Hope the FM announces a full audit and investigation by SEBI, Income Tax, SFIP, ED on Hindenburg Report on Adani Group."
Sitharaman had in her first Budget in 2019 replaced leather briefcase -- which had been in used for decades for carrying Budget documents -- with a traditional 'bahi-khata' wrapped in red cloth.
Budget 2023-24 would be in paperless form, as done in the last two years, and would be available on the 'Union Budget Mobile App' for hassle-free access by Members of Parliament (MPs) and the general public.
Finance Minister Nirmala Sitharaman reached Rashtrapati Bhavan to call on President Droupadi Murmu before presenting the Union Budget for 2023-24 in the Lok Sabha.
The Finance Minister will also attend the Union cabinet meeting and then present the Budget around 11 am.
The Bharatiya Janata Party (BJP) will reach out to the public to convey the salient features of the Budget through a nationwide campaign that would be launched on Wednesday.
"The BJP will organise a programme for a nationwide discussion on the budget from February 1-12, through its campaign. The party's national president JP Nadda has constituted a 9-member committee for this," a source said on Tuesday.
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