BUDGET ESTIMATES 2023 in Union Budget 2023
* FY24 fiscal deficit seen at 5.9% of GDP
* FY24 market borrowing seen 11.8 trillion rupees
* FY24 gross market borrowing seen at 15.4 trillion rupees
* 50-year capital expenditure, interest-free loan to states to be spent FY24
* Entire capital expenditure loan to state to be spent in FY24
* FY24 total expenditure seen at 45 trillion rupees
* FY24 total receipts net of borrowing seen at 27.2 trillion rupees
REVISED ESTIMATES-Union Budget 2023
Know the new regimes of the budget 2022-23. Moreover, it seems it is one of the best budgets in India keeping in mind the middle-class people and lower middle class.
* FY23 total receipts revised estimate 24.3 trillion rupees
* Adhered to fiscal consolidation path
* FY23 fiscal deficit seen at 6.4% of GDP
* States to be allowed a fiscal deficit of 3.5% of GSDP
* FY23 capex seen at 7.3 trln rupees
* FY23 total expenditure seen at 41.9 trln rupees
* FY23 net tax receipts seen at 20.9 trln rupees
DIRECT TAX impact in Union Budget 2023
* Reducing TDS to 10% on EPF withdrawal, market-linked debentures
* To remove the minimum threshold of 10,000 rupees on TDS
* Exempt tax on income of boards for housing, other activities
* Limits capital gains exemption on homes to 100 million rupees
* To appoint 100 joint commissioners to cut tax appeal pendency
* To name 100 joint commissioners to cut tax appeal pendency
* To allow deduction on expenditure incurred on actual payment
* To continue reforms for the next-generation income tax system
* Tax portal processed 45% of returns in 24 hours
* To strengthen grievance redressal mechanism for taxpayers
* Cut the average processing period for IT returns to 16 days
* Cut average processing period for Income Tax returns
* Aim to ease the burden, rationalize direct tax regime
INDIRECT TAX Regime- Union Budget 2023
* To up basic customs duty on compounded rubber to 25%, with riders
* Concessional basic customs duty of 2.5% continued on copper scrap
* Continue exemption on some raw materials for the steel sector
* To hike duty on silver ore
* Marine products recorded the highest exports in the last fiscal
* To raise customs duty on gold, silver articles
* To cut duty on lab-grown diamond seeds
* Propose to cut customs duty on shrimps
* To reduce duties on domestic manufacturing of shrimp feed
* Basic customs duty exempt on denatured ethyl alcohol
* Propose to cut basic customs on crude glycerin to 2.5%
* Basic customs duty on heat coils reduced to 15%
* Basic customs duty on electric kitchen chimneys at 15%
* Customs duty on lithium-ion cells for mobile phones stays
* To cut customs duty on some TV parts to 2.5%
* Extend customs exemption on machinery imports for lithium-ion cells
* To give duty sops on the mobile phone camera lens
* Propose to reduce customs duties on several items
Impact on ECONOMY
* Capital expenditure to crowd in private investment
* Capital investment outlay will be 3.3% of GDP
* FY24 capital investment outlay up 33% at 10 trln rupees
* Capital outlay on infra hiked to 10 trln rupees
* Effective capex of Centre at 13.7 trln rupees, 4.5% of GDP
* Economic growth for FY23 is seen at 7%
* FY23 GDP growth highest among all economies
* Per capita income has more than doubled
* 7% economic growth seen despite global slowdown
* India economy now 5th largest from 10th nine years ago
* World has recognized the Indian economy as a bright star
* Economy has become a lot more formalized
* Set up producer enterprises to scale up consumer markets
* Rural livelihood plan extended to mobilize millions
* Economic agendas include strengthening macro stability
* Economic agendas include a strong impetus for growth, job creation
* Economic empowerment of women key to India at 100
* National rural livelihood mission extended
* Economic agendas include ample opportunities for citizens
* Per capita income more than doubled to 197,000 rupees
* 4 opportunities transformative for India at 100
* Govt capital expenditure to provide a cushion against global headwinds
REFORMS
* To simplify the KYC process, adopting a risk-based approach
* Announces PM Vishwakarma Kaushal Samman for artisans
* Vishwakarma plan to boost quality, and reach of artisan products
* To set up co-op societies for uncovered panchayats, villages
* National database to enable mapping of cooperative societies
* Aatma Nirbhar clean plant program outlay 22 bln rupees
* To adopt a cluster-based, value-chain plan via PPP for cotton
* To launch Aatma Nirbhar clean plant program
* National data governance policy to promote research by startups
* 3,400 legal provisions decriminalised for ease of business
* National data governance policy will be brought out
* 39,000 compliances reduced to enhance ease of doing business
* To set up three Centres of excellence for AI
* Unveils Jan Vishwas Bill to amend 42 central Acts
* Outlay for PM-Awas scheme raised by 66% to 790 bln rupees
* Gobardhan scheme to have outlay of 100 bln rupees
* To launch the Gobardhan scheme to promote a circular economy
* Digilocker for secured sharing of documents with authorities
* To set up DigiLocker for MSMEs, big businesses, trusts
* To expand the scope of documents in Digilocker
* To change some plan’s financing to result-based vs input-based
* To have graded settlement terms under vivaad se vishwash-II
* Unveils phase-3 e-court, an outlay of 70 bln rupees
* To facilitate the use of PAN as a common identifier by law
* To use Digilocker, Aadhaar a one-stop solution for address
* PAN to be a common business identifier for entities
* To simplify know-your-customer norms to a risk-based approach
* Unveils common business identifier with PAN as base
* Data governance policy to enable access to anonymous data
* Processing center to respond to forms under the Companies Act
AGRICULTURE
* Digital public infra for open source interoperable farm ops
* Agriculture Fund to help bring in modern techniques
* Agriculture fund to get innovation to meet farm challenges
* Agriculture Accelerator Fund to boost agri start-ups
* Digital public infra to enable inclusive farmer-centric svc
* Cash transfer of 2.2 trln rupees to 114 mln farmers
* To set up large co-op societies for fisheries, dairy farming
* Model by-laws for multipurpose primary agri credit societies
* Decentralised storage capacity to help farmers store crops
* Govt promoting cooperative model for small, marginal farmers
* 63,000 primary agri credit societies set worth 25 bln rupees
* To make an institute of millets hub for research globally
* New sub-scheme with 60 bln rupees outlay for fisheries
* Farm credit to focus on animal husbandry, dairy, fisheries
* To aid the Indian Institute of Millets as center of excellence
* To up FY24 farm credit target to 20 trln rupees
* Digitalising 63,000 agri credit societies for 25 bln rupees
* Digital public infrastructure to aid crop estimation, market intelligence
* Digital public infrastructure to support agritech industry, start-ups
* To facilitate 10 mln farmers to adopt natural farming
* To provide financial support to biomass, bio-manure sector
* To launch PM-PRANAM to promote alternate fertilizers in states
* 200,000 rupees/member cap on deposits to primary agri banks
* Co-ops can claim cane payments before FY17 as expenditure
* Low tax of 15% till Mar 31, ’24 for new co-ops that start manufacturing
POWER AND ENERGY
* Central support of 83 bln rupees for Ladakh renewable energy
* To set up a framework for battery energy storage projects
* Allocates 207 bln rupees for renewable energy plan in Ladakh
* 350 bln rupees priority capital towards energy transition
* To launch a green credit program under Environ Act
* Target of 5 MMT for green hydrogen production by 2030
* Outlay of 197 bln rupees for the energy transition
* To build focus on green growth
* Of states’ 3.5% of GSDP, 0.5% tied to power sector reforms
* Target of 5 MMT/year for green hydrogen production by 2030
* Outlay of 197 bln rupees for national green hydrogen mission
* To exempt GST on blended CNG
* To aid battery energy storage systems of 4,000 MWh
EDUCATION
* Collaboration with NGOs to inculcate literacy
* To ramp up medical schools for high-end manufacturing, research
* To ramp up medical schools for skilled manpower, technology
* To set up National Digital Library for children, adolescents
* To set up multi-disciplinary schools for medicine, equipment
* To re-envision teachers’ training plans
* Nursing colleges co-locate with existing medical colleges
* To set up 157 nursing colleges
* To support multidisciplinary courses for medical devices
* 740 Eklavya schools serving 350,000 tribal students
* To recruit 38,800 teachers and staff for Eklavya schools
* National book trust to give books in English, local languages
* National book trust to give books to digital libraries
* 5G development labs to have smart classrooms
* 100 labs to be set up to develop 5G apps in engineering institutions
INDUSTRY
* To encourage pharma companies to invest, research in priority areas
* Encourage industry to invest in pharma research, innovation
* New program to promote research, and innovation in pharma
* To avail some ICMR labs for collaborative research in public, private
* Large potential to be tapped into tourism
* Tourism promotion on mission mode with PPP
* Tourism promotion on mission mode with states’ participation
* To promote amenities in border areas in a vibrant village plan
* Every tourist destination is to be developed as a complete package
* Tourism-related information to be made available on the app
* Huge opportunity for jobs, and entrepreneurship in tourism
* Private investment picking up post-pandemic
* To set up 10,000 bio input centers for pesticide manufacturing network
* 5% CBG mandate for companies marketing natural gas, biogas
* Customs duty cut on the lab-grown diamond to cut output cost
* To cut customs duty on lab-grown diamonds
* R&D grant to one IIT to boost lab-grown diamonds for 5 years
* New scheme to cut interest on MSME loans by 1%
* Revamped MSME credit guarantee plan from Apr 1
* New scheme to aid 2 trln rupee credit flow to MSMEs
* To give 90 bln rupees for revamped MSME credit guarantee plan
* Benefit of carrying forward of loss on shareholding change for startups
* To raise the startup’s incorporation date for tax benefits by 1 year
* To up National Calamity Contingency duty on cigarettes to 16%
INFRASTRUCTURE
* To spend 100 bln rupees/year for urban infrastructure development fund
* Outlay includes 150 bln rupees in private investment in transport infrastructure
* NHB to manage new urban infrastructure fund
* Urban infrastructure fund to help in priority sector lending
* States, cities to be pushed to take up sustainable cities plan
* To invest 750 bln rupees in transport infra projects
* To add 50 airports, and helipads for regional air connectivity
* 100 critical transport projects for multiple sectors identified
* Capital outlay for railways highest ever, 9 times over FY14
* Infra finance secretariat to help states get private investment
* Capital outlay of 2.40 trln rupees for Railways
* Infrastructure, investment, and green growth among 7 priorities
* Priority is inclusive development, reaching the last mile
* Green growth plans help generate green employment
* Green growth plans help cut carbon footprint
* Implementing many plans for green growth
* To enable 100% mechanized desludging of sewers
* Enhanced focus on scientific management of dry, and wet waste
* Investments in infra have a multiplier effect on the economy
* Amritdharohar plan to boost optimal use of wetland, tourism
* To promote coastal shipping for freight, and passenger via PPP
* Amritdharohar plan to promote wetlands over the next 3 years
* Propose MISHTI plan for mangrove plantation along the coastline
FINANCIAL SECTOR, MARKETS
* 126 trln rupees worth of UPI transactions in 2022
* To incentivize cities to up credit scores for municipal bonds
* To continue 50-year interest-free loan to states for 1 more year
* To continue financial support to boost digital payments
* Investor protection fund to help reclaim shares, dividend
* Digital payments rose 76% in 2022 by transaction count
* To set up investor education, protection fund
* Central processing center for faster response to companies
* Derivatives to be a valid contracts for offshore SEZs
* Allow acquisition of IFSC bank unit by foreign banks
* Propose amendment to Banking Companies Act, RBI Act
* To amend IFSC Act
* To set up single-window IT system of IFSCA
* Extends tax benefit for GIFT City to Mar 31, 2025
REGULATORY
* Public consultation to be brought to the financial regulation making
* Seek proposals from the public, and regulators to cut compliance cost
* To give a time limit for applications under regulations
* Financial regulators are to be told to comprehensively review rules
* To set a national financial info registry for robust credit flow
SOCIAL SECTOR
* To roll out a one-time small saving scheme Mahila Samman Saving certificate
* Mahila savings plan to offer partial withdrawal
* Mahila savings plan tenure 2 years, interest 7.5%
* Mahila savings plan deposit facility up to 200,000 rupees
* Mahila saving certificate for 2 yrs up to Mar 2025
* Deposit cap on senior citizen saving plans up at 3 mln rupees
SKILL DEVELOPMENT
* Unified Skill India digital platform to link with MSMEs
* To focus on on-job training under PM Kaushal Vikas Yojana 4.0
* 4.7 mln youth to get stipend for three years
* Fourth version of PM Kaushal Vikas plan to be launched
* To set up 30 skilling centres for global jobs to youth
* 30 national centres to skill youth for global opportunities
* To launch PM-Kaushal Vikas scheme 4.0
HEALTHCARE
* Sickle cell mission to cover 70 mln people in tribal areas
* To launch a mission to eliminate sickle cell anemia
* Mission is to eliminate sickle cell anemia by 2047
COVID-19 MEASURES
* During a pandemic, we ensured no one goes to bed hungry
* PMGKAY spend of 2 trln rupees to be borne fully by Centre
* Provided free food grains to 800 mln people for 28 months
* To return 95% of the forfeited amount to pandemic-hit MSMEs
BROAD THEMES
* Adopts 7 priorities to guide through Amritkal
* This is a blueprint drawn for India at 100
* Hopes to build on the foundation of the previous Budget
* Builds on prosperous, inclusive India
* Targeted benefits helped in inclusive development
* Intend fruits of development reach all sections of society
* Made progress in attaining sustainable development goals
* Govt efforts since 2014 ensured better quality of life for all
* Focus on reforms, and sound policies helped in performing well
* To give free food grain to all antodaya families for 1 year
Other budget changes that are made in Union Budget 2023
* Co-operation is a value to be cherished
* Research by industry players to help set up the AI ecosystem
* Industry players to aid in AI research for farm, health
* To formulate a detailed framework for pump storage
* Adequate funds allocated to scrap old govt vehicles
* Mission Karmayogi to help upgrade civil servants’ skills
* Committed to transparent, accountable administration
* Builds on sustained focus on J&K, Ladakh, northeast areas
* Sab ka saath, sab ka vikas facilitated inclusive development
* Youth power, financial sector among 7 priorities
* Govt provided 446 mln insurance covers
* 478 mln PM Jan Dhan bank accounts opened
* We have significantly improved our status on many indices
* Vision for Amritkal is the tech-driven economy
* Need Sabka Saath, and Sabka Prayas for robust public finances
* 100,000 ancient inscriptions to be digitalized
* To provide financial support to poor persons in prisons
* 53 bln rupees for drought-prone central Karnataka
* 150 bln rupee for PM primitive vulnerable tribal plan for 3 years
* To improve the condition of primitive vulnerable tribal groups
* To launch primitive vulnerable tribal group
* Financial bodies to help promote financial literacy
* Moving to 6th priority of empowering youth
* G20 presidency chance to strengthen India in world economic order
* Unity malls in state capitals to showcase 1 district 1 product
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