New Delhi: Union finance minister Nirmala Sitharaman is presenting the Union budget 2023-24 in parliament today. This is the Narendra Modi government’s last full budget in this term, with Lok Sabha elections due in 2024. This is Sitharaman’s fifth budget presentation.The Union cabinet approved the budget ahead of the presentation in parliament.The Economic Survey released on Tuesday forecast that India’s economy will grow 6% to 6.8% in the financial year starting on April 1, down from 7% projected for the current year, as a global slowdown is likely to hurt exports. “The economy is on the right track despite challenges and our focus on wide-ranging reforms helped us perform well in these trying times,” Sitharaman said on Wednesday.The survey also said that inflation is neither too high to deter private consumption, nor so low as to weaken inducement to invest. The survey said this despite inflation remaining above the central bank’s target range of 2% to 6% in 2022-23.“…India’s budget will not only try to fulfil the hopes and dreams of the common man of India, but the ray of hope which the world is seeing should be seen more brightly,” Prime Minister Narendra Modi had promised about the budget the day before the announcement.As has become the custom over the last few years, the speech began with the finance minister extolling the governments “successes” over the last financial years, including its G20 presidency and the PMGKAY scheme for free foodgrain, as she announced what she called the “first budget of Amrit kaal”. She also said that the per capita income of Indians has more than doubled to Rs 1.97 lakh since 2014.Laying down seven priorities in this year’s budget, Sitharaman said these will be the ‘saptarishi‘ guiding India’s Amrit kaal: inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector.Here are the main announcements and takeaways from the finance minister’s speech. Of course, more details will emerge from the budget documents. At 3 pm, join us for a live discussion‘Inclusive development’Agriculture Accelerator Fund to be created to focus on agriculture-related startups.Atmanirbhar Clean Plant Programme to promote high-value horticultural products, with an outlay of Rs 2,200 crore.Targeted investment of Rs 6,000 crore in pre-existing Pradhan Mantri Matsya Sampada Yojana for fishermen’s welfare.The agricultural credit target will be increased to Rs 20 lakh crore with a focus on animal husbandry, dairy and fisheries.Indian Institute of Millet Research will be supported as a centre of excellence.Government will set up cooperative societies working on dairy and other sectors in previously uncovered districts.National digital library for children and adolescents will be set up, so they can access good books no matter where they are. States will be “encouraged” to start physical libraries.PM Vishwa Karma Kaushal Samman-package of assistance for traditional artisans and craftspeople has been conceptualised, will enable them to improve quality, scale and reach of their products, integrating with MSME value chain.157 new nursing colleges will be established in colocation with the existing 157 medical colleges established since 2014.Facilities in select ICMR labs will be made available for research by public and private medical facilities.Mission to eliminate sickle cell anaemia by 2047 to be launched, will entail awareness creation, universal screening of 7 crore people in 0–40 years in affected tribal areas, and counselling.‘Reaching the last mile’Launch of Pradhan Mantri Particularly Vulnerable Tribal Groups Development Mission to be launched, to increased PVTGs’ access to education, healthcare, road accessibility, etc. Rs 15,000 crore allocation over next three years.Eklavaya Model Residential Schools: in the next three years the Union government will recruit 38,800 teachers and support staff for 740 schools serving 3.5 lakh tribal students.Outlay for PM Awas Yojana to be increased by 66% to over Rs 79,000 crore this year.Financial support for poor persons who are in prison.Rs 5,300 crore assistance from the Union government for drought-prone areas in Karnataka. Karnataka has elections coming up in May this year.‘Infrastructure and investment’Capital investment outlay to be 3.3% of GDP in FY24, in an increase of 33% to Rs 10 lakh crore.Fifty-year interest free loan to state governments extended for one more year.Rs 2.4 crore outlay for railways.Rs 75,000 crore for 100 transport infrastructure projects, including Rs 15,000 crore from private srouces.50 additional airports, heliports, water aerodromes, and advanced landing zones to be revitalised.All cities and towns will be enabled for 100% mechanical desludging of septics tanks and sewers to transition from manhole to machine hole mode.Three centres of excellence in artificial intelligence to be set up in existing engineering universities.100 labs for developing apps to use 5G to be set up.Urban Infrastructure Development Fund to be established through priority sector lending shortfall, to be managed by National Housing bank, to be used by public agencies to create urban infra in tier-2 and tier-3 cities.‘Green growth’Rs 35,000 crore for energy transition and net-zero objective, including for energy security.Green credit programme for encouraging behavioural change in companies and local bodies.PM-PRANAM to be launched to promote alternative fertilisers and balanced use of chemical fertilisers.National Hydrogen Mission to have Rs 19,700 crore outlay.10,000 bio input resource centres to be set up to encourage natural farming. One crore farmers to be facilitated over next three years.500 new waste-to-wealth plants under Gobardhan Scheme.‘Unleashing the potential’ and ‘youth empowerment’30 Skill India international centres across states to train youth for international opportunities.New tourism destinations to be identified, increasing accessibility, safety, etc. Focus on domestic and foreign tourists.Stipend to support 47 lakh young people.‘Financial sector’Revamped credit system for MSMEs to be in place from April 1, 2023, with an infusion of Rs 9,000 crore in corpus.One-time new savings scheme for Azadi ka Amrit Mahotsav: savings certificate for women available for next two years. Deposit will get interest of 7.5% for two years with a partial withdrawal option.Revised fiscal deficit for FY23 at 6.4% of GDP. For FY24, fiscal deficit is targeted at 5.9% of GDP. “I reiterate my intention to bring the fiscal deficit below 4.5% of GDP by 2025-26,” Sitharaman said.FY24 net tax receipts seen at 23,3 lakh crore.Part twoCustom duty exemptions on imports of lithium batteries.Increase in duties on gold and silver items.A cut in customs duty in imports of mobile phone parts, camera lens and kitchen chimneys.Custom duty on cigarettes increased.Tax holiday for startups extended to 10 years.Five major announcement on personal income tax:Increase rebate limit to Rs 7 lakh from Rs 5 lakh (this means those who make up to Rs 7 lakh per year do not have to pay tax).Change in tax structure, reducing number of slabs to five and reducing slab rates. “The new tax rates are 0 to Rs 3 lakhs – nil, Rs 3 to 6 lakhs – 5%, Rs 6 to 9 lakhs – 10%, Rs 9 to 12 lakhs – 15%, Rs 12 to 15 lakhs – 20% and above 15 lakhs – 30%,” she said.Highest surcharge rate to be reduced from 37% to 25%.Limit of Rs 3 lakh on leave encashment on retirement for government employees increased to Rs 25 lakh.New tax regime is now the default tax regime. But the finance minister said people can still opt for the old tax regime.“Rs 35,000 crore per year revenue forgone with these changes,” Sitharaman said.
