Exploring the numbers: Key considerations in the Union Budget 2023
Today was the fifth consecutive budget presentation by Finance Minister Nirmala Sitharaman. Additionally, this was the final complete budget of the Modi 2.0 administration before to the 2024 legislative elections.
After the Union Budget changed direct and indirect taxes to offer relief to the middle-income group, India would lose Rs. 35,000 crore in net tax collection, according to Finance Minister Nirmala Sitharaman.
"Rs. 38,000 crore in income, comprising Rs. 37,000 crore in direct taxes and Rs. 1,000 crore in indirect taxes, would be lost, while Rs. 3,000 crore in extra revenue will be mobilised. So, around Rs. 35,000 crore in income are lost each year, according to Sitharaman, who also announced the Union Budget for the upcoming fiscal year, which begins on April 1. "
New tax legislation's updated tax slabs
- Income between Rs 0 and Rs 3 lakh is not taxed under the new system.
- Under the new structure, income beyond Rs 3 lakh and up to Rs 6 lakh would be taxed at 5%.
- Under the new structure, income beyond Rs 6 lakh and up to Rs 9 lakh would be taxed at 10%.
- Under the new structure, income beyond Rs 12 lakh and up to Rs 15 lakh
- 30% tax is applied on income over Rs 15 lakh.
Important elements we need to know ;
- 5.9% of GDP is the budget deficit goal for FY 2024.
- In 2023–2024, capital expenditures climbed 33% to 10 trillion rupees.
- Budget suggests a 16% tax increase, which will increase the price of cigarettes.
- Establishing an agribusiness accelerator fund
- Increases the financial allotment for affordable housing to 790 billion rupees in 2023–2024
- Increased governmental capital expenditures, according to the finance minister, will drive out private investments.
- In the past nine years, the Indian economy has grown to be the fifth-largest in the world.
- 7 priorities are adopted by the budget, including inclusive and green growth.
- For 2023–2024, the agricultural credit goal has been increased to 20 trillion rupees ($244.42 billion).
- The economy is expanding more quickly than other big economies, as per Sitharaman.kh would be taxed at 20%.
For the "first Budget in Amrit Kaal," FM Nirmala Sitharaman also listed seven goals.
- Universal development
- Getting to the last mile
- Finance & infrastructure
- Optimizing potential
- Green development
- Youth influence
- Financial sector
2023 budgetary announcements
An increase in capital expenditure of 33% to Rs. 10 lakh crores, or 3.3% of GDP Sitharaman, FM
An agriculture accelerator fund to support young rural entrepreneurs' agritech firms. The fund will concentrate on supplying creative answers to problems encountered by farmers.
With an investment of Rs 2,200 crore, the government would introduce the Atmanirbhar Clean Plant Programme to increase the availability of high-value horticulture crops with disease-free planting material.
The PM Vishwa Karma Kaushal Samman-conceived package of help for traditional artists and craftspeople will allow them to increase the calibre, scope, and reach of their goods while integrating into the MSME value chain.