Union Budget 2023-24 Vision for Amrit Kaal
- Growth and Job Creation
- Strong and Stable Macro Economic Environment
- Opportunities for Citizens with focus on the Youth
Amrit Kaal: Saptarishi – 7 priorities
- Inclusive Development
- Infrastructure and Investment
- Reaching the Last Mile
- Youth Power
- Green Growth
- Financial Sector
- Unleashing the potential
Sabka Sath Sabka Vikas – Inclusive Development
Agriculture and Co-operatives
- Expand Digital Technologies to boost the agriculture sector
- Promote Natural Farming and fund rural start-ups
- Build and open-source, digital public agriculture and infrastructure
- Atmanirbhar Clean Plant Programme – To boost the availability of disease free quality planting material for horticulture with an outlay of Rs.2,200 crore.
- Shree Anna: Making India a Global Hub for Millets – IIMR Hyderabad upgraded as centre of excellence
- PM Matsya Sampada Yojna target investment of Rs.6k crore: To boost Fishing Value Chain
- Setting-up of widely available Storage Capacity to enhance Farmers Remuneration
- Rs.20 Lakh crore agriculture credit targeted at Animal Husbandry, Dairy and Fisheries Sector
Health
- Sickle-cell anaemia focus on health push
- 157 new nursing Medical Colleges
- Boost to Media and Pharmaceutical Research via ICMR
Education and Skills
- States to be urged to set-up physical libraries at Panchayat and ward levels
- National Digital Library to be set up for children and adolescents
- Revamped Teachers Training via; District Institutes of Education and Training
- Launched Skilled India Digital Platform
- National Apprenticeship Scheme (NAS) under which 4.7 million youths will be provided stipend support via; Direct Benefit Transfer (DBT)
- 1000 Labs to come up for engineering institutes for developing applications using 5G services
- Boost Mid-day meal scheme to increase in allocation to Rs.11.6 crore in F.Y. 2023-24 from Rs. 10.2 cr. in F.Y. 2022-23.
Inclusive Development for all
- Ujjawala: Rs. 9.6 crore LPG connections
- Rs. 220 crore Covid Vaccinations of 102 crore person
- SBM: Constructed Rs. 11.7 crore household toilets
- Rs. 9crore Drinking Water connections to rural houses
- PM-KISAN: Cash transfer of Rs.2.2 lakh crore to over 11.4 crore farmers
- Pradhan Mantri Suraksha Yojana and Pradhan Mantri Jeevan Jyoti Yojana: Insurance cover for 44.6 crore persons
- PM Jan Dhan Bank Account – Rs. 47.8 crore
Infrastructure and Investment
- Incentives to boost Investment in Infrastructure and Productive capacity
- Increased capital investment outlay by 33.4% to Rs. 10lakh crore
- Highest ever capital outlay of Rs. 2.4o lakh crore for Railways
- Continuation of 50 year interest free loan to State Governments to incentivize infrastructure investment
- 100 transport infrastructure projects identified for end-to-end connectivity for ports, steel, fertilize sectors
- Creating Urban Infrastructure in Tier 2&3 cities via; establishment of Urban Infrastructure Development Fund.
Unleashing the Potential Trust Based Governance
- AI in India: To set-up educational institutes in education institutes
- National Data Governance Policy: To enable access to anonymized data for research by Start-ups and academia
- Vivad se Vishwas I: Relief to MSMEs by executing less stringent contract
- Vivad se Vishwas II: Standardized settlement scheme for contractual disputes of Govt. and Govt. undertakings
- E-courts: Launched phase 3 of E-courts for effective administration of justice
- Entity Digi Locker: Facilitating secure online storing and sharing of documents with the business ecosystems
- Lab Grown Diamonds sector: R&D grant to reduce import dependency
Green Growth
- Rs. 35,000 crore outlay for growth in Green Energy Transition
- Launched PM-PRANAM (Program for restoration, awareness, nourishment and amelioration of Mother Earth): To incentivize States/UTs to promote usage of alternative fertilizers
- GOBARdhan (Galvanizing Organic Bio-Agro Resource Dhan) Scheme: 500 new ‘Waste to Wealth’ plants for promoting circular scheme
- Green Credit Program to incentivize sustainable actions
- MISHTI (Mangrove Initiative for Shoreline Habitats and Tangible Incomes): For mangrove plantation along the coastline and on salt pan lands
- Amrit Dharohar: For optimal usage of wetlands
- Setting up of 10,000 bio-input resource centre to facilitate farmers to adopt natural farming
- Promotion of Battery energy storage systems
- Promotion of coastal shipping for energy efficient transportation
- Allocation of funds for replacing old-polluting vehicles
Amrit Peedhi: Youth Power
- Pradhan Mantri Kaushal Vikas Yojna 4.0. scheme: To skilled lakhs of youth, covering new courses like coding, AI, Robotics, 3D Printing etc.
- Measures to boost Tourism Sector: At-lease 50 destinations selected through challenge mode, to be developed as a complete package for domestic and foreign countries
- 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 of National Financial Information registry: To enable efficient lending and promote financial stability
- Mahila Samman Bachat Patra : One-time new small savings for a 2 year period with the deposit facility of up-to Rs.2 lakh for women
- Setting up of a Central Data Processing Centre: For faster handling of administrative work under the Companies Act
- Benefits for Senior Citizens: Enhanced maximum deposit limit from Rs.15 lakh to Rs.30 Lakh.
- Credit Guarantee Scheme for MSMEs: Expanded corpus under a revamped scheme to enable additional collateral free guaranteed credit of Rs.2 lakh crore
- Initiative s to promote business activities in GIFT IFSC
- Create more trained professionals in Securities Market
Fiscal Management
50 years Interest Free Loans to State
- To be spent on Capital Expenditure within 2023-24
- Part of the loan is conditional on States increasing actual Capital expenditure and parts of outlay will be linked to States undertaking several reforms
- Fiscal Deficit of 3.5% of GSDP allowed for States
- Fiscal Consolidation: Targeted Fiscal Deficit to be below 4.5% by 2025-26
Tax Proposals
Indirect Tax Proposal
Simplification in Indirect Taxes to deliver:
- Higher Exports
- Higher domestic manufacturing
- More value addition in the economy
- Green energy and mobility
Changes to Custom Duty:
- Import of capital goods for Lithium-ion battery manufacturing for Greener mobility
- Import of mobile camera lens for deepening value addition
- Denatured ethyl alcohol for Chemical Industry
- Key inputs for producing shrimp feed to benefit marine export
- Continuing concessional basic custom duty on copper scrap for augmenting raw material availability for MSMEs.
- Compounded rubber to bring it at par with natural rubber to duty circumvention
Direct Tax Proposal
Tax reliefs to citizens
- 45% tax returns on tax payers portals were processed within 24 hours
- Average Processing Period reduced from 93 to 16 days in 8 years
- Processed more than 6.5 crore return this year
Personal Income Tax – New Tax Regime
- Income limit for rebate of income tax increased from Rs.5 lakh to Rs. 7 lakh
- Highest surcharge rate on income above Rs.5 crore to be reduced from 37% to 25%
- Extended benefits of standard deduction for salaried and pensioners
- Increasing tax exemption limit to Rs.25 lakh on leave encashment on retirement for non-government salaried employees
- Tax exemption limit raised from Rs. 2.5 lakh to Rs. 3 Lakh
Proposed (FY24) concessional, or new, tax regime
- Income upto Rs.3 lakh are not liable for Tax
- Income between Rs.3 to 6 lakh, to pay 5% of income in excess of Rs.3 lakh
- Income between Rs.6 to 9 lakh, to pay Rs. 15,000 plus 10% of the amount by which the income exceeds Rs.6 lakh
- Income between Rs.9 to 12 lakh, to pay Rs. 45,000 plus 15% of the amount by which the income exceeds Rs.9 lakh
- Income between Rs.12 to 15 lakh, to pay Rs. 90,000 plus 20% of the amount by which the income exceeds Rs.12 lakh
- Income above 15 lakh, to pay Rs. 1,50,000 plus 30% of the amount by which the income exceeds Rs.15lakh
Tax Benefits for Industry
MSME
- Enhanced limit for micro enterprises and professionals to avail benefits of presumptive taxation; 95% of receipts to be non cash
- Deductions on payment made to MSMEs to be allowed only when payment is actually made
Cooperatives
- Extending 15%corporate tax benefit to new co-operatives, commencing manufacturing till 31st March 2024
- Higher limit of Rs. 2 lakh per member for deposits and loans in cash by PACS and PCARDBs
- Higher limit of Rs.3 crore for TDS on cash withdrawal for co-operative societies
Start-ups
- Extension of the date of incorporation by one year for income tax benefits to start-ups
- Benefits of carry forward of losses on change of shareholding of start-ups from 7years of incorporation to 10 years
Rationalisation
- Income of authorities, boards and commission setup by statues of the Union or State to be exempted from income tax in certain sectors
- Extension of period of tax benefits to fund relocating to IFSC, GIFT City till 31st March 2025
Allocation of Specific Ministeries (Value in Rs. Lakh Crore)
- Ministry of Defence – Rs. 5.94
- Ministry of Road Transport and Highways – Rs. 2.70
- Ministry of Railways – Rs. 2.41
- Ministry of Consumer Affairs, Food and Public Distribution – Rs. 2.06
- Ministry of Home Affairs – Rs. 1.96
- Ministry of Chemical and Fertilizer – Rs. 1.78
- Ministry of Rural Development – Rs. 1.60
- Ministry of Agriculture and Farmers Welfare – Rs. 1.25
- Ministry of Communication – Rs. 1.23
Allocation to Major Schemes for F.Y. 2023-24(In INR Crore)
- Development of Pharmaceutical Industry – Rs. 1250
- Jal Jeevan Mission – Rs. 70,000
- Eklavya Model Residential School – Rs. 5943
- Pradhan Mantri Awas Yojna – Rs. 79,590
- Scheme for Faster Adaption and Manufacturing of EV’s (FAME) – Rs. 5172
- North East Special Infrastructure Development Scheme – Rs. 2491
What’s Costlier
- Electric Kitchen Chimney
- Articles made of Gold, Platinum
- Silver Doors and Bars
- Copper
- Compounded Rubber
- Cigarettes
- Clothes
What’s Cheaper
- Camera Lenses
- Mobile Phones
- TV Parts
- Denatured Ethyl Alcohol
- Acid Grade Flourspar
- Domestic Manufacture of Shrimp