#Budget2023 Decoded: All you need to know about it!

1 Feb 2023

Finance Minister Nirmala Sitharaman today presented the last Full Budget for the government ahead of the general elections in 2024. Here’s everything you need to know about #Budget2023:

Key macro announcements:

  • Economic growth for the current year is estimated at 7%, the highest among major economies.
  • To spend ₹2 lakh crore to provide free food grains for one year, starting Jan 1, 2023, under PM Garib Kalyan Anna Yojana

Opportunity areas, which the government believes can be transformative:

  • Economic Empowerment of Women
  • PM VIshwakarma KAushal Samman
  • Tourism
  • Green Growth

Priority Areas

The government said that it has seven priority areas, which are:

1. Inclusive Development

  • Digital Public Infrastructure for Agriculture
  • Agriculture Accelerator Fund
  • Enhancing productivity of cotton crop
  • Atmanirbhar Horticulture Clean Plant Program, the outlay for which will be ₹2,200 crore
  • Making India a Global Hub for ‘Shree Anna’
  • Raise target for agriculture credit to ₹20 lakh crore
  • Investment of ₹6,000 crore under sub-scheme of PM Matsya Sampada Yojana
  • To set up 157 new nursing colleges

2. Reaching the Last Mile

 

  • Allotment of ₹15,000 crore for three years for Pradhan Mantri PVTG Development Mission
  • Recruitment of 38,800 teachers, support staff for 740 Eklavya Model Residential Schools
  • Central assistance of ₹5,300 crore to the Upper Bhadra Project
  • Raised outlay for PM Awas Yojana by 66% to ₹79,000 crore

3. Infrastructure and Investment

  • Outlay for capital investment to be raised for third year in a row, up by 33% to ₹10 lakh crore
  • Effective capital expenditure by the government to be ₹13.7 lakh crore, 4.5% of the GDP
  • 50-year interest-free loans to state governments to be continued for another year
  • Highest ever outlay for Railways at ₹2.40 lakh crore
  • To make ₹10,000 crore available per annum for Urban Infrastructure Development Fund 

4. Unleashing the Potential

  • 39,000 compliances reduced and 3,400 legal provisions decriminalized for ease of doing business
  • Three centres of excellence for Artificial Intelligence to be set up in top educational institutions
  • A National Data Governance Policy to be brought out
  • PAN to be common identifier for all digital systems of specified government agencies
  • Phase of e-courts to be launched with an outlay of ₹7,000 crore   

5. Green Growth

  • Target to annually produce 5 MMT of green hydrogen by 2030 
  • Allotment of ₹35,000 crore for priority capital investments for energy transition 
  • To establish 500 new ‘waste to wealth’ plants under GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme
  • Replacing old polluting vehicles through scrapping

6. Youth Power

  • To launch Pradhan Mantri Kaushal Vikas Yojana 4.0
  • To provide stipend support to 47 lakh youth in three years under a pan-India National Apprenticeship Promotion Scheme

7. Financial Sector

  • To infuse ₹9,000 lakh crore in the credit guarantee scheme for MSMEs, which will help in reducing cost of credit
  • Maximum deposit limit for Senior Citizen Savings Scheme to be raised to ₹30 lakh from ₹15 lakh
  • Maximum deposit limit for Monthly Income Account Scheme to be raised to ₹9 lakh from ₹4.5 lakh for single account, and to be raised to ₹15 lakh from ₹9 lakh for joint account
  • States to be allowed a fiscal deficit of 3.5% of GSDP, of which 0.5% will be tied to reforms in the power sector

Fiscal Deficit numbers:

  • FY23 Fiscal deficit seen at 6.4% of the GDP
  • FY24 Fiscal Deficit seen at 5.9% of the GDP
  • To bring fiscal deficit below 4.5% of GDP by FY26

Borrowings:

  • Net market borrowings for FY24 seen at ₹11.8 lakh crore
  • Gross market borrowings for FY24 estimated at ₹15.4 lakh crore

Personal tax changes:

  • Rebate limit to be raised to ₹7 lakh/year from ₹5 lakh/year under new tax regime
  • Tax exemption limit to be raised to ₹3 lakh/year from₹2.5 lakh/year earlier
  • Income slabs to be reduced to five from six earlier under the new tax regime
  • Benefit of standard deduction to be extended to new tax regime
  • Surcharge on highest tax rate to be reduced to 25% from 37% earlier
  • Tax exemption limit on leave encashment for non-government salaried employees raised to ₹25 lakh from ₹3 lakh.
  • New income tax regime to be the default tax regime

 


 

Source: indiabudget.gov.in

This article is for information purposes only. The information provided herein is derived from public sources, believed to be from reliable sources. However, no representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. Views expressed herein involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied herein. Kotak Mahindra Mutual Fund/ Kotak AMC is not indicating or guaranteeing returns on any investments. Past performance may or may not be sustained in future. Readers should seek professional advice before taking any investment related decisions and alone shall be responsible for any decision taken.

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© Kotak Mutual Fund.2024
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
© Kotak Mutual Fund.2024
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
© Kotak Mutual Fund.2024
Mutual fund investments are subject to market risks, read all scheme related documents carefully.