2023 Budget Highlights: A glance at Nirmala Sitharaman’s previous budget

During her speech, the union finance minister laid out budget estimates for FY 2023-24 as follows:

> Total receipts other than borrowings estimated at Rs 27.2 lakh crore and total expenditure at Rs 45 lakh crore.

> The net tax receipts are estimated at Rs 23.3 lakh crore.

> The fiscal deficit is estimated at 5.9 per cent of GDP.

> Net market borrowings from dated securities estimated at Rs 11.8 lakh crore.

> The gross market borrowings estimated at Rs 15.4 lakh crore.

> Highest capital outlay of Rs 2.4 lakh crore for Indian Railways.

The highlights of the 2023 budget are as follows:

1. Sitharaman announced ‘Saptarishi’ or top seven priorities of the Narendra Modi government during the Amrit Kaal. The list includes inclusive development of all sections of the society, making government’s policies reach the last mile, infrastructure and investment, unleashing the potential of the economy by eradicating hurdles, green growth, harnessing the potential of youth and fortifying India’s financial sector to aid growth.
2. Since 2014, per capita income more than doubled to ₹1.97 lakh.
3. The Indian economy jumped to the fifth position from the tenth in the past nine years.
4. Employees’ Provident Fund Organisation (EPFO) membership more than doubled to stand at 27 crore.

The Finance Minister also presented an update on the PM Modi’s flagship mission:

1. 47.8 crore accounts opened under the Jan Dhan bank scheme.
2. 11.7 crore toilets constructed under the Swachh Bharat Mission scheme.
3. 9.6 crore LPG connections provided under PM Ujjwala scheme.
4. Insurance cover for 44.6 crore persons under PM Suraksha Bima and PM Jeevan Jyoti Yojana schemes.
5.  Rs 2.2 lakh crore cash transfer to over 11.4 crore farmers under PM Kisan Samman Nidhi.

Income Tax rate:

Described as a “middle-class bonanza” by some analysts’, the last budget witnessed India’s finance minister announcing an income tax rebate limit increase to Rs 7 lakh from existing Rs 5 lakh. Sitharaman further increased the tax exemption limit to Rs 3 lakh and cut the number of slabs from six to five. Below are the tax slabs announced last year:

 Credit: Press Information Bureau

Indirect Taxes:

• Reduction in the number of basic customs duty rates reduced from 21 to 13 for goods, other than textiles and agriculture.
• Increase in basic customs duty on articles made from gold and platinum.
• Import duty on silver dore and bars to align with gold and platinum.
• Reduction in basic customs duty on crude and glycerine to 2.5 percent.
• Increase in National Calamity Contingent Duty (NCCD) on specified cigarettes by about 16 percent.
• Nil customs duty on specified capital goods and machinery for the manufacture of lithium-ion cells extended to March 31, 2024.
• Reduction in basic customs duty on parts of open cells of TV panels to 2.5 percent and increase on electric kitchen chimneys to 15 percent.

Economy:

🔴 Measures to enhance business activities in GIFT IFSC:

• Delegating powers to IFSCA under the Special Economic Zones Act, 2005 to avoid dual regulation.
• Setting up a single window IT system for registration and approval from authorities.
• Acquisition financing allowed by IFSC banking units of foreign banks.
• Amendments proposed to the Banking Regulation Act, the Banking Companies Act and the Reserve of India Act to improve banking governance.
• Countries to be facilitated for setting up of their data embassies in GIFT IFSC.

🔴 Empowering SEBI to develop and regulate standards for education in the National Institute of Securities Markets.

🔴 Launching a new small savings scheme Mahila Samman Savings Certificate to offer deposit facility up to Rs 2 lakh at fixed interest rate of 7.5 per cent.

🔴 Enhancing maximum deposit limit for Monthly Income Account Scheme from to Rs 9 lakh for single account and to Rs 15 lakh for joint account.

🔴 Fiscal Deficit up to 3.5 percent of states’ GSDP allowed.

Agriculture

1. Agriculture Accelerator Fund to be set-up to fund rural agri-startups. 
2. Hyderabad’s Indian Institute of Millet Research to be supported as Centre of Excellence for further research and to make India a global hub for ‘Shree Anna’.,
3. Rs 20 lakh crore agricultural credit targeted at animal husbandry, dairy and fisheries industry.
4. Rs 6,000 crore sub-scheme of PM Matsya Sampada Yojana to further enable activities of fishermen and fish vendors.
5. Computerisation of 63,000 Primary Agricultural Credit Societies (PACS) with an investment of Rs 2,516 crore.
6. Establishment of 500 new plants under GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme for promoting circular economy.
7. Launching PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth” (PM-PRANAM) to promote alternative fertilizers.
8. Launching Mangrove Initiative for Shoreline Habitats & Tangible Incomes (MISHTI) for mangrove plantation along the coastline and on salt pan lands.

Energy

1. Annual production of 5 MMT under the Green Hydrogen Mission by 2030 to reduce dependence on fossil fuel imports and lessen pollution.
2. Rs 35,000 crore outlay for energy security, energy transition and net zero objectives.
3. Battery energy storage systems to be promoted to steer the economy on sustainable development path.
4. Investment of Rs 20,700 crore including central support of Rs. 8,300 crore for strengthening of interstate transmission system for evacuation and Grid Integration of 13 GW renewable energy from Ladakh.

Defence

1. Defence budget up by 13.8 per cent at Rs 5.94 lakh crore year-on-year (YoY).
2. Capital outlay at Rs 1.62 lakh crore for modernisation of armed forces and infrastructure development and upgradation. 
3. Rs 1.38 lakh crore allocated for Defence Pension for retired personnel.
4. The capital budget of the Border Road Organisation (BRO), responsible for the construction and maintenance of strategic roads and bridges along India’s borders, increased by 43 per cent to Rs 5,000 crore.

Education and Skill Development:

1. New nursing colleges to be established alongside the existing 157 medical colleges.
2. Recruitment of 38,800 teachers and support staff for the 740 Eklavya Model Residential Schools.
3. Launching Pradhan Mantri Kaushal Vikas Yojana 4.0 to provide skills to the youth in coding, AI, robotics, mechatronics, IOT, 3D printing, drones, etc.
4. 30 Skill India International Centres to provide skills to the youth for international opportunities.
5. Rs 9,000 crore for revamped credit guarantee scheme for MSMEs from April 1, 2023.
6. Launching Direct Benefit Transfer (DBT) under the National Apprenticeship Promotion Scheme to provide a stipend to 47 lakh youth in three years.