Seven priorities of the Budget, ‘Saptarishi’:
Inclusive development.
Reaching the last mile.
Infrastructure and investment.
Unleashing the potential.
Green growth.
Youth power.
Financial sector
For Income Tax payers
No changes in the old tax regime
New tax regime to become the default tax regime. However, citizens can opt for the old tax regime.
No tax on income up to Rs 7.5 lakh a year in new tax regime (with inclusion of standard deduction)
Govt proposes to reduce highest surcharge rate from 37% to 25% in new tax regime
New Income Tax Slabs Under New Tax Regimes:
Rs 0-3 lakh: Nil
Rs 3-6 lakhs: 5%
Rs 6-9 lakhs: 10%
Rs 9-12 lakhs: 15%
Rs 12-15 lakhs: 20%
Rs Over 15 lakhs: 30%
An individual with annual income of Rs 9 lakh will have to pay only Rs 45,000 in taxes
Income of Rs 15 lakh will fetch Rs 1.5 lakh tax, down from Rs 1.87 lakh
A Rs 50,000 standard deduction to taxpayers has been introduced under the new regime
Payment received from Agniveer Corpus Fund by Agniveers to be exempted
Tax exemption removed in insurance policies with premium over Rs 5 lakh
For online games, govt proposes to provide for TDS and taxability on net winnings at the time of withdrawal or at the end of fiscal
Tax exemption on leave encashment on retirement of non-government salaried employees hiked to Rs 25 lakh from Rs 3 lakh.
A higher limit of Rs 3 crore for TDS on cash withdrawal to be provided to co-operative societies.
Next-generation Common IT Return Form to be rolled out for tax payer convenience
Grievance redressal mechanism to be strengthen.
TDS rate to be reduced from 30 per cent to 20 per cent on taxable portion of EPF withdrawal in non-PAN cases
What gets cheaper and what’s get costlier:
-Cheaper
Mobile phones
TV
Lab-grown diamonds
Shrimp feed
Machinery for lithium ion batteries
Raw materials for EV industry
-Costlier:
Cigarettes
Silver
Compounded rubber
Imitation Jewellery
Articles made from gold bars
Imported bicycles and toys
Imported kitchen electric chimney
Imported luxury cars and EVs
For Health:
Health sector has been allocated Rs 89,155 crore in the Union Budget
Mission to eliminate sickle cell anaemia by 2047
A new programme for research in pharmaceuticals will be formulated and the industry will be encouraged to invest in research.
Out of Rs 89,155 crore, Rs 86,175 crore has been allocated to the Department of Health and Family Welfare, while Rs 2,980 crore to the Department of Health Research.
budget allocation for the Pradhan Mantri Swasthya Suraksha Yojana for 2023-2024 is Rs 3,365 crore.
Among these central sector schemes, the budget allocation for the National Health Mission has been increased from Rs 28,974.29 crore.
Budget allocation for the AYUSH ministry has been increased from Rs 2,845.75 crore.
The allocation for the National Digital Health Mission – NHM has been increased from Rs 140 crore to Rs 341.02 crore.
For the National Tele Mental Health Programme, the budget allocation has been increased from Rs 121 crore to Rs 133.73 crore.
The budget allocation for autonomous bodies goes up from Rs 10,348.17 crore in 2022-23 to Rs 17,322.55 crore in 2023-24.
The allocation for ICMR has been increased from Rs 2,116.73 crore to Rs 2,359.58 crore
For Investments
Maximum deposit limit for Senior Citizen Savings Scheme to be enhanced to Rs 30 lakh from Rs 15 lakh
Monthly Income Scheme limit doubled to Rs 9 lakh and Rs 15 lakh for joint accounts
One-time new saving scheme Mahila Samman Saving Certificate for women to be made available for 2 years up to March 2025.
It will offer deposit facility of up to Rs 2 lakh in the name of women or girls for tenure of 2 years at fixed interest rate of 7.5 per cent with partial withdrawal option
For Railways
An outlay of Rs 2.4 lakh crore provided for railways in FY24.
It’s the highest ever highest ever allocation for Railways and is nearly nine times over FY14 allocations.
The allocation for track renewal has been increased from Rs 15,388.05 crore in RE 2022-23 to Rs 17,296.84 crore this year.
The Railways is likely to roll out 75 Vande Bharat trains by August 2023
For Capital Expenditure
Rs 10 lakh crore capital investment, a steep hike of 33 per cent for third year in a row, to enhance growth potential and job creation, crowd-in private investments, and provide a cushion against global headwinds
New Infrastructure Finance Secretariat established to enhance opportunities for private investment in infrastructure
For Defense
Defense budget increased to Rs 5.94 lakh crore from last year’s Rs 5.25 lakh crore
Capital budget of the Border Roads Organization increased to Rs 5,000 crore. Capital outlay for the Indian Air Force was the highest at Rs 57,137.09 crore
For Fiscal position
fiscal Deficit targeted to be below 4.5 per cent by 2025-26
FY24 net tax receipts seen at Rs 23.3 lakh crore
For MSME
Revamped credit guarantee for MSMEs to take effect from Apr 1, 2023 with infusion of Rs 9,000 crore in corpus
The scheme would enable additional collateral-free guaranteed credit of Rs 2 lakh crore and also reduce the cost of the credit by about 1 per cent
For Energy sector
Rs 35,000 crores priority capital for the energy transition
Green credit programme will be notified under the Environment Protection Act
Govt to support setting up of battery energy storage of 4,000 MwH
National Green Hydrogen mission with an outlay of Rs 19,700 crore will facilitate the transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports and make the country assume technology and market leadership
For Aviation & Highways:
50 additional airports, helipods, water aero drones, advanced landing grounds will be revived to improve regional air connectivity.
Union Budget 2023-24 allocates enhanced outlay of Rs 2.70 lakh crore for the highways sector.
Allocation to NHAI increased by 13.90 per cent to Rs 1.62 lakh crore for 2023-24
For Digital services
Scope of services in DigiLocker to be expanded
100 labs for developing applications to use 5G services to be set up in engineering institutions
Labs will cover smart classrooms, precision farming, and healthcare applications.
Phase 3 of E-courts projects to be launched with outlay of Rs 7,000 crore
Leading industry players will partner to developing, providing scalable options for health, agri and other sectors
For Urban Development:
Govt to spend Rs 10,000 crore per year for urban infra development fund
Cities to be incentivised to improve creditworthiness for municipal bonds
All cities and towns will be enabled for 100 per cent transition of sewers and septic tanks
For Housing
Outlay for PM Awaas Yojana enhanced 66% to over Rs 79,000 crore
For Education:
Three centres of excellence for artificial intelligence to be set up in top educational institutions.
157 new nursing colleges will be established in colocation with the existing 157 medical colleges established since 2014.
Eklavaya Model Residential Schools to be set up in the next 3 years. The Centre will recruit 38,800 teachers and support staff for 740 schools serving 3.5 lakh tribal students.
National Data Governance Policy to be brought out to unleash innovation and research by start-ups and academia.
Grant for University Grants Commission (UGC) has been increased by Rs 459 crores (9.37 pc).
Central Universities have been increased by 17.66%, Deemed University by 27%, support to IITs have been increased by 14%, and to NITs by 10.5% as compared to BE 2022-23
For Agriculture:
An Agriculture Accelerator Fund will be set up to encourage agri-startups by young entrepreneurs
Digital public infrastructure to be developed for the agriculture sector
Rs 20 lakh crore agricultural credit targeted at animal husbandry, dairy and fisheries
Over the next 3 years, one crore farmers will get assistance to adopt natural farming.
10,000 bio input resource centres will be set up
Fisheries: To launch sub-scheme under PM Mastya Sampada Yojna with outlay of Rs 6,000 crore to further enable activities of fishermen
To make India a global hub for ‘Shree Anna’, the Indian Institute of Millet Research, Hyderabad will be supported as the Centre of Excellence for sharing best practices, research and technologies at the international level.
Rs 2,516 crore for Computerisation of 63,000 credit societies
In drought-prone central regions of Karnataka, central assistance of Rs 5,300 crore to be given to upper Badra project to provide sustainable micro-irrigation.
500 new ‘waste to wealth’ plants under GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme to be established for promoting circular economy at total investment of Rs 10,000 crore.
5 per cent compressed biogas mandate to be introduced for all organizations marketing natural and bio gas
For Space
Rs 12,544 crore allocated to the Department of Space.
IN-Space receives Rs 95 crore allocation against Rs 21 crore in the Revised Estimate. A large portion of the allocation, Rs 53 crore, has been earmarked for capital expenditure for INSPACe.
Physical Research Laboratory has received an allocation of Rs 408.69 crore
For Sports:
Sports gets an allocation of Rs 3,397.32 crore, an increase of Rs 723.97 crore.
The Rs 3,397.32 crore is the highest sports budget allocation ever in the country.
‘Khelo India’ has been allotted Rs 1,045 crore.
Sports Authority of India gets Rs 785.52 crore for 2023-24.
National Sports Federations receives a hike of Rs 325 crore
