New Delhi, India, Budget 2023 – The Finance Minister of India, Smt. Nirmala Sitharaman presented the first budget in the Amrit Kaal era on Tuesday, which aims to build on the previous budget and the blueprint for India. The budget 2023 envisions a prosperous and inclusive India where the benefits of development reach all citizens.
For the salaried class – Big Tax Relief has been proposed : Key Personal Income Tax Announcements in The FM propose to change the tax structure in this regime by reducing the number of slabs to five and increasing the tax exemption limit to 3 lakhs. Currently, those with an income of Rs 5 lakhs do not pay any income tax and I proposed to increase the rebate limit to Rs 7 lakhs in the new tax regime.
The Union Budget for 2023 has been unveiled with a focus on 7 priorities that will act as the Saptarshis guiding India through Amrit Kaal. Amrit Kaal, meaning “eternal time”, symbolizes India’s progress and growth as a nation. The 7 priorities under the Union Budget 2023 serve as the pillars to support this growth and ensure an inclusive development for all.
1. Inclusive Development
The first priority of Budget 2023 is inclusive development, which seeks to ensure that the benefits of growth reach every citizen of the country. This will be achieved by providing equitable access to education, healthcare, and other essential services.
2. Reaching the Last Mile
The second priority is to reach the last mile, which aims to bring services and benefits to the most remote and underdeveloped areas of the country. This will be done through targeted investments in rural infrastructure and the expansion of digital connectivity.
3. Infrastructure and Investment
The third priority of the budget is infrastructure and investment, which aims to boost economic growth by enhancing the country’s infrastructure. This will be achieved by investing in roads, ports, airports, and other key infrastructure projects.
4. Unleashing Potential
The fourth priority is unleashing potential, which seeks to unlock the potential of India’s vast human and natural resources. This will be done by promoting entrepreneurship, innovation, and the development of new technologies.
5. Green Growth
The fifth priority is green growth, which aims to promote sustainable and eco-friendly development. This will be achieved by investing in clean energy, reducing carbon emissions, and protecting the environment.
6. Youth Power
The sixth priority is youth power, which recognizes the importance of empowering India’s youth. This will be achieved by providing education and employment opportunities, as well as promoting entrepreneurship among the youth.
7. Financial Sector
The seventh and final priority of Budget 2023 is the financial sector, which aims to strengthen the country’s financial system. This will be done by improving access to credit, promoting financial literacy, and ensuring the stability and efficiency of the financial sector.
|1. Inclusive Development||Ensure benefits of growth reach every citizen|
|2. Reaching the Last Mile||Bring services and benefits to remote areas|
|3. Infrastructure and Investment||Boost economic growth by enhancing infrastructure|
|4. Unleashing Potential||Unlock potential of human and natural resources|
|5. Green Growth||Promote sustainable and eco-friendly development|
|6. Youth Power||Empower India’s youth|
|7. Financial Sector||Strengthen the country’s financial system|
Big Tax Relief for the Middle Class: Key Personal Income Tax Announcements in Budget 2023
|No Tax for Up to 7 Lakh Earners||People earning up to 7 lakh per annum will not have to pay any tax under the new tax regime.|
|Reduced Tax Slabs||The new tax regime slabs have been reduced to just 5.|
|Increased Standard Deduction||The standard deduction has been increased to 52.5k in the new tax regime.|
|Reduced Surcharge Rate||The highest surcharge rate has been reduced from 37% to 25%.|
|Default to New Tax Regime||The new tax regime will be the default option for taxpayers.|
Note: The table only includes the key announcements related to personal income tax in the Budget 2023.
Salaried class and pensioners including Family pensioners for whom the Minister propose to extend the Benefit of Standard deduction to the new tax regime Each salaried person with an income of15.5 lakhs or more to benefit by ₹. 52,500. The FM propose to change the tax structure in this regime by reducing the number of slabs to five and increasing the tax exemption limit to 3 lakhs under the Union Budget 2023. Currently, those with an income of Rs 5 lakhs do not pay any income tax and I proposed to increase the rebate limit to Rs 7 lakhs in the new tax regime.
India’s economic growth is estimated at 7.0% this year, the highest among major economies, despite the global slowdown caused by the pandemic and the war. The Indian economy is on the right track and its focus on reforms and sound policies has helped the country in trying times.
The Finance Minister announced at the Budget 2023 presentation that the entire expenditure of about Rs. 2 lakh crore under the PM Garib Kalyan Anna Yojana will be borne by the central government for supplying free food grains for one year to all Antyodaya and priority households.
The G20 Presidency gives India a unique opportunity to strengthen its role in the world economic order. The country is steering an ambitious people-centric agenda to address global challenges and facilitate sustainable economic development.
The economic agenda for the vision of India focuses on facilitating opportunities for citizens, providing strong impetus to growth and job creation, and strengthening macroeconomic stability. The economic empowerment of women is seen as a transformative opportunity to achieve this vision.
The Deen Dayal Antyodaya Yojana has achieved significant success by mobilizing rural women into 81 lakh SHGs, and the government plans to form Large Producer Enterprises to help these SHGs reach the next stage of economic empowerment.
The PM Vishwa Karma Kaushal Samman, a package of assistance for traditional artisans and craftspeople, has been conceptualized to help improve the quality, scale, and reach of their products by integrating with the MSME value chain.
Tourism promotion will be taken up in mission mode with active participation from states and PPPs. The seven priorities of the budget are inclusive development, reaching the last mile, infrastructure and investment, unleashing potential, green growth, youth power, and the financial sector.
The Finance Minister in her Budget 2023 address in the parliament also announced the creation of a Digital Public Infrastructure for Agriculture as an open source, open standard, interoperable public good. The Agriculture Accelerator Fund will be set up to encourage agri-startups by young entrepreneurs in rural areas.
India is the largest producer and second largest exporter of Shree Anna, and the Indian Institute of Millet Research Hyderabad will be supported as a Centre of Excellence for sharing best practices at the international level. The agriculture credit target will be increased to Rs. 20 lakh crores with a focus on animal husbandry, dairy, and fisheries.
The economy has become a lot more formalized, as reflected by the doubling of EPFO membership to 27 crore and the Rs. 7,400 crore digital payments of Rs. 126 lakh crore through UPI in 2022. The package of assistance for traditional artisans and craftspeople will help them improve the quality, scale, and reach of their products.
The Aatmanirbhar Clean Plant Programme will boost the availability of disease-free, quality planting material for high-value horticultural crops with an outlay of Rs. 2,200 crores. This will help farmers store their produce and realize better prices.
The Current tax rate in country is 42.74%, among the highest in world #Budget23 proposes to reduce the highest surcharge rate from 37% to 25% in the new Tax regime This will result in the reduction of the maximum tax rate to 39%: Finance Minister.
The budget 2023 presents a comprehensive plan for the economic development of India and aims to improve the quality of life for all citizens. The government is committed to promoting growth, job creation, and financial stability in the country.
For commemorating #AzadiKaAmritMahotsav, a one time new small savings scheme ‘Mahila Samman Bachat Patra’ will be made available up till March 2025 This will offer deposit facility up to ₹2 Lakhs at a fixed interest rate of 7.5% with partial withdrawal option.