Budget LIVE Updates: Union Cabinet approves Budget 2023-24 ahead of Finance Minister Sitharaman’s speech
New Delhi, February 1
Finance Minister Nirmala Sitharaman on Wednesday raised the personal income tax rebate limit, doled out sops on small savings and announced one of the biggest hikes in capital spending in the past decade as she did a tight rope walk in the Budget between staying fiscally prudent and meeting public expectations in the year before general elections.
The personal income tax rebate limit has been increased to Rs 7 lakh from the fiscal year starting April 1 under the new tax regime from the previous Rs 5 lakh. Tax slabs have been cut to five from seven earlier. Also, the maximum income tax rate has been reduced to about 39 per cent from 42.7 per cent after a reduction in the highest surcharge to 25 per cent from 37 per cent.
Besides, the deposit limit for senior citizen savings schemes has been doubled to Rs 30 lakh and for Monthly Income Account Scheme to Rs 9 lakh. A new small savings scheme for women, offering 7.5 per cent interest rate on deposits of up to Rs 2 lakh for a tenor of 2 years, has been announced.
Sitharaman’s fifth straight budget comes at a time when the economy is slowing due to global headwinds and there is a need for increased spending on social sectors as well as ramping up incentives for local manufacturing.
She also announced customs duty relief on mobile phone components, as well as on capital goods for lithium batteries and other such items to boost green energy and exports.
This is the final full budget before the general elections in April/May next year. An interim budget, called vote on account, is to be presented in February next year and the new government will present the full budget sometime in July 2024.
For 2023-24, capital investment outlay has been increased steeply for the third year in a row by 33 per cent to Rs 10 lakh crore, which would be 3.3 per cent of the GDP. This will be almost three times the outlay in 2019-20.
Since coming to power in 2014, Prime Minister Narendra Modi-led government has ramped up capital spending, including on roads and energy, while wooing investors through lower tax rates and labour reforms, and offering subsidies to poor households to clinch their political support.
“This Budget hopes to build on the foundation laid in the previous Budget, and the blueprint drawn for India@100,” Sitharaman said in her budget speech in Lok Sabha.
Indian economy, she said, is a “bright star” with the current 7 per cent GDP growth being the highest among all the major economies
Sitharaman said that despite a global slowdown because of the COVID-19 pandemic and the Russia-Ukraine war, the Indian economy was “on the right track”.
Total expenditure is seen rising 7.4 per cent to Rs 45 lakh crore. The government would target a budget deficit of 5.9 per cent of GDP in 2023-24, down from 6.4 per cent for the current year. That would entail a gross borrowing of Rs 15.43 lakh crore.
Sitharaman said the Budget for 2023-24 (April 2023 to March 2024), adopts seven priorities—inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector.
While the agriculture credit target has been increased to Rs 20 lakh crore with focus on animal husbandry, dairy and fisheries, the increased investment in infrastructure and productive capacity is aimed at having a multiplier impact on growth and employment.
Additional Rs 9,000 crore has been provided toward credit guarantee for medium and small enterprises.
Railways has been provided a capital outlay of Rs 2.40 lakh crore—the highest ever and about 9 times the outlay made in 2013-14.
An Urban Infrastructure Development Fund (UIDF) will be established for the creation of urban infrastructure in Tier 2 and Tier 3 cities.
The Budget has also provided Rs 35,000 crore for energy transition and net zero objectives.
Battery Energy Storage Systems with capacity of 4,000 MwH will be supported with viability gap funding, Rs 20,700 crore will be spent in building a transmission system to evacuate 13 GW renewable energy from Ladakh.
The outlay for the affordable housing scheme, PM Awas Yojana, has been increased 66 per cent to Rs 79,000 crore.
Other highlights of the budget include reviving 50 additional airports, heliports and water aerodromes, and establishing a National Digital Library to make available quality books across languages, geographies and genres.
The income tax relief provided for individual taxpayers would be a 25 per cent reduction in tax outgo of an individual with an annual income of Rs 9 lakh as he or she would be required to pay only Rs 45,000 as against Rs 60,000 crore.
Similarly, an individual with an income of Rs 15 lakh would be required to pay only Rs 1.5 lakh or 10 per cent of his or her income, a reduction of 20 per cent from the existing liability of Rs 1,87,500, Sitharaman said.
“This will provide major relief to all taxpayers in the new regime,” she said.
Also, the Rs 50,000 standard deduction provided in the old tax regime has now been extended to the new tax regime.
The limit of Rs 3 lakh for tax exemption on leave encashment on retirement of non-government salaried employees will be increased to Rs 25 lakh.
The total revenue foregone from the reduction in direct and indirect taxes after accounting for a small gain from additional mobilisation will be Rs 35,000 crore annually.
“The narrower deficit forecast in the Union government budget for 2023-24 underscores the government’s commitment to longer-term fiscal sustainability and supports the economy amid high inflation and a challenging global environment,” Moody’s Investor Service said in its initial comments on the Budget.
Although the gradual fiscal consolidation trend is intact and will help to stabilise the government’s debt burden relative to nominal GDP, the high debt burden and weak debt affordability are constraints that offset India’s fundamental strengths, including its high growth potential and deep domestic capital markets, it said. — with PTI inputs
12:48 01 FebPromotion of tourism
Promotion of tourism will be taken up on a “mission mode” with active participation of states, convergence of government programmes, and public-private-partnerships, Finance Minister Nirmala Sitharaman announced in the Union Budget for 2023-24 on Wednesday.
In her speech, she also emphasised that the country offers “immense attraction” for domestic as well as foreign tourists.
12:32 01 FebIncome tax rebate limit up
Govt proposes to increase income tax rebate limit from Rs 5 lakh to Rs 7 lakh in new tax regime
An individual with annual income of Rs 9 lakh will have to pay only Rs 45,000: FM Sitharaman.
No tax for income up to Rs 3 lakh; 5 pc tax on Rs 3-6 lakh; highest tax rate of 30 pc on income above Rs 15 lakh under new I-T regime: FM.12:18 01 FebMobile phone output
Mobile phone output rose from 5.8 crore units in 2014-15 to 31 crore units last fiscal
12:15 01 FebPAN will be used for common identifier for all digital systems of specified govt agencies
Finance Minister Nirmala Sitharaman said Permanent Account Number (PAN) will be used for common identifier for all digital systems of specified government agencies.
The move would help in further promoting ease of doing business in the country.
PAN is a 10-digit alphanumeric number allotted by the income tax department to a person, firm or entity. She also said that if MSMEs fail to execute contract, 95 per cent of performance security will be returned to small business as part of Vivad Se Vishwas scheme
.12:08 01 FebPradhan Mantri Aawas Yojana outlay hiked by 66% to Rs 79,000 cr
Finance Minister announced a 66 per cent hike in the outlay for the Pradhan Mantri Aawas Yojana (PMAY) to Rs 79,000 crore.
The scheme envisages providing houses for rural as well as urban poor and the massive hike in its outlay holds significance keeping in mind the fact that this is the last proper Budget of the NDA government before the 2024 Lok Sabha elections.
Also as many as nine states go to polls this year
.12:05 01 FebFM announces scheme to improve socio-economic condition of vulnerable tribes
Finance Minister proposed to launch a scheme to improve the socio-economic condition of particularly vulnerable primitive tribal groups.
An amount of Rs 15,000 crore will be made available to implement the Prime Minister Particularly Vulnerable Tribal Groups (PM-PVTG) development mission in next three years under the development action plan for Scheduled Tribes, she said while presenting the Union Budget for 2023-24 in Parliament.
This will saturate PVTG families and habitations with basic facilities such as safe housing, clean drinking water and sanitation, improved access to health, education, nutrition, road and telecom connectivity and sustainable livelihood opportunity, she said
.11:59 01 FebIndia’s G-20 presidency unique opportunity to strengthen its role in world economic order
India’s ongoing presidency of the G-20 grouping is a unique opportunity to strengthen the country’s role in the world economic order when countries across the globe are facing various challenges, Finance Minister Nirmala Sitharaman said on Wednesday.
India assumed the presidency of the influential bloc G-20 at its annual summit in Bali in November with a promise of striving to ensure that the grouping acts as a global prime mover to envision new ideas and accelerate collective action to deal with pressing challenges.
India is hosting a series of events and meetings ahead of the G-20 summit later this year.
India officially assumed the G-20 presidency on December 1
.11:53 01 FebIndia has made significant progress in many SDGs
India has made significant progress in many Sustainable Development Goals (SDGs) and the per capita income has increased to Rs 1.97 lakh.
Finance Minister Nirmala Sitharaman said the Indian economy has increased in size from being 10th largest to fifth largest in the world in the last nine years.
The efforts of the government since 2014 have ensured better quality of life for citizens of the country, Sitharaman added.
According to the Centre for Science and Environment’s ‘State of India’s Environment Report 2022’, the country’s overall SDG score was 66 out of 100
.11:48 01 Feb47.8 cr Jan Dhan accounts opened
As many as 47.8 crore Jan Dhan accounts have been opened so far, a scheme which was launched in 2014 as a national mission for financial inclusion.
Finance Minister Nirmala Sitharaman said the National Rural Livelihood Mission has achieved remarkable success by mobilising rural women into 1 lakh SHGs (self help groups).
The Jan Dhan Yojana was announced by Prime Minister Narendra Modi in his Independence Day address in 2014, and it was launched on August 28 in the same year
.11:46 01 FebBudget adopts seven priorities to guide India through Amrit Kaal
Finance minister Nirmala Sitharaman said that the Budget adopts seven priorities to guide India through the Amrit Kaal.
“The budget adopts following seven priorities — inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector,” she said.
Amrit Kaal is described by the government as the 25-year period culminating in the centenary of India’s independence.
11:42 01 FebCapital outlay of Rs 2.40 lakh crore for railways
PM Primitive Vulnerable Tribal Group scheme to benefit 3.5 lakh tribals: FM.
Capital outlay of Rs 2.4 lakh cr provided for Railways; highest-ever allocation since 2013-14: FM.
FM says states and cities will be encouraged to take up urban planning.11:37 01 FebDecentralised storage capacity to help farmers to be set up
Govt to provide Rs 5,300 cr assistance to drought-prone central region of Karnataka: FM Sitharaman.
PM Awas Yojana outlay hiked by 66 pc to Rs 79,000 cr: FM Sitharaman.
38,800 teachers will be hired for Ekalavya Model Residential Schools: FM.
Pradhan Mantri Primitive Vulnerable Development Commission being launched; Rs 15,000 cr earmarked for next 3 years: FM
Govt plans to set up massive decentralised storage capacity to help farmers.11:33 01 FebMade cash transfer of Rs 2.2 lakh cr under PM-KISAN scheme: Sitharaman
To enhance yield of extra long staple cotton, government will adopt a cluster-based and value chain approach: FM.
Four transformative opportunities can be used be in Amrit Kaal for enhancing economic empowerment: FM Sitharaman.
Govt to support Hyderabad-based millet institute as centre of excellence: FM.
Govt to launch a Rs 2,200 crore Aatmanirbhar clean plan programme: FM Sitharaman:
National cooperative database is being created to map cooperative societies: FM Sitharaman.
New programme to promote research in pharmaceuticals: FM Sitharaman.11:26 01 FebOur mission is to achieve knowledge-driven economy: FM
Govt efforts since 2014 have ensured better quality of life for citizens of the country, says FM Sitharaman.
Our mission is to achieve knowledge-driven economy: FM
Govt made cash transfer of Rs 2.2 lakh crore under PM-KISAN: FM Sitharaman.
National Rural Livelihood Mission has achieved remarkable success by mobilising rural women into 1 lakh SHGs: FM.
9.6 cr LPG connections, 220 cr Covid vax for 102 cr people given, 47.8 cr JanDhan accounts opened: FM Sitharaman.
Four transformative opportunities can be used be in Amrit Kaal for enhancing economic empowerment: FM
11:15 01 FebPer capita income has increased to Rs 1.97 lakh: FM
Indian economy has increased in size from being 10th to 5th largest in last nine years: FM Sitharaman
We have made significant progress in many Sustainable Development Goals (SDGs), says FM.
Per capita income has increased to Rs 1.97 lakh: FM Sitharaman
.11:12 01 FebIndia’s growth at 7 pc
India’s growth at 7 pc in current fiscal highest among major economies; Indian economy on right track: Nirmala Sitharaman.
The world appreciates India’s achievements
Finance minister says this budget hopes to build on foundation of previous budget and blue print for India@100.
In 75th year of Independence, world has recognised India as a bright star: FM.
We ensured that no one went hungry during pandemic by providing free foodgrains to 80 cr poor people: FM Sitharaman
.11:07 01 FebFM begins Budget speech
Indian economy on the right track, and heading towards a bright future: Finance Minister Nirmala Sitharaman