UNION BUDGET 2023-24
Union Finance Minister Nirmala Sitaraman. presented the budget 2023-24 on 1 February 2023 in the Parliament.
- GDP: The government has estimated a nominal GDP growth rate (ie., real growth plus inflation) of 10.5% in 2023-24.Fiscal
- Deficit: Fiscal deficit target of 6.4% achieved in the Revised Estimate for FY 2022-23.
- Fiscal Deficit in 2023-24 is targeted at 5.9% of GDP.
- Expenditure: The government proposes to spend Rs 45,03,097 crore in 2023-24, which is an increase of 7.5% over the revised estimate of 2022-23.
- Person with annual Income up to Rs 7 lakh will not have to pay any tax.
- Also number of slabs in the tax structure introduced in 2020 has been reduced to five.
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Important Highlights of Budget 2023-24 Total Expenditure
- The government is estimated to spend Rs 45,03,097 crore in 2023-24. This is an increase of 7.5% over the revised estimate of 2022-23.
- Out of the total expenditure,
- Revenue expenditure is estimated to be Rs 35,02,136 crore (1.2% increase) and
- Capital expenditure is estimated to be Rs 10,00,961 crore (37.4% increase).
Total Receipt
- Total Receipts: Government receipts (excluding borrowings) are estimated to be Rs 27,16,281 crore, an increase of 11.7% over the revised estimates of 2022-23.
Break up of central government receipts in 2023-24
- The centre gave a boost to infrastructure development and earmarked Rs 10 lakh crore as capital expenditure for financial year 2023-24.
- This is 33% higher than the Rs 7.5 lakh crore allocated in the fiscal 2022-23.
What is Fiscal Deficit?
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Indirect taxes:
- The total indirect tax collections are estimated to be Rs 15,29,200 crore in 2023-24. Of this, the government has estimated to raise Rs 9,56,600 crore from GST.
Corporation tax:
- The collections from taxes on companies are expected to increase by 10.5% in 2023-24. In 2022-23, corporate tax collection is expected to be 16% higher than the budget estimate (Rs 7,20,000 crore).
- Income tax: The collections from income tax are also expected to increase by 10.5% in 2023-24 to Rs 9,00,575 crore. Income tax collection is expected to be 16.4% higher than the budget estimate in 2022-23.
Non-tax receipts:
- Non-tax revenue consists mainly of interest receipts on loans given by the centre, dividends, license fees, tolls, and charges for government services.
- In 2023-24, non-tax revenue is expected to increase by 15% over the revised estimates of 2022-23.
Corporation tax:
- The collections from taxes on companies are expected to increase by 10.5% in 2023-24. In 2022-23, corporate tax collection is expected to be 16% higher than the budget estimate (Rs 7,20,000 crore).
- Income tax: The collections from income tax are also expected to increase by 10.5% in 2023-24 to Rs 9,00,575 crore. Income tax collection is expected to be 16.4% higher than the budget estimate in 2022-23.
Non-tax receipts:
- Non-tax revenue consists mainly of interest receipts on loans given by the centre, dividends, license fees, tolls, and charges for government services.
- In 2023-24, non-tax revenue is expected to increase by 15% over the revised estimates of 2022-23.
Disinvestment target:
The disinvestment target for 2023-24 is Rs 51,000 crore (a marginal increase by 2% of estimate of 2022-23).
Expenditure on Subsidies
- In 2023-24, the total expenditure on subsidies is estimated to be Rs 4,03,084 crore, a decrease of 28.3% from the revised estimate of 2022-23.
- Food subsidy: Allocation to food subsidy is estimated at Rs 1,97,350 crore in 2023-24, a 31.3% decrease over the revised estimate of 2022-23.
- Fertilizer subsidy: Expenditure on fertiliser subsidy is estimated at Rs 1,75,100 crore in 2023-24. This is a decrease of Rs 50,120 crore (22.3%) from the revised estimate of 2022-23.
Deficits:
Fiscal deficit
- Fiscal deficit in 2023-24 is targeted at 5.9% of GDP, lower than the revised estimate of 6.4% of GDP in 2022-23.
Revenue deficit
- The excess of expenses over receipts on revenue account is called revenue deficit. Revenue deficit = Revenue Expense- Revenue Receipts.
- Revenué deficit is targeted at 2.9% of GDP in the budget estimate of 2023-24. It is 4.1% of GDP in revised estimate of 2022-23.
Effective Revenue Deficit
- Effective Revenue Deficit is the difference between revenue deficit and grants to states for creation of capital assets.
- Effective revenue deficit in the budget estimates of 2023-24 is 1.7% of GDP while it is 2.9 % of GDP in revised estimate of 2022-23.
Primary Deficit
- Primary deficit is defined as the difference between the fiscal deficit and the previous year interest payments of the government.
- Primary deficit in the budget estimate 2023-24 is 2.3% of GDP while it is 3.0% of GDP in revised estimate of 2022-23.
Fiscal Responsibility and Budget Management Targets
- The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 requires the central government to progressively reduce its outstanding debt, revenue deficit and fiscal deficit, and give three year rolling targets.
- In the Budget speech, the finance minister reiteratedthe government’s aim to reduce fiscal deficit to below 4.5% of GDP by 2025-26.
Important tax proposals in the Finance Bill Income tax regime:
- Currently, those with income up to Rs 5 lakh can avail a rebate and not pay any tax this limit has been raised to Rs 7 lakh.
- The number of tax slabs has been reduced from six to five.
- The surcharge on the income when it exceeds Rs 5 crore will be reduced from 37% to 25%
Important Announcement in the budget Speech
- This Budget hopes to build on the foundation laid in the previous Budget, and the blueprint drawn for India@100.
Vision For Amrit kaal | |
1 | Opportunities for Citizens with Focus on the Youth |
2 | Job And Job Creation |
3 | Strong And Stable Macro-economic enviornment |
Achievements
- Per capita income has more than doubled to Rs. 1.97 lakh in around nine years.
- Indian economy has increased in size from being 10 to 5 largest in the world.
- Per capita income has more than doubled to Rs. 1.97 lakh in around nine years.
- Indian economy has increased in size from being 10 to 5 largest in the world.
- EPFO membership more than doubling to 27 crore, and 7,400 crore digital payments of 126 lakh crore has taken place through UPI in 2022.
- 11.7 crore household toilets under Swachh Bharat Mission,
- 9.6 crore LPG connections under Ujjawala.
- 220 crore Covid vaccination of 102 crore persons,
- 47.8 crore PM Jan Dhan bank accounts, 0000
- Insurance cover for 44.6 crore persons under PM Suraksha Bima and PM Jeevan Jyoti Yojana, and
- Cash transfer of Rs. 2.2 lakh crore to over 11.4 crore farmers under PM Kisan Samman Nidhi.
Priorities of this Budget
- The Budget adopts the following seven priorities. They complement each other and act as the ‘Saptarishi guiding us through the Amrit Kaal.
Priority 1: Inclusive Development Agriculture and Cooperation
- Digital public infrastructure for agriculture will be built.
- An Agriculture Accelerator Fund will be set-up to encourage agri-startups by young entrepreneurs in rural areas.
- Government will launch an Atmanirbhar Clean Plant Program to boost availability of disease-free, quality planting material for high value horticultural crops at an outlay of Rs. 2,200 crore.
- Global Hub for Millets ‘Shree Anna”: India is the largest producer and second largest exporter of Shree Anna’ in the world. The Indian Institute of Millet Research, Hyderabad will be supported as the Centre of Excellence
Health, Education and Skilling
- One hundred and fifty-seven new nursing colleges will be established. A Mission to eliminate Sickle Cell Anaemia by 2047 will be launched.
Priority 2: Reaching the Last Mile
- Recently, the government has launched the Aspirational Blocks Programme covering 500 blocks for saturation of essential government services.
- To improve socio-economic conditions of the particularly vulnerable tribal groups (PVTGs), Pradhan Mantri PVTG Development Mission will be launched.
- Bharat Shared Repository of Inscriptions’ (BharatSHRI) will be set up in a digital epigraphy museum.
Priority 3: Infrastructure & Investment Capital Investment as driver of growth and jobs
- Capital investment outlay is being 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 GDP. This will be almost three times the outlay in 2019-20.
- A capital outlay of Rs. 2.40 lakh crore has been provided for the Railways. This highest ever outlay is about 9 times the outlay made in 2013-14.
Priority 4: Unleashing the Potential
- Under Mission Karmayogi, Centre, States and Union Territories are making and implementing capacity- building plans for civil servants.
- Vivad se Vishwas II will be introduced for MSMEs for settling Contractual Disputes.
- An Entity DigiLocker will be set up for use by MSMEs, large business and charitable trusts.
Priority 6: Youth Power
- Pradhan Mantri Kaushal Vikas Yojana 4.0 will be launched to skill lakhs of youth within the next three years.
- States will be encouraged to set-up Unity Malls: For promotion and sale of ODOP (One District-One Product), GI and handicraft products.