Status as on- 10/02/2023                                                           

On the pre-budget eve, the economic survey pegged India’s economic growth at 6.0 to 6.8 per cent in 2023-24 which is a bit lower than the current fiscal but it’s still higher than that of all major economies in the world.

Key Highlights of the Budget for FY 2023-24 are as under:

• Budget adopts seven priorities “Saptrishi” including inclusive development, green growth, reaching the last mile, infra & investment, unleashing the potential, youth power and the financial sector.
• The Budget has doubled down on the government’s strategy to drive economic investment activity. The allocation for capital expenditure has been pegged at Rs 10 lakh crore in 2023-24, up from Rs 7.5 lakh crore in 2022-23.
• The budget for railways was proposed to be Rs. 2.40 Lakh crores which is 9 times the outlay made in 2013-14.
• Finance Minister also announces 50 additional airports, water aerodromes, and landing grounds to be revived for regional air connectivity. This should offer an additional push to the regional connectivity scheme, which started with the UDAAN scheme.
• The Finance Minister said the government will continue 50-year interest-free loans to state governments for one more year to aid infrastructure investment with an outlay of Rs 1.3 lakh crore.
• Finance Minister has announced a scheme to support state governments and municipalities in replacing their old polluting vehicles. This is set to give a push to the sales of automobiles in the country, including electric vehicles, as the focus of the government is also on a shift to green fuels by 2030.
• The Credit Guarantee Scheme for MSMEs will be extended with an infusion of Rs 9000 crore and this will enable collateral for Rs 2 lakh crore loans to MSMEs.
• The inter-state transmission system for evacuation and grid integration of 13 GW of renewable energy from Ladakh will be constructed with an investment of Rs 20,700 crore including central support of Rs 8,300 crore.
• A green credit programme for encouraging behavioural change will be notified under the Environment Protection Act.
• The third Phase of the eCourts project is to be launched with an outlay of Rs 7,000 crore.
• A permanent Account Number (PAN) will be made as a single business identifier for all digital systems of all specified departments of the government. This is expected to ease the compliance burden of businesses.
• The Centre Government will borrow Rs 15.43 lakh crore via bonds in 2023-24 on a gross basis- a new all-time high.
• The Budget 2023-24 allocated Rs 79,000 crore for the Pradhan Mantri Awas Yojana (PMAY), giving a further boost to the government’s programme to provide housing to the urban poor.
• A new small savings scheme has been announced for women – Mahila Saving Certificate for 2 years up to March 2025 with a fixed interest rate @ 7.5% p.a
• INR 15,000 crores proposed for the launch of a national mission for vulnerable tribes in areas of health, clean water and sanitation, basic infrastructure, and sustainable livelihood opportunities, among others.
• 100 labs to be set up for 5G solutions across engineering colleges.
• The agricultural credit target will be increased to 20 lakh crore with a focus on animal husbandry, dairy and fisheries.
• An amount of Rs. 10,000 crores are proposed for Urban Infra Development Fund.
• New Income Tax Slabs:

• The tax Rebate Limit has been increased from Rs. 5 Lakh to Rs. 7 Lakh under New Regime.
• Currently, the highest rate is 42.74% income tax under the new regime. The FM has proposed to reduce the highest surcharge from 37% to 25% in the new tax regime, max rate of 39%.

Disclaimer: The above article is based on the personal interpretation of the related orders and laws. The readers are expected to take expert opinions before relying upon the article. For more information, please contact us at ibc@centrik.in.

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