Highlights on India Budget 2023-24

A thread on Indian Budget for the financial year 2023-24 with a few key take aways.

• Estimated GDP growth for FY23 is 7%. While the budget deficit as of now is 6.4% of GDP. By 2025–2026, the government wants to reduce it to less than 4.5% of GDP.
• As per the new tax regime, income below ?7 lakhs will have 0 taxes. New tax regime will have more adoption.?A separate article on this soon.
• For those making more than Rs 5 crore, the highest surcharge under the new tax system has been decreased from 37% to 25%. By making this change, their tax rate decreases from 42.74% to 39%.
• For non-government employees, the exemption level for leave encashment has been raised from ? 3 lakh to ? 25 lakh. As a result, under Section 10 at the time of retirement, leave encashment up to ? 25 lakhs for a maximum of 10 months is tax-free.
• On taxable EPF withdrawals, the TDS (Tax Deducted at Source) rate has been lowered from 30% to 20%.
• DigiLocker will expedite the KYC procedure, and PAN cards will be used as a single form of identification.
• To provide thousands of young people with modern training, the PM Kaushal Vikas Yojana 4.0 will be introduced.

What is becoming cheap:

Gold, TV, Smartphones, Li-iON batteries for mobiles, Compressed Gas for EV, Lab grown diamonds

What is becoming costly:

Cigarettes, Silver, Flight travels, Industrial rubber, Imitation jewellery, Bicycles, Electric chimney,

• The maximum investment limit for the Senior Citizen Savings Scheme (SCSS) has increased from ?15 lakhs to ?30 lakhs, with an interest rate of 8% for the quarter ending March 31, 2023.
• It will be unnecessary to file the same information with various government entities thanks to a Unified Filing Process. Now, individuals will be able to voluntarily share the data with other governmental organizations via a single portal.
• To realize the goal of "Make AI in India and Make AI work for India," three center of excellence for artificial intelligence (AI) will be established in top educational institutions.
• Allocated ?19,700 crore for the National Green Hydrogen Mission, which will support a shift to low carbon intensity in the economy, reduce reliance on imports of fossil fuels, and position the nation as a technology and market leader in this expanding industry.
• Over the next three years, the National Apprenticeship Promotion Scheme will use Direct Benefit Transfer to pay stipends to 47 lakh young people.
• A one-time deposit program for women called the Mahila Sanman Savings Certificate has been introduced. The maximum deposit allowed is Rs. 2 lakh, and the maximum term is two years. This program will earn a fixed interest rate of 7.5 percent and is valid until March 2025.
• The deposit limit for investors in the Postal Monthly Income Scheme (POMIS) increased from Rs. 4.5 lakh to Rs. 9 lakh for single accounts and from Rs. 9 to Rs. 15 lakh for joint accounts.
• To build urban infrastructure in Tier 2 and Tier 3 cities, the Urban Infrastructure Development Fund (UIDF) will be established with an annual investment of Rs 10,000 crore.
• The introduction of a National data governance policy will give startups, academic institutions, and others access to anonymised data for research and innovation.
• Presumptive taxation limits for Small businesses under Sec 44AD is revised from ?2Crore to ?3Crore. For professionals like doctors, lawyers, engineers under Sec44ADA is revised from ?50Lakhs to ?75Lakhs.
• The central government intends to hire 38,800 teachers and support staff over the next three years to serve 3.5 lakh tribal students in 740 Eklavya Model Residential Schools.
• To improve regional aviation connectivity, 50 airports, heliports, water aerodromes, and advanced landing fields will be renovated.

The Budget mentioned its seven priorities as follows: Inclusive development, Reaching the last mile, Infrastructure and investment, Unleashing the potential, Green growth, Youth power, Financial sector

Money allocation into ministries (in Lakh Crores ?)

Defence - 5.9

Road & highways - 2.70

Railways - 2.41

Consumer affairs, food & public dist - 2.06

Home affairs -?1.96

Chemicals & fertilisers - 1.78

Rural devlpment - 1.6

Agri & farmer welfare - 1.25

Communication - 1.23        

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