Budget 2023 highlights: The Budget for 2023-24 kept its focus
on expanding Capex showing that the Modi government's priorities are building
roads, highways, and railway lines. The middle class has been given some relief
in terms of tweaks in the new income tax regime clearly pointing out that the
government wants a
shift towards the new regime from the older one. The FM stuck to the fiscal
deficit roadmap in the Budget with a target of 5.9% in FY 24 and adhering to
the target for the current year. This is a positive considering a
bloated deficit will have caused worries about finding the gap.
Cheaper and Expensive- What is cheaper?
Aero
planes and other aircrafts; Gold (including gold plated with platinum)
unwrought or in semi-manufactured forms, or in powder form; Base metals or
silver, clad with gold, not further worked than semi-manufactured; New or
retreaded pneumatic tyres, of rubber, of a kind used on aircraft of heading;
Platinum, unwrought or in semi-manufactured form, or in powder form; Waste and
scrap of precious metal or of metal clad with precious metal; several
aquaculture inputs; Some TV, camera parts.
Which imports
are more expensive
Vehicle (including electric vehicles); Silver Dore; Naphtha;
styrene, Vinyl Chloride Monomer, Compounded Rubber, Articles of precious
metals, Imitation Jewellery, Electric Kitchen Chimney, Bicycles, Toys and parts
of toys (other than parts of electronic toys)
New budget tax slab
Under the new personal tax regime, six income slabs
have been reduced to six. The government has also increased the tax exemption
limits in some of these categories.
0-3 lakh- nil
3-6 lakh -5%
6-9 lakh - 10%
9-12 lakh-15%
12-15 lakh -20%
Above 15 lakh - 30%
People who are earning an income of Rs 9 lakh a
year will have to pay only Rs 45,000 a year as tax. That is 5% of their income
or a reduction of 25 percent from the Rs 60,000 they were paying earlier.
Health and family
welfare ministry
The Union health and family welfare ministry has
been allocated Rs 89, 155 crore in the Union budget FY24 marking a rise of a
meagre 12% when compared to the revised budget estimated for FY 23.-
For the upcoming financial year, Rs 86,175 crore
has been allocated to the department of health and family welfare while Rs
2,980 crore has been allocated for the department of health research.
- In the ongoing fiscal, the budget spent on the
department of health and family welfare is Rs 76, 370 while Rs 2,775 crore had
been marked for the department of health research.
Highlights:Key Numbers
FY24 food subsidy seen at 1.97 lakh crore
FY24 fertilizer subsidy seen at 1.75 lakh crore
FY24 divestment target at Rs 51000 crore
FY23 growth estimated at 7%
FY23 divestment target revised to Rs 50,000 crore
FY24 capital expenditure proposed at Rs 10 lk cr,
up 33%
Agri credit target increased to Rs 20 lk cr
To spend Rs 2200 crore for high value horticulture
FM raises PM Awas Yojana outlay by 66% to Rs
79,000 crore
Plan to spend Rs 15000 cr vulnerable tribal group
(PVTG) over 3 years
Outlay for 3rd phase of e-courts at Rs 7000 crore
Rs 35000 crore investment planned in energy security,
energy transition
Green Hydrogen Mission aims for output of 5MMT by
2030
Sugar cooperatives to get benefit of Rs 10,000
crore
Import tax on compounded rubber upped to 25% from
10%
Calamity related duty on cigarettes raised by 16%
Key takeaways on tax regime- New tax regime a default regime; will have
option
to choose old regime - No tax for income up to Rs
3 lakh/year - Will cut personal income tax slabs to 5 From 6 - Tax Exemtion up
to Rs 7 lakh/year is under new tax regime - To remove minimum Threshold of Rs
10,000 on TDS - Exempt tax on income of boards for housing, other activities -
Reduce highest surcharge rate to 25% from 37% in new tax regime.
Highlights: Nirmala Sitharaman lists 7
priorities
Inclusive development
Reaching the last mile
Infrastructure and investment
Unleashing the potential
Green growth
Youth power
Financial sector
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