Union Budget 2023-24

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Finance Minister Nirmala Sitharaman presented the Union Budget 2023, the fifth budget on February 01. With this budget India has marked the 75 years of Independence through Azadi ka Amrit Mahotsav. Apart from this, the budget also laid down a plan for next 25 years and refers the same period as Amrit Kaal.

Amrit Kaal

What is Amrit Kaal? Last year, during the 75th Independence Day celebrations, PM Modi had unveiled a new roadmap for the country for the next 25 years, and termed it as 'amrit kaal.' This is a reference to deriving the best in every field, making it imperative for everyone to make 'prayas' for this. The purpose of Amrit Kaal is to better the lives of citizens, lessen the developmental divide between villages and cities, and reduce government interference in public life. It also entails the development or acquisition of the latest technologies for the country.
The Union Budget 2022-23 seeks to complement macro-economic level growth with a focus on micro-economic level all-inclusive welfare. The budget aims to lay a strong foundation to steer the Indian economy towards Amrit Kaal for the next 25 years, from India at 75 years to India at 100.

Visions for Amrit Kaal

Vision includes technology-driven and knowledge-based economy with strong pubic finances, and a robust financial sector. To achieve this, Jan Bhagidari through Sabka Saath Sabka Prayas is essential. The budget adopts the following seven priorities. They complement each other and act as the 'Saptrishi' guiding through the Amrit Kaal.
  1. Inclusive Development
  2. Reaching the Last Mile
  3. Infrastructure and Investment
  4. Unleashing the Potential
  5. Green Growth
  6. Youth Power
  7. Financial Sector

During the Amrit Kaal, the government aims to attain the following vision:

  • Complementing the macro-economic level growth focus with a micro-economic level all-inclusive welfare focus.
  • Promoting digital economy & fintech, technology enabled development, energy transition, and climate action.
  • Relying on a virtuous cycle starting from private investment with public capital investment helping to crowd-in private investment.

Blueprint of Amrit Kaal

Four Priorities:
  1. PM GatiShakti
  2. Inclusive Development
  3. Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition, and Climate Action
  4. Financing of Investments

Other Highlights

  • Growth Rate: India’s economic growth in the current year (2021-22) is estimated to be 9.2% of GDP, the highest among all large economies.
    • The revised Fiscal Deficit in the current year is estimated at 6.9% of GDP (Gross Domestic Product) as against 6.8% projected in the Budget Estimates.
    • The Fiscal Deficit in 2022-23 is estimated at 6.4% of GDP, which is consistent with the broad path of fiscal consolidation announced last year to reach a fiscal deficit level below 4.5% by 2025-26.

Other major Announcements

  • Personal Income Tax:The finance minister provides major relief in the personal income tax. The tax structure in the new personal tax regime has been changed by reducing number of slabs to five and increasing the tax exemption limit to ₹ 3 lakh. This will provide major relief to all tax payers in the new regime.
  • Indirect Tax Proposal: The indirect tax proposals announced emphasized on simplification of tax structure with fewer tax rates so as to help in reducing compliance burden and improving tax administration.
  • Productivity Linked Incentives: 60 lakh new jobs to be created under the productivity linked incentive scheme in 14 sectors.
  • Parvatmala: It is a National Ropeways Development Program, Parvatmala to be taken up on PPP mode.
  • Skill Development: Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to empower citizens to skill, reskill or upskill through on-line training.
  • Saksham Anganwadi (New Generation Anganwadi): Integrated benefits to women and children through Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0.
  • PM-DevINE: New scheme Prime Minister’s Development Initiative for North-East Region (PM-DevINE) launched to fund infrastructure and social development projects in the North-East.
  • Sunrise Opportunities: Government contribution to be provided for R&D in Sunrise Opportunities like Artificial Intelligence, Geospatial Systems and Drones, Semiconductor and its eco-system, Space Economy, Genomics and Pharmaceuticals, Green Energy, and Clean Mobility Systems.
  • GIFT-IFSC: World-class foreign universities and institutions to be allowed in the GIFT City.
    • An International Arbitration Centre to be set up for timely settlement of disputes under international jurisprudence.
  • Digital Rupee: Introduction of Digital Rupee by the Reserve Bank of India starting 2022-23.
Disclaimer: The data displayed is excerpt of the budget presented by the Finance Minister in the Parliament. Infographics are taken from the Press Information Bureau, Government of India website.
Location: Nazira, Assam, India

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