Highlights of union budget 2023-2024

On Wednesday Finance Minister Nirmala Sitharaman presented the first budget of ‘Amrit Kaal’  for the year 2023-2024. 

The budget targeted youth, women, farmers, OBCs, scheduled castes and scheduled tribes. “The current economic growth of India is estimated to be 7% and is highest among all the major economies” - said by the Finance Minister. 

G20 emphasised on Vasudhaiva Kutumbakam to address global challenges. She mentioned the achievements of the government and talked about various yojanas. 

The vision of Amrit kaal include-technology driven and knowledge based economy with strong public finances and robust financial sector.

Economic agenda to achieve this focuses on 3 things-

1. Facilitating ample opportunities for citizens 

2. Providing strong impetus to growth and job creation 

3. Strengthening macro economic stability

The budget is divided into seven priorities or saptarishi complimenting each other. 

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

Let’s shortly look into each of these-

1. Inclusive development- 

• This point aims at Women, farmers and  Priority to the underprivileged. Main focus is on Jammu &  Kashmir and northeast states. 

• Helping farmers by the support of agritech industries and startups. Agriculture access accelerator fund will be set up to encourage agriculture startups by young entrepreneurs in rural areas.Horticultural crops are promoted. Modern technology will be used to increase productivity. 

• Indian institute of millet research Hyderabad will be supported for research and best practices at international level.

• The Public private partnership approach will be incorporated.

• A new sub scheme is added under the current scheme i.e. PM Matsya Sampada Yojana which focuses on fishermen, small entrepreneurs and vendors to improve value chain efficiencies and expand the market. 

• For marginal farmers and other marginalized sections, the government is promoting Cooperative based economic development.

• Government also plans to implement Massive decentralized storage capacity, helping the farmers to sell the crops at appropriate time.

• Digital libraries and physical libraries will be set up for children and adolescents. 

2. Reaching the last mile-  

• Pradhan Mantri PVTG scheme  is launched for primitive vulnerable tribal group development missions. 

• Poor prisoners will be provided with required financial support for penalty and bail. Central assistance of 5300 crore will be given to improve the condition of drought prone areas in Karnataka. 

3. Infrastructure and investment- 

• The capital investment outlay contributes to 3.3% of GDP. 

• The government plans to continue the 50 year interest free loan to the state government for one more year.

•  Regional air connectivity will be improved.

• The concept of urban planning is introduced Sustainable cities for tomorrow- urban planning transforms our cities to sustain for tomorrow. 

• Online training platform I got karma yogi to upgrade skills. 

• 3400 legal provisions have been decriminalized. Jan Vishwas Bill is introduced. “Make AI in India and make AI work for India” three centers for excellence will be set up in top educational institutes. 

4. Unleashing the potential- 

• National data governance policy access to anonymised data. 

• Kyc process will be simplified.Digilocker service and aadhar will be used as foundational identity. 

• The Pan will be used as a common identifier for all digital systems of specified government agencies. 

• For developing 5G services 100 labs will be set up in engineering institutions.  

• To encourage Lab grown diamond seeds and to reduce input dependency research and grants will be provided to one of the IITS. 

5. Green growth- 

• Reduce the dependency on fossil fuels imports. 

• Renewable energy evacuation- 13 gigawatt renewable energy from ladakh will be constructed. 

• Green credit program for encouraging behavioral change. 

• Gowardhan scheme- 500 new ways to create new plants from waste. 200 compressed biogas plants. 

Next three years one crore farmers will adopt natural farming. MISHTI (mangrove initiative for shoreline habitats and tangible) will be taken for mangrove plantation along the coastal line. Coastal shipping will be promoted. Vehicle replacement-Replacing the old polluting vehicles of central government and ambulances is a good step for green India.

6. Youth power-

 Government plans to promote job creation and scale business skills. 

Prandhan Mantri Kaushal Vikas yojana 4.0 will be launched to skill lakhs of students for job training. Emphasizing on encouraging coding, AI, robotics and 3D printing.

Tourism- dekho aapna desh domestic tourism over international tourism is promoted.

States will be expected to set up unity malls in the capital city or the topmost tourist spot encouraging their traditional art and handicrafts.

7. Finance- 

• Revamped scheme will take effect from 1st April 2023. In which cost of credit is reduced to 1%. 

• A national financial registry will be set up to facilitate credit flow, promote financial inclusion and foster financial stability. 

• Public consultation will be brought to the process of regulation making.

• Setting up a single window for easy registrations and approval.

• Data embassy will be set up for countries looking for digital continuity solutions.

• Digital payment saw an increase of 76% in 2022 and 91% in value. 

• New small saving scheme- Mahila Samman Saving Certificate will be made available for a two year period from march 2025.

• Senior citizens deposit limit is increased from 15 lakh rupees to 30 lakh rupees. 

• For a monthly income account the limit is increased to 9 lakh rupees for a single account. And 9-15 lakh rupees for a joint account.

Personal income tax

• Rebate- rebate limit is increased to 7 lakh means people with an annual income upto 7 lakh pay no tax. 

• For middle class individuals.

0-3 lakhs nil 3-6 lakhs 5% 6-9 lakhs 10% 9-12 lakhs 12% 12-15 lakhs 20% Above 15 lakhs 30%

• Highest surcharge rate is reduced from 37% to 25% in the new tax regime

• The limit of tax exemption on leave and catchment on retirement of non-government salaried employees is increased to 25 lakh rupees.

Citizens can go with the new as well as old tax regime. These are all the main highlights on union budget 2023-24.