Union Budget 2023: 10 Key Highlights by Nirmala Sitharaman

Nirmala Sitharaman, India’s Finance Minister, released a budget proposal for 2023, which emphasised the vision of a developed country. To support Prime Minister Narendra Modi’s “Amrit Kaal” for India’s bright future, Finance Minister Nirmala Sitharaman stated, “This is the first budget in Amrit Kaal, this budget hopes to build on the foundation laid in the previous budget and the blueprint laid for [email protected], we envision a prosperous and inclusive India in which the fruits of development reach all.”  The Union budget 2023 predictions regarding the revision of income tax slab partially came true. In light of a better and developed India, let’s look at the key highlights of the Union Budget 2023.

Key Takeaways

• New Tax Regime
• PMAY Budget Increased
• New Savings Schemes for Senior Citizens and Women 
• Launch of Pradhan Mantri Kaushal Vikas Yojana 

Key Highlights of Budget 2023

1. New Income Tax Slabs Under the New Tax Regime

The new income tax regime will now be the default, but taxpayers can opt to keep the old regime.

• Up to Rs 3 lakh income, there is 0% or NIL tax
• From Rs 3 lakh to Rs 6 lakh the tax rate is 5%
• From Rs 6 lakh to Rs 9 lakh the tax rate is 10%
• From Rs 9 lakh to Rs 12 lakh the tax rate is 15%
• From Rs 12 lakh to Rs 15 lakh the tax rate is 20%
• Above Rs 15 lakh the tax rate is 30%
• The rebate limit for paying income taxes has been raised to Rs 7 lakh per year. This would be facilitated by the new tax regime, which would become the default regime.

2. New Savings Schemes for Women and Senior Citizens 

• The ‘Mahila Samman Saving Certificate’ will have a maximum investment limit of Rs 2 lakh. There will also be a partial withdrawal option.
•  The ‘Mahila Samman Saving Certificate’ is a one-time small savings scheme. It will be available for a period of two years. The interest rate has been set at 7.5% per year.
• Under the Senior Citizen Savings Scheme the maximum investment limit increased from Rs 15 lakh to Rs 30 lakh. The scheme also offers assured interest of Rs 8 percent per annum. The interest is paid quarterly.

3. 66% Increase in PM Awaas Yojana (PMAY)

• The overall expenditure outlay for the Pradhan Mantri Awas Yojana or the mission for ‘housing for all’ has been increased by 66% for the fiscal year 2024 to Rs 79,000 crore.

4. A Relief for Agriculture 

• 11% hike in agriculture credit target to Rs 20 lakh crore for next fiscal year.
• 2% interest subsidy to ensure farmers get short-term loans of up to Rs 3 lakh at an effective rate of 7% per annum.
• The RBI has decided to increase the collateral-free agriculture loan limit from Rs 1 lakh to Rs 1.6 lakh

5. Health and Family Welfare Ministry 

• The Union budget for FY24 includes Rs 89,155 crore for the Union Ministry of Health and Family Welfare, an increase of 12% from the FY 23 revised budget projection.
• The department of health and family welfare will receive Rs 86,175 crore for the upcoming fiscal year, while the department of health research will receive Rs 2,980 crore.
• The budget for the department of health and family welfare for the current fiscal year is Rs 76,370 while Rs 2,775 crore was set aside for the department of health research.

6. An Increase in Capital Investment

• Investment and job creation continues to be the government’s top priority
• Capital investment outlay is being increased by 33 percent to Rs 10 lakh crore, which would be 3.3 percent of GDP.

7. Free Food Grain Scheme Under PM Garib Kalyan Anna Yojana

• Supply of free food grains to priority households for the next one year
• Under PM Gaarib Kalyan Anna Yojana, the expenditure of Rs 2 lakh crore will be borne by the government. 

8. PAN to Become a Common Identifier

• For business establishments required to have a Permanent Account Number, the PAN will be used as a common identifier for all Digital Systems of specified government agencies, said the finance minister.

9. Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0

• Launch of Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0. The new programme will provide funding for programmes in 3D printing, coding, artificial intelligence, robotics, etc.
• Selection of 50 locations for their development as prime tourist spots of the country.
• Each state will establish a Unity Mall to market and sell One District, One Product (ODOP), GI-tagged goods, and handicraft items.

10. What’s Cheaper and What’s Costlier?

a. Cheaper

1. Duty cut on the import of certain inputs for mobile phone manufacturing
2. Customs duty on parts of open cells of TV panels has been cut to 2.5%
3. Customs duty on shrimp feed to be reduced to promote exports
4. Basic customs duty on seeds used in the manufacturing of lab-grow diamonds to be cut

b. Costlier

1. Taxes on cigarettes hiked by 16%, a hike after nearly 3 years
2. Basic customs duty hiked on articles made out of gold bars
3. Customs duty on kitchen electric chimney raised to 15% from 7.5%
4. Basic import duty on compounded rubber increased from 10% to 25%
5. Fully imported luxury cars and EVs to cost more as govt raises custom duty from 60% to 70%

The Union Budget 2023 proposed benefits for the citizens and the development of the country, and the allocation of funds for infrastructural development of the country indicates the economic stability of the country post-pandemic. The government is set to improve and strengthen the economy and future of India. 

Final Word

The above are some of the key highlights of the Union Budget 2023 It was a growth-oriented budget with the aim to continue economic growth and recovery with a special focus on infrastructure, education, healthcare, agriculture and startups. Moreover, it announced financial assistance of Rs. 1 lakh crore for states to revitalise the economy.