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Union Budget 2023 Highlights: Change in income tax structure; railways and capex get booster

Union Budget 2023 Highlights: Finance Minister Nirmala Sitharaman presented the General Budget of the Government of India in Parliament on Wednesday, 1 February. The government announced capital expenditure of Rs 10 lakh crore in the next financial year, which is 33 per cent over the previous year. The country's fiscal deficit was announced to remain at 5.9% of GDP in the next financial year.

By: Priyanka Verma  Pardaphash Group
Updated:
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Union Budget 2023 Highlights: Change in income tax structure; railways and capex get booster

Union Budget 2023 Highlights: Finance Minister Nirmala Sitharaman presented the General Budget of the Government of India in Parliament on Wednesday, 1 February. The main attraction of the budget was the announcement of exemption in income tax. The Finance Minister said that under the new tax regime, now people with an annual income of Rs 7 lakh will not have to pay any income tax. Till now this limit was 7 lakhs. Apart from this, the Finance Minister has presented the biggest ‘Rail Budget’ so far. In the budget, Rs 2.40 lakh crore was announced for the railways, which is almost nine times more than the rail budget of FY 2014.

Also, the government announced capital expenditure of Rs 10 lakh crore in the next financial year, which is 33 per cent over the previous year. The country’s fiscal deficit was announced to remain at 5.9% of GDP in the next financial year. Let us see the main highlights of the budget-

Budget 2023: Highlights of Finance Minister Nirmala Sitharaman’s speech-

Zero income tax till annual income up to 7 lakhs

The Finance Minister gave a big relief to the middle class people in the budget. Those earning up to 7 lakhs annually will no longer have to pay any income tax. However, this facility will be available only to taxpayers opting for the new tax system. Under the old tax regime, the tax exemption limit still remains at Rs 5 lakh.

Changes made in tax slab

The government has also made changes in the income tax slabs under the new tax regime. New Tax Rate of Personal Income Tax Now Nil for annual income of Rs 0-3 lakh, 5% for Rs 3 to 6 lakh, 10% for Rs 6 to 9 lakh, 15% for Rs 9 to 12 lakh, Rs 12 to 15 lakh 20 % and above 15 lakh will be 30%.

Biggest ‘Rail Budget’ ever

Finance Minister Nirmala Sitharaman announced Rs 2.40 lakh crore for the Railways, which is the biggest ‘Rail Budget’ ever. Also, this is about 9 times the money given to the Railways in the year 2013-14.

5.93 lakh crore defense budget announced

Finance Minister Nirmala Sitharaman announced a defense budget of 5.93 lakh crores today. This is about 5.67 percent more than last year’s defense budget. This time in the defense budget, the government has laid great emphasis on the purchase of new weapons, modernization of the armed forces, infrastructure related to the defense sector and ‘self-reliant India’.

Fiscal deficit will remain at 5.9% of GDP in the next financial year

Finance Minister Nirmala Sitharaman projected the country’s fiscal deficit or fiscal deficit to be at 5.9% of GDP during the next financial year.

10 lakh crore budget for capital expenditure

In the budget, the government announced a provision of 10 lakh crores on capital expenditure or capital expenditure during the next financial year, which is about 33 percent more than last year. Also, it is 3.3 percent of the country’s total GDP. Last year, a provision of 7.5 lakh crore was made for this in the budget. Over the last few years, the budget on capital expenditure has increased like this-

2023-24 – 10 lakh crore

2022-23 – 7.5 lakh crore

2021-22 – 5.4 Lakh Crore

2020-21 – 4.39 Lakh Crore

GDP growth rate estimated at 7% in FY23

Finance Minister Nirmala Sitharaman during the budget speech estimated the country’s GDP growth rate to be at 7% in the current financial year. He said that this is the highest among the major economies of the world and this is despite the challenges of the Corona pandemic. The Finance Minister said that the Indian economy is moving in the right direction. The country is moving towards a golden future.

‘These seven sages will show the way in immortality’

Nirmala Sitharaman emphasized on 7 main priorities in the budget. He named these 7 priorities as ‘Saptarshi’ and said that these Saptarshis will show us the way in Amritkal. These are the 7 priorities-

1. Inclusive Growth

2. Reaching the Last People

3. Infrastructure and Investment

4. Unleash Potential

5. Green Development

6. Youth power

7. Financial Sector

Government will issue Women’s Honor Savings Certificate

Under the Amrit Mahotsav of Independence, the Finance Minister announced to issue Mahila Samman Bachat Patra in the budget. Its duration will be for two years and under these two lakh rupees can be deposited in the name of a woman or girl child for two years. On this, 7.75% interest will be given annually by the government.

India will be made a global food center

Nirmala Sitharaman said that we are far ahead of other countries in the production of food grains. India is at the forefront of popularizing millets, which are very beneficial for health and nutrition. He said that the Hyderabad center would be made a center of excellence to make India a global food hub.

Horticulture schemes will get 2200 crores

The Finance Minister announced to give Rs 2200 crore for horticulture schemes in the budget.

Vishwa Karma Kaushal Samman Yojana announced

The Finance Minister announced the PM Vishwa Karma Kaushal Samman package. Through this, efforts will be made to improve the quality of artisans and craftsmen, to take their products to the mass market and to link them with the MSME value chain.

National Digital Library will be made for students

Finance Minister Nirmala Sitharaman has set up a national digital library for children and adolescent girls in the budget. Through this, the damage caused to the education of children during the Corona epidemic will be compensated.

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