Union Budget 2023-24 was presented today, focusing on the vision of Amrit Kaal, a blueprint for an empowered and inclusive economy. This budget is driven by four transformative opportunities and constitutes the foundation of Amrit Kaal. With a three-pronged focus on economic growth, job creation, and infrastructure, the government aims to take India to new heights.
Capital Investment and GDP
The capital investment outlay has increased by 33% to Rs. 10 lakh crore, while effective capital expenditure is estimated to be 4.5% of GDP. The fiscal deficit is estimated to be 5.9% of GDP in BE 2023-24, and real GDP is expected to grow at 7% in FY 2022-23, with exports set to grow at 12.5% in FY 2023.
Key Initiatives and Programs
The Union Budget 2023-24 has a new initiative called the Atmanirbhar Clean Plant Program, which will receive funding of ₹ 2200 crore. The goal of this program is to improve the availability of quality planting material for high-value horticultural crops. Additionally, the budget plans to establish 157 new nursing colleges and increase the allocation for the PM Awas Yojana by 66%. Furthermore, the budget includes a record-high capital outlay of Rs. 2.40 lakh crore for the Railways.
Youth Training and Skill Development
A new Urban Infrastructure Development Fund (UIDF) will also be established through priority sector lending shortfall. In contrast, 500 new ‘Waste to Wealth’ plants under the Gobardhan Scheme will be established at a total investment of Rs 10,000 crore. 10,000 Bio-input Resource Centres will be set up, creating a national-level distributed micro-fertilizer and pesticide manufacturing network.
Personal Income Tax Reliefs
The budget also includes the launch of Mantri Kaushal Vikas Yojana 4.0, which aims to provide youth training and skill development opportunities. The budget provides substantial relief for personal income tax, with new slabs announced under the new tax regime. A resident individual with a total income of up to ₹ 7 lakh will not have to pay any income tax under the new tax regime. A standard deduction of ₹ 50,000 will also be available to salaried individuals.
Proposals for Cooperative Sector
The new tax regime for individuals and HUF will be the default regime. The limit for tax exemption on leave encashment on retirement for non-government salaried employees has been increased to ₹ 25 lakh. The budget also includes several proposals for the cooperative sector aimed at promoting exports, boosting domestic manufacturing, enhancing domestic value addition, encouraging green energy and mobility, and reducing the number of basic customs duty rates on goods other than textiles and agriculture from 21 to 13.
Comprehensive vision for an empowered and inclusive economy
Overall, the Union Budget 2023-24 presents a comprehensive vision for an empowered and inclusive economy focused on driving economic growth, job creation, and infrastructure development. The initiatives and proposals outlined in this budget aim to create a better future for all citizens and take India to new heights.