Major Highlights of Union Budget 2023

Here are the major highlights of the Union Budget 2023:

While presenting her fifth Union Budget, FM Nirmala Sitharaman said, "During the COVID pandemic, we ensured that nobody goes to bed hungry with a scheme to supply free foodgrains to over 80 crore persons for 28 months." She added that Indian economy is on the right track and heading towards a bright future.

• The efforts since 2014 have ensured all citizens, a better quality of life & life of dignity. The per capita income has more than doubled to Rs 1.97 lakh. In these 9 years, the Indian economy has increased in size from being 10th to 5th largest in the world.

• Ambitious road map for National Green hydrogen mission, green hydrogen prices to match grey sources between 2026-2030 (USD 1.7 to 2.4 /kg against current USD 5/kg).

• Our vision for the Amrit Kaal includes a technology-driven and knowledge-based economy, with strong public finances and a robust financial sector. To achieve this 'janbhagidari' through 'sabka saath, sabka prayaas' is essential.

• In these times of global challenges, India’s G20 presidency gives us a unique opportunity to strengthen India’s role in the world economic order: Finance Minister Nirmala Sitharaman.

• The world has recognized India as a bright star, our growth for the current year is estimated at 7.0%, this is the highest among all major economies, in spite of the massive global slowdown caused by the pandemic and the war.

• Promotion of tourism will be taken up on mission mode.

• Priorities of Budget 2023-24 - inclusive development, reaching the last mile, infra & investment, unleashing the potential, green growth, youth, and financial sector.

Announcements for Agriculture sector in budget 2023

• An Agriculture Accelerator Fund will be set up to encourage agri-startups by young entrepreneurs.

• We are the largest producer and second-largest importer of millet.

• Indian Institute of Millet Research will be supported as a center of excellence.

• The agricultural credit target will be increased to Rs 20 lakh crores with a focus on animal husbandry, dairy, and fisheries.

• Over the next 3 years, one crore farmers will get assistance to adopt natural farming. 10,000 bio-input resource centers will be set up.

• The Indian economy has become more formalized as witnessed by a significant enhancement in digital payments.

• The country offers immense attractions for domestic as well as foreign tourists. There is a large potential to be tapped into tourism. The sector holds huge opportunities for jobs and entrepreneurship for youth in particular.

• 157 new nursing colleges will be established in core locations. 150 medical colleges.

• Capital investment outlay being increased by 33% to Rs 10 lakh crores, which would be 3.3% of GDP

• To improve the social-economic condition of the Particularly Tribal Groups PMPBTG Development mission will be launched to saturate PBTG habitations with basic facilities. Rs 15,000 cr to be made available to implement the scheme in the next 3 years.

• 50-year interest-free loan to State governments extended for one more year.

• Capital outlay of Rs 2.40 lakh cr for Railways in next financial year.

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

• Rs 35,000 crores priority capital for the energy transition; Battery storage to get viability gap funding.

• The government will launch Pradhan Mantri Kaushal Vikas Yojana 4.0.

• To skill the youth for international opportunities, 30 Skill India International Centres will be set up across different States.

• Elevated domestic prices for cereal and spices are projected in the near term. Milk prices are also expected to spike, and inflation is expected to be prolonged during most of 2023.

• Credit guarantee for MSMEs - Rs 9000 crores infused in the corpus which will allow additional collateral-free credit of Rs 2 lakh crores to be effective from 1st April 2023.

• FY-2024 fiscal deficit target at 5.9% of GDP

• The revised fiscal deficit is at 6.4% of the GDP

• To bring the fiscal deficit below 4.5% of GDP by 2025-26

Income tax 

• The average processing time for income tax returns was reduced from 93 days to 16 days. The government intends to roll out next-gen common IT Return forms and strengthen the grievance redressal mechanism.

• Increase rebate limit to Rs 7 lakh on personal income tax

• It introduced 2020, the new personal income tax regime with 6 income slabs, starting from Rs 2.5 Lakhs. I propose to change the tax structure in this regime by reducing the number of slabs to 5 and increasing the tax exemption limit to Rs 3 Lakhs.

• Personal Income Tax: "The new tax rates are 0 to Rs 3 lakhs - nil, Rs 3 to 6 lakhs - 5%, Rs 6 to 9 Lakhs - 10%, Rs 9 to 12 Lakhs - 15%, Rs 12 to 15 Lakhs - 20% and above 15 Lakhs - 30%, " says Union Finance Minister Nirmala Sitharaman.