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regular-article-logo Tuesday, 05 March 2024
No tax on personal income up to Rs 7 lakh

Union Budget 2023 Live Updates: Sitharaman unveils 'blueprint for India@100'

Nirmala Sitharaman is the sixth minister in independent India to present five consecutive budgets, she presented the Budget in a paperless format for the third consecutive year

Our Web Desk Published 01.02.23, 10:45 AM
Union Finance Minister Nirmala Sitharaman with Ministers of State Bhagwat Kishanrao Karad and Pankaj Chaudhary and officials poses for photographs outside the Finance Ministry at North Block, in New Delhi, Wednesday, ahead of the presentation of the Union Budget 2023-24. Sitharaman will be presenting her fifth Union Budget in Parliament.

Union Finance Minister Nirmala Sitharaman with Ministers of State Bhagwat Kishanrao Karad and Pankaj Chaudhary and officials poses for photographs outside the Finance Ministry at North Block, in New Delhi, Wednesday, ahead of the presentation of the Union Budget 2023-24. Sitharaman will be presenting her fifth Union Budget in Parliament. PTI Photo

  • No tax on personal income up to Rs 7 lakh a year in new tax regime
  • New income tax regime to now be default tax regime
  • PAN will be used for common identifier for all digital systems of specified govt agencies: FM
  • Taxes on cigarettes hiked by 16 per cent: Sitharaman
  • Basic customs duty hiked on articles made from gold bars: Sitharaman
  • Govt proposes to reduce customs duty on import of certain inputs for mobile phone manufacturing: FM
  • Mobile phone output rose from 5.8 crore units in 2014-15 to 31 crore units last fiscal: FM
  • States to be allowed 3.5 per cent of GDP as fiscal deficit: FM Sitharaman
  • Govt to bring National Data Governance policy: FM Sitharaman
  • National Data Governance Policy will enable anonymised data; KYC process will be simplified by adopting risk-based system: FM
  • Capital outlay of Rs 2.4 lakh cr provided for Railways; highest-ever allocation since 2013-14: FM
  • Mahila Samman Savings Certificate for women for 2 years, deposits of up to Rs 2 lakh at 7.5 per cent interest rate
  • Centre to provide Rs 5,300cr assistance to drought-prone region of Karnataka
  • 50-year interest-free loans to states extended for 1 more year: FM
  • Budget 2023 focuses on seven priorities, called the 'Saptrishis guiding us through Amrit Kaal': Sitharaman These are: inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector
  • National Digital Library will be set up for children, adolescents: FM Sitharaman
  • PM Awas Yojana being enhanced by 66 per cent to Rs 79,000 crore, capital expenditure increased 33 per cent to Rs 10 lakh crore, which would be 3.3 per cent of GDP
  • PM Primitive Vulnerable Tribal Group scheme to benefit 3.5 lakh tribals: FM
  • Govt to launch a Rs 2,200 crore Aatmanirbhar clean plan programme: FM Sitharaman
  • Large potential to be tapped in tourism; promotion of tourism to be taken up in mission mode: FM
  • Aadhar CoWin helped improve global profile: Sitharaman
  • First budget of Amrit Kaal, Economy on right track: Sitharaman
  • Indian economy has become more formalised as witnessed by significant enhancement in digital payments: FM Sitharaman
  • Per capita income has increased to Rs 1.97 lakh: FM Sitharaman
  • India's growth at 7 pc in current fiscal highest among major economies; Indian economy on right track: Nirmala Sitharaman
  • Indian economy has increased in size from being 10th to 5th largest in last nine years: FM
  • In times of global challenges, G-20 presidency gives us opportunity to strengthen India's role in global order: FM Sitharaman
  • We have made significant progress in many Sustainable Development Goals (SDGs), says FM
  • Govt implementing scheme to supply free grains to poor under PMGKAY with expenditure of Rs 2 lakh cr from Jan 1: FM Sitharaman
  • We ensured that no one went hungry during pandemic by providing free foodgrains to 80 cr poor people: FM
  • Finance minister says this budget hopes to build on foundation of previous budget and blue print for India@100
  • In 75th year of Independence, world has recognised India as a bright star: FM
  • The world appreciates India's achievements, says FM
  • Finance Minister Niramala Sitharaman presents Union Budget 2023-24
  • Union Cabinet approves Budget for 2023-24, reports PTI

Finance Minister Niramala Sitharaman is presenting the Union Budget in Parliament on Wednesday, the last full-fledged budget exercise for the current government ahead of the Lok Sabha elections in early 2024.

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Union Budget 2023-24 is widely expected to boost spending towards policies that create jobs, leave more money in hands of the common man and boost manufacturing while increasing tax revenues. "India’s Budget will not only try to fulfil the hopes and dreams of the common man of India, but the ray of hope which the world is seeing, will shine more brightly,” Prime Minister Modi said on Tuesday.

Sitharaman is the sixth minister in independent India to present five consecutive budgets, joining a select league of senior leaders like Manmohan Singh, Arun Jaitley and P Chidambaram. Her budget for the fiscal year starting April 2023 is her fifth straight since 2019.

Other ministers who have presented five straight annual financial statements include Arun Jaitley, P Chidambaram, Yashwant Sinha, Manmohan Singh and Morarji Desai.

On Wednesday, she posed for the traditional 'briefcase' picture outside her office along with her team of officials before heading to meet the President. She, however, was holding a digital tablet instead of a briefcase. With the tablet carefully kept inside a red cover with a golden-coloured national emblem embossed on it, she went straight to Parliament after meeting President Droupadi Murmu at Rashtrapati Bhawan.

She will be presenting the Union Budget 2023-24 in a paperless format just like the previous two years. Here are the key numbers to watch for in Budget 2023-24

  • Fiscal Deficit: The budgeted fiscal deficit, which is the difference between the government expenditure and income, for the current fiscal ending March 2023 is 6.4 per cent, against 6.71 per cent in the last fiscal. The number for 2023-24 would be in focus as it is widely expected that the government would open its purse strings in an election year.
  • Disinvestment/Privatisation: In current fiscal year the budgeted disinvestment target is likely to be missed, like the past four years. It is expected the government would set a realistic target for next fiscal.
  • Capital Expenditure: The government's planned capital expenditure for this fiscal year is budgeted at Rs 7.5 lakh crore, higher than Rs 5.5 lakh crore in the last fiscal. The government has been pushing infrastructure creation and also incentivising states to step up capex.
  • Tax Revenue: The Budget had pegged direct and indirect tax mop-up at Rs 14.20 lakh crore and Rs 13.30 lakh crore for current fiscal, taking the total figure to Rs 27.50 lakh crore. The government's tax revenues are expected to overshoot the budget estimates by about Rs 4 lakh crore on buoyant income tax and customs duty.
  • Borrowing: The government's gross borrowing budget was at Rs 14.31 lakh crore in current financial year ending March 31. The government borrows from the market to fund its fiscal deficit and with tax revenues seeing an uptick, the government has cut its gross borrowings by Rs 10,000 crore to Rs 14.21 lakh crore. The borrowing number would be watched by the market, especially on the back of expected higher capital expenditures to boost growth.
  • Nominal GDP: India's nominal GDP growth (real GDP plus inflation) in the current fiscal is estimated to be 15.4 per cent. The numbers for next fiscal would be lower as the inflation has come down. The Budget is expected to give an outline on the nominal GDP growth numbers. Real GDP growth in current fiscal is projected at 7 per cent and come down to 6-6.5 per cent in the next.
  • Outlays: Spotlight would also be on spending on key schemes, like NREGA, as well as key sectors like health and education.

Baseline GDP growth rate

The Economic Survey tabled in Parliament on Tuesday forecast a baseline GDP growth rate of 6.5 per cent for 2023-24, which is lower than the 7 per cent growth expected in the current financial year.

In its projections, the Survey said the growth next fiscal could be in the range of 6 per cent to 6.8 per cent, depending on global developments. Analysts described the projections as optimistic as data suggests the growth rate is losing its momentum as the current fiscal comes to an end.

The Survey projected headline inflation at 6.8 per cent in FY23, outside its comfort zone of 2 per cent to 6 per cent. It also noted that poor global growth may widen India’s trade deficit and make the rupee depreciate.

The nominal GDP growth, which is the basis for calculating the fiscal deficit, has been forecast at 11 per cent for the next fiscal. India’s chief economic adviser V.A. Nageswaran, who prepared the report, said inflation was likely to be “well behaved” in the next fiscal, barring headwinds.

Ray of hope

On Tuesday, Prime Minister Narendra Modi said the Budget would not only try to fulfil the hopes and dreams of the common man but also be a ray of hope for the world. Addressing reporters before the first day of the Budget Session of Parliament, the Prime Minister said, "In today’s global situation, not only India’s but the whole world’s attention is on India’s Budget. In the unstable economic situation of the world, India’s Budget will not only try to fulfil the hopes and dreams of the common man of India, but the ray of hope which the world is seeing, will shine more brightly.”

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