Budget 2023: Check out key highlights from FM Nirmala Sitharaman’s speech

The Union Budget for the financial year 2023-2024 draws a blueprint for India@100 envisioning a prosperous and inclusive India, said Finance Minister Nirmala Sitharaman while presenting the last full budget of the present government.

“In the 75th year of our Independence, the world has recognised the Indian economy as a ‘bright star’,” the finance minister said in her Budget 2023 .

From sops to boost domestic production, to encouraging innovative start-ups in rural areas, the finance minister proposed a vision of ‘Amrit Kaal’ highlighting 7 priorities of the government in the next financial year. These include Inclusive Development, Reaching the last mile, Youth Power, Financial Sector, Green Growth, Unleashing the potential and Infrastructure and Investment.

Here are the highlights of the Union Budget 2023:

Economy:

• Nominal GDP for BE 2023-2024 is projected at Rs 3,01,75,065 crore assuming 10.5% growth over the estimated Nominal GDP of Rs 2,73,07,751 crore as per the First Advance Estimates of FY 2022-23

• FY23 Revised Fiscal Deficit target retained at 6.4% of GDP

• FY24 Fiscal Deficit Target cut to 5.9% of GDP 

• FY24 gross market borrowing estimated at Rs 15.43 lakh crore

• FY24 net market borrowing estimated at Rs 11.8 lakh crore

• FY24 net tax receipts estimated at Rs 23.3 lakh crore

• Revised estimate for FY23 net tax receipts at Rs 20.9 lakh crore

• Revised estimate for FY23 total expenditure at Rs 41.9 lakh crore

• Revised estimate for FY23 of total receipts other than borrowing at Rs 24.3 lakh crore

Personal Income Tax:

• No changes made in the old tax regime

• New tax regime to be made the default tax regime

• To increase income tax rebate limit from to Rs 7 lakh from Rs 5 lakh in the new tax regim

• New slabs under new tax regimes:

   Rs 0-3 lakh: Nil

   Rs 3-6 lakhs: 5%

   Rs 6-9 lakhs: 10%

   Rs 9-12 lakhs: 15%

   Rs 12-15 lakhs: 20%

   Rs Over 15 lakhs: 30%

• To reduce the highest surcharge rate to 25% from 37% in the new tax regime

• To cap deductions from capital gains on investments in residential houses to Rs 10 crore

Indirect Taxes:

• To increase National Calamity Contingency Duty (NCCD) on certain cigarettes to 16%

• New cooperatives that will commence manufacturing till March 2024 will get a lower tax rate of 15%

• To reduce basic customs duty on crude and glycerine to 2.5%

• To raise import duty on silver bars to align it with gold, platinum

• Customs duty cut on imports of parts of mobile phones extended by 1 year

• To reduce basic customs duty on parts of open cells of TV panels to 2.5%

Clean Energy

• Announcement of Rs 35,000 crores priority capital for the energy transition

• Green credit programme to be notified under the Environment Protection Act

• To support setting up of battery energy storage of 4,000 MwH

Saving schemes

• To enhance maximum deposit limit for Senior Citizen Savings Scheme to Rs 30 lakh from Rs 15 lakh

• To double Monthly Income Scheme limit to Rs 9 lakh and to Rs 15 lakh for joint accounts

• Mahila Samman Saving Certificate, a one-time new saving scheme for women, will be made available for 2 years up to 2025

MSME

• Infusion of Rs 9,000 crore corpus to revamp Credit Guarantee Scheme for MSME. New scheme to aid Rs 2 lakh crore credit flow in MSME and cut interest on MSMSE loans by 1%

Skill Development

• To launch Pradhan Mantri Kaushal Vikas Yojana 4.0

• 30 Skill India International Centres to be set up across different states

Aviation

• To develop 50 additional airports, heliports, water aero drones to improve regional air connectivity

Railways 

• Highest ever outlay of Rs 2.4 lakh crore for railways in FY24

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