01/02/2023
BUDGET 2023 | MANAGEMENT OUTLOOK/COMMENTARY/RESULT UPDATE/ GUIDANCE:
Here are key highlights of Budget 2023:
Five major announcements for Income Tax payer:
đđģ New tax regime to become the default tax regime
đđģNo tax on income up to Rs 7 lakh a year in new tax regime
đđģGovt proposes to increase income tax rebate limit from Rs 5 lakh to Rs 7 lakh in new tax regime
đđģ Four new slabs in new tax regime
đđģ No income tax till Rs 3 lakh income
New slabs under new tax regimes
Rs 0 -3 lakh Nil
Rs 3-6 lakh 5%
Rs 6-9 lakh 10%
Rs 9-12 lakh 15%
Rs 12-15 lakh 20%
Indirect Taxes:
đđģ 16% increase in NCCD on certain ci******es
đđģ45% of tax refunds were processed within 24 hours. The taxpayer portal received maximum of 72 lakh returns a day: Sitharaman
đđģNew cooperatives that commence manufacturing till March, 2024 to get lower tax rate of 15%
đđģBasic customs duty on crude, glycerine is proposed to be reduced to 2.5%.
đđģPropose to increase import duty on silver bars to align it with gold, platinum
đđģExtend customs duty cut on imports of parts of mobile phones by 1 year
đđģTo promote value addition in the manufacturing of TVs, customs duty on open cells of TV panels reduced to 2.5%
Fiscal position:
I reiterate my intention to bring the fiscal deficit below 4.5% of GDP by 2025-26: FM
FM Sitharaman retains fiscal deficit target of 6.4 pc in the Revised Estimate for FY23; cuts it to 5.9% for FY24
Gross market borrowing seen at Rs 15.43 lakh cr in FY24
Net market borrowing in FY24 seen at Rs 11.8 lakh crore
FY23 net tax receipts revised estimate stands at Rs 20.9 lakh crore
FY23 total expenditure revised estimate stands at Rs 41.9 lakh crore
FY23 revised estimate of total receipts other than borrowing at Rs 24.3 lakh crore
FY24 net tax receipts seen at Rs 23.3 lakh crore
Saving schemes
Maximum deposit limit for Senior Citizen Savings Scheme to be enhanced to Rs 30 lakh from Rs 15 lakh
Monthly Income Scheme limit doubled to Rs 9 lakh and Rs 15 lakh for joint accounts
One-time new saving scheme Mahila Samman Saving Certificate for women to be made available for 2 years up to 2025.
MSME
Revamped credit guarantee for MSMEs to take effect from Apr 1, 2023 with infusion of Rs 9,000 crore in corpus
New credit guarantee scheme for MSMEs to reduce cost of credit by 1 percentage point
Banking:
Govt moots amendments to Banking Regulation Act to improve governance in banks
Skill training:
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.
Clean Energy:
Rs 35,000 crores priority capital for the energy transition
Green credit programme will be notified under the Environment Protection Act
Battery storage to get viability gap funding.
Govt to support setting up of battery energy storage of 4,000 MwH
National Green Hydrogen mission with an outlay of Rs 19,700 crore will facilitate the transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports and make the country assume technology and market leadership
Gems and Jewellery:
To encourage the indigenous production of lab-grown diamonds, a research and development grant is to be provided to one of the IITs for five years
Proposal to review customs duty of lab-grown diamonds to be included in Part-B of Budget document
Aviation:
50 additional airports, helipods, water aero drones, advanced landing grounds will be revived to improve regional air connectivity:
Railways gets massive boost:
An outlay of Rs 2.4 lakh crore provided for railways in FY24. It's the highest ever highest ever allocation for Railways and is nearly nine times over FY14 allocations.
Ease of Doing Business:
đđģ PAN as common identifier for all digital systems of govt agencies
đđģ One stop solution for reconciliation and updating identity maintained by various agencies to be established using digi locker and Aadhaar as foundational identity
đđģCentral Processing Centre to be set up for faster response to companies filing forms under Companies Act
đđģFor business establishments required to have Permanent Account Number, the PAN will be used as a common identifier for all Digital Systems of specified government agencies.
đđģ More than 39,000 compliances have been reduced and over 3,400 legal provisions decriminalised to enhancing ease of doing business
đđģFinance Minister announces multiple measures to enhance business activity in GIFT City
Digital services
đđģ Scope of services in DigiLocker to be expanded
đđģ 100 labs for developing applications to use 5G services to be set up in engineering institutions
đđģ Labs will cover smart classrooms, precision farming, and healthcare applications.
đđģPhase 3 of E-courts projects to be launched with outlay of Rs 7,000 crore
đđģ Leading industry players will partner to developing, providing scalable options for health, agri and other sectors
Urban Development:
đđģ Govt to spend Rs 10,000 crore per year for urban infra development fund
đđģ Cities to be incentivised to improve creditworthiness for municipal bonds
đđģ Aim for 100% mechanical desludging of septics tanks and sewers in all cities and towns
Housing:
đđģ Outlay for PM Awaas Yojana enhanced 66% to over Rs 79,000 crore
Capex hiked 33%
đđģ Capital Expenditure increased 33 percent to Rs 10 lakh crore, which would be 3.3% of GDP, says FM
đđģCapital investment outlay to be 3.3% of GDP in FY24
đđģ Effective capital expenditure of Centre at Rs 13.7 lakh in FY24
Interest-free loan to states to continue
đđģ Centre to continue 50-year interest-free loan to state governments for one more year
Digital Library for Children, Adolescents Will Be Set Up:
đđģ National Digital library will be set up for children and adolescents
đđģ National Book Trust, Childrenâs Book Trust to replenish non-curricular titles in regional languages, English to digital libraries.
đđģ States to be encouraged to set up physical libraries for them at panchayat and ward levels and provide infrastructure for accessing the National Digital Library resources
Education:
đđģThree centres of excellence for artificial intelligence to be set up in top educational institutions.
đđģ157 new nursing colleges will be established in colocation with the existing 157 medical colleges established since 2014.
đđģ Eklavaya Model Residential Schools to be set up in the next 3 years. The Centre will recruit 38,800 teachers and support staff for 740 schools serving 3.5 lakh tribal students.
Agriculture:
đđģ An Agriculture Accelerator Fund will be set up to encourage agri-startups by young entrepreneurs
đđģ Digital public infrastructure to be developed for the agriculture sector
đđģThe agricultural credit target will be increased to Rs 20 lakh crores with a focus on animal husbandry, dairy and fisheries
đđģ Over the next 3 years, one crore farmers will get assistance to adopt natural farming.
đđģ 10,000 bio input resource centres will be set up
đđģ Fisheries: To launch sub-scheme under PM Mastya Sampada Yojna with outlay of Rs 6,000 crore to further enable activities of fishermen
đđģ Indian Institute of Millet Research will be supported as a centre of excellence
đđģ Have initiated computerisation for 63,000primary agricultural credit societies with an investment of Rs 2,516 crore, says FM.
đđģ In drought-prone central regions of Karnataka, central assistance of Rs 5,300 crore to be given to upper Badra project to provide sustainable micro-irrigation
Tribal Welfare:
đđģ Pradhan Mantri Primitive Vulnerable Tribal Group (PMPVTGS) mission is been launched to improve socio-economic condition on PMPVTGS
đđģ To improve social-economic condition of the Particularly Tribal Group 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 scheme in next 3 years
Budget follows seven priorities:
1. Inclusive development
2. Inclusive development
3. Reaching the last mile
4. Infra & investment
5. Unleashing the potential
6. Green growth
7. Youth and financial sector
