According to the Article 112 of the Indian Constitution, it is mandatory to present a budget at the Parliament before the beginning of every financial year. In the constitution of India no term “Budget” has been used. In constitution it is referred as the Annual financial Statement. The budget of India is prepared by the Nodal body Budget Division of the Department of Economic affairs in the finance ministry. Our Finance Minister Nirmala Sitharaman has announced last 5th Union Budget, 2023 of her tenure. She has termed the Union Budget of 2023 as the budget of ‘Amrit Kaal’. This big day of February 1, 2023 was eagerly awaited by every Indian, their eyes and ears opened to the proposal of the Union budget, 2023. The aims and concerns of the Union Budget, 2023 are to promote economic growth. Our Finance Minister has specifically addressed that “India’s economy is on track despite Covid-19”. But is this budget really in the interest of the country? Does this Union Budget, 2023 ensures effective and efficient allocation of resources? Does it focused to Reduce unemployment and poverty?
This Union Budget, 2023 proposed incentives to boost investment in infrastructure and productive capacity. Also, increased Capital investment by 33.4% to Rs. 10 Lakh crore.1. Union budget 2023 is the first budget in ‘Amrit Kaal’, stated by the Finance Minister. This budget, 2023 is expected to build on the footing laid down in the last budgets and the blueprint prepared for India@100. The word Amrit kaal is regarded as the most fortunate time to start any work. The Indian economy is on the right track and heading towards a bright future. The Finance Minister Nirmala Sitharaman stated, “We ideate a prosperous successful and inclusive India in which the fruits of development should reach all sections of the country. At this critical time of global challenges, including the war in Ukraine, India’s G20 presidency provides us with a unique opportunity to strengthen India’s role in the world economic order
2. SAPTARISHI-7:- The Finance Minister Nirmala Sitharaman has pronounced 7 fundamental priorities of Union budget, 2023-
a) Inclusive development – SABKA SATH SABKA VIKAS
b) Reaching the last mile – it means providing benefits to each sector of the nation.
o Bharat Shri ( Shared Repository of Inscriptions) to be setup for storage of ancient inscriptions. For this database online EPIGRAPHY MUSEUM will be established. EPIGRAPHY is the study of the texts i.e. ancient or historical in nature.
o In first phase, 1 lakh inscriptions to be digitized.
c) Infrastructure and investment.
d) Unleashing the potential – TRUST BASED GOVERNANCE
o E-Courts to be launched for effective administration of justice. Total budget of Rs. 7 thousands Crore has been announced for online set up of E-Courts
o National Data Governance has been proposed to enable access to save or store data for future research by Start-ups and academics.
o Relief to MSMEs affected due to Pandemic
e) Green growth – Environmental free; 500 new waste to wealth plants; Amrit Dharobar to be implemented and Atmanirbhar Clean Plant Programme etc.
f) Youth Power.
g) Financial Sector.
3. Vision for AmritKaal are-
a) More opportunities for Indian citizens with major focus on the Youth generation.
b) Job creation.
c) Technology-driven and Knowledge Based India.
d) Strong and stable public finances and macro-economic environment.
4. The per capita income has doubled to Rs 1.97 lakh. In the last 9 years, the size of the Indian economy has grown from 10th to 5th largest in the world. The world has also recognized India as one of the shining star, growth rate of India for the current year is estimated at 7%, the highest among all major economies.
For instance – If a person who wants income tax exemption on income up to Rs 7 lakh per annum, he can apply for tax exemption without any documents.
| INCOME | TAX RATE |
| Rs. 0 to 3 lakh | NIL |
| Rs. 3 to 6 lakh | 5 PERCENT |
| Rs. 6 to 9 lakh | 10 PERCENT Now On Income of 9 lakh – tax 45,000/- Before On Income of 9 lakh – tax 60,000/- |
| Rs. 9 to 12 lakh | 15 PERCENT |
| Rs. 12 to 15 lakh | 20 PERECENT |
| MORE THAN RS. 15 lakh | 30 PERCENT |
a) Increased limits for MSME - INR 3 lakh AND PROFESSIONALS – INR 75 lakh, to avail benefits of presumptive taxation under Section 44AD and 44ADA.
b) 95 percent of receipts to be non cash.
c) Deduction on payment to Micro Enterprises to be allowed only on payment basis if it is actually done or made to MSMEs.
COOPERATIVE
a) Extending 15% corporate tax benefits to new corporate commencing Manufacturing till 31st March, 2024.
b) Higher limit of Rs. 3 crore for TDS on withdrawal.
c) Increased Leave Encashment limit from INR 3 lakh to 25 lakh.
STARTUPS
a) Start-ups given an extended Carry forward of losses limit from 7 years to 10 years on change of shareholding.
b) Extended date of incorporation by 1 year for IT benefits
The Union Budget, 2023 proposed-
1. To promote and encourage Farmers towards technological based knowledge to make agricultural sector SMART AND DIGITAL.
2. TARGETED FUNDING- The Agri-credit target increased to Rs. 20 lakh crore from Rs. 15 lakh crore, with a focus on animal husbandry, dairy and fisheries.
3. NATURAL FARMING- In upcoming years, 1 crore farmers will get assistance to adopt natural farming.
4. NABARD to facilitate funds with blended capital to finance start-ups for agriculture & rural enterprise.
5. To promote production of Millets to make India global hub of Millets across the world. The reason behind to promote production of Millets is small amount consumption of water in the production of Millets. It is necessary to note that total output of Millets in India is 20% across the world
HEALTH CARE
The Union Budget, 2023 has proposed hike in allocation for the ministry of health and family welfare by 3.43 percent from its Financial year 2023 allocation of Rs. 86,200.65.
a) To boost medical education by establishing 157 New Nursing Colleges.
b) Mission to be launched to eliminate Sickle Cell Anaemia by 2047.
EDUCATION
To ensure the Indian education ecosystem innovative. The Union Budget, 2023 has proposed- a) Establishment of the National digital library for children.
b) Promotion of reading habit in the students.
c) Total Expenditure increased from 2.8% to 2.9%. It has been the highest allocation of ₹1, 12,899 crore for the Educational sector
TRANSPORT
a) Over 50 airports, heliports, water aerodromes and lending zones to be established.
b) Investment of Rs. 75,000 crore including Rs. 15.000 crore from private sources.
FOR WOMEN EMPOWERMENT
The Union Budget, 2023 proposed-
a) MAHILA SAMMAN BACHAT PATRA – It is the first time when 'Mahila Samman Bachat Yojana' to be started for the period of 2 years from March, 2025. Under this Scheme, women can invest small savings for period of 2 year with availability of 7.5% intrest rate. To avail benefit of this Scheme any women may open an account.
b) Schemes such as Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0.
c) Allocation of Rs 60,000 crore will be made under ‘Har Ghar Nal Se Jal’ scheme to cover 3.8 crore households.
INFRASTRUCTURE
a) PM Gati Shakti National Master Plan at a cost of ₹20,000 crore
b) 5G spectrum auctions to be conducted in 2022
c) Scheme for design-led manufacturing for 5G will be part of the production-linked scheme
d) To award contracts to lay optical fibre in rural areas, completion in 2025
e) To allocate additional 195 billion rupees for production-linked incentives towards solar equipment manufacturing
MARGINALIZED
The Pradhaan Mantri Awas Yojana (PMAY) has been increased by 66 Percent to over Rs 79,000 crore for Construction of 2 Crore houses for low and middle earning families. Further, the Union Budget, 2023 proposes to limit the deduction from capital gains on investment in residential houses to Rs. 10 crore under Sections 54 and 54F of the Income Tax Act, 1961.
1. 157 new nursing colleges to be established.
2. Urban Infrastructure Development Fund to be established through priority sector lending shortfall, to be managed by National Housing bank, to be used by public agencies to create urban infra in tier-2 and tier-3 cities.
3. The agricultural credit target will be increased to Rs 20 lakh crore with a focus on animal husbandry, dairy and fisheries.
4. National digital library to be established for children.
5. Water connections to rural houses; construction of toilets; LPG connections etc.
6. Supplying of food grains from 1st January, 2023 to all Antaodaya.
7. What would be cheaper? Customs duty on open cell parts of TV panels; reduce customs duty on import of certain inputs for manufacturing mobile phones; Basic customs duty on seeds used in the manufacture of lab-grown etc.
8. What would be expensive? Tax on cigarettes increased by 16 %; Basic import duty on compound rubber increased from 10% to 25%; Basic customs duty increased on articles made of gold bars; Customs duty on kitchen electric chimney doubled to 15 %.
The ultimate objective of the Union Budget is to bring about rapid and balanced economic growth with social justice and equity in our country. The union budget, 2023 presented by our Finance Minister Smt. Nirmala Sitharaman, focuses on bringing more reforms that will take forward the vision to establish the reliable tax system. Also, it provides tax relief to persons with disabilities, youth, start-ups and reduces alternate minimum tax rate and surcharge for co-operatives. The Union Budget, 2023 provides of customs exemption and tariff simplifications. A comprehensive view of India’s GDP has also been laid down in the Union Budget, 2023 and stability during the Pandemic. However, the Union budget, 2023 has proposed a multi- pronged approach but at the same time it can be seen that this budget is not futuristic as it is the only one way to cater the long term hurdles and constraints. Also, this budget is not addressing the issue of unemployment of the nation. At last, it can be concluded that the Union budget, 2023 aims to lay a strong footing to propel the economy of the India heading towards the ‘Amrit Kaal’ for the next 25 years as the utmost objective of the budget is to focus on the development of economy and recovering the lost finances of the past.
REFERENCES
1. https://www.indiabudget.gov.in/
2. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1895320
BANASTHALI VIDYAPEETH, RAJASTHAN
GUIDED BY- MR. DEEPANKUR SONDHI