Budget 2023 Key Highlights: Are You Under New Tax Regime? Nirmala Sitharaman Has Good News for You

Budget 2023 Highlights: Delivering on the expectations of the aam aadmi, Finance Minister Nirmala Sitharaman today announced Income Tax relief for the salaried class with an eye on the mega 2024 elections as well as several state battles as she delivered the Union Budget 2023 speech.

Sitharaman, who sought to drum up support for the new tax regime, announced that there would be no income tax up to ₹7 lakh in the regime. She also announced changes in the tax slabs under the new tax regime, which is as follows: Income of ₹0-3 lakh – Nil; Income above ₹3 lakh and up to ₹5 lakh will be taxed at 5 per cent; Income above ₹6 lakh and up to ₹9 lakh will be taxed at 10 per cent; Income more than ₹12 lakh and up to ₹15 lakh to be taxed at 20 per cent; Income above ₹15 lakh to be taxed at 30 per cent.

In the last full budget in Parliament before the 2024 Lok Sabha election, the finance minister said the country’s economy has grown from 10th to 5th largest in the world and per capita income has more than doubled.

Since taking charge in 2014, Prime Minister Narendra Modi has ramped up capital spending, including on roads and energy, while wooing investors through lower tax rates and labour reforms, and offering subsidies to poor households to clinch their political support. Finance Minister Nirmala Sitharaman announced a 66 per cent hike in the Pradhan Mantri Aawas Yojana (PMAY) outlay to Rs 79,000 crore.

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All eyes on the Union Budget, News18 brings you the latest highlights:

1. FM Nirmala Sitharaman listed seven priorities — Saptarishi — of Union Budget 2023: Inclusive development, reaching the last mile, youth power, financial sector, green growth, unleashing potential and infrastructure and investment.
2. In the agriculture and cooperatives sector, Sitharaman announced building digital public infrastructure, setting up an agriculture accelerator fund, making India the global hub for millets and setting up more storage capacity for farmers.
3. The government has also laid emphasis on the health sector, with the finance minister announcing the setting up of 157 more nursing colleges, launch of the sickle cell anaemia elimination mission as well as a programme to promote research in pharmaceuticals.
4. In the education and skilling sector, the Narendra Modi Sarkar has decided to revamp teachers’ training via district institutes, and set up a National Digital Library for children and adolescents.
5. In good news for travellers, 50 additional airports for improving regional connectivity will be set up in India. Sitharaman also announced the highest-ever railway outlay — 9 times over FY-14 — at Rs 2.40 lakh crore.
6. For 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
7. MSME assistance will also continue. The government has infused Rs 9,000 crore into the corpus, and reduced the cost of credit. The credit guarantee scheme had a choppy start but over the last two years banks have been brought on board to lend, the scheme has helped in alleviating stress in the sector
8. To provide support to 47 lakh youths in 3 years, a Direct Benefit Transfer under a pan India national apprenticeship scheme will be rolled out
9. In a big boost, the government has increased capital investment outlay by 33.4 per cent to Rs 10 lakh crore. It has also decided to continue the 50-year interest-free loan to state governments as well as create urban infrastructure in Tier-2 and Tier-3 cities.
10. To offset losses due to the Covid-19 pandemic, Sitharaman announced the highest-ever Capital outlay of Rs 2.4 lakh crore for Railways — nine times higher than FY-14.
11. Keeping in mind senior citizens, the government has enhanced maximum deposit limit for savings scheme from Rs 15 lakh to Rs 30 lakh.
12. Earlier in the day, Nirmala Sitharaman, MoS Dr Bhagwat Kishanrao Karad, MoS Shri Pankaj Chaudhary and senior officials of the Ministry of Finance called on President Droupadi Murmu at Rashtrapati Bhavan before presenting the Union Budget 2023-24.
13. Finance Minister Nirmala Sitharaman is the sixth minister in independent India to present five consecutive budgets, joining a select league of legends such as Manmohan Singh, Arun Jaitley and P Chidambaram. Under Sitharaman, India has weathered the Covid-19 pandemic with an array of policy measures announced for the poor and continued its tag of the fastest-growing major economy and a ‘bright spot’ in world economy.
14. The Finance Ministry’s annual Economic Survey, released on Tuesday, forecast the economy could grow 6-6.8 per cent year-on-year next fiscal year, down from 7 per cent projected for the current year, while warning about the impact of global slowdown on exports. “India’s growth outlook seems better than in the pre-pandemic years, and the Indian economy is prepared to grow at its potential in the medium term,” the report said.
15. The International Monetary Fund (IMF) has forecast India’s economy would grow by 6.1 per cent in 2023-4, slowing from 6.8 per cent in this fiscal year. Like other economies, India too faces risk from the global slowdown. Inflation remains a concern as higher global prices for fuel and commodities threaten to dampen economic growth.
16. The Reserve Bank of India bank has raised its benchmark policy rate by 225 basis points since May 2022 to tame retail inflation — which accelerated to over 7 per cent after a surge in food and energy prices following the Russia-Ukraine war.
17. The BJP will start a 12-day nationwide campaign on Wednesday to make people aware of the “pro-people” measures announced in the Union Budget, party leaders said. The campaign that will begin the day the budget is presented in Parliament will be coordinated by senior BJP leader Sushil Modi and it will conclude on February 12.

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