Budget 2023-2024: UPSC Essentials for IAS Aspirants | Explained

Finance Minister Nirmala Sitharaman today presented the Union Budget 2023-2024, with a number of important announcements, notable for all from policymakers to salaried class.

Those preparing for important government exams such as UPSC, SSC, CAPF and more will also be attempting to grasp all essential details related to the Budget announced.

Here are some highlights:

Amrit Kaal

Sitharaman said during her budget speech that the previous budget’s foundation and the overall “India@100” blueprint had served as the basis for this budget.

This Budget is intended to clear the way for “Amrit Kaal.” This would be accomplished through developing a knowledge-based, technology-driven economy, solid public finances, and a strong financial sector. READ MORE

Capex Receives Boost

Capital investment has received a significant boost thanks to the Union Budget 2023. According to Nirmala Sitharaman, Minister of Finance, capital investment spending will rise by 33% to Rs 10 lakh crore, or 3.3% of GDP. READ MORE

Fiscal Deficit

The FY24 fiscal deficit objective has been decreased to 5.9% of GDP. With regard to FY23, the FD was 6.4%. Sitharaman declared, “I reiterate my commitment to lower the fiscal deficit below 4.5 percent of GDP by 2025-26.”

Important Schemes

1. The PM Gaarib Kalyan Anna Yojana will receive funding from the centre in the amount of Rs 2 lakh crore. Under this, priority households would receive free food grain for the following 12 months.
2. Under the new budget, health education and skill development would also be encouraged. This would create 157 nursing institutes in addition to the medical colleges that have existed since 2014. ICMR labs will also be established.
3. The establishment of the National Digital Library, the National Book Trust, and other institutions is intended to increase accessibility and foster the reading habit among young people.
4. In the Budget for 2023, the National Apprenticeship Promotion Scheme was highlighted. This would provide stipend support to 47 lakh young people.
5. Within the following three years, Pradhan Mantri Kaushal Vikas Yojana, PMKVY 4.0, would also be introduced. Under this, the emphasis would shift to the development of skills in line with Industry 4.0 criteria, including coding, AI, 3D printing, and more.

Other Important Highlights:

• Per capita income has more than doubled to Rs 1.97 lakh in around nine years.
• Indian economy has increased in size from being 10th to 5th largest in the world in the past nine years.
• Seven priorities of the Budget, ‘Saptarishi’, are inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector.
• Outlay for PM Awas Yojana is being enhanced by 66 per cent to over Rs 79,000 crore.
• Capital outlay of Rs 2.40 lakh crore has been provided for the Railways, which is the highest ever and about nine times the outlay made in 2013-14.
• 30 Skill India International Centres to be set up across different states to skill youth for international opportunities.
• Revamped credit guarantee scheme for MSMEs to take effect from 1st April 2023 through infusion of Rs 9,000 crore in the corpus. This scheme would enable additional collateral-free guaranteed credit of Rs 2 lakh crore and also reduce the cost of the credit by about 1 per cent.
• The maximum deposit limit for Senior Citizen Savings Scheme to be enhanced from Rs 15 lakh to Rs 30 lakh.
• Fiscal Deficit targeted to be below 4.5 per cent by 2025-26.
• Rs 10 lakh crore capital investment, a steep increase of 33 per cent for third year in a row, to enhance growth potential and job creation, crowd-in private investments, and provide a cushion against global headwinds.
• Rs 15,000 crore for implementation of Pradhan Mantri PVTG Development Mission over the next three years under the Development Action Plan for Scheduled Tribes.
• Investment of Rs 75,000 crore, including Rs 15,000 crore from private sources, for 100 critical transport infrastructure projects, for last and first mile connectivity for ports, coal, steel, fertilizer, and food grains sectors.
• New Infrastructure Finance Secretariat established to enhance opportunities for private investment in infrastructure.
• National Data Governance Policy to be brought out to unleash innovation and research by start-ups and academia.
• PAN will be used as the common identifier for all digital systems of specified government agencies to bring in Ease of Doing Business.
• Mangrove Initiative for Shoreline Habitats & Tangible Incomes’, MISHTI, to be taken up for mangrove plantation along the coastline and on salt pan lands, through convergence between MGNREGS, CAMPA Fund and other sources.
• To commemorate Azadi Ka Amrit Mahotsav, a one-time new small savings scheme, Mahila Samman Savings Certificate, to be launched. It will offer deposit facility of up to Rs 2 lakh in the name of women or girls for tenure of 2 years (up to March 2025) at fixed interest rate of 7.5 per cent with partial withdrawal option.
• Fiscal Deficit of 3.5 per cent of GSDP allowed for states of which 0.5 per cent is tied to power sector reforms.
• The fiscal deficit is 6.4 per cent of GDP for the current fiscal, adhering to the Budget Estimate.
• The gross market borrowings for 2023-24 are estimated at Rs 15.4 lakh crore.
• To further improve tax payer services, proposal to roll out a next-generation Common IT Return Form for tax payer convenience, along with plans to strengthen the grievance redressal mechanism.
• Rebate limit of Personal Income Tax to be increased to Rs 7 lakh from the current Rs 5 lakh in the new tax regime. Thus, persons in the new tax regime with income up to Rs 7 lakh not to pay any tax.
• Tax structure in new personal income tax regime, introduced in 2020 with six income slabs, to change by reducing the number of slabs to five and increasing the tax exemption limit to Rs 3 lakh.
• Highest surcharge rate reduced from 37 per cent to 25 per cent in the new tax regime. This to further result in reduction of the maximum personal income tax rate to 39 per cent.
• The limit for tax exemption on leave encashment on retirement of non-government salaried employees to increase to Rs 25 lakh.
• Number of basic customs duty rates on goods, other than textiles and agriculture, reduced to 13 from 21.

With inputs from PTI

Read all the Latest Business News and Budget Live Updates here