This article on ‘Budget 2023-24: Highlights‘ was written by Deeksha Kushwaha, an intern at Legal Upanishad.
Introduction
The finance minister of India, Nirmala Sitaraman has announced the union budget for the financial year 2023-2024. It has been announced on 1 February 2023. It has been in the highlights due to it being the last budget of the current government, led by Priminister Narendra Modi, before the general election which has been held in 2024. Before the general election, the state election will be held in nine states. The Economic Survey report has shown that after covid-19, economic growth resurrection has been done.
In this article, we are going to present important highlights of the budgets. And will discuss how it is beneficial for general people.
What is Budget?
A budget is a plan based on earnings and expenses. In simple words, a Budget is an assumption of expenditure for a month or a year, in which it can be assumed how much amount will be earned and how much will be expend. Creating a detailed list of spending or focusing on specific categories can be part of budgeting.
Some users love to handwrite their budgets, while others utilize a chart or budgeting app. There is no right or wrong way to budget; what tends to work for one person may not work for the other. When talking about a country or state’s budget in India, it’s called the union budget. And our finance minister has announced the union budget for 2023-2024.
Budget Highlights
- Saptarishi — seven priorities — of the Union Budget 2023, according to FM Nirmala Sitharaman: inclusionary progress, achieving the very last short distance, youngsters’ ability, finance system, green economy, unleashing potential, and infrastructural facilities and investment.
- Sitharaman announced plans to build digital public infrastructure, establish an agricultural production accelerator fund, make India the concept that emphasizes millet, and increase farmer storage capacity in the agricultural production and cooperatives sectors.
- The government has also prioritised the health service, with the minister of finance declaring the establishment of 157 new nursing colleges, the release of the sickle-cell disease anemia elimination mission, and a programme to promote pharmaceutical research.
- The Modi Government Sarkar has made the decision to revamp teacher training through district institutes and to establish a Digital Economy Reading room for adolescents and children in the schooling and skilling sector.
- In positive news for travelers, India will build 50 new airports to improve regional connectivity. Sitharaman also declared the greatest possible railway outlay — Rs 2.40 lakh crore, a 9-fold increase over FY-14.
- The PAN will be utilized as a common identification for all Advanced Analytics solutions of prescribed government agencies for business establishments that are required to have a Permanent Account Number.
- MSME aid will also be maintained. The government has injected Rs 9,000 billion into the corpus and reduced credit costs.
- An Instant Money Transfer under a pan-India national apprenticeship programme will be implemented to help 47 lakh youths in three years.
- The government has raised capital investment expenditure by 33.4 percent to Rs 10 lacs, which is a significant increase. It has also decided to extend the interest-free loan to provincial governments for another 50 years and to build urban infrastructure in Tier 2 and Tier 3 cities.
- To offset losses caused by the Covid-19 pandemic, Sitharaman revealed the highest-ever capital outlay for Railways of Rs 2.4 lakh crore — nine times more than in FY-14.
- With the elderly in mind, the government has increased the maximum deposit limit for the savings plan from Rs 15 lakh to Rs 30 lakh.
- Previously in the day, Nirmala Sitharaman, Dr. Bhagwat Kishanrao Karad, Shri Pankaj Chaudhary, and senior Finance Ministry officials met with President Droupadi Murmu at Rashtrapati Bhavan prior to actually presenting the Union Budget 2023-24.
- Nirmala Sitharaman, Finance Minister, is the 6th minister in the post-independence era to present 5 successive budget allocations, joining a select group that includes Manmohan Singh, Arun Jaitley, and P Chidambaram. Under Sitharaman’s leadership, India has survived the Covid-19 disease outbreak with a slew of policy measures aimed at the poor, maintaining its status as the fastest in the world’s major economy and a “bright spot” in the global economy.
- The Finance Ministry’s annual Economic Survey, released on Tuesday, forecasts that the economy will grow 6-6.8 per cent year on the year next fiscal year, down from 7 percent this year, while warning about the impact of the global slowdown on exports. “India’s growth outlook appears nicer than in the or before years, as well as the Indian economy is ready to expand at its possibility in the medium term,” according to the report.
- The World Bank (IMF) forecasts India’s economy will grow by 6.1% in 2023-4, down from 6.8% this fiscal year. India, like other economies, is vulnerable to the global slowdown. Inflation remains a concern, as higher global fuel and commodity prices threaten to slow economic growth.
- Since May 2022, the Indian Reserve Bank has brought up its reference policy rate by 225 percentage points to tame retail inflation, which has risen to more than 7% due to an increase in prices for food and energy going to follow the Russia-Ukraine war.
- According to party leaders, the BJP will launch a 12-day mass movement on Wednesday to raise awareness of the “pro-people” planning of activities in the Union Budget. The campaign, which also will initiate the day the spending plan is presented in Parliament and end on February 12, would be organised by senior BJP leader Sushil Modi.
Suggestions
According to the previous year’s data, the economic growth has been satisfied for this year. The only thing that the general monetary looks forward to when it comes to the budget is indeed the income tax credit. In this matter, the budget gives them relaxation in comparison to the previous year. Also in my opinion when another country has been facing a financial crisis in this situation India did better.
Conclusion
The finance minister stated in Parliament’s final full budget before the 2024 Assembly Polls that the country’s economy has risen from 10th to 5th in the world, with per income per capita nearly doubled.
Since taking office in 2014, Pm Narendra Modi has increased capital spending, as well as on roadways and energy, while enticing investors with reduced taxes and labour reforms, as well as trying to offer tax incentives to poor households to secure their political support. In this regard, the budget provides them with relief in comparison to the past year. In my opinion, when another country faced an economic meltdown in this situation, India fared better.
References
- Union budget, Government of India, Available at: https://www.indiabudget.gov.in/doc/OutcomeBudgetE2023_2024.pdf.
- TOI, Union Budget 2023-24 Highlights, (2023), Available at: https://www.thehindu.com/business/budget/budget-2023-24-highlights-income-tax-rebate-limit-increased-to-7-lakh-crore-railways-accorded-highest-ever-capital-outlay/article66457890.ece.