Union Budget 2023: In polls-bound India, FM Sitharaman announces big relief to taxpayers, ramps up capital spending

Mentioning the present period as Amrit Kaal (a term coined by PM Modi) to bring spotlight on development and prosperity under the Modi regime, the Budget identified seven focus areas-  inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector.

The FM announced a new tax regime where the tax rebate has been extended to upto Rs 7 lakh from earlier Rs. 5 lakh, meaning anyone with annual income upto that figure will not pay any tax.

New tax regime per year

1. Rs. 0-3 lakh: Nil
2. Rs. 3-6 lakh: 5 percent tax
3. Rs. 6-9 lakh: 10 percent tax
4. Rs. 9-12 lakh; 15 percent tax
4. Rs. 12-15 lakh: 20 percent tax
6. Above Rs. 15 lakh: 30 percent tax

Note: Tax rebate upto announced upto Rs. 7 lakh

Besides boosting capital spending, infrastructure development and digitization, the budget focuses on jobs and economic stability as the FM said the economy is set to expand around 7% in fiscal 2023.

"The budget makes the need once again to ramp up the virtuous cycle of investment and job creation. Capital investment is increasing steeply for the third year in a row by 33% to 10 trillion rupees (read $122 billion)," Sitharaman said in her budget speech, adding that after a subdued period of the pandemic, private investments are growing again.

Sitharaman said, "The world has recognized India as a bright star, our growth for current year is estimated at 7.0%, this is the highest among all major economies, in spite of massive global slowdown caused by pandemic and the war."

Highlights

• Under the new budget, articles made of gold and platinum, silver, copper scrap, compounded rubber, cigarettes and imported electric kitchen chimneys will get costlier.
• Camera lenses for phones, laptops, DSLRs, parts of TV panels, Lithium ion batteries, denatured ethyl alcohol, domestic manufacture of shrimp and seeds used in the manufacture of diamonds will be cheaper for the fiscal year 2023-2024.
• One-time, new small savings scheme for women- Mahila Samman Savings Patra (certificate)- will be made available for a two year period up to March 2025. This will offer deposit facility for women/girls upto to 2 lakh for two years tenure at fixed 7.5 percent interest rate with partial withdrawal option.
• For senior citizen maximum deposit limit for saving scheme will be enhanced from Rs 15 lakh to Rs 30 lakh.
• The Monthly income scheme (MIS) increased to Rs 9 lakh, up from Rs 4.5 lakh, for single account. For joint accounts the limit has gone up to Rs 15 lakh, up from Rs 9 lakh.
• 50 additional airports, helipods, water aerodromes and advanced landing grounds to be revived for improving regional air connectivity.
• 157 new nursing colleges will be established in core locations. A mission to eliminate sickle cell Anemia by 2047 will be launched entailing awareness creation & universal screening of 7 cr. people in affected tribal areas.
• Three Artificial Intelligence (AI) research centres of excellence will be set up in top educational institutions for Make AI in India and Make AI Work for India. Leading industry players will partner in this research. FM emphasises on AI eco-system for scalable problem solution in health, agriculture and sustainable cities
• 100 labs for developing applications for using 5G services will be set up. It will enable smart class room and precision farming, intelligent transportation and healtcare.
• Digilocker services will be expanded. PAN Cards will be used as common business identifier.
• Govt to launch a Rs 2,200 crore Aatmanirbhar clean plan programme.
• Agriculture credit target expanded to Rs 20 lakh crore.
• ICMR labs will be made available for private sector for collaborations