Union Budget 2023: Govt. Vision for Amrit Kaal is an Empowered and Inclusive EconomyThe Union Finance Minister Nirmala Sitaraman is presenting the Union Budget 2023-24 for the financial year 2023-24. According to the union budget 2023-24 dates, the session of the parliament began on Tuesday and the India budget 2023 will continue till 13th February 2023.The Parliament will reconvene on 12th March for the second part of the union budget of India session which will conclude on 6th April 2023.The Economic Survey for the financial year 2022-23 has been tabled before the Parliament which highlights complete recovery of the Indian economy from the global pandemic. There will be a growth of 6% to 6.8% in the coming financial year 2023-24.The seven key priorities listed in the union budget 2023-24 will be able to guide the government through the Amrit Kaal, the term denoting the Modi government to mark the 25 year period till 2047, the year when Indias independence century will be celebrated.The seven key priorities of the union budget 2023-24 are as follows:Inclusive developmentReaching the last mileYouth powerInfrastructure and investmentUnleashing the potentialGreen growthFinancial sectorThe importance of inclusive development has been highlighted in the union budget 2023-24 for India as Ms. Sitharaman said that the governments policy of Sabka Saath and Sabka Vikas has helped many sections including women, SCs, STs, OBCs, and other under-priviledged sections.The key highlights of the union budget are as follows:New tax slabsThe Union Budget 2023-24 income tax expectations: one of the key announcements by the Finance Minister in the union budget 2023 is for the salaried employees with respect to tax slabs in personal income tax. The previous income tax slabs were starting from Rs. 2.5 lakhs and it has been proposed to change the tax structure in this regime by reducing the number of slabs to five and increasing the tax exemption limit to Rs. 3 lakhs.The new tax regime will be default, while the taxpayers would still have the option of the old regime and the slabs under the new tax regime have been tweaked. The income tax rebate limit has been increased from Rs. 5 lakhs to Rs. 7 lakhs under the new scheme.StartupsThe union budget 2023-24 for India is focused on building the startup culture and supporting the MSME sector. Initially, following the budget 2017, the then Finance Minister Arun Jaitley announced that the startups incorporated after 31st March 2016 have tax holiday benefits for 3 out of 7 years from the date of incorporation, provided the annual turnover does not exceed INR 25 Cr in the financial year.According to the income tax act, eligible startups are exempted from paying tax on a long-term capital gain if the gain or part thereof is invested in a fund notified by the central government within the period of six months from the date of transfer of assets. The maximum amount which can be invested in the long term specified assets is INR 50 lakh.NutritionA big boost is given to the Nutrition industry with a special programme called the PM Programme for Restoration Awareness Nourishment & Amelioration of Mother Earth (PM-Pranam).Eliminate Sickle Cell Anaemia by 2047New programme launched for research and innovation in pharmaceuticals to be taken up through Centres of Excellence. The government proposes to establish 157 new nursing colleges established in key locations.Centres for excellence for Artificial IntelligenceThe Indian Government in the Union Budget 2023-24 proposed three centres of excellence for the Artificial Intelligence (AI) to be setup in the top educational institutions for the vision of make Artificial Intelligence in India and Make AI work for India.The sectors to benefit from these cutting-edge applications and scalable problem solutions include agriculture, health, and sustainable cities.Emphasis on new economy and technologyFor the startups and business professionals to benefit from the use of Artificial Intelligence, and ease of doing business in India, the resources are available in various languages. India has also setup an AI portal in May 2020 in collaboration with the industry body NASSCOM and in the October organised a startup event called RAISE (Responsible AI for Social Empowerment) to help AI startups showcase the products and raise the funds.Digital payments in agricultural sectorsThe Union budget 2023-24 introduces the government reform for Prime Minister Programme for restoration, awareness, nourishment and amelioration to incentivise states and Union territories to promote alternative fertilisers and use of chemical fertilisers. These measures will enhance and promote agricultural credit, digital technologies, natural farming and funding of agricultural startups in the rural areas.Sustainable Development GoalsThe Union Budget 2023-24 provides Rs. 35,000 crore for the priority capital investments towards energy transitions and the net zero objectives. Some of the sustainable development goals are no poverty, zero hunger, good health and wellbeing, quality education, gender equality, clean water and sanitation, affordable and clean energy, decent work and economic growth, industry, innovation and infrastructure, reduced inequalities, sustainable cities and communities, strengthening global partnerships for the goal, among others.Duty relating to marine products and mobile phonesA sub-scheme of the PM Matsya Sampada Yojana will be launched with the targeted investment of Rs. 6,000 crore to further enable activities of fishermen, fish vendors, and micro and small enterprises, improve the value-chain efficiencies, and expand the market. The incentives announced for the fisheries and marine products sector, which, the industry believes, will help reduce the production cost and boost exports.Mobile phones expected to become cheaper post union budget 2023-24. Further, the import duty as levied on the kitchen chimney will make the cost of this kitchen appliance dearer.Following a relief in the custom duty imposed on the import of certain parts and inputs like camera lens and batteries, the cost of these products will also decrease and be more accessible for middle class.Senior Citizens savings schemes deposit limit raisedThe government has raised interest rates on the senior citizens savings scheme (scss) to 8%. Senior citizens can now open an account, applicable to an individual above 60 years of age. The maximum deposit level of senior citizens savings scheme from Rs. 15 lakh to Rs. 30 lakh.Amendments in banking lawsThe Union Budget 2023-24 has proposed certain amendments to the Banking Regulations Act, 2023 and the Banking Companies Act and the Reserve Bank of India Act to improve bank governance and enhance the protection of investors.The Banking Laws (Amendment) Bill is focused on bringing reforms in the countrys banking sector. It will facilitate the privatisation of the two public sector banks (PSBs) as part of the ambitious disinvestment plan.The bill is expected to lower the minimum government holding in the PSBs from 51% to 26%.Capacity building in Securities marketThe union budget 2023-24 focuses on building the capacity of professionals and functionaries in the securities market, SEBI will be empowered to develop, regulate, maintain and enforce norms and standards for the education in the National Institute of Securities Markets and also recognise the award of degrees, diplomas and certificates.Data EmbassyThe government proposed to setup a Central Processing Centre for faster response to companies through the centralised handling of various forms filed with field offices under the companies act.Youth PowerUnion budget 2023-24 focuses on empowering youth and help the Amrit Peedhi” realise their dreams, as the government has formulated the National Education Policy.The schemes announced in the Union Budget 2023-24 by Finance Minister Nirmala Sitharaman are:Pradhan Mantri Kaushal Vikas Yojana 4.0The main emphasis is on skilling, reskilling and upskilling, as the yojna is started in 2015. The key focus fields of study would be Artificial Intelligence, coding, robotics, IoT, mechatronics, and 3D printing among others.Skill India Digital PlatformLaunched in 2015, different government ministry have been carrying out activities for skill development among youth. Following the budget 2023-24, 30 new skill india international centres will be opened with the aim of arming the youth with requisite knowledge to get international opportunities.National Apprenticeship SchemeYouth empowerment is at the core of the governments apprenticeship programme, and the economically disadvantaged families with the required hard and soft skills. The scheme initiated by the government also plans to provide support to 47 lakh youth in a time frame of 3 years through its direct benefits schemes.Vehicle ReplacementThe Union Budget 2023-24 presented by the Finance Minister Nirmala Sitharaman has several announcements regarding the automotive sector through provisions to make it cleaner and greener mobility. The government has decided to exempt capital goods and machinery which helps in manufacturing lithium-ion cells for batteries used in EVs.There is an outlay of Rs. 19,700 crores which has further been prescribed to promote the National Green Hydrogen Mission, with the aim to reach 5MMT annual production of the green hydrogen by 2030.The key focus is on biogas production and scrapping of old government vehicles which are 10-15 years old. The alternatives like cars running on biogas or ethanol blends have also seen government support in recent times, so an E85 blend running alternatives is not far-fetched.Natural FarmingThe union budget 2023-24 has come as a relief for 1 crore farmers with respect to natural and chemical balanced farming over the next three years.An agriculture accelerator fund will be launched to encourage agri-startups by young entrepreneurs and the targeted fund has been hiked by Rs. 20 trillion, the main focus being on animal husbandry, dairy and fisheries.Lab grown diamondsThe 2023 union budget promises to reduce the basic customs duty for the seeds being used in the manufacture of lab-grown diamonds to promote and popularise their production in India. The 5% duty currently levied on seeds for rough LGDs will be reduced to nil. The change will be implemented from February 2, 2023.System of unified filing process will be setupThe union budget 2023-24 will implement unified filing process so agencies can get data from a common portal as per the choice of those filing returns.
