Budget 2023 Highlights: A look back at Nirmala Sitharaman's vision for India through previous budget

Finance Minister Nirmala Sitharaman is all set to present her sixth consecutive budget on February 1. Meanwhile, just have a glance at her previous budget 2023 as a blueprint for India's future.

Alina Khan Last Updated : 31 January 2024, 05:07 PM IST

Courtesy: Top Indian News

As Finance Minister Nirmala Sitharaman gears up to deliver her 6th consecutive Budget on February 1, it is instructive to look back at the key priorities and announcements that shaped her previous 2023 Budget.

Highlights of Budget 2023:

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Presented amid global economic headwinds, the 2023 Budget focused on boosting private sector jobs and growth while ramping up capital expenditure. Sitharaman outlined total receipts other than borrowings at Rs 27.2 lakh crore and total expenditure at Rs 45 lakh crore for FY23-24. Here are some other key Budget estimates she revealed:

Net tax receipts estimated at Rs 23.3 lakh crore
Fiscal deficit pegged at 5.9% of GDP
Net market borrowings at Rs 11.8 lakh crore
Highest ever capital outlay of Rs 2.4 lakh crore allocated for Railways

What are 7 key priorities – ‘Saptarishi’ of Budget 2023?

The finance minister highlighted 7 key priorities guiding the Budget to propel India through the 'Amrit Kaal' period leading up to the 100th anniversary of independence in 2047.

These 'Saptarishi' goals encompass:

Inclusive development of all sections
Getting government policies to reach the last mile
Building infrastructure and spurring investment
Removing hurdles holding back economic potential
Green growth
Unleashing youth power
Strengthening the financial sector

Further, she also noted India's per capita income has more than doubled since 2014 to Rs 1.97 lakh. The country has also risen from the 10th to 5th largest economy globally in the last 9 years.

What were flagship schemes focused on Budget 2023?

On the flagship schemes front, she provided progress updates like:

47.8 crore PM Jan Dhan bank accounts opened
11.7 crore toilets built under Swachh Bharat Mission
44.6 crore insured under PM Suraksha and Jeevan Jyoti schemes
Rs 2.2 lakh crore PM Kisan funds transferred to 11.4 crore farmers

What’s on taxation?

For income taxes, Sitharaman announced the rebate limit would be increased from Rs 5 lakh to Rs 7 lakh. The tax exemption limit was raised to Rs 3 lakh, while slabs were reduced from 6 to 5. The new tax rates were:

Nil tax on income up to Rs 3 lakh
5% tax on Rs 3-6 lakh income
10% tax on Rs 6-9 lakh
15% tax on Rs 9-12 lakh
20% tax on Rs 12-15 lakh
30% tax on income above Rs 15 lakh

On indirect taxes, Sitharaman announced:

Cut in number of basic customs duty rates from 21 to 13
Hike in duties on gold, platinum, and silver imports
Reduction in basic customs duty on crude, glycerine
Increase in tobacco taxes
Extension of nil duty on capital goods for lithium-ion battery manufacturing

Here are key efforts to strengthen the economy in India:

For the economy, key proposals included:

Measures to boost business activities in GIFT IFSC like single window clearances
Empowering SEBI to regulate securities education
Launching Mahila Samman small savings scheme for women
Raising deposit limits for Senior Citizen Savings Scheme
Allowing a higher fiscal deficit of 3.5% of GSDP for states

What Nirmala Sitharaman introduced for agriculture in Budget 2023?

On the agriculture front, Sitharaman proposed:

Setting up an Agriculture Accelerator Fund to finance agri-startups
Promoting millets through IIMR Hyderabad as Centre of Excellence
Rs 6,000 crore sub-scheme under PM Matsya Sampada Yojana for fisheries
Computerization of 63,000 Primary Agricultural Credit Societies
Launching PM-PRANAM scheme to promote alternative fertilizers

Energy front:

For energy security, the Budget outlined:

5 MMT annual green hydrogen production target by 2030
Rs 35,000 crore outlay for energy transition and net zero goals
Promoting battery energy storage to enable sustainable growth

What was for defence?

On defence, she hiked the allocation by 13.8% to Rs 5.94 lakh crore. The capital outlay rose to Rs 1.62 lakh crore for modernization and infrastructure upgrades.

What’s on education and development in Budget 2023?

Key education and skill development proposals encompassed:

Setting up nursing colleges alongside 157 medical colleges
Recruiting 38,800 teachers for Eklavya Model Schools
Launching PM Kaushal Vikas Yojana 4.0 for emerging technologies
Rs 9,000 crore revamped credit guarantee scheme for MSMEs

Notably, the Budget 2023, Sitharaman's fifth, walked the tightrope between spurring growth and fiscal prudence. As she gets set to present her sixth Budget in two weeks, it remains to be seen whether election-year compulsions prompt a shift in priorities and spending.

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Budget 2023 Highlights: A look back at Nirmala Sitharaman's vision for India through previous budget