Union budget 2023 from parliament by Finance minister Nirmala Sitharaman
Attribution: Mil.ru, CC BY 4.0 , via Wikimedia Commons

Union Finance Minister Nirmala Sitharaman to present the Union Budget 2023-24 from Parliament

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Union Budget 2023: Live from Parliament

Before presenting the Union Budget, the Union Minister Nirmala Sitharaman called on President Droupadi Murmu at Rashtrapati Bhavan.

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KEY HIGHLIGHTS

Credit: PIB

Credit: PIB

1. EXPENDITURE

Total Expenditure in 2023-24 = Rs. 45.03 Lakh Crore (an increase of 7.5% over 2022-23)

Credit : PIB

Revenue Expenditure = Rs. 35.02 Lakh Crore in 2023-24 (to grow by 1.2 % )

Capital Expenditure = 10 Lakh Crore in 2023-24 (37.4% increase)  

Credit: PIB

2. INDIRECT TAXES

  • Basic customs duty rates on goods, other than textiles and agriculture, reduced from 21 to 13 
  • Custom duty exempted on import of capital goods and machinery for manufacture of lithium-ion cells for batteries used in electric vehicles 
  • Exemption in custom duty on various parts of IT & electronics 
  • Inversion of duty structure rectified for electric kitchen chimneys 
  • Denatured ethyl alcohol exempted from basic customs duty 
  • Big push to domestic manufacture of aquatic feed 
  • No customs duty on seeds used in the manufacturing of lab grown diamonds 
  • National calamity contingent duty (NCCD) on specified cigarettes raised by about 16% 
Credit: PIB
Credit : PIB

3. DIRECT TAXES

  • Direct tax proposals aimed at reducing compliance burden, promoting entrepreneurial spirit & providing tax relief to citizens
  • Next-generation common IT returns form for tax payers’ convenience to be rolled out 
  • Limits of presumptive taxation enhanced to Rs 3 crore for micro enterprises and Rs 75 lakh for professionals with cash payments less than 5% 
  • 15 % concessional tax to promote new manufacturing cooperative society 
  • Threshold limit for co-operatives to withdraw cash without TDS increased to Rs 3 crore 
  • Date of incorporation for income tax benefits to start-ups extended to 31st march 2024 
  • Around 100 Joint Commissioners to be deployed for disposal of small appeals 
  • Deduction from capital gains on investment in residential house capped to Rs 10 crore 
  • Tax exemption on income of authorities regulating and developing an activity 
  • Agniveers to get tax exemption on payment received from the Agniveer corpus fund 
Credit: PIB

4. PERSONAL INCOME TAX

  • Major announcements in personal income tax to substantially benefit the middle class
  • Persons with income up to Rs 7 Lakh will not pay income tax in new tax regime 
  • Tax exemption limit increased to Rs. 3 Lakh 
  • Change in tax structure: number of slabs reduced to five 
  • Salaried class and pensioners to gain on extension of standard deduction benefit to the new tax regime 
  • Maximum tax rate reduced to 39 per cent from 42.74 per cent 
  • New tax regime to be the default tax regime 
  • Citizens to have the option to avail the benefit of old tax regime 
Credit: PIB

5. FISCAL DEFICIT

  • Fiscal deficit to be at 5.9% in FY 2023-24 
  • Revenue deficit to be at 2.9 % in FY 2023-24 
  • Fiscal deficit on track to reach below 4.5% by FY 2025-26 
  • 15.5 % Y-o-Y growth in gross tax revenue in 2022-23 over 2021-22 
  • Direct taxes grew at 23.5% in first 8 months of FY 2022-23 
  • Indirect taxes grew at 8.6% during the same period 
  • States to be allowed a fiscal deficit of 3.5 per cent of GSDP 
  • States to be provided a fifty-year interest free loan
Credit: PIB

6. GROWTH FORECAST

  • Nominal GDP to grow at 15.4 % in FY 2022-23  
  • Real GDP to grow at 7% in FY 2022-23  
  • Agriculture sector to grow by 3.5% in FY 2022-23 
  • Industry to grow at modest 4.1% 
  • Services sector to rebound with Y-o-Y growth of 9.1% in FY 2022-23 over 8.4 % in 2021-22 
  • Exports to grow at 12.5% in FY 2023 

7. TRANSPORT INFRASTRUCTURE

  • Highest ever capital outlay of Rs 2.40 Lakh crore for Railways 
  • 100 critical transport infrastructure projects identified 
  • Harmonized master list of infrastructure to be reviewed by expert committee 
Credit: PIB

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Budget 2023-2024: FULL TEXT of Speech of Nirmala Sitharaman Minister of Finance delivered in parliament on February 1, 2023 

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Post-Budget Press Conference by Union Finance Minister

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