UNION BUDGET 2023-24

Coverpage
Index
 INTRODUCTION
 OBJECTIVE
 MAIN FOCUSES
 HITS AND MISSES
 CHALLENGES
 OPINIONS OF PEOPLE
 CONCLUSION
 LEARNING OUTCOMES
 WEBLIOGRAPHY

Intro
the Union Budget of a year, also referred to as the annual
financial statement, is a statement of the estimated receipts
and expenditure of the government for that particular year.
Union Budget keeps the account of the government's
finances for the fiscal year that runs from 1st April to 31st
March. Union Budget is classified into Revenue Budget and
Capital Budget. Capital Budget includes capital receipts and
payments of the government. Loans from public, foreign
governments and RBI form a major part of the government's
capital receipts. Revenue budget includes the government's
revenue receipts and expenditure.
THE FINANCE MINISTER has presented a wonderful Budget
with a difference. It is in continuation of the reform process
through budgets presented in the past laying down the
foundation and a clear path for India. The finance minister
has rightly identified objectives, assigned priorities,
recognised constraints, the technological innovations in the
world economy, the needs of Indians and the Indian Industry
incorporating the mission and vision of the prime minister
given at his various addresses in AIR (Mann ki Baat) etc. A
budget is usually a financial plan for a defined period, often
one year. It may also include planned volumes and revenues,
resource quantities, costs and expenses, assets, liabilities and
cash flows. Companies, governments, families, and other
organizations use it to express strategic plans of activities or
events in measurable terms giving a direction for the Future.

Objective

7 priorities(saptarishi):
i. Inclusive development
 ii. Reaching the last mile
iii. Infrastructure and investment
iv. Unleashing the potential
v. Green growth
vi. Youth power
vii. Financial sector

Allowances and Tax Concessions – To incentivize

investment, the government often provides allowances
and tax concessions to manufacturers.

Direct Production of Goods and Services – The

government may opt to directly undertake the
production process when the private sector is unwilling
or unable to do so.

Minimizing Income and Wealth Inequalities – In an

economic system, disparities in income and wealth are
inherent. The government strives to mitigate these
inequalities by taxing the affluent and allocating more
funds towards the welfare of the economically
disadvantaged.

Economic Stability – The budget also serves as a tool to

prevent significant fluctuations in the economy and
maintain financial stability. This is achieved through
strategic policies such as implementing a deficit budget
during deflation and a surplus budget during inflation.
 Management of Public Enterprises – Many public sector
industries are established for the social welfare of the
populace. The budget allocates provisions for the
operation of such enterprises and provides necessary
financial assistance.

MAIN FOCUSES

1. TAX
 Six income slabs have been reduced to five slabs
 New tax rates in the new regime
(no tax for income up to 3 lakh
5% tax on 3-6lakh
10% tax on 6-9lakh
15% tax on 9-12lakh
20% tax on 12-15lakh
30% tax on income above 15lakh)

 Proposal to increase the income tax rebate limit

from rs.5 lakh to rs.7 lakh
 The new tax regime will now become the default
option, but people can still opt for the earlier one
  Tax exemption limit on leave encashment on
retirement for non-government salaried
employees increased to rs.25 lakh

2. ECONOMY
 The fiscal deficit is estimated to be 5.9% of the gdp
in fy 2023-24. It keeps the government in line with
the priorities of economic growth, inclusiveness,
generating employment, demand driven and
consumption oriented eco system.
 Net borrowings to finance the fiscal deficit is
estimated to be rs.11.8 lakh crore
 Capital investment outlay increased by 33% to rs.10
lakh crore
 R & D grant for Lab Grown Diamonds (LGD) sector
to encourage indigenous production of LGD seeds
and machines and to reduce import dependency.
 National Financial Information Registry to be set up
to serve as the central repository of financial and
ancillary information for facilitating efficient flow of
credit, promoting financial inclusion, and fostering
financial stability. A new legislative framework to be
designed in consultation with RBI to govern this
credit public infrastructure.
 To commemorate Azadi Ka Amrit Mahotsav, a one-
time new small savings scheme, Mahila Samman
Savings Certificate to be launched. It will offer
deposit facility upto Rs 2 lakh in the name of
 women or girls for tenure of 2 years (up to March
2025) at fixed interest rate of 7.5 per cent with
partial withdrawal option.

3. INFRASTRUCTURE
 Rs.2.40 lakh crore provided for the railways as
capital outlay
 50 additional airports, helipads, water aero drones,
and advanced landing grounds will be revived to
improve regional air connectivity
 100 transport infrastructure projects, for last and
first mile connectivity for ports, coal, steel, fertilizer
and food grains sectors.

4. DIGITAL DEVELOPMENT
 Digital payments increased by 76% in 2022
 Businesses can use PAN as a common identifier
across govt. platforms
 Digilocker to be expanded and will be the one stop
for updating details
 Three specialised ai centred to be set up in
educational institutes

5. AGRICULTURE
 20 lakh crore agriculture credit targeted at animal
husbandry, dairy and fisheries
 Indian institute of millet research in Hyderabad will
be made into a centre of excellence
  Agriculture accelerator fund to encourage agri-
startups by young entrepreneurs in rural areas
 Atmanirbhar bharat horticulture clean plant
program to be launched

6. MICRO, SMALL AND MEDIUM ENTERPRISES

 Pm vikas package to improve the quality of scale
and reach of products made by traditional artisans
 Additional loan guarantee of 2lakh crore arranged
for MSMEs
 Revamped credit guarantee scheme is being
launched for MSMEs through an infusion of 9000
crore from April 1

7. HEALTH
 157 new nursing colleges to be set up
 Government to launch a mission to eliminate sickle
cell anaemia by 2047
 Focus is placed on research and innovation through
ICMR labs and other research innovation programs
in pharmaceutical through centres of excellence.
 support for multidisciplinary courses for medical
devices to support the need of manpower
requirements for the health care industry.

8. EDUCATION
 National digital library to be set up for children
  States to set up physical libraries for them at
panchayat and ward levels
 More teachers to be recruited for 740 eklavya
model residential schools

9. TOURISM
 At least 50 destinations to be developed as a
complete package for domestic and foreign tourists
 States to set up unity malls for the promotion and
sale of one-district-one-product, gi an handicraft
products

10. GREEN INITIATIVES

 Funds allocated to scrap old vehicles of the central
government
 Annual production of 5 MMT under Green
Hydrogen Mission to be targeted by 2030 to
facilitate transition of the economy to low carbon
intensity and to reduce dependence on fossil fuel
imports.
 ₹35000 crore outlay for energy security, energy
transition and net zero objectives.
 Battery energy storage systems to be promoted to
steer the economy on the sustainable development
path.
 20,700 crore outlay provided for renewable energy
grid integration and evacuation from Ladakh.
misses
 Fails to clarify the doubts on the crypto policy
 Does not mention about the revised estimate target on
disinvestments being cut.
 Missed privatisation of public sector banks
 No subsidies or initiatives mentioned to promote millets
 No talk about coal replacement

hits
 the budget focuses on measures that stimulate
economic growth, such as infrastructure development,
investments in key sectors, and job creation
 For the skill development of the youth, the government
has introduced Pradhan Mantri Kaushal Vikas Yojana 4.0,
and also proposed a plan to establish thirty Skill India
International Centres in various states.
 PM PRANAM

Challenges
High Unemployment
The unemployment rate in India has increased from 6.56 per
cent in January 2022 to 8.3 per cent in December 2022 as per
CMIE. Urban unemployment rate is higher than rural
unemployment by more than 2.5 per cent. Unemployment is
touted as Modi government’s second-biggest failure as per a
C-Voter survey conducted recently.
High Inflation
Inflation in India is back to levels witnessed during Covid. Last
year, retail inflation jumped to 6.7 per cent from 5.1 per cent
in 2021. For 10 of the 12 months, inflation was above the 6
per cent target set by the RBI. Price rise is considered as the
top most failure of the Modi government by the same C-
Voter survey. Hike in excise duty on petrol/ diesel and cooking
gas cylinders has led to prices crossing the Rs 100/litre mark
and Rs 1,000/cylinder mark (non-subsidised LPG),
respectively.

Tighter Fiscal deficit in FY24

India is on track to meet its fiscal deficit target of 6.4 per cent
of GDP in FY23 on account of higher nominal GDP growth,
but the scenario could change drastically in FY24 due to
slower economic growth along with hurdles in export and tax
collection.

Dwindling exports
India is already witnessing a slowdown in exports. Provisional
data from the commerce ministry showed that India exported
goods worth $34.48 billion in December 2022, marking a 7.75
per cent rise from November’s $32 billion figure, but a steep
12.2 per cent dip year-on-year. This has also pushed up the
trade deficit.

Consumption slowdown
Private consumption is likely to slow down in FY24 in the
wake of falling GDP growth and elevated commodity prices.
With key growth drivers like exports and private investments
likely to remain subdued, experts believe that private
consumption would have to play a central role alongside local
manufacturing to safeguard economic growth.

OPINIONS OF PEOPLE

Avinash G Singh, Senior Vice President – Investment

Research, Aranca
"We believe that the latest budget presented by the
government strikes a balance between fiscal prudence
and supporting growth. The allocation of INR 1.97 trillion
for infrastructure development, including highways,
ports, and airports, is a positive step toward job creation
and stimulation of demand in various sectors. The
allocation of INR 15,700 crore for the MSME sector is
also a welcome move as it provides much-needed
support to this critical sector that has been hit hard by
the pandemic.

Akhilesh Reddy, Chairman & MD, RPPL

 “We are quite pleased with the variety of steps the
government has made to support startups. India
currently has the third-largest startup ecosystem in the
world and is second among middle-income nations in
terms of innovation and quality. As a sports venture, we
anticipate government-sponsored sports initiatives like
Khelo India. This spending plan will undoubtedly support
new businesses in the nation."

Congress General Secretary K.C. Venugopal said that the

Budget 2023 does not reflect the real sentiments of the
people such as unemployment and price rise.
He further said that the Union Budget is filled with fancy
announcements whose implementation is under
question.
“This budget is not addressing the real sentiment of the
country that is unemployment and price rise. It only had
fancy announcements that were made earlier too but
what about implementation? Only insurance companies
were benefited from PM Kisan Yojana not farmers,” said
Mr. Venugopal.

“It’s a Budget presented keeping the elections in mind. While

the government has given some relaxations to the middle
class, it has not said anything about the Minimum Support
Price for farmers, employment and youth,” Ms. Dimple Yadav
told ANI after the House adjourned for the day.
CONCLUSION

The Indian Economy is on a Growth Path and India is clearly

visible from the Union Budget. Budget will add wings to the
economic growth and development post Covid-19 with the
digital revolution in agriculture, healthcare, education,
employment, MSMEs, banking, post offices, and all spheres
of Government functioning. Budget announcements focus on
Macro-economic growth and micro-economic Inclusive
welfare towards the Bharat of tomorrow. It will induce
employment, financial development and ease inflationary
pressures. The Budget lays down Vision for India with jobs,
growth and productivity with inclusive development and total
prosperity of Indians and give nav jeevan to erstwhile
Hindustan adding Wings to the baby elephant through the
Digital India. the budget is a growth oriented with a target
growth of 8 - 8.5%. It is budget of common man and middle
class with a moto of “Sabka Saath Sabka Vikas”.

BIBLIOGRAPHY

www.hdfclife.com
www.asiancollegeofteachers.com
www.indiatoday.in
www.taxbuddy.com
www.herzindagi.com
www.business-standard.com
www.pib.gov.in
https://financeindia.org/data/2023/FI371/FI-371-Art02.pdf
https://www.thehindu.com/

-Vaibhavi Sugandh