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Budget 2023: Key Highlights From Modi Govt's Final Full Budget Before 2024 LS Polls

Budget 2023 Announcements: Nirmala Sitharaman called the Union Budget 2023 a blueprint for prosperous India that covers youth, women, farmers and backward castes

By : ABP News Bureau | Updated at : 01 Feb 2023 01:10 PM (IST)

Budget 2023 Key Announcements Full List Finance Minister Nirmala Sitharaman Budget 2023: Key Highlights From Modi Govt's Final Full Budget Before 2024 LS Polls

Finance Minister Nirmala Sitharaman on Wednesday tabled the final full Budget of the Modi government. ( Image Source :PTI )

Finance Minister (FM) Nirmala Sitharaman on Wednesday tabled the final full Budget of the NDA-II government. This Budget holds much significance as the country is scheduled to have the next Lok Sabha elections in April-May 2024. Like the previous two Union Budgets, this one was also delivered in paperless form. The Cabinet has okayed the Union Budget 2023-24, the last full Budget of Modi 2.0 government.

Sitharaman said the Indian economy is on the right track, and is heading towards a bright future.

Key Highlights Of From FM's Budget Speech.

Sitharaman called the Budget 2023 a blueprint for a prosperous India that covers youth, women, farmers and backward castes. Calling India a bright star, FM says the economy on the right track amid global challenges.

"During the pandemic we ensured no one would go hungry through a scheme that provided food for 80 crore Indians for over 28 months," said Sitharaman.

She said the world has recognised India as a bright star after 75 years of Independence, and said this Union Budget aims to build on foundation of previous budgets and blueprint for India@100.

The government schemes have ensured better quality of life for the citizens. Economy has become more formalised as shown by the EPFO data, with 270 million members, she said in her speech.

India's growth at 7 per cent in current fiscal highest among major economies; Indian economy on right track. The world appreciates India's achievements, the finance minister said.

In times of global challenges, G-20 presidency gives us opportunity to strengthen India's role in global order, the FM said.

During her speech in the Lok Sabha, Sitharaman said, "Promotion of tourism will be taken up on mission mode."

Our vision for the Amrit Kaal includes a technology-driven and knowledge-based economy, with strong public finances and a robust financial sector. To achieve this 'janbhagidari' through 'sabka saath, sabka prayaas' is essential.

Seven Priorities

Priorities of the Budget, she announced that inclusive development, reaching the last mile, infra and investment, unleashing the potential, green growth, youth and financial sector.

Indian economy has increased in size from being 10th to 5th largest in last nine years. "We have made significant progress in many Sustainable Development Goals (SDGs)," the minister said.

Key Points

India's per capita income has increased to Rs 1.97 lakh, said the FM.
National Rural Livelihood Mission has achieved remarkable success by mobilising rural women into 1 lakh SHGs, she said.
The Centre will spend Rs 2 lakh crore on free food grains for all priority households under PM scheme, and also envisages India as a global hub for Sri Ann or Millets.
National Rural Livelihood Mission has achieved remarkable success by mobilising rural women into 1 lakh SHGs.
The government made cash transfer of Rs 2.2 lakh crore under PM-KISAN. The Centre to launch a Rs 2,200 crore Aatmanirbhar clean plan programme.
Sitharaman has also listed seven priorities of Budget, including infra, green growth, financial sector, youth power.
Four transformative opportunities can be used be in Amrit Kaal for enhancing economic empowerment.
Digital public infrastructure for agriculture will be built as open source, open standard and interoperable public good. Agri accelerator fund will be set up to encourage agri startups in rural areas. To enhance yield of extra long staple cotton, government will adopt a cluster-based and value chain approach, the minister said.
Agriculture credit target increased to Rs 20 lakh crore for FY24, with focus on animal husbandry, dairy, and fisheries.
FM Sitharaman said that new programme to promote research in pharmaceuticals. Facilities in select ICMR labs will be made available for research by public and private medical faculties.
At Rs 10 lakh crore, the central goverment's capex target for 2023-24 is 33 per cent higher than the Budget Estimate of Rs 7.5 lakh crore for 2022-23.
To improve social-economic condition of the Particularly Tribal Groups, PMPBTG Development mission will be launched, to saturate PBTG habitations with basic facilities. Rs 15,000 crore to be made available to implement scheme in next 3 years, the finance minister said.
The government to provide Rs 5,300 crore assistance to drought-prone central region of Karnataka.
PM Awas Yojana outlay hiked by 66 per cent to Rs 79,000 crore.
Capital investment outlay is being increased steeply for third year in a row to Rs 10 lakh crore, the FM said.
The capital outlay of Rs 2.40 lakh crore for railways fixed for 2023-24, highest ever; 9x of what was in 2013.
The government has decided to continue 50-year interest-free loans to state governments for one more year.
A National Digital Library for children and adolescents will be set up for facilitating the availability of quality books across geographies, languages, genres and levels and device-agnostic accessibility.

The FM said that states will be encouraged to set up physical libraries for them at panchayat and ward levels and provide infrastructure for accessing the National Digital Library resources.
More than 39,000 compliances reduced to enhance ease of doing business and over 3,400 legal provision decriminalised.
Newly established infrastructure finance secretariat to assist all stakeholders in more private investment.
Expert committee to be set up to make infrastructure classification and financing framework suitable for Amrit Kaal, said the FM.
States and cities will be encouraged to take up urban planning.
100 critical transport infrastructure projects have been identified for implementation. All cities and towns will be enabled for 100 per cent transition of sewers and septic tanks from manhole to machine hole mode.
Cities will be encouraged to increase creditworthiness for municipal bonds.
Govt to bring National Data Governance policy, Sitharaman has announced. National Data Governance Policy will enable anonymised data; KYC process will be simplified by adopting risk-based system. PAN will be used for common identifier for all digital systems of specified government agencies, she said.
"India is moving forward firmly to achieve the net zero target. The recently launched national green hydrogen with an outlay of Rs 19,700 crore will facilitate the transition of the economy to low carbon intensity and reduce dependency on fossil fuel imports. Our target is to reach an annual production of 5 MMT by 2030. This Budget provides for Rs 35,000 crore capital investment towards energy transition and net zero objective and energy security by the Ministry of petroleum and natural gas," the minister said.
Sitharaman said that if MSMEs fail to execute contract, 95 per cent of performance security will be returned to small business as part of Vivad Se Vishwas. The government to bring another dispute resolution scheme under Vivad Se Vishwas-2 to settle commercial disputes.
Replacing old polluting vehicles is important in 'greening our economy', said Sitharaman. An outlay of Rs 19,700 crore for green hydrogen plan has also been announced in the Budget.
The government to take up mangrove plantation along the coastline under the new MISHTI scheme. The Centre will promote conservation values through a scheme to encourage optimal use of wetlands.
The FM said the government to set up Gowardhan Scheme for promoting circular economy with total investment of Rs 10,000 crore.
She spoke about the mandatory scrapping of government vehicles to support replacement demand in the auto sector. The focus is also on tourism development which may boost air travel. Theme-based tourist circuits and facilitation of rural infrastructure also a positive move, she added.
The maximum deposit for senior citizen saving scheme to be enhanced for Rs 15 lakh to Rs 30 lakh, she announced.
One-time new small savings scheme 'Mahila Samman Saving Certificate' to be made available for 2 years upto March 2025, with deposit facility of upto Rs 2 lakh in name of women, with 2 year tenor, with 7.5 per cent fixed rate and partial withdrawal option.
In her speech, she said the fiscal deficit pegged at 5.9 per cent of the GDP for FY24.
National Calamity Custom duty on specified cigrettes proposed to be revised up to 16 per cent, said Sitharaman.
To provide support to 47 lakh youths in three years, a Direct Benefit Transfer under a pan India national apprenticeship scheme will be rolled out, announced the FM.
Sitharaman said proposes to increase income tax rebate limit to Rs 7 lakh under new tax regime.
Reduces highest surcharge rate to 25 per cent from 37 per cent in new regime, the FM added.
This year's Budget session is going to have 27 sittings till April 6 with a month-long recess to examine the Budget papers. The first part of the session will conclude on February 13. Parliament will reconvene on March 12 for the second part of the Budget Session and conclude on April 6.
The finance minister on Tuesday tabled the Economic Survey for FY22-23. The Economic Survey said that India's economic recovery from the Covid pandemic is complete and the economy is expected to grow in the range of 6 per cent to 6.8 per cent in the coming financial year 2023-24. This is in comparison to 7 per cent this fiscal and 8.7 per cent in 2021-22.

New Tax Rates

The Income Tax rebate limit has increased to Rs 7 lakh from Rs 5 lakh in the new tax regime, which is going to be the default now. The tax structure is changing in the new regime as the number of slabs has been reduced to 5 from 6, and the tax exemption limit increased to Rs 3 Lakh.

Revised tax slabs: