Budget Balances Development Imperatives Within Fiscal Prudence Limits, Says Sitharaman

Speaking in the Lok Sabha, Nirmala Sitharaman underscored that India was still the fastest growing major economy and could continue to be so.

Union Finance Minister Nirmala Sitharaman on Friday said the Budget 2023-24 balances the requirement for India's development imperatives within the limits of fiscal prudence. Speaking in the Lok Sabha during the general discussion on the Budget, Sitharaman underscored that India was still the fastest growing major economy and could continue to be so.

"In simple words, Budget 2023-24, astutely balances the requirement for India's development imperatives within the limit of fiscal prudence. That is a very difficult balance, it is a very delicately balanced tact," Sitharaman said.

The Finance Minister said the Budget focuses on the middle class, employment generation, MSME, agri sector, rural population, health and green growth.

Onn the new tax regime, which offers a rebate on annual income of up to Rs 7 lakh, Sitharaman said it would leave higher disposable income in the hands of people.

"This new tax regime will benefit the majority of middle-class taxpayers...Since the enhanced rebate limit is unconditional, it leaves higher disposable income in the hands of people," she said.

Countering Opposition criticism that the government has cut food subsidy, the Finance Minister said it was in fact almost doubled to Rs 1.97 lakh crore. Sitharaman said the government has insulated farmers from rising fertilizer prices in global markets by increasing subsidy.

"Besides, agriculture credit target for 2023-24 fiscal has been increased to Rs 20 lakh crore. Also, fertilizer subsidy has been raised to Rs 2.25 lakh crore for the current fiscal from Budget estimate of Rs 1.05 lakh crore," she said.

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In the Budget 2023, Sitharaman announced major changes in tax slabs under new tax regime, hike in capital expenditure and the highest-ever capital outlay for Railways. The government has also proposed customs duty exemptions on import of capital goods and machinery required for lithium-ion batteries.

In a relief for middle- and salaried-class people, Sitharaman announced that no tax would be levied on annual income of up to Rs 7 lakh under the new tax regime.