Breaking Down the 2023 Union Budget

Breaking Down the 2023 Union Budget: Key Takeaways
and Impacts

NIRMALA SITHARAMAN’S BUDGET SPEECH, INDIA BUDGET 2023
Presenting the Union Budget 2023, Finance Minister Nirmala Sitharaman
Wednesday announced that the capital investment increased for the third year by
33% to 10 lakh crores which come to 3.3% of GDP. The Minister’s speech also laid
emphasis on infrastructure and jobs ahead of Modi government’s last full-fledged
Budget before the Lok Sabha elections in 2024.
This year’s Union Budget focuses on seven key areas (or “Saptrishis guiding us
through Amrit Kaal”, as the Finance Minister put it), which are inclusive
development, reaching the last mile, infrastructure and investment, unleashing the
potential, green growth, youth power and financial sector”.
Here are Budget 2023 highlights:

ITEMS TO BE CHEAPER

• Customs duty on parts of open cells of TV panels cut to 2.5%;
• Customs duty on the import of certain inputs for mobile phone manufacturing to
  be reduced;
• Basic customs duty on seeds used in manufacturing of lab-grown diamonds to be
  reduced;
• Customs duty on shrimp feed to be reduced.
  ITEMS TO BE COSTLIER
• Tax on cigarettes hiked by 16 per cent; basic import duty on compounded
  rubber increased from 10% to 25%;
• Basic customs duty hiked on articles made from gold bars;
• Customs duty on kitchen electric chimney doubled to 15%.
  NEW INCOME TAX REGIME
• The tax slabs for the new tax regime are as follows:
• 0-Rs. 3 lakh — nil;
• Rs. 3-6 lakh— 5%;
• Rs. 6-9 lakh — 10%;
• Rs. 9-12 lakh — 15%;
• Rs. 12-15 lakh — 20%;
• Rs. 15 lakh and above — 30%.
• In the new tax regime, the number of slabs reduced from 6 to 5 and the tax
  exemption limit increased to Rs 3 lakhs.
• The new tax structure will now be the default tax option.
• Income tax rebate limit increased from Rs 5 lakh to Rs 7 lakh under new tax
  regime.
  ALL IMPORTANT HIGHLIGHTS OF UNION BUDGET 2023-24
• Deductions from capital gains on investments in residential houses to be capped
  at Rs 10 crore.
• Concessional basic customs duty of 2.5% on copper scrap to continue; customs
  duty on shrimp feed to be decreased.
• The limit for presumptive taxation for MSMEs and certain professionals to be
  increased to Rs 3 crore and Rs 75 lakh respectively.
• The basic import duty on compounded rubber increased to 25% from 10%.
• Basic customs duty hiked on articles made from gold bars.
• Customs duty on kitchen electric chimney increased to 15% from 7.5%
• Cigarettes to get costlier as Budget proposes 16% hike in duty.
• Income Tax Returns (ITR) processing time to be reduced from 93 days to 16 days.
• Custom duty rebate for Lithium battery, certain elements on camera lenses,
  mobile phone and television manufacturing.
  Fiscal deficit target fixed at 5.9 per cent of GDP.
• 5% compressed biogas (CBG) mandate for all entities marketing natural gas in
  India.
• In terms of conservation, a new scheme to be launched to aid the optimal use of
  wetlands; Mangrove plantation to be taken up along the coastline under the new
  MISHTI scheme.
• Pradhan Mantri Kaushal Vikas Yojna 4.0 to be launched to build skills in
  youngsters; 30 Skill India international centres to be set up.
• PM-PRANAM to be launched to incentivise states to promote alternative
  fertilisers.
• A Gowardhan Scheme to be set up for promoting a circular economy with a total
  investment of Rs 10,000 crore.
• Green credit programme will be notified under the Environment Protection Act,
  meant to incentivise environmentally sustainable and responsible actions by
  companies.
• Support to be provided for setting up of battery energy storage of 4,000 MwH.
• Rs 35,000 crore set aside for priority capital investment towards energy
  transition and net zero objective.
• The 50-year interest-free loans provided to state governments to be extended for
  one more year.
• A national mission for vulnerable tribes launched with an outlay of Rs 15,000
  crore.
• Railways get a capital outlay of Rs 2.4 lakh crores, which the FM says is the
  highest-ever allocation since 2013-14.
• Urban planning to be encouraged, with a focus on 100 critical transport
  infrastructure projects, 100% transition of sewers and septic tanks from manhole
  to machine hole mode.
• Poll-bound Karnataka gets Rs 5,300 crore assistance for dealing with drought.
• The outlay for PM Awaas Yojana has been enhanced by 66 per cent to over Rs
  79,000 crore.
• A National Digital library for children and adolescents to be set up for facilitating
  the availability of quality books across geographies, languages and genres and
  levels and device-agnostic accessibility.
• For the fisheries sector, a new sub-scheme under PM Matsya Sampada Yojana
  with an outlay of Rs 6,000 crore
• Capital investment increased for the third year by 33% to 10 lakh crores, 3.3% of
  GDP.
• Government to launch a Rs 2,200 crore Aatmanirbhar clean plan programme
• Govt to support Hyderabad-based millet institute as a centre of excellence.
• A national cooperative database is being created to map cooperative societies.
• An agriculture accelerator fund will be set up to encourage agricultural startups
  by young entrepreneurs.
• Digital public infrastructure for agriculture will be built as an open-source, interoperable public good.
• Priorities of this budget: Inclusive development, reaching the last mile, infra and
  investment, unleashing the potential, green growth, youth power and financial
  sector.
• Government implementing a scheme to supply foodgrains from January 1, 2023,
  to all Antaodaya and priority households for the next one year. The scheme to
  supply free food grain for priority households for the next year has been
  implemented from January 1.
• Finance Minister says the Indian economy is on the right track despite
  challenges.
• Current year economic growth is estimated to be at 7%.