Vision: -
The vision for “Amrit Kaal” includes a technology driven and knowledge based economy with strong public finances and a robust financial sector. You can see Decoding Budget 2023 with AssetPlus.
Key Highlights
This is the first budget in “Amrit Kaal”
The budget’s theme is “Prosperous and Inclusive India” focusing on Youth, women, farmers, OBCs and Scheduled tribes.
A scheme to supply free food grains to Antyodaya and priority households for which the expenditure of Rs. 2 lakh crores will be borne by the government.
Key highlights under prioritized sectors: -
Inclusive Development:
“Sabka Saath Sabka Vikas”
Agriculture:
To set up an agriculture accelerator to promote agriculture startups.
To build digital infrastructure which is accessible and informative to farmers.
Agriculture credit target has been increased to 20 lakh crores.
To launch Atmanirbhar Horticulture Clean Plant Program to boost availability of quality planting material with an outlay of 2200 crores.
India is the largest producer and the second largest exporter of “Shree Anna” (millets)
Health
157 new nursing schools to be established
A mission will be launched to eliminate Sickle Cell Anaemia by 2047.
Public and Private Medical college research to be promoted by select ICMR labs.
A new programme to promote research and innovation is pharmaceuticals.
Education and Skilling
Teachers’ training to be improved by the District Institutes of Education and Training.
A National Digital Library for children and adolescents to be set-up.
Achievements: -
Cash transfer to over 11 crore farmers worth Rs. 2.2 lakh crores.
220 crores covid vaccinations of 102 crore persons.
9 crore drinking water connections were established.
2. Reaching the last mile:
Pradhan Mantri PVTG Development Mission will be launched to improve the social economic conditions of tribal groups.
In the next 3 years, teachers will be recruited for the 740 Eklavya Model Residential Schools.
PM Awas Yojana outlay is increased by 66% to Rs. 79000 crores.
3. Infrastructure and Investment
Capital Investment was increased by 33% to 10 lakh crores for the 3rd time in a row.
Continuing the 50 years interest free loan to state government for one more year
Capital outlay of Rs. 2.4 lakh crores to Railways.
100 critical transport infrastructure projects to be taken up on priority with an investment of Rs. 75000 crores.
To create urban infrastructure in Tier 2 and Tier 3 cities, UIDF (Urban Infrastructure Development Fund) is established.
4. Unleashing the Potential
Make AI in India and make AI work for India - three centres of excellence for Artificial Intelligence will be set-up to achieve this vision.
Simplifying the KYC process by adopting a ‘risk-based’ instead of ‘one size fits all’ approach.
In case MSMEs have failed to execute any contracts during Covid period, 95% of the forfeited amount will be returned to them by the government.
Launching E-courts project with an outlay of Rs. 7000cr.
An entity DigiLocker to be set up for MSMEs, businesses and Charitable trusts.
To set up R&D for Lab Grown Diamonds (LGD) which is an innovation-driven emerging sector with high employment potential.
5. Green Growth
Launched National Green Hydrogen Mission with an outlay of Rs. 19700 crores.
Rs. 35000 crores as priority capital investments for Energy transitions.
MISHTI programme planned for mangrove plantation along the coastline.
Renewable energy grid to be set up with an outlay of Rs. 20700cr.
GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme to be launched with an investment of Rs.10000 cr.
6. Youth Power
Pradhan Mantri Kaushal Vikas Yojana 4.0 to be launched to cover courses like coding, AI, mechatronics, IOT, 3D printing, etc.
To provide stipend support to 47 lakh youth in three years.
Major measures to boost tourism sector
An app will be launched to enhance tourist experiences such as physical connectivity, virtual connectivity, tourist guides, high standards for food streets and tourists’ security.
7. Financial Sector
Additional credit of Rs. 2 lakh crores under revamped scheme with the cost of credit reduced by 1%.
The adoption of digital payments has been significant, with a 76% increase in transactions.
For faster handling of various forms, a central Data Processing Centre will be set up
Various initiatives and schemes to promote GIFT IFSC business activities.
A one time new small savings scheme to be launched for women for a tenor of 2 years with an interest rate fixed at 7.5% with partial withdrawal.
Maximum limit in Senior Citizens Savings Scheme increased from Rs. 15 lakhs to Rs. 30 lakhs.
Indirect Taxes: -
A simplified tax structure with fewer tax rates thereby reducing compliance burden.
Relief in customs duty on import of certain mobile parts to further boost mobile manufacturing.
Direct Taxes: -
The new tax regime has been made the default tax regime with the old regime still available
The basic exemption limit to be raised to Rs. 7 lakhs under the new regime.
Salaried employees and pensioners can now claim a standard deduction benefit of Rs.52,500 under the new regime.
The new tax slabs under the new regime are as follows: -
Conclusion
Despite the global slowdown, the current Economy growth of India is at 7% which shows that the Indian Economy is on the right track. The Indian Economy has been recognized as a bright star by the World. The per capita income of India doubled to 1.97 crores.
Overall this was a good budget keeping in mind the welfare of youth, women, farmers, OBCs and other Scheduled Tribes. This growth is completely welfare and development oriented along with growth in the technology sector. You can see Decoding Budget 2023 with AssetPlus.