Union Budget 2023-24 In 10 Points! Significant Income Tax Relief, Infrastructure and Job Creation Before 2024
As Finance Minister Nirmala Sitharaman presented the budget for the fifth time in a row, before the 2024 general election, she vowed significant tax reductions for taxpayers as well as a massive push for building infrastructure.
Union Budget 2023 in 10 Points!
1. Throughout the new tax system, which will serve as the baseline, the administration has streamlined the slabs. The maximum relevant tax rate in India following surcharges has decreased from 42.7% to 39.0%, and there would be no tax on profits up to Rs. 7 lakhs per year, up from Rs. The new fiscal system is “appealing since it offers a bigger rebate. Additionally, it offers streamlined and shorter slabs, “added the minister.
2. The new regime will reduce the number of tax brackets from seven to just five. Up to Rs. 3 lakhs of earnings will not be subject to tax. Income from 3 lakhs to 6 lakhs would be charged at 5 percent; income between six and nine lakhs will be charged at 10 percent; earnings from 9 lakhs to 12 lakhs will indeed be taxed at 15 percent; earnings within 12 and 15 blacks would be taxed at 20 percent; and revenue beyond 15 lacks would be charged at 30 percent.
3. The country would expand its strategy to resuscitate growth after Covid by spending a record-breaking 10 lakh crore, a jump of 33%, on long-term capital investment. In 2023–2024, this will be 3.3% of the GDP.
4. The government has identified seven priority sectors, including the financial sector, investment, infrastructure, youth power, green growth, and unleashing potential.
5. The goal for agricultural loans has been raised to 20 lakh crore, and in an additional populist move, funding for the PM Awas Yojna has been boosted by 66% to more than 79,000 crores. 50 new airports, as well as helipads, have also been promised by the administration.
6. The document stated a 2.4 lakh crore outlay for the railroads, which is 4 times the budget from the previous year and the most in about a decade. When comparing it to the final year of the UPA administration under the leadership of Congress, she added, “This is approximately 9 times the expenditure made in 2013-14.”
7. All digital systems of the designated government entities will use a uniform identity called the Permanent Account Number (PAN). Through all of the Machine applications service and Aadhaar, the KYC process would be streamlined and a one-stop identity update will be developed. To make corporate operations easier, a “Unified Filing Procedure” system would be established to reduce the present duplication process for several departments.
8. The administration will introduce a new method for resolving conflicts in the commercial sphere. According to the minister, there would be a single point of contact for the harmonization of IDs kept by various authorities.
9. The government plans to produce 5 Million tons of green hydrogen by 2030 through the Green Hydrogen Mission Programme to transition to green fuel, according to Ms. Sitharaman.
10. The updated forecast for the current fiscal will maintain the fiscal deficit objective of 6.4%. According to Ms. Sitharaman, it will be reduced to 5.9% of the GDP again for the upcoming fiscal year 2023–2024.