India’s Union Budget 2023 was presented by Finance Minister Nirmala Sitharaman, emphasizing infrastructure and jobs. Capital investment has increased by 33% to 10 lakh crore, 3.3% of GDP, for the third year in a row.
The budget focuses on seven key areas: inclusive development, reaching the last mile, infrastructure and investment, unleashing potential, green growth, youth power, and the financial sector.
Cheaper items include: reduced customs duty on parts of open cells of TV panels, certain inputs for mobile phone manufacturing, seeds used in lab-grown diamond manufacturing, and shrimp feed.
Costlier items include: cigarettes with a 16% hike in tax, compounded rubber with a basic import duty increase from 10% to 25%, articles made from gold bars, and kitchen electric chimneys.
The new income tax regime has reduced the number of slabs from 6 to 5, increased the tax exemption limit to Rs 3 lakhs, and increased the income tax rebate limit from Rs 5 lakh to Rs 7 lakh. It will now be the default tax option.
The limit for presumptive taxation for MSMEs and certain professionals has been increased to Rs 3 crore and Rs 75 lakh respectively.
Other highlights include:
5.9% deficit target
5% compressed biogas mandate
New scheme for optimal use of wetlands
New Pradhan Mantri Kaushal Vikas Yojna 4.0
PM-PRANAM
Gowardhan Scheme
Green credit program
Support for setting up battery energy storage of 4,000 MWh
Rs 35,000 crore set aside for energy transition
50-year interest-free loans to state governments
National mission for vulnerable tribes
Highest-ever allocation of Rs 2.4 lakh crore to Railways
Urban planning focus
Assistance to drought-stricken Karnataka
Enhanced PM Awaas Yojana
National Digital Library for children and adolescents
New sub-scheme for the fisheries sector under PM Matsya Sampada Yojana.
