India Budget 2023 Highlights: The Union Budget 2023-24 put forth several proposals for the benefit of taxpayers which came as a huge relief to the middle-class, salaried people of India. Finance Minister Nirmala Sitharaman on February 1 presented the budget for this fiscal beginning April 1, 2023 in which one of the major takeaways was the announcement of simplified tax slabs and tax rebate hike.
The simplified tax slabs, however, fall under the new tax regime, which the FM said has been intentionally designed that way so that more and more people opt for it. Although people have been rejoicing over the decision, many are yet to navigate their way through the new regime. And since it will be the default tax regime, one has to be prepared well in advance. This budget also focused on raising capital expenditure, fiscal consolidation, and green growth.
The capital investment outlay has been increased by 33 per cent to Rs 10 lakh crore, which will account for 3.3 per cent of the GDP, the FM said in her budget speech. She added that the government remains committed to bringing the fiscal deficit down to 4.5 per cent of the GDP by 2025-26. The Budget also focussed on seven priorities, which Sitharaman called the “Saptrishis guiding us through Amrit Kaal”. Stay tuned with financialexpress.com as we bring you all the updates on Budget speech 2023.
Watch FM Sitharaman’s Budget 2023 speech from Parliament
Union Budget 2023 Highlights Live News: FM Nirmala Sitharaman Budget 2023 Top Announcements Live Updates
#watch | Around Rs 2,35,000 crore have been alloted to Railways. Is this for the employees or for new recruitments or is it just for the modernisation of Railways before selling it to private companies : Chhattisgarh CM Bhupesh Baghel pic.twitter.com/lIF94y1DF8
— ANI MP/CG/Rajasthan (@ANI_MP_CG_RJ) February 1, 2023
Customs duty has been exempted on capital goods imported for manufacturing lithium-ion batteries to boost EV domestic production. These steps will go a long way to boost the EV sector in India and the automotive sector at large which is still recuperating from the pandemic losses.
Read More: Budget 2023 – Revving up the engine: Manufacturing sector braces for growth
Karnataka Congress chief DK Shivakumar told ANI that he is not happy with the budget 2023. He said that Nirmala Sitharaman being from Karnataka would give boost to the state but nothing was done.
Reacting on the budget, Vikas Gupta, chairman and managing director of Miles Education, said, “I am pleased to see the focus on education and skilling in the Union Budget '23. The government's initiatives, including the setting up of three centres of excellence for Artificial Intelligence in top educational institutions, the launch of Pradhan Mantri Kaushal Vikas Yojana 4.0, and the creation of a unified Skill India Digital platform, will greatly benefit the youth of our nation. These initiatives align with Miles Education's mission to empower and equip the next generation of professionals with the skills and knowledge they need to succeed in their careers. However, despite all the steps taken to promote the digital ecosystem, the GST rate on educational and training services, which includes PG certifications and executive programs from any institution, private or public remains unchanged. This continues to form an entry barrier for the workforce to become future-ready. All in all, we look forward to supporting the government in realizing its vision of “Make AI in India and Make AI work for India” and helping the youth of India reach their full potential.”
Commerce and Industry Minister Piyush Goyal has said that announcements in the Budget like extending the period of incorporation of eligible budding entrepreneurs for providing tax incentives, would provide a lot of support to further strengthen the country's startup ecosystem.
(Opposition) can do discussion on any topic. Constructive suggestions regarding the budget and President's address should be given. I appeal (to Opposition) to let the House function smoothly: Parliamentary Affairs Minister Pralhad Joshi told ANI.
“This optimistic Union Budget of Amrit kaal is groundbreaking in itself, setting a clear ground for reformation by proposing 100 critical infrastructure projects with an investment of 75,000 crores for last and first-mile connectivity for ports, coal, steel, fertilizer, and the food-gain sector. The government has allocated 2.7 lakh crore to the Ministry of Road Transport and Highway, signifying its focus on extensive connectivity which is going to further boost the logistics industry,” says Yash Jain, Co-Founder and CEO at NimbusPost.
The Rs 35,000-crore capex allocation for energy transition announced in the Union Budget will have multiplier effect in areas like green fuel, green energy, green farming, and green mobility, among others, power sector players said. The industry has long been advocating harnessing Ladakh's higher solar potential, and allocating capital to create evacuation infrastructure to boost the industry. The GOBARdhan Scheme for promoting a circular economy with a total investment of Rs 10,000 crore is another landmark step and will give a fillip to greening the economy, he said. – PTI
Union Finance Minister Nirmala Sitharaman on Wednesday announced a Rs 4,692-crore outlay for the Ministry of Information and Broadcasting for 2023-24 as against Rs 4,182 crore in the revised estimates for the last fiscal. The allocation to the government's autonomous body, Prasar Bharati, has been increased to Rs 2,808.36 crore from Rs 2,764.51 crore allotted to it in the last fiscal. – PTI
'The Budget 2023 announcement brings forth a bright opportunity for the innovative minds in India. The government’s initiative to promote pharmaceutical innovation in the country by leveraging centres of excellence is encouraging, and will provide impetus for public-private partnerships to emerge and deliver high-quality products for India and the world. We applaud the government’s efforts to promote education, medical research, and are enthralled by its decision to increase the capital investment outlay for a consecutive third year, which is guaranteed to attract private investments, helping the pharmaceutical and ancillary industries achieve true growth,' Dr. Deepak Birewar, Chairman and MD, Inventys Research Company
'A new chapter in India’s travel and tourism industry is set to begin as the Budget 2023 announcement comes to a close. The positive outlook for the industry displayed by FM Nirmala Sitharaman early on in her speech is highly commendable, taking up the agenda for promoting tourism in the country on “mission mode,” and will play a vital role in reviving the landscape of tourism in India. The initiative to provide additional infrastructural support with fifty new airports, heliports, water aerodromes, and advanced landing zones in India, along with the simplification of registration and overall regulations under the GIFT IFSC will pave the way for new entrants in the aviation industry, which has experienced increasing demand both domestically and internationally. Theme-based tourist circuits and introduction of ‘unity malls’ by states to promote locally manufactured goods is yet another move that will result in revitalising the tourism industry, along with providing multiple opportunities for employment generation and entrepreneurship. Moreover, the introduction of the new Income Tax slabs will avail newer and better opportunities for people to travel and discover India’s rich diversity,' says Nishant Pitti, CEO and Co-founder, EaseMyTrip.
“The 66% increase in the allocation to Prime Minister Awaas Yojana to Rs 79,000 crores is a sure boost for affordable housing. This is another step towards the government's 'Housing for All' mandate. The Budget lays much emphasis on building the infrastructure of the country, with emphasis on last-mile connectivity. The unwavering focus on infrastructure will indirectly drive real estate growth over the next one year,” says Samir Jasuja- Founder & CEO- PropEquity.
“Changes in income tax rates, including exempting income up to INR 7 lakh under the new tax system and rates, will undoubtedly benefit the middle class. However, it remains to be seen whether the real estate sector will have a collateral boost,” he added.
From Shiv Sena faction headed by Uddhav Thackeray to the DMK, several regional parties called the Union Budget 'disappointing'. They said that the Modi govt of taking away states' resources and shortchanging them in their allocation. Similar views were expressed by the Left.
“We are elated at the government's recognition of skill development and education, as an organisation that strives to encourage these values. Arranging for new Skill India centres as well as a new Skill India platform can make the process accessible to every willing and interested student across the nation, along with providing them the proper avenues for on-field experience. The implementation of a pan-India apprenticeship scheme is another step in the right direction. As time flows, we will see the impact of these moves. The right aid and guidance from the government will surely take our nation's youth ahead,” says Abhishek Mitra, CEO and Founder of Indian Cyber Security Solutions
'The budget 2023 is oriented to economic growth of the country. I am sure that 33% growth in capital expenditure will result in balanced development. This is a smart move since it will help the country achieve its goal of becoming a 5 trillion-dollar economy and a global powerhouse. I believe that the announcement of setting up 100 labs to effectively develop 5G services and the vision to promote Artificial Intelligence in overall industries is a strong step by the government. This will further lead to automation in the industries which will help in propelling India’s growth and promoting smart cities. The union budget 2023 has come up with positive announcements for different sectors to support the Make In India initiative and can result in balanced growth in the near future,' says Rajeev Sharma, Chief Strategy Officer, Mitsubishi Electric India.
Sukhbir Singh Badal, president of Shiromani Akali Dal, calls Union Budget 2023-24 as one against farmers. Nirmala Sitharaman has disappointed rural poor and youth, besides failing to do anything to revive the agricultural and the industrial sector in Punjab, says Badal.
“Union Budget 2023 seeks to build a blueprint for India’s 100th anniversary and has laid the groundwork for growth across several sectors, with a keen focus on upskilling. The government’s steps to skill lakhs of youths in advanced technologies will help in large-scale job creation that will in turn fuel the next chapter of growth for India. The revised tax slabs will also immensely benefit the common man by providing more disposable income, leading to higher spending which will move the wheels of the economy,” says Amit Jain, Co-founder and CEO, CarDekho Group.
'The Union Budget FY23-24 is an extremely progressive and inclusive one with a huge focus on infrastructure and capex growth while maintaining the fiscal consolidation path. With fiscal deficit being reduced to 5.9% whilst providing an extremely bullish capex investment of Rs. 10 lac crs (highest ever); will in effect convert revenue expenditure to capital expenditure which has a higher multiplier effect. It will also mean net borrowing by the Govt being lower than anticipated at Rs. 11.8 lac crs and that augurs well for the bond market and the corporate sector as a whole. Moreover with tax relief at an individual level would mean an additional Rs. 35,000 crs available for consumption. Fuelled by ease of doing business related policies and regulations, this will bolster growth especially in the highly regulated financial services space. For a category like general insurance, these macro-economic indicators would provide the much-needed thrust for bridging the penetration gap in the country.
There are some pertinent developments that will enable growth for the industry in the longer horizon. The focus on tourism will pave the way for not just generating employment and investments but also travel insurance in the long term. We have always been zealot about capacity and capability building in health arena and Govt setting up nursing colleges is a positive development. Infact I believe the CoE on AI being set up could be a game changer with access to right talent pool in India. On the auto front, the old vehicle and ambulance scrapping policy is a step in the right direction. Overall, the budget this year has been growth oriented while also being fiscally responsible which is laudable,' Bhargav Dasgupta, MD & CEO – ICICI Lombard
'The budget has ushered a slew of initiatives by emphasising the National Education Policy's skilling outlook. We welcome the move and expect public-private cooperation to meet the goals of this initiative, accelerating India's transition to an Industry 4.0 economy. The three AI centres of excellence to enable 'Make AI for India' and 'Make AI work for India' will benefit the development of digital infrastructure and skills in India. At a time when skilling and reskilling are critical for India's youth, the government's recognition of the need for skilling is an encouraging move for the Higher Education and H.EdTech sectors. However, we continue to believe that lowering the GST on professional learning programmes would have made modern learning more accessible and affordable, assisting millions of learners in becoming future-ready,' says Anish Srikrishna, CEO, TimesPro.
'The Union Budget 2023 places a strong emphasis on environmental responsibility. The ‘Panchamrit’ initiative is aimed specifically at achieving net zero carbon emissions by 2070, thus contributing to the green growth of the nation. Continuing to provide impetus for EV adoption in India, the government has taken robust steps through exemptions on customs duty levied upon the machinery imported for the manufacture of lithium-ion cells for EV batteries. The budget has also adequately covered infrastructure development by allocating INR 75,000 crore, including private investment, towards improving first- and last-mile delivery. As a part of the logistics sector, we are extremely elated at the announcement of these provisions, since they will help solve the current connectivity issues facing the industry while building a more sustainable future for logistics, where efficiency and environmental responsibility come together to form a sustainable ecosystem,' says Zaiba Sarang, Co-founder, iThink Logistics.
“The Union Budget presented by the Hon'ble Finance Minister is growth oriented and will steer India towards holistic development across all pillars. The announcement of 50 additional airports and ramping up of air transport infrastructure is a welcome move and will support the nation's growing demand for air travel. The focus on promoting domestic tourism will provide impetus to further revival of the sector and aligns with our vision to strengthen India's transportation system. As India's greenest airline, we are delighted to acknowledge Green Growth as one the key priorities of this Union Budget and be at the forefront of creating green job opportunities in the country.”
– Vinay Dube, Founder and CEO, Akasa Air
It's a budget for growth & development. In last 2 years, we faced many difficulties but thanks to farsighted policies of PM, we are back to pre-Covid level of economic activities in every sector. Capital expenditure increased by 33% to Rs 10 lakh Cr: Union Min Hardeep Singh Puri pic.twitter.com/dCUU1PQzOC
— ANI (@ANI) February 1, 2023
Goa Chief Minister Pramod Sawant has hailed the Union Budget for 2023-24, saying it covers the aspirations of different sections of society, including the salaried class, and conveys the message of development for all and effort of all, reported PTI.
“The Union Budget 2023-2024, the first of the Amrit Kaal, strikes a good balance between the country's growth ambitions and need for fiscal prudence. The sharp increase in capital spending combined with a focus on reining in the fiscal deficit, will not only spur infrastructure development and job creation for our country's youth, but do so responsibly. Capital expenditure will further increase the growth of the economy and even if the deficit rises debt to GDP will fall.
At the same time, the budget's commitment to sustainability must be commended. It successfully combines conservation principles by way of the MISHTI mangrove plantation scheme with steps to speed up the transition to clean energy, underscored by a Rs. 35,000 crore high-priority capital outlay aimed at helping the country meet its 2070 net-zero goal. At the same time, reduced compliance red tape and loosened regulations promise to further fuel our nation's start-up culture. Lastly, I agree with the Finance Minister that India will be in a unique position to improve its standing in the global economic system while leading the G-20.”
– Nadir Godrej, Chairman and MD, Godrej Industries Ltd
The govt has allocated Rs 1.23 lakh crore for postal and telecom projects including Rs 52,937 crore capital infusion in state-run BSNL. The budget mentioned that the total allocation includes Rs 97,579.05 crore for the Department of Telecom and Rs 25,814 crore for Postal projects.
“We welcome this budget as it focuses on sustainable growth and infrastructure development. The announcement of setting up Urban Investment development fund (UIDF) for tier-II and tier-III cities will provide a much needed boost for smoother and faster logistics transportation and will further ensure greater connectivity in tier-II and tier-III cities. Identifying 100 critical transport infrastructure projects will have a positive impact on nation’s last and first mile connectivity. Additionally, the announcement of 50 new airports, helipads, and aerodromes will enhance the regional air connectivity across the country whereas the highest ever allocated capital outlay to Indian Railways will add to the smooth connectivity between different points of country and easy and faster freight movement.”
– Rampraveen Swaminathan, CEO, Mahindra Logistics Ltd
“The budget is clearly growth-oriented, with sharp focus on capital spend, tax concessions, spurring consumption demand, and supporting MSMEs. Also, the government’s commitment to the fiscal consolidation path augurs well for the interest rate outlook. These factors should help prepare the economy for the next phase of growth, crowd in private corporate capex and, in turn, fuel credit growth for the financiers. MSMEs, which are yet to recover fully from Covid disruptions, will benefit from the revamped credit guarantee scheme that envisages Rs 2 lakh crore credit flow at lower interest rates. Additionally, the move to link tax deduction on expenditure of larger companies to making timely payments to MSMEs will improve the liquidity position of these entities.”
– Gurpreet Chhatwal, Managing Director, CRISIL Ratings Ltd
Who has benefited from this Budget? Certainly, not the poor, not the youth looking desperately for jobs, not those who have been laid off, not the bulk of the taxpayers and not the homemakers: Former Finance Minister & Congress leader P Chidambaram
Budget shows that govt not bothered about the people & their concerns about lives & livelihood and growing inequality between the rich & poor. Finance Minister didn’t mention the words like unemployment, poverty, or inequality anywhere in her speech: Congress leader P Chidambaram pic.twitter.com/x6EZgKNM3J
— ANI (@ANI) February 1, 2023
Nirmala Sitharaman in the current budget made announcements regarding manual scavenging of sewers. In the budget speech, Sitharaman said as part of urban Sanitation to prevent sewer deaths, all cities and towns will be enabled for 100% mechanical desludging of septic sewers.
This budget will touch 140 crore Indians & will impact their lives for a better future & prepare India to enter into Amrit Kaal with great confidence as a country which is working to a plan to make India a nation where everybody grows as the economy grows: Union Commerce Minister Piyush Goyal