Union Budget 2023 Key Highlights: Major Budget Announcements

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• Union Budget 2023 Key Highlights: Major Budget Announcements

Union Budget 2023 Key Highlights: Major Budget Announcements

The Union Finance Minister, on February 1, 2023, presented the Union Budget for the Year 2023. Mrs. Sitharaman, during the budget presentation, assured that the Indian economy is on the right path and heading towards a brighter future. This current Budget is the first in Amrit Kaal, as celebrated by the present Union regime.

The FM also announced benefits to taxpayers, such as significant changes in tax slabs under the New Tax regime. They also scaled a big boost for railways as well as capital expenditure. Let us look at some of the critical highlights of the Budget.

First Budget of the 'Amrit Kaal' regime

As India entered its 75th Year in 2022, the Prime Minister announced a progressive period of 25 years and termed it Amrit Kaal. The Union Budget of 2023 is the first of the Amrit Kaal. So let us dive into significant highlights of the Budget.

In line with the Economic Survey, the Union Government projects the Country's GDP growth at 7%.

Divestment of half a lakh crores

For the fiscal year 2023, the Government has slated its divestment from major economic sectors at a revised amount of Rs 50,000 crores.

Credit to Agriculture Sector

• The Government seeks to boost the credit to the agricultural sector to Rs 20 lakh crores.
• The Union plans to spend Rs 2200 crore for high-value horticulture.
• Horticulture adds to the overall appeal and infrastructure of a city or a township

More of Infra-Development

• The Finance Ministry raises the outlay of PM Awas Yojana by two-thirds. As a result, the amount is increased to Rs 79,000 crores.
• The Government outlays more than seven thousand rupees for the third phase of E-Courts in India. 

Energy Security and Transition

• The Union has set aside a budget of Rs 35000 crores for investments in energy sectors.
• The Budget is specifically for the security and transition of renewable as well as non-renewable energies.

Green Energy for Environment

• The Green Hydrogen Mission will output clean energy of 5MMT by 2030.
• Union has reserved the requisite funds for the technology development. 

Import & Custom Duties

• The Union has increased import taxes on compounded rubber from 10% to 25%.
• The Union has raised the calamity-related duty on cigarettes raised by 16%. It will be disheartening for the smokers but good for their health. 

Credit Guarantees for the MSMEs

• The Union will revamp the credit guarantee for the MSMEs from April 1, 2023.
• The Centre has allocated Rs 9,000 crores for the purpose.
• It will reduce the cost of credit by one percentage point.

Railways get a Boost

• The Union has provided an outlay of Rs 2.4 lakh crore for railways in 2024.
• The budget allocation is the highest ever for Railways in 10 years.

Vision for the Financial Year 2024

The Union Government is assigned the following estimates for various subsidies, CAPEX requirements, and divestment targets for the year 2024:

• Food Subsidy at 1.97 lakh crore
• Fertilizer Subsidy at 1.75 lakh crore
• Divestment of Rs 51000 crore
• Capital Expenditure upto Rs 10 lakh crores, up by 33%

For further details, keep a tab on the Registrationwala portal and social media handles. We are committed to bringing you the best and brightest knowledge about the country's economy and legislatures.

To understand the technicality of the Budget, or know further about any of the latest developments in the Union Budget, connect with the Taxation Team at Registrationwala. 

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