Union Budget 2023-24 will be presented by Finance Minister Nirmala Sitharaman on 1 February.
Budget 2023 will be closely watched for proposals related to income tax, fiscal deficit, disinvestment target, FY24 capital expenditure plan and any announcement on millets.
Finance Minister Nirmala Sitharaman On Wednesday, February 1, she is going to present the Union Budget 2023-24, her fifth and the last full budget of the government before the 2024 general elections. Apart from the demand of individuals there are expectations from various sectors tax relief, As Budget 2023 is round the corner, here are the key things to watch out for in the budget:
income tax declarations
An announcement related to income tax is one of the keenly watched things in the budget, as it affects the people and the exchequer at large. It is expected that the government may provide relief to individual taxpayers by increasing the tax exemption or exemption limit. In the Union Budget 2023-23, there is also a demand to increase the deduction limit under Section 80C from Rs 1.5 lakh at present.
Fiscal deficit
Fiscal deficit It is one of the important metrics among the markets and policy makers to follow. This reflects the health of the government’s finances and its dependence on borrowing. As per the latest data available, India’s fiscal deficit during April-November 2022 stood at Rs 9.78 lakh crore or 58.9 per cent of the target for the full fiscal year. In the same period last year, the deficit stood at 46.2 per cent of the full FY12 target. Fiscal deficit is the difference between the government’s expenditure and revenue.
disinvestment target
The budgeted disinvestment target for the current financial year 2022-23 is Rs 65,000 crore. Of this, the government has so far raised about Rs 31,000 crore by selling its equity in central public sector enterprises. In the last four years, the government has been consistently missing the budgetary target. In the Union Budget 2021-22, Finance Minister Nirmala Sitharaman had earlier set a disinvestment target of Rs 1.75 lakh crore, which was later revised to Rs 78,000 crore. However, the mop-up in 2021-22 was only Rs 13,531 crore.
The current financial year saw India’s mega IPO, the LIC IPO. Now, privatization of two state-owned banks and a general insurance company is pending.
Capital expenditure
In the last Budget 2022, capital expenditure was boosted to support the economy affected by the pandemic. Finance Minister Nirmala Sitharaman, as per reports, may unveil a big spending plan for the financial year 2023-24 to rush in private investment. The government is expected to continue with its plan to increase capital expenditure in the upcoming Budget 2023-24 with a special focus on states’ expenditure on capital assets.
Millet
The Union Budget may announce a special fund or a scheme for millets India The International prepares to run the celebration of the Year of Millets 2023 and promote the cultivation and consumption of the nutritious grain. The government sponsored the resolution for the International Year of Millets (IYM) 2023, which was accepted by the United Nations General Assembly (UNGA).
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