Union Budget 2023: Finance Minister Nirmala Sitharaman presented her fifth budget in Parliament on Wednesday and described it as the first budget of ‘Amrit Kaal’. He raised the personal income tax exemption limit, exempted small savings, and announced the biggest hike in capital expenditure in the last decade, as it was the Modi government’s last full budget before the crucial Lok Sabha elections in 2024.
He worked hard on the Union Budget in the year before the general elections, between being fiscally prudent and meeting public expectations.
What is it for income tax payers
He announced that under the new tax regime, there is no tax for those earning up to Rs 7 lakh per annum. People with an annual income of Rs 3 to 6 lakh will now be taxed at 5 per cent, Rs 6 to 9 lakh at 10 per cent, Rs 9 to 12 lakh at 15 per cent and income above Rs 15 lakh at 20 per cent.
what is for women
For the savings of women, the Center has started the Mahila Samman Bachat Patra Yojana, which will be valid for two years and in this, women will get 7.5 percent interest on savings of Rs 2 lakh. He also said that under the Deendayal Antyodaya Yojana National Rural Livelihood Mission, 81 lakh self-help groups have been formed by organizing rural women for economic empowerment of women. “We will enable these groups to reach the next stage of economic empowerment through the formation of large productive enterprises or clusters, each with thousands of members,” she said. Financial assistance of over Rs 2.25 lakh crore has been provided to small farmers under the PM-Kisan Samman Nidhi. The Finance Minister said that about three crore women farmers have been provided Rs 54,000 crore under the scheme.
Sitharaman also announced raising the maximum amount that can be invested in the Senior Citizens Savings Scheme (SCSS) to Rs 30 lakh, from Rs 15 lakh at present. The Postal Monthly Income Scheme also saw an increase in the limit. Rs 9 lakh can now be invested in one name as compared to Rs 4.5 lakh earlier. The increase in limit has come as a consolation to investors looking for regular income in times of high inflation. The schemes are backed by a sovereign and hence do not carry credit risk.
PM Awas Yojana
Rs 79,000 crore has been allocated under the PM Awas Yojana to build houses for poor people. The government has increased the funds for this scheme by 66%.
What is it for MSME
A loan of Rs 2 lakh crore will be given to MSMEs across the country. Under the new scheme, this loan will be available at an interest rate of less than 1 percent. The government will act as a guarantor for easy lending to banks. The Finance Minister said that the allocation for both the components of PMAY – Pradhan Mantri Awas Yojana (Urban) and Pradhan Mantri Awas Yojana (Rural) has been increased by 66 per cent. The government has earmarked Rs 25,103 crore for the urban component of the scheme, while Rs 54,487 has been allocated for the rural component, taking the total to Rs 79,590 crore. In the last financial year, Rs 20,000 crore was allocated for the urban component of PMAY, while the revised estimate for expenditure was Rs 28,708 crore. The allocation made for PMAY-U under the budget for 2023-24 is about 12 per cent less than last year’s revised estimate. The revised estimate of expenditure on the rural component of the scheme was Rs 48,422 crore, almost two and a half times the original allocation of Rs 20,000 crore. The increase in allocation to the rural component of the scheme is also about 12 per cent as compared to the revised estimate of the previous financial year. Overall, Rs 48,000 crore was initially allocated in the budget for PMAY – rural and urban – in 2022-23, which brings the increase announced by the minister to 66 per cent.
what is there for railway
The Modi government announced that it has earmarked a capital outlay of Rs 2.40 lakh crore for the Railways in the financial year 2023-24, as Finance Minister Nirmala Sitharaman presented her 5th budget in Parliament. He said this would be the highest ever allocation for the Railways since 2013-2014. In other announcements regarding infrastructure development, Sitharaman said states and cities would be encouraged to take up urban planning. 100 critical transport infrastructure projects have been identified for implementation.
Political tussle over the budget
Describing the budget proposals as “all-inclusive and far-sighted”, BJP leaders said the first general budget of the ‘Amrit Kaal’ is a blueprint for India’s rapid growth and development. Party president JP Nadda said the budget reflects the “visionary” leadership of Prime Minister Narendra Modi and brings schemes for people at all levels of the pyramid, especially those at the bottom.
The BJP in its discourse describes the period between the country’s 75th Independence year to its 100th year as “Amrit Kaal”. “The first general budget of India’s Amrit Kaal is a public welfare and pro-poor budget. It is a budget that will empower and uplift the lives of villagers, rural people, dalits, tribals, farmers, backward and oppressed classes, disabled.” people and those who are economically backward. This is the blueprint for India’s rapid growth and development which will ensure overall progress of the country,” Nadda said.
Former BJP President and Union Home Minister Amit Shah said it is an “all-inclusive and far-sighted” budget that will give further impetus to the Modi government’s resolve to build a self-reliant India by taking every section along.
Shah thanked Prime Minister Modi for giving tax relief to the middle and salaried class as the budget proposes to increase the tax exemption limit from Rs 5 lakh to Rs 7 lakh. He further said that following the mantra of ‘Sahyog Se Samriddhi’, the Modi government is working with determination to uplift the standard of living of crores of people through cooperatives.
It lays the foundation of a developed India: PM Modi
Prime Minister Narendra Modi said that the first budget of the “Amrit Kaal” provides the basis for fulfilling the resolve of a developed India while also giving priority to the deprived sections of the society. In his first reaction to the budget presented, PM Modi said that it will fulfill the dreams of the aspirational society, farmers and the middle class. The Prime Minister said that the middle class is a major force to fulfill the dream of a prosperous and developed India and our government has taken several decisions to empower it.
Opposition is calling it election focused
Congress president Mallikarjun Kharge termed the budget both “misleading” and “poll-oriented” and accused Finance Minister Nirmala Sitharam of skipping key questions on inflation and unemployment.
Taking a dig at the Union Budget, senior Congress leader and former Finance Minister P Chidambaram claimed that the Union Budget has “betrayed” the expectations of the vast majority of Indians. According to him, the budget presented by Sitharaman shows how far the government is from the people and their concerns about life, livelihood and the growing disparity between rich and poor.
While Congress MP Shashi Tharoor said there was no mention of employment and inflation, Samajwadi Party chief Akhilesh Yadav said ‘Budget 2023-24 is a disappointment’
Last year’s budget was lauded for allocations for agriculture, health, education, MNREGA and welfare of scheduled castes. Today the reality is in front. The actual expenditure is much less than the budget. This is Modi’s OPUD strategy of headline management – promise fulfilled, fulfilled: Jairam Ramesh, Congress
This budget is not addressing the real sentiment of the country which is unemployment and price rise. It only had fancy declarations which had been done before but what about the implementation? Only insurance companies benefit from PM Kisan Yojana, not farmers: Congress General Secretary KC Venugopal
There are some good things in the Union Budget 2023 but there was no mention of MNREGA, poor rural labour, employment and inflation. Some basic questions remained to be answered: Shashi Tharoor, Congress MP
“This is a budget presented keeping elections in mind, while the middle class has been given some relaxation. The government has not said anything about MSP for farmers, employment and youth. Railways also ignored this budget . It has been a disappointing budget.” Dimple Yadav, Samajwadi Party MP.
“This budget is the same which has been coming for the last 8-9 years. Taxes have increased, money is not being spent on welfare schemes and subsidies. Taxes are being collected for some capitalists and big businessmen. should benefit from taxes but this is breaking their back,” PDP chief Mehbooba Mufti said. Instead of benefiting them (common people), welfare schemes and subsidies are being scrapped. Those who had risen above the poverty level have come down again.”
“This budget is ‘neel batta sannata’… nothing for Bihar. All MPs from Bihar at the Center should sink in shame. For farmers, there is nothing in railways. Has this government given Bihar was given in the meantime.” UPA government?,” said Bihar Deputy Chief Minister Tejashwi Yadav.
“There is no relief from inflation in this budget. On the contrary, this budget will increase inflation. There is no concrete plan to deal with unemployment. Unfortunately, education budget has been reduced from 2.64% to 2.5%. Health budget has been reduced to 2.2%. % to 2.2%. 1.98% is harmful,” Delhi Chief Minister Arvind Kejriwal said.
“This budget is a mathematical confirmation of the failure of the Modi government. It looks like a budget for some states. We were expecting a tax exemption of up to Rs 10 lakh. In Telangana, we give good salaries to people, so this exemption Not useful.” For us: Kavita Kalavakuntla,” the BRS leader said.
(with PTI inputs)