The Budget 2023, has prioritised all the sectors starting from agriculture to healthcare. Let’s explore will this budget navigate India towards growth and prosperity?
Finance Minister Nirmala Sitharaman introduced the Union Budget 2023 on February 1st, 2023. It was the current government’s last budget, and economists, business leaders, and investors all awaited it with bated breath.
The government plans to change its tax system for the 2023 fiscal year by revising the taxes it collects. However, the Finance Minister says that this change remains based on past successes and that the budget for 2023 will remain designed to support the country in rebounding from the COVID-19 pandemic and moving forward for the next 25 years.
In the new tax regime, there will be a tax rebate on income up to Rs 7 lakh per year. The government has also proposed reducing the surcharge % in the new tax regime.
In the past nine years, the average income of people in India has more than doubled to 1.97 lakh rupees. India’s economy has grown; as a result, the number of people who have joined the Employee Provident Fund Organisation has increased to 27 crores. In 2022, there were Rs 126 lakh crore worth of digital payments made through UPI.
Key Highlights
- It expects to get Rs 27.2 lakh crore from sources other than borrowing.
- It plans to spend a total of Rs 45 lakh crore.
- It expects to receive Rs 23.3 lakh crore from taxes.
- It expects the budget to be short by 5.9% of the country’s income. To compensate for this shortage, they plan to borrow Rs 11.8 lakh crore from the market by selling bonds.
Agriculture and Rural Development
The budget promises farmers’ income to quadruple in 2023 and allocates Rs 1,32,513 lakh crore for agricultural infrastructure and development.
Healthcare
The Indian government has allotted Rs 88,956 crores to the healthcare sector to the Ministry of Health and Family Welfare. It is an increase of 16.5% compared to the previous year, and the excess money will improve the country’s healthcare system and ensure it is better prepared to handle the growing healthcare needs of the population.
Infrastructure
The budget recommends allocating Rs 10,00,000 lakh crore for infrastructure development, which includes national highways, airports, and ports.
Building roads, ports, and airports will be a top priority, with a 33% increase in capital spending, which would be the most significant amount ever and make India a trustworthy investment destination.
Education and Skill Development
The budget provides funding for education and skill development of Rs 1,12,899 crores.
The government is launching a new website called the ‘Skill India Digital’ to help people find job training and connect with employers. This platform will also help people access programs for starting their businesses.
It plans to give money directly to young people through a program called the National Apprenticeship Promotion Scheme. It will support 47 lakh young people with a stipend over the next three years.
Manufacturing
The manufacturing budget proposes to allocate Rs 5,25,000 crores for technological upgradation, as stated in the NDTV report.
A sum of Rs 35,000 crore holds aside to improve energy security and help reach the goal of net zero emissions. The government is promoting using Battery Energy Storage Systems to help the country become more sustainable.
That’s it for today. Hope you find the newsletter insightful.
