1. Introduction
The Union Budget 2023-24 is a forward-looking budget that sets the stage for India’s growth in the coming years. The budget focuses on five key areas:
Infrastructure: The budget allocates ₹7.5 trillion for infrastructure development, which will help to boost economic growth and create jobs.
Agriculture: The budget allocates ₹3.5 trillion for agriculture and allied sectors, which will help to improve the income of farmers and boost food production.
Education: The budget allocates ₹600 billion for education, which will help to improve the quality of education and make it more accessible to all.
Healthcare: The budget allocates ₹860 billion for healthcare, which will help to improve the quality of healthcare and make it more affordable for all.
Digital India: The budget allocates ₹1 trillion for Digital India, which will help to accelerate the digital transformation of India.
2. Speech by our FM
3. key takeaways from the speech:
- The government is committed to investing in infrastructure, agriculture, education, healthcare, and digital India.
- The budget allocates ₹7.5 trillion for infrastructure development, ₹3.5 trillion for agriculture and allied sectors, ₹600 billion for education, ₹860 billion for healthcare, and ₹1 trillion for Digital India.
- The government is also committed to providing income support to farmers, affordable housing to the poor, and renewable energy.
- The government is confident that the budget will help India to achieve its goal of becoming a $5 trillion economy by 2024-25.
4. Tax Slab
Revised Income Tax Slabs for the New Tax Regime (default) FY 2023–24:
- Up to Rs.3 lakh – 0% (Nil)
- Rs 3 lakh to 6 lakh – 5%
- Rs 6 lakh to 9 lakh – 10%
- Rs 9 lakh to Rs 12 lakh – 15%
- Rs 12 lakh to Rs 15 lakh – 20%
- Above Rs 15 lakh – 30%
Income Tax Rates | FY 2022-23 Income Tax Slab as compared to | FY 2023-24 Income Tax Slab |
NIL | Rs.0 – Rs.2.5 lakh | Rs.0 – Rs.3 lakh |
5% | Rs.2.5 lakh – Rs.5 lakh | Rs.3 lakh – Rs.6 lakh |
10% | Rs.5 lakh – Rs.7.5 lakh | Rs.6 lakh – Rs.9 lakh |
15% | Rs.7.5 lakh – Rs.10 lakh | Rs.9 lakh – Rs.12 lakh |
20% | Rs.10 lakh – Rs.12.5 lakh | Rs.12 lakh – Rs.15 lakh |
25% | Rs.12.5 lakh – Rs.15 lakh | – |
30% | Above Rs. 15 lakhs | Above Rs. 15 lakh |
5. Budget Highlights
- Expenditure: The government proposes to spend Rs 45,03,097 crore in 2023-24, which is an increase of 7.5% over the revised estimate of 2022-23. In 2022-23, total expenditure is estimated to be 6.1% higher than the budget estimate.
- Receipts: The receipts (other than borrowings) in 2023-24 are expected to be to Rs 27,16,281 crore, an increase of 11.7% over revised estimate of 2022-23. In 2022-23, total receipts (other than borrowings) are estimated to be 6.5% higher than the budget estimates.
- Deficits: Revenue deficit in 2023-24 is targeted at 2.9% of GDP, which is lower than the revised estimate of 4.1% in 2022-23. Fiscal deficit in 2023-24 is targeted at 5.9% of GDP, lower than the revised estimate of 6.4% of GDP in 2022-23. While the revised estimate as a percentage of GDP was the same as the budget estimate, in nominal terms, fiscal deficit was higher by Rs 94,123 crore (increase of 5.7%) in 2022-23. Interest expenditure at Rs 10,79,971 crore is estimated to be 41% of revenue receipts.
- Ministry allocations: Among the top 13 ministries with the highest allocations, in 2023-24, the highest percentage increase in allocation is observed in the Ministry of Railways (49%), followed by the Ministry of Jal Shakti (31%), and the Ministry of Road Transport and Highways (25%).