Union Budget 2023 was the last full budget for the NDA government in India. On February 1, Finance Minister Nirmala Sitharaman presented the interim budget 2024 that focused on fiscal consolidation, infra, agri, green growth, and railways. However, no changes were made in the tax rates, which was a disappointment to salaried individuals.
The Union Budget for 2023 was dubbed the first budget in ‘Amrit Kaal,’ with a focus on encouraging the private sector to generate new jobs and stimulate growth. Increasing capital expenditure and selling the government’s share of PSUs was the government’s second objective.
Take a look at Budget 2023 vs Interim Budget 2025,
Key highlights from Budget 2023
– Per capita income has more than doubled to ₹1.97 lakh in around nine years.
– Indian economy has increased in size from being 10th to 5th largest in the world in the past nine years.
– EPFO membership has more than doubled to 27 crore.
– 7,400 crore digital payments of ₹126 lakh crore have taken place through UPI in 2022.
– 11.7 crore household toilets constructed under Swachh Bharat Mission.
– 9.6 crore LPG connections provided under Ujjwala.
– 220 crore covid vaccination of 102 crore persons.
– 47.8 crore PM Jan Dhan bank accounts.
– Insurance cover for 44.6 crore persons under PM Suraksha Bima and PM Jeevan Jyoti Yoja
– ₹20 lakh crore agricultural credit targeted at animal husbandry, dairy and fisheries
– ₹35,000 crore outlay for energy security, energy transition and net zero objectives.
– Rebate limit of Personal Income Tax to be increased to Rs. 7 lakh from the current Rs. 5 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to Rs. 7 lakh to not pay any tax.
– Tax structure in new personal income tax regime, introduced in 2020 with six income slabs, to change by reducing the number of slabs to five and increasing the tax exemption limit to Rs. 3 lakh. Change to provide major relief to all tax payers in the new regime.
– A capital outlay of Rs. 2.40 lakh crore has been provided for the Railways, which is the highest ever outlay and about nine times the outlay made in 2013-14.
Top announcements of Interim Budget 2024
– Building on the massive tripling of the capital expenditure outlay in the past 4 years resulting in a huge multiplier impact on economic growth and employment creation, the outlay for the next year is being increased by 11.1 percent to 11.11 lakh crore, announced the FM. This is 3.4 percent of the GDP.
– While no changes were seen in the tax regime in this budget, the FM announced that over the last 10 years, tax collections have more than doubled. She also pointed out that the average processing time of tax returns was reduced to 10 days this year.
– FM Sitharaman announced that 40,000 normal rail bogies will be converted to Vande Bharat to enhance the safety, convenience, and comfort of passengers. Key rail infrastructure projects including Metro Rail and Namo Bharat will be expanded to more cities.
– FM announced that eighty-three lakh SHGs (self-help groups) with nine crore women are transforming the rural socio-economic landscape with empowerment and self-reliance. Their success has assisted nearly one crore women to become ‘Lakhpati Didi’ already. Buoyed by the success, it has been decided to enhance the target for ‘Lakhpati Didi’ from 2 crore to 3 crore.
– Through roof-top solarisation, 10 million households will be enabled to obtain up to 300 units of free electricity every month. This scheme follows the resolve of the Prime Minister on the historic day of the consecration of Shri Ram Mandir in Ayodhya, said FM Nirmala Sitharaman.
– Viability gap funding will be provided for harnessing offshore wind energy potential for the initial capacity of one giga-watt. A coal gasification and liquefaction capacity of 100 MT will be set up by 2030. This will also help in reducing imports of natural gas, methanol, and ammonia.
– The government will expand and strengthen the EV ecosystem by supporting manufacturing and charging infrastructure, the finance minister said. Greater adoption of e-buses for public transport networks will be encouraged through payment security mechanisms, she added.
– FM announced that states will be encouraged to take up comprehensive development of iconic tourist centers’ branding and marketing at a global scale.
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Published: 01 Feb 2024, 04:56 PM IST