Union Budget 2023-24: A Vision for Amrit Kaal-Blueprint for an Empowered and Inclusive Economy

INTRODUCTION

The Union Budget 2023-24, presented recently by Finance Minister Nirmala Sitharaman, has been coined as the Amrit Kaal-blueprint for an empowered and inclusive economy. This budget is being seen as the beginning of a new era of economic reforms and development in India. The budget has been designed to make India an attractive investment destination and to provide the necessary impetus for development. This essay will discuss the salient features of the Union Budget 2023-24 and its implications for the Indian economy.

SALIENT FEATURES OF THE UNION BUDGET 2023-24

The Union Budget 2023-24 presents a three-pronged focus driven by four transformative opportunities. These are:

The Three-Pronged Focus of the Budget

The Union Budget 2023-24 India was focused on the three-pronged focus of India, which were:

• Enhancing capital investment
• Strengthening the rural and agricultural economy
• Boosting the infrastructure of the country

The Four Transformative Opportunities

The Union Budget 2023-24 India was also focused on the four transformative opportunities that India had to create a prosperous and empowered nation, which were:

• Harnessing the demographic dividend
• Accelerating the growth of digital technologies and data analytics
• Leveraging the global value chain
• Strengthening the human capital

ENHANCING CAPITAL INVESTMENTS: 

The budget has proposed an increase of 33% in the capital outlays to Rs. 10 lakh crores. This is expected to provide the much-needed impetus for economic growth. Additionally, the effective capital expenditure has been estimated to be 4.5% of GDP.

FISCAL DEFICIT: 

The fiscal deficit has been estimated to be 5.9% of GDP in the budget. This is lower than the 6.8% projected in the previous budget. This is expected to help the government to reduce its debt burden and create more fiscal space for future investments.

REAL GDP GROWTH: 

The budget has projected a real GDP growth of 7% in FY 2022-23. This is higher than the 6.5% estimated in the previous budget. This is expected to provide a much-needed boost to the economy.

EXPORT GROWTH: 

The budget has projected an export growth of 12.5% in FY 2023. This is higher than the estimated growth of 11.3% in the previous budget. This is expected to help to reduce the country’s current account deficit and increase foreign exchange reserves.

ATMANIRBHAR CLEAN PLANT PROGRAM: 

The budget has proposed an outlay of Rs. 2200 crore to launch the Atmanirbhar Clean Plant Program. This is expected to boost the availability of quality planting material for high value horticultural crops.

NURSING COLLEGES: 

The budget has proposed the establishment of 157 new nursing colleges across India. This is expected to provide better healthcare facilities to the citizens.

PM AWAS YOJANA: 

The outlay for the PM Awas Yojana has been enhanced by 66% to over Rs. 79,000 crores. This is expected to provide better housing facilities to the citizens.

RAILWAYS: 

The highest ever capital outlay of Rs. 2.40 lakh crore has been provided for the railways. This is expected to improve the infrastructure and facilities of the railways.

URBAN INFRASTRUCTURE DEVELOPMENT FUND: 

The budget has proposed the establishment of an Urban Infrastructure Development Fund (UIDF) to develop urban infrastructure. This is expected to improve the living conditions in urban areas.

WASTE TO WEALTH PLANTS: 

The budget has proposed the establishment of 500 new ‘waste to wealth’ plants under the Gobardhan Scheme at a total investment of Rs. 10,000 crores. This is expected to reduce the amount of waste being generated and create new sources of income for rural areas.

BIO-INPUT RESOURCE CENTRES: 

The budget has proposed the establishment of 10,000 bio-input resource centres. This is expected to create a national-level distributed micro-fertilizer and pesticide manufacturing network.

MANTRI KAUSHAL VIKAS YOJANA 4.0: 

The budget has proposed the launch of the Mantri Kaushal Vikas Yojana 4.0. This is expected to provide skill-training to the youth and provide them with better job opportunities.

PERSONAL INCOME TAX: 

The budget has provided substantial relief for personal income tax. The new tax regime for individual and HUF will be the default regime. A resident individual with total income up to Rs. 7 lakhs will not have to pay any income tax under the new tax regime. Additionally, a standard deduction of Rs. 50,000 will also be available to salaried individuals under the new tax regime. The limit for tax exemption on leave encashment on retirement of non-government salaried employees has also been increased to Rs. 25 lakhs.

New income Tax regime

COOPERATIVE SECTOR: 

The budget has proposed a slew of proposals for the cooperative sector. These are expected to improve the functioning of the cooperative sector and provide better services to its members.

INDIRECT TAX PROPOSALS: 

The budget has proposed a number of indirect tax proposals. These are expected to promote exports, boost domestic manufacturing, enhance domestic value addition, encourage green energy and mobility. The number of basic customs duty rates on goods, other than textiles and agriculture, has been reduced from 21 to 13.

CONCLUSION

In conclusion, the Union Budget 2023-24 presents a vision for Amrit Kaal-blueprint for an empowered and inclusive economy. The budget has proposed various measures which are expected to provide the necessary impetus for economic growth and development in India. It is expected that the implementation of these measures will help India to achieve its goal of becoming a $5 trillion economy by 2024.