MoS Rajeev Chandrasekhar on Budget 2023: Finance Minister Nirmala Sitharaman delivered a crucial budget in Parliament today for the new India, which is developing as a key economic power in the world. Budget 2023 ensures that everyone has access to support and opportunity through various announcements regarding capital expenditure, digitalization, new cities, investment in the skills of young people, and tax cuts for the middle class.
 

Countries around the world are struggling to recover from the effects of the two-year-old COVID pandemic and the European war. However, under the leadership of Prime Minister Narendra Modi, India is constructing a robust economy, reducing taxes for the country's middle class, and increasing benefits for farmers and MSMEs. I thank the Prime Minister and the Finance Minister for reaching out to the people and guiding India through one of its gravest crises.

Budget 2023 lays the roadmap for preparing India for the Amrit Kaal, the next 25 years upto India@100, the Confederation of Indian Industry has said.

 
Sharing his first reaction to the budget proposals, CII President Sanjiv R Bajaj said it is encouraging to note that the budget has made a bold attempt to invigorate the critical demand drivers of consumption and investment. 
 

The move to rationalise personal income tax rates will go a long way in increasing disposable incomes, thus giving consumers a leg-up which will, in turn, have a salutary impact on India Inc’s investments.
 

The sharp 33% rise in capital spending budgeted for 2023-24 is in line with CII’s suggestion and lends credence to the government’s vision of improving the economy’s growth potential through a push to overall productivity of the economy and the creation of jobs.
 

Even as a boost was given to demand drivers, the FM did a fine balancing act of maintaining fiscal discipline by containing the fiscal deficit at 6.4% of GDP for the current fiscal and bringing it down along a steady glide path to 5.9% next year.

Budget truly makes a move towards placing India as the world's growth engine: FICCI

It's a balanced progressive budget that gives primacy to inclusive growth. It is a budget which is not only significant for the domestic audience, but it truly makes a move towards placing India as the world's growth engine: FICCI President Mr @subhrakantpanda.#BudgetWithFICCI pic.twitter.com/XK8ERreEMK

— FICCI (@ficci_india) February 1, 2023

PM Modi: Budget 2023-24 will fulfil dreams of aspirational society, farmers, middle class. Amrit Kaal's first budget provides foundation to fulfil resolve for a developed India.
 

PM Modi: We have to take our success of Digital Payments and duplicate it in our farming sector. We have come up with Digital Agriculture Infrastructure in this year's budget with this vision
 

Vinod Sharma, 
Chairman, CII National Committee on ICTE Manufacturing and MD, Deki Electronics Ltd

"We welcome Amrit Kaal's first budget, which clearly spells out the blueprint for India@100. It ticks the major checkboxes that India's electronics industry has been asking for: lowering import duties on components currently not made in India, enhancing skilling and providing much needed fiscal support to the country’s MSMEs, which dominate the domestic electronics component manufacturing landscape. These measures will certainly go a long way to further Aatmanibhar Bharat mission and deepen domestic value addition in electronics manufacturing."

Understanding the tax slabs better:

Standard Deduction: Standard deduction of Rs 50,000 to salaried individual, and deduction from family pension up to Rs 15,000, is currently allowed only under the old regime. It is proposed to allow these two deductions under the new regime also

Exemption: Resident individual with total income up to Rs 5,00,000 do not pay any tax due to rebate under both old and new regime. It is proposed to increase the rebate for the resident individual under the new regime so that they do not pay tax if their total income is up to Rs 7,00,000.

Market Update: Sensex up over 1000 points at 60644.52 while Nifty goes up by 256.9 points to touch 17,920

Dr Manish Jangra
Chief Advisor, Federation of All India Medical Association (FAIMA)
Basically public partnership part is very good for giving a chance to entrepreneurship in the health sector. Increasing nursing and medical colleges is a good step as well. Besides opening nursing colleges, the government must strengthen the peripheral healthcare system. There is too much load on tertiary care hospitals. This load can be reduced by making healthcare delivery better at the periphery. More funds should be allocated to these places. Some places are overstaffed too; periphery staff don't work at all. So a balance needs to be there.

Ankita Dabas 
Chief Growth Officer, Veative Group

The budget brings laser-sharp focus to AI-led skill development by announcing the establishment of three artificial intelligence centres. Foreseeing the spurt in AI-based employment opportunities in the future, Veative Group has devoted over one million manhours over the past decade to create a digital ecosystem in AR/VR, applications for training and development, along with making educational content in VR available globally. We are all set to launch the world’s first careers metaverse in July 2023 that promises to connect enterprises with school-going learners. We wholeheartedly support the govt in making India a leading digital force of reckoning in the world.

The New Income Tax Rates

Rs 0-3 Lakh - Nil
Rs 3-6 Lakh - 5%
Rs 6-9 Lakh - 10%
Rs 9-12 Lakh - 15%
Rs 12-15 Lakh - 20%
Above Rs 15 Lakh - 30%

FM: Currently, those with an income of Rs 5 lakhs do not pay any income tax, and I proposed to increase the rebate to Rs 7 lakhs

For better targeting of tax concessions and exemptions, we are proposing to cap deductions from capital gains on investments in residential houses to Rs 10 crores

FM: Basic customs duty on crude, glycerine proposed to be reduced to 2.5% Customs duty cut on imports of parts of mobile phones extended by a year. Basic customs duty of parts, and open cells of TV panels reduced to 2.5%

FM: The Basic Customs Duty on Electric Kitchen Chimneys raised from 7.5% to 15.00%. The basic customs duty on compounded rubbers is being increased from 10% to 25% or 30 Kg whichever is lower.

FM: To improve bank governance and enhance investors' protection, certain amendments to the Banking Regulation act, the Banking Companies Act and the Reserve Bank of India act are being proposed

FM: States are encouraged to set up Unity Malls for the promotion of One District, One Product, GI tag products, handicrafts (of their own and other states)

FM: The Unified Skill India Digital platform will enable demand-based formal skilling, linking with employers (including MSMEs) and facilitating access to entrepreneurial schemes. To empower our youth and help the Amrit Peedhi realize their dreams, we have formulated a National Education Policy - and one focus of this policy is skilling youths by adopting economic policies that facilitate job creation. To provide support to 47 lakh youths in 3 years, a Direct Benefit Transfer under a pan India national apprenticeship scheme will be rolled out

FM: Replacing old polluting vehicles is an important part of greening our economy. We have allocated adequate funds to scrap old vehicles of the central govt

FM: Over the next 3 years, we will facilitate 1 crore farmers to adopt natural farming

FM: Rs 35,000 crore priority capital for the energy transition. Battery storage to get viability gap funding. The recently launched National Green Hydrogen Mission with an outlay of 19,700 crores will facilitate the transition of the economy to low carbon intensity and reduce dependents on fossil fuel imports

FM: Vivad Se Vishwas 2 - To settle contractual disputes of government and government undertakings where an arbitral award is under challenge in a court, a voluntary settlement scheme with standardized terms will be introduced

FM: For business establishments required to have Permanent Account Number, the PAN will be used as a common identifier for all Digital Systems of specified government agencies

FM: New programme to promote research and innovation in pharmaceuticals to be taken up through centres of excellence, industry to also be encouraged to invest in research and development in priority areas

FM: A National Data Governance Policy will be bought out to unleash Innovation and research by Startups and Academia, enabling access to anonymous data.

FM: 50 additional airports, helipods, water aero drones, advanced landing grounds will be revived to improve of regional air connectivity.

FM: A mission to eliminate Sickle cell anemia by 2047 will be launched to entail awareness creation and universal screening of 7 crore people in the age group of 0-40 years in affected tribal areas.

FM: A capital outlay of 2.40 lakh crores has been provided for the railways. This is about 9 times the outlay has made in 2013-14

FM: All cities and towns will be enabled for 100% mechanical desludging of septic tanks to transition from man-hold to machine-hold mode

FM: The capital investment outlay is being increased steeply for the 3rd year in a row by 33% to 10 lakh crores which would be 3.3% of GDP - this will be almost 3 times the outlay made in 2019-20

FM: To build a culture of reading and to make up for the pandemic-time learning loss, National Book Trust, The Children's Book Trust, and other sources will be encouraged to provide Non-Curricular Titles in regional languages

FM on launch of new sub-scheme under PM Matsya Sampada yojana with a targeted investment of Rs 6000 crore: To further enable activities of fishermen, fish vendors and small entrepreneurs and improve value chain efficiency

FM on PM Vishwa Karma Kaushal Samman: A package of assistance for traditional artisans and craftspeople has been conceptualized, and will enable them to improve the quality, scale and reach of their products, integrating with the MSME value chain. Components of the scheme will include financial support, access to efficient green technologies, advanced skill training, social security, modern digital techniques, brand promotion, and market linkages; it will greatly benefit people of weaker sections
 

FM on Public-Private Partnership: We will encourage collaboration between farmers, states and industries for input supply extension services and market linkages 

FM: The Indian Council For Medical Research Labs will be made available for research by public and private medical college faculty and private sector R&D teams for encouraging collaborative research and innovation:

FM: For small and marginal farmers, the government is promoting a cooperative-based model to achieve the vision of “Sahakaar se Samruudhi” by setting up 63000 primary agricultural credit societies.

FM: The budget adopts 7 priorities that will guide us to Amrit Kaal
 

1. Inclusive Development 
 

2. Reaching the last mile
 

3. Infrastructure and investment
 

4. Unleashing the potential
 

5. Green Growth
 

6. Youth Power 
 

7. Finance Sector

FM: We are implementing many programs for green fuel, green energy, green farming, green mobility, green buildings, green equipment, and creating policies for efficient energy use across various economic sectors 

FM: Economic agenda for our vision focuses on the following:
 

1) facilitating opportunities for citizens
 

2) providing strong impetus to growth and job creation 
 

3) strengthening macroeconomic stability

FM: Indian economy has increased in size from being tenth to 5th largest in the world in the last nine years; we have made significant progress in many SDGs, the economy has become a lot more formalized, and efficient implementation of schemes has brought about inclusive development

FM: Entire expenditure of about Rs. 2 lakh crore under PM Garib Kalyan Anna Yojana is being borne by the central government, for supplying free food grains for one year to all Antyodaya and priroity households
 

FM: G20 Presidency gives us a unique opportunity to strengthen our role in the world economic order, we are steering an ambitious people-centric agenda to address global challenges and facilitate sustainable economic development

Nirmala Sitharaman's Budget Speech:
 

* India's growth at 7 pc in current fiscal highest among major economies
 

* Budget hopes to build on foundation of previous budget and blue print for India@100
 

* World has recognised India as a bright star
 

* Per capita income has doubled in the last 9 years

Nirmala Sitharaman's Budget Speech:
 

* Indian economy is on the right track. 
 

* India bright spot among global challenges
 

* Aadhaar, CoWIN built India's profile
 

* Government focus on wide-ranging reforms

Union Finance Minister Nirmala Sitharaman presents the Union Budget 2023-24 in Parliament.  

Some time earlier...

Watch | PM @narendramodi arrives at Parliament House ahead of the #UnionBudget 2023-24 presentation pic.twitter.com/svC0N28eJ4

— Prasar Bharati News Services & Digital Platform (@PBNS_India) February 1, 2023

The Cabinet approved the Budget document to be presented before Parliament

Is the Budget 2023 focussing on increased spending to create jobs, putting more money in the common man's hands and boosting manufacturing? That seems to be the buzz in the run-up to the Union Budget presentation. To note, the Narendra Modi government's planned capital expenditure for this fiscal year is budgeted at Rs 7.5 lakh crore compared to Rs 5.5 lakh crore in the last fiscal. The government has been pushing infrastructure creation and incentivising states to step up capex. At the same time, the government's tax revenues are expected to overshoot the budget estimates by about Rs 4 lakh crore on buoyant income tax and customs duty. Besides spotlight would also be on spending on key schemes, like NREGA, as well as key sectors like health and education
 

Finance Minister Nirmala Sitharaman's budget day sarees have always been significant. While holding the 'Bahi Khata' of the current administration, Finance Minister Sitharaman was spotted wearing a red saree with a black border and golden leaves printed on it. It's no secret that Nirmala Sitharaman adores handloom sarees. She has always supported regional artists by wearing their exquisite creations to the legislature.

Read further

Market Update: Sensex up by 431 points at 59,980 while Nifty is up by 118 points at 17,780

WATCH | Union Finance Minister @nsitharaman proceeds to Parliament to attend the Union Cabinet meeting chaired by PM @narendramodi

She will present the Budget 2023-24 at 11am@FinMinIndia pic.twitter.com/mUi5VUwhZG

— Prasar Bharati News Services & Digital Platform (@PBNS_India) February 1, 2023

The Union Cabinet will meet in Parliament to clear the Budget.
 

Before the actual presentation, the Cabinet headed by Prime Minister Narendra Modi will approve the Budget for the fiscal year 2023-24 (April 2023 to March 2024).
 

Dressed in a red saree with black and golden border, Sitharaman continued with the tradition she set in 2019, carrying the budget speech in a 'bahi-khata', which she used after ditching the briefcase. She kept a digital tablet in a red 'bahi khata' style pouch.
 

Here is a snapshot of how the Indian economy fared in 2022-23, as per the data available through the Economic Survey 2023

"The Budget 2023-24 incorporates the expectations of every section of society," Minister of State for Finance Dr Bhagwat Kishanrao Karad told media persons ahead of the Budget presentation.
 

"It will meet everyone's expectations," he added.

Finance Minister Nirmala Sitharaman with the 'Bahi Khata' alongside President Droupadi Murmu


Finance Minister Nirmala Sitharaman, Ministers of State Dr Bhagwat Kishanrao Karad and Pankaj Chaudhary, and senior officials of the Ministry of Finance had called on President Droupadi Murmu at Rashtrapati Bhavan before the Union Budget 2023-24 presentation.

Sensex opens in the green ahead of the Budget 2023-24 presentation.

BSE Sensex up by over 400 points in early trading. Trading at 60,019.27 

Finance Minister Nirmala Sitharaman is now meeting President Droupadi Murmu at the Rashtrapati Bhavan.

Following this, she will head towards the Parliament to attend the Union Cabinet meeting, and then present Union Budget 2023-24.

Some visuals from earlier today

WATCH| Union Finance Minister @nsitharaman all set to present the Union Budget 2023 at 11am today.

Finance Minister departs for Rashtrapati Bhawan to call on President Droupadi Murmu#AmritKaalBudget pic.twitter.com/79jZg7Z6Ek

— Prasar Bharati News Services & Digital Platform (@PBNS_India) February 1, 2023

Finance Minister Nirmala Sitharaman arrives at the Finance Ministry ahead of the Budget presentation
 

Union Finance Minister @nsitharaman arrives at the Ministry of Finance, ahead of the Budget presentation.#AmritKaalBudget pic.twitter.com/EleBlagAiI

— Prasar Bharati News Services & Digital Platform (@PBNS_India) February 1, 2023

So here's what will happen before the Budget 2023 presentation in Parliament at 11 am. 

9 AM: Finance Minister Nirmala Sitharaman, her Minister of State colleague Pankaj Chaudhary and the Secretary will meet President Droupadi Murmu at Rashtrapati Bhavan

10 AM: Under Prime Minister Narendra Modi's leadership, a cabinet meeting will be held inside the Parliament

Some more industry expectations from Budget 2023
 

* In the sequel to National Logistics Policy, the budget should emphasize infrastructure and timely completion to make production cost low and products competitive in the global market, says Ashish Tiwari, Group CFO, TCIL.
 

*  Budget should incentivise healthcare institutions to become digitally oriented, says Cmdr. Navneet Bali, Co-Chairperson, ASSOCHAM Healthcare Council

* Budget should lay thrust on incentivising both manufacturing and construction sectors, which employ half of the workforce, to their full potential through subsidies & fiscal stimulus, says Dr Shrivallabh Goyal, CEO & Whole-time Director, Model Economic Township Limited.

* Budget is expected to lay thrust on the maritime and port logistics sector considering the government’s aim of turning the country into the world’s manufacturing hub, says Anil Devli, Co-Chair Task Force on Ports & Shipping, ASSOCHAM

The Economic Survey 2023 corroborates India's resilient growth aided by domestic demand, push to capital expenditure and continuity of policy reforms. We are hopeful that Budget 2023 will focus on manufacturing, support exports and lay thrust on capital expenditure to prioritise growth: Subhrakant Panda, President, Federation of Indian Chambers of Commerce & Industry

Some of the Budget recommendations that FICCI has made include: 

* Offer concessional tax regime for research and innovation-based industries to boost innovation ecosystem

* Simplify compliance to TDS; lay down roadmap for rationalizing the TDS rate structure

* Increased public capex, extending concessional tax regime for manufacturing

* More Production Linked Incentive schemes in high export potential sectors and enhancing scope of Remission of Duties and Taxes on Exported Products (RoDTEP).

* Provide thrust to green financing and climate-proofing agriculture through guidance on the comprehensive national policy framework.

The middle class, especially the salaried employees are most honest taxpayers, so I expect benefits for them including higher standard deduction and income tax slab to be rationalized, says Piruz Khambatta, Member, Confederation of Indian Industry National Committee on Taxation and Chairman and Managing Director, Rasna International

The middle class, especially the salaried employees are most honest #taxpayers, so I expect benefits for them including higher standard deduction & #incometax slab to be rationalized. - @piruz_khambatta, Member, CII-NC on Taxation and Chair & MD, @Rasna_House #CII4Budget2023 pic.twitter.com/v2pXlVnsaz

— Confederation of Indian Industry (@FollowCII) January 31, 2023

The logistics and manufacturing sector has sought substantial tax benefits, incentives and correction in inverted duty structure in the much anticipated Union Budget 2023. 

"With PM Gati Shakti and National Logistics Policy in play, India is paving its way to becoming a global manufacturing hub as well. As the sector is on a growth trajectory, we believe that the upcoming Union Budget will prioritize giving substantial tax benefits to the manufacturing sector and incentives for promoting 'Make In India' initiatives," they say.

Click to read the expectations of the stakeholders

Ahead of the Budget  2023 presentation, the government announced the second highest-ever GST collection in January to the tune of over Rs 1.55 lakh crore.

In a statement, the Finance Ministry said: 'The gross GST revenue collected till 5 pm on January 31 is Rs 1,55,922 crore of which CGST is Rs 28,963 crore, SGST is Rs 36,730 crore, IGST is Rs 79,599 crore (including Rs 37,118 crore collected on import of goods) and cess is Rs 10,630 crore (including Rs  768 crore collected on import of goods).'

The revenues in the current financial year up to January 2023 are 24 per cent higher than the GST revenues during the same period last year. This is for the third time, in the current financial year, GST collection has crossed Rs 1.5 lakh crore mark. The GST collection in January 2023 is the second highest next only to the Rs 1.68 lakh crore gross mop-up reported in April 2022.

Like the previous two Union Budgets, Union Budget 2023-24 will be delivered in paperless form. 

All the 14 Union Budget documents, including the Annual Financial Statement (commonly known as Budget), Finance Bill, Demand for Grants (DG), etc., will be available on the 'Union Budget Mobile App'. 

This will enable hassle-free access to Budget documents for Members of Parliament and the citizens. The bilingual (English & Hindi) app will be available on both Android and iOS platforms. The App can be downloaded from www.indiabudget.gov.in.

The Budget documents will be available on the Mobile App after Finance Minister Nirmala Sitharaman's Budget speech ends.

On the eve of the Budget 2023 presentation, Finance Minister Nirmala Sitharaman met the team that worked tirelessly to bring out the document. 

Also present were Ministers of State for Finance Pankaj Chaudhary and Dr Bhagwat Kishanrao Karad

Chief Economic Advisor (CEA) V Anantha Nageswaran has said India has the potential to become a five trillion dollar economy by 2025-26 and a seven trillion dollar economy by 2030, depending on exchange rate fluctuation. To note, the country's economy is estimated to touch $3.5 trillion mark by March 2023.

Speaking to the news agency PTI after the release of the Economic Survey 2022-23 prepared by him and his team, Nageswaran said that the economic outcomes would follow automatically as efforts are undertaken in terms of policies, investments and private sector decisions.

'Depending on how the dollar-rupee (pair) behaves and what our nominal GDP growth in rupee terms is, $5 trillion is something that can happen by 2025-26 or 2026-27 and $7 trillion by 2030,' he said.