The Union Minister of Finance and Corporate Affairs Smt.

Nirmala Sitharaman presented the Union Budget 2023-24 in

Parliament on 01 FEB 2023.

She is India's first full-time female finance minister. She

presented her maiden budget in the Indian parliament on 5 July
2019. Sitharaman presented the Union Budget 2020–21 on
1 February 2020.
She is the sixth minister in independent India to present five
consecutive budget, joining a league of legends likes of
Manmohan Singh, Arun Jaitley and P Chidambaram.

She again took a digital tablet wrapped in a traditional ‘BAHI

KHATA’ style red pouch with a golden-coloured national
emblem embossed on it to present Union Budget 2023-24 in a
paperless format just like the previous two years.
The highlights of the Budget are as follows:

PART A
●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 (Employees Provident Fund Organisation) membership has
more than doubled to 27 crore.
●7,400 crore digital payments of ₹126 lakh crore has 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 Yojana.
●Cash transfer of ₹2.2 lakh crore to over 11.4 crore farmers under
PM Kisan Samman Nidhi.
●100 labs to be setup for 5G services based application development to
realize a new range of opportunities, business models, and employment
potential.
●PAN will be used as the common identifier for all digital systems of
specified government agencies to bring in ease of doing Business.
 VISION FOR AMRIT KAAL

1. Opportunities for Citizens with focus on the Youth.

2. Growth and Job Creation.

3. Strong and Stable Macro-Economic Environment.

 Seven priorities of the budget ‘Saptarishi’ are :

 Inclusive development,
 reaching the last mile,
 infrastructure and investment,
 unleashing the potential,
 green growth,
 youth power and
 Financial sector.

 Sabka Saath Sabka Vikas – Inclusive Development

Agriculture and Cooperatives

[Link] Digital Public Infrastructure: Building an

accessible, inclusive and informative solution for farmers.

[Link] up Agriculture Accelerator Fund: for encouraging

innovative start-ups in rural areas.

[Link] Funding: ₹20 lakh crore agricultural credit targeted

at Animal Husbandry, Dairy and Fisheries Sector.
 [Link] India Global Hub For Millets: ‘Sree Anna’ Support
to be given IIMR (Indian Institute of Millets Research), Hyderabad
for promoting research.

[Link] (Atmanirbhar Bharat) Horticulture Clean Plant

Program to be launched to boost production of high value
horticultural crops.

[Link] up of widely available storage capacity will enhance

Farmers’ remuneration by enabling sale at appropriate times.

 A new sub-scheme of PM Matsya Sampada Yojana with

targeted investment of ₹6,000 crore to be launched to further
enable activities of fishermen, fish vendors, and micro & small
enterprises, improve value chain efficiencies, and expand the
market.
 Computerisation of 63,000 Primary Agricultural Credit
Societies (PACS) with an investment of ₹2,516 crore initiated.
 HEALTH
 157 new nursing colleges to be established in co-location with the
existing 157 medical colleges established since 2014.
 Sickle Cell Anaemia elimination mission to be launched.
 New Programme to promote research in Pharmaceuticals to be
launched.
 Joint public and Private Medical research to be encouraged via
select ICMR labs for encouraging collaborative research and
innovation.

EDUCATION AND SKILLING

 Centre to recruit 38,800 teachers and support staff for the 740
Eklavya Model Residential Schools, serving 3.5 lakh tribal
students over the next three years.
 Revamped Teachers’ training via District Institutes of Education
and Training.
 National Digital Library to be set up for children and
adolescents.
 THE BIG TENT THAT ACCOMMODATES ALL

 Aspirational Blocks Programme covering 500 blocks launched

for saturation of essential government services across multiple
domains such as health, nutrition, education, agriculture, water
resources, financial inclusion, skill development, and basic
infrastructure.
 Rs. 5,300 crore to be given as central assistance to Upper Bhadra
Project to provide sustainable micro irrigation and filling up of
surface tanks for drinking water.
 Transition from manhole to machine-hole mode by enabling all
cities and towns to undertake 100 percent mechanical desludging
of septic tanks and sewers.
 The maximum deposit limit for Senior Citizen Savings Scheme to
be enhanced from Rs 15 lakh to Rs 30 lakh.
 INFRASTRUCTURE AND INVESTMENT

 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.
 Urban Infrastructure Development Fund (UIDF) will be
established through use of priority Sector Lending shortfall, which
will be managed by the national Housing Bank, and will be used
by public agencies to create urban infrastructure in Tier 2 and Tier
3 cities.
 Investment of Rs. 75,000 crore, including Rs. 15,000 crore from
private sources, for one hundred critical transport infrastructure
projects, for last and first mile connectivity for ports, coal, steel,
fertilizer, and food grains sectors.
 Outlay for PM Awas Yojana is being enhanced by 66% to over
Rs. 79,000 crore.
 Increased Capital Investment Outlay by 33.4% to Rs. 10 Lakh
Crore.
 New Infrastructure Finance Secretariat established to enhance
opportunities for private investment in infrastructure.
 AMRIT PEEDHI – YOUTH POWER
 A unified Skill India Digital platform to be launched for enabling
demand-based formal skilling, linking with employers including
MSMEs, and facilitating access to entrepreneurship schemes.
 iGOT Karmayogi, an integrated online training platform,
launched to provide continuous learning opportunities for lakhs of
government employees to upgrade their skills and facilitate people-
centric approach.
 Pradhan Mantri Kaushal Vikas Yojana 4.0, to be launched to
skill lakhs of youth within the next three years covering new age
courses for Industry 4.0 like coding, AI, robotics, mechatronics,
IOT, 3D printing, drones, and soft skills.
 30 Skill India International Centres to be set up across different
States to skill youth for international opportunities.
 Direct Benefit Transfer under a pan-India National
Apprenticeship Promotion Scheme to be rolled out to provide
stipend support to 47 lakh youth in three years.
 100 labs to be setup for 5G services based application
development to realize a new range of opportunities, business
models, and employment potential.

TOURISM
 Sector specific skilling and entrepreneurship development to be
dovetailed to achieve the objectives of the ‘Dekho Apna Desh’
initiative.
 Tourism infrastructure and amenities to be facilitated in border
villages through the Vibrant Villages Programme.
 At least 50 tourist destinations to be selected through challenge
mode; to be developed as a complete package for domestic and
foreign tourists.
 FINANCIAL SECTOR

 National Financial Information Registry to be set up to serve as

the central repository of financial and ancillary information for
facilitating efficient flow of credit, promoting financial
inclusion, and fostering financial stability.
A new legislative framework to be designed in consultation with
RBI to govern this credit public infrastructure
 Setting up a single window IT system for registration and
approval from IFSCA, SEZ authorities, GSTN, RBI, SEBI and
IRDAI.
 Amendments proposed to the Banking Regulation Act, the
Banking Companies Act and the Reserve of India Act to
improve bank governance and enhance investors’ protection.
 To commemorate Azadi Ka Amrit Mahotsav, a one-time new
small savings scheme, Mahila Samman Savings Certificate to be
launched with a deposit facility of up to Rs 2 lakh for women.

FISCAL MANAGEMENT
 50 Year Interest Free Loans To States
 To be spent on Capital Expenditure within 2023-24
 Part of the loan is conditional on States increasing actual
Capital expenditure and parts of outlay will be linked to
States undertaking several reforms.
 Fiscal Deficit of 3.5% of GSDP allowed for States of which 0.5%
is tied to Power sector reforms.
 Fiscal Consolidation: Targeted Fiscal Deficit to be below 4.5% by
2025-26.
 Revised Estimates 2022-23:

 The total receipts other than borrowings is Rs 24.3 lakh crore, of

which the net tax receipts are Rs 20.9 lakh crore.
 The total expenditure is Rs 41.9 lakh crore, of which the capital
expenditure is about Rs 7.3 lakh crore. The fiscal deficit is 6.4 per
cent of GDP, adhering to the Budget Estimate.

Budget Estimates 2023-24:

 The total receipts other than borrowings is estimated at Rs 27.2

lakh crore and the total expenditure is estimated at Rs 45 lakh
crore.
 The net tax receipts are estimated at Rs 23.3 lakh crore.
 The fiscal deficit is estimated to be 5.9 per cent of GDP.
 To finance the fiscal deficit in 2023-24, the net market borrowings
from dated securities are estimated at Rs 11.8 lakh crore.
 The gross market borrowings are estimated at Rs 15.4 lakh crore.

GREEN GROWTH

 500 new ‘waste to wealth’ plants under GOBARdhan

(Galvanizing Organic Bio-Agro Resources Dhan) scheme to be
established for promoting circular economy.
 Annual production of 5 MMT under Green Hydrogen Mission to
be targeted by 2030 to facilitate transition of the economy to low
carbon intensity and to reduce dependence on fossil fuel imports.
 PM Programme for Restoration, Awareness, Nourishment and
Amelioration of Mother Earth” (PMPRANAM) to be launched
to incentivize States and Union Territories to promote alternative
fertilizers and balanced use of chemical fertilizers.
 TAX PROPOSALS

Simplification in Indirect Taxes to deliver:

 Higher Exports
 Higher Domestic Manufacturing
 More Value Addition In The Economy
 Green Energy And Mobility

DIRECT TAX PROPOSALS:

To reduce the compliance burden, promote entrepreneurial spirit

and provide tax relief to citizens.

 Rebate limit of Personal Income Tax to be increased to Rs. 7

lakh from the current Rs. 5 lakh in the new tax regime.
 Highest surcharge rate to reduce from 37 per cent to 25 per cent
in the new tax regime
  The limit for tax exemption on leave encashment on retirement of
non-government salaried employees to increase to Rs. 25 lakh.
 Proposal to extend the benefit of standard deduction of Rs.
50,000 to salaried individual, and deduction from family pension
up to Rs. 15,000, in the new tax regime.

SIMPLIFYING TAX BENEFITS FOR INDUSTRY

1. MSME
 Enhanced limits for micro enterprises and certain
professionals for availing the benefit of presumptive taxation;
95% of receipts to be non-cash.
 Deduction for expenditure incurred on payments made to
MSMEs to be allowed only when payment is actually made

2. COOPERATIVES
 Extending 15% corporate tax benefits to new cooperatives,
commencing manufacturing till 31st March 2024.
 Higher limit of Rs. 2 lakh per member for cash deposits to and
loans in cash by Primary Agricultural Co-operative Societies
(PACS) and Primary Co-operative Agriculture and Rural
Development Banks (PCARDBs).
 Higher limit of Rs. 3 crore for TDS on cash withdrawal to be
provided to co-operative societies.

1. STARTUPS
 Date of incorporation for income tax benefits to start-ups to be
extended from 31.03.23 to 31.3.24.
 Benefit of carry forward of losses on change of shareholding of
start-ups from seven years of incorporation to ten years.

1. RATIONALISATION
Income of authorities, boards and commissions set up by statutes of the
Union or State to be exempted from income tax in certain sectors.
 UNION BUDGET TO BENEFIT JHARKHAND
TRIBALS

Union Minister of Earth Sciences of Government of India,

Jitendra Singh on 4 February, 2023 said tribals in Jharkhand
will benefit from the recently tabled Union Budget.

 Centre to recruit 38,800 teachers and support staff for the

740 Eklavya Model Residential Schools, serving 3.5 lakh
tribal students over the next three years.

 Jharkhand tribals will also get benefit from a scheme for

PVTG mission to develop basic amenities such as safe
housing, clean drinking water and sanitation, improved
access to education, health and nutrition, road and telecom
connectivity and sustainable livelihood opportunities for
Particularly Vulnerable Tribal Groups families.

 Rs. 15,000 crore for implementation of Pradhan Mantri

PVTG Development Mission over the next three years
under the Development Action Plan for the Scheduled
Tribes.

 States to be encouraged to set up a Unity Mall for

promotion and sale of their own and also all others states’
ODOPs (One District, One Product), GI products and
handicrafts.