Budget 2023 key highlights: FM makes new tax regime attractive, raises capex outlay by 33%, and more

Finance Minister Nirmala Sitharaman on Wednesday presented the Narendra Modi government's last full budget in parliament before a general election due next year. Sitharaman is presenting her fifth full Budget after she took over as Finance Minister in July 2019. Sitharaman said the Budget for 2023-24 hopes to build on the foundation of the previous budget and blue print for India@100. This is the first Budget in Amrit Kaal, she said. Here are highlights from FM Sitharaman's speech:

* Indian economy on the right track, and heading towards a bright future

* This budget hopes to build on foundations set in previous budgets. Indian economy is on right track, current year’s growth has been 7%

* Fiscal deficit for FY24 estimated at 5.9% of GDP

* In these times of global challenges, India’s G20 presidency gives us a unique opportunity to strengthen India’s role in the world economic order

* During the Covid pandemic, we ensured that nobody goes to bed hungry with a scheme to supply free foodgrains to over 80 crore persons for 28 months

* The government has a three-point agenda for growth -- facilitating ample opportunities for youth, job creation and strengthening macro economic stability

* Entire expenditure of Rs 2 lakh crore for free food scheme to be borne by centre. India has grown from 10th to 5th largest world economy

* India's per capita income has doubled to Rs 1.97 lakh

* India's economy has become a lot more formalised; efficient implementation of many schemes like Ujjwala, Jan Dhan accounts, cash transfer of Rs 2.2 lakh crore to farmers have ensured inclusive growth 

* Promotion of tourism to be taken up in mission mode, including via PPPs

* This budget adopts 7 priorities including inclusive development, green growth, youth power, financial sector, last mile infrastructure

* Govt increases income tax rebate limit from Rs 5 lakh to Rs 7 lakh under new tax regime

* No tax for income up to Rs 3 lakh; 5% tax on Rs 3-6 lakh; highest tax rate of 30% on income above Rs 15 lakh under new I-T regime

* An individual with income of Rs 15 lakh will have to pay Rs 1.5 lakh tax down from Rs 1.87 lakh under new tax structure

* An individual with annual income of Rs 9 lakh will have to pay only Rs 45,000 in taxes

* Net tax revenue foregone because of changes in direct and indirect taxes is Rs 35,000 cr

* Govt proposes to make new tax structure as default tax option: FM

* 9.6 crore LPG connections, 220 cr Covid vax for 102 crore people given, 47.8 crore JanDhan accounts opened

* Digital public infrastructure for agriculture will be built as open source, open standard and interoperable public good

* Agri accelerator fund will be set up to encourage agri startups in rural areas

* Agriculture credit target increased to Rs 20 lakh cr for FY'24, with focus on animal husbandry, dairy and fisheries

* National digital library for children and adolescents will be set up for facilitating quality books

* 38,800 teachers will be hired for Ekalavya Model Residential Schools

* Enhanced capex of Rs 10 lakh cr for infra development is 3.3% of the GDP

* Capital outlay of Rs 2.4 lakh cr provided for Railways; highest-ever allocation since 2013-14

* For enhancing ease of doing business, more than 39,000 compliances have been reduced, over 3,400 legal provisions decriminalised

* PAN will be used for common identifier for all digital systems of specified government agencies

* Govt to bring another dispute resolution scheme under Vivad Se Vishwas-2 to settle commercial disputes

* Govt to launch Dekho Apna Desh initiative to promote domestic tourism

* Govt to set up single window system for registrations and approvals in IFSC Gift City

* One time new small saving scheme Mahila Samman Saving Certificate to be made available for 2 years up to 2025

* Mahila Samman Savings Certificate to allow maximum deposit of up to Rs 2 lakh having 7.5% interest

* Fiscal deficit to be brought down to below 4.5% by 2025-26

* To finance fiscal deficit in 2023-24, net market borrowing from dated securities estimated at Rs 11.8 lakh cr

* FM Sitharaman retains fiscal deficit target of 6.4% in the Revised Estimate for FY23; cuts it to 5.9% for FY24

* Govt proposes to reduce customs duty on import of certain inputs for mobile phone manufacturing

* Mobile phone output rose from 5.8 crore units in 2014-15 to 31 crore units last fiscal

* PM Aawas Yojana outlay hiked by 66% to Rs 79,000 cr

* Taxes on cigarettes hiked by 16%

* Govt proposes to increase limit for presumptive taxation for MSMEs and certain professionals to Rs 3 cr and Rs 75 lakh, respectively

* Govt proposes to increase benefit of carry forward of losses for startups to 10 years

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