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Budget 2023: Finance Minister Nirmala Sitharaman said the government wants to make the new tax regime attractive and that is why the new slab has been brought in. In her post-budget briefing, she said people who want to continue with the old regime can continue to do so. Before this, Prime Minister Narendra Modi talked about the budget and said that it will fulfill the dreams of an aspirational society. He added that we need to take our success of digital payments and replicate it in the farming sector. Tax, Development, States, Income, and Finance were the most used words in Finance Minister Nirmala Sitharaman' speech in Parliament today. Sitharaman also said that the government has hiked the income tax exemption limit by Rs 2 lakh from Rs 5 lakh to Rs 7 lakh in a major relief to the middle class and salaried class. She further said the government's fiscal deficit has been revised to 6.4 per cent of the GDP and is likely to hit 5.9 per cent next year.
Also read: Sensex, Nifty rally: 5 reasons why investors are cheering Union Budget 2023 announcements
The government will likely increase welfare spending with a focus on boosting rural and infra capex. The Central government’s capex estimate could be Rs 7.5 lakh crore for FY2023 and Rs 7.5 lakh crore for FY2024. Besides this, the government aims to achieve a fiscal deficit target between 5.5 per cent to 6 per cent of the nominal GDP in 2023-24 whereas it is likely to peg real GDP growth at around 6 per cent to 6.5 per cent for FY2024.
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Congress leader P Chidambaram says the Budget for 2023 shows how far the central government is removed from people and their concerns about life and livelihood. He says that no taxes have been reduced except for a small number of those who have opted for the new tax regime. No cut in 'irrational' GST rates, adds Chidambaram.
Budget 2023: Congress president Mallikarjun Kharge says the Budget 2023 was presented by the Modi government keeping in view the upcoming Assembly polls in 3-4 states. "There's nothing in the budget for poor people and to control inflation. No steps for jobs, to fill govt vacancies and MNREGA."
Budget 2023: Replying to a question on inflation, Finance Minister Sitharaman says the government has decided to release wheat into the market due to which the price of wheat will come down. Before the budget, she says, the government had already taken action to ease wheat prices. Inflation has come down, both the CPI and WPI. "Action has been taken by the government, we take inflation-related steps when things develop on the ground and in response to it and that has borne results."
Budget 2023: FM Sitharaman says there has been very robust management of macroeconomics, the government has worked together in such a way that it is taking steps to both bring more people into the tax net and on prudent expenditure to make money mean more and get more returns.
FM Sitharaman on the new tax regime in Budget 2023: "This country has been waiting for direct taxation to be simplified. Therefore the new taxation regime that we brought in for direct taxation two-three years ago has now got greater incentives...are greater attraction so that people can unhesitatingly move from the old to the new. We are not compelling anybody. Those who want to remain in Old can still remain there. But the new one is attractive because it gives a greater rebate. It also provides for simplified & smaller slabs, smaller lower rates of taxation, and also slabs which are nicely broken down.
Budget 2023: Finance Minister Sitharaman says the Budget gives a big leg-up to capital investment, it also attends to MSMEs as they are the engine of growth. She says the budget sustains capital investment and also gives a push to the private sector while also giving tax relief to individuals and the middle class.
Budget 2023: FM Sitharaman says the central government is looking at a futuristic fintech sector and people will be trained through Industrial Revolution 4.0. "We are trying to unleash digital economy in various walks of life," she adds. "There's a lot of increase in agriculture credit availability. Rs 20 lakhs are being made available for agriculture credit. Also, a sub-scheme under PM Matsya Sampada Yojana makes sure that people living in coastal areas are going to benefit from it."
Budget 2023: FM Sitharaman says the government wants to make the new tax regime which is without exemptions attracting enough for people to think that this will be the best option for them. "It gives them a better rate, it also doesn't make compliance a burdensome exercise, if rates are so low, you are going to benefit by paying lesser tax. We made this a lot more attractive. The ultimate interest is to make a simpler regime more attractive."
Budget 2023: In the post-budget briefing, FM Sitharaman says broadly, emphasis has been given on empowering women. A lot more attention has been given to SHG groups which are in rural areas. "Trying to scale them up, give them the opportunity to brand, produce and market their products in a far more scaled up and professional manner," she says. Emphasis on tourism and training of youth for readying themselves for specific actions for 50 destinations where comprehensive tourism action plans will be introduced.
BSE Sensex tanked nearly 2,000 points after the Budget rally fizzled out over its trading high of 60,773.44. NSE Nifty, on the other hand, fell 212 points to 17,450.
"A new chapter in India’s travel and tourism industry is set to begin as the Budget 2023 announcement comes to a close. The positive outlook for the industry displayed by FM Nirmala Sitharaman early on in her speech is highly commendable, taking up the agenda for promoting tourism in the country on “mission mode,” and will play a vital role in reviving the landscape of tourism in India. The initiative to provide additional infrastructural support with fifty new airports, heliports, water aerodromes, and advanced landing zones in India, along with the simplification of registration and overall regulations under the GIFT IFSC will pave the way for new entrants in the aviation industry, which has experienced increasing demand both domestically and internationally. Theme-based tourist circuits and introduction of ‘unity malls’ by states to promote locally manufactured goods is yet another move that will result in revitalising the tourism industry, along with providing multiple opportunities for employment generation and entrepreneurship. Moreover, the introduction of the new Income Tax slabs will avail newer and better opportunities for people to travel and discover India’s rich diversity."
- Mr. Nishant Pitti, CEO and Co-Founder, EaseMyTrip
Also read: Budget 2023: Further boost to GIFT City to make it a global financial hub
Chairman and CEO of ReNew Power Sumant Sinha said, "For the clean energy sector, there are several welcome announcements. Support for Battery Energy Storage Systems (requested by ReNew Power during pre-budget consultations), the transmission infrastructure to evacuate power from Ladakh, the allocation for biogas to energy projects and the initiatives for scrapping of old vehicles of the central and state governments are all significant steps in the right direction. We look forward to seeing further details on the recently announced Rs. 19,500 crores allocation for the National Green Hydrogen Mission. The budget will give a thrust to accelerating clean energy in India and ReNew Power is committed to support Government of India in this endeavour."
Sterling Developers Chairman and MD Ramani Sastri says, "The Union Budget has provided an indirect boost to the real estate sector with enhanced capital expenditure and gift to the salaried class by providing increased disposable income at hand with the higher tax rebate. The PM Awas Yojana hike is great news in the affordable housing market and this increase in allocation will help the government achieve its goal of providing affordable housing to all and contribute to the overall growth and development of the country. Reduction in compliance and relaxation of regulatory provisions is a welcome move from an ease-of-doing business perspective and will aid the growth of the real estate sector. The enhanced focus on digitalisation too which will create more jobs and propel the demand for residential real estate across the country. The unwavering focus on infrastructure is a welcome move for the industry. The buoyancy which we have witnessed in the realty sector in the recent past is set to continue in the near term. While the budget has addressed some key issues, there are currently several grey areas when it comes to schemes, taxation, funding, and others where the government should provide a helping hand going forward. It is imperative for the government to pay special attention to the real estate sector and have provisions for its well-being in the near future. Overall, we believe that the union budget has ushered in a balanced combination of reforms and regulations, which will, in turn, will contribute positively to India’s growth story."
Vinod Aggarwal said, "33 % increase in capital outlay with an effective provision of Rs 13.7 lakh crores will spur growth in the economy resulting in positive impact on the Auto sector.”
Adding further, he stated, “The Auto industry is fully aligned with the initiatives on Sustainability and Decarbonisation and increased focus on Hydrogen, Ethanol Blending, Bio Gas, Electric Vehicles and Battery Storage. Announcement for funding various Government Departments for replacement of old vehicles is also commended."
He added, "Another appreciable feature of the budget is putting more money in the hands of the individuals by some lowering of effective personal income tax rates that should increase consumption and consequently lead to more demand. All in all, this is a growth-oriented budget with positive impact on the Auto Sector.”
Avaana Capital's Anjali Bansal said she welcomes the increased budgetary allocation towards green hydrogen and waste-to-energy. Bansal said, "The Union Budget rightly builds incentives to support low carbon development pathways with the focus on Green Growth among the Saptarishi priorities. Catalyzing sustainable growth in India will require incentives to drive investments in technology and innovation, to ensure that we do not have to make trade-offs between people and planet. We welcome the increased outlay towards energy transition, and particularly for Green Hydrogen and waste-to-energy, which will boost energy independence. The PRANAM scheme and bio-inputs centres shall incentivize adoption of sustainable and regenerative agriculture practices. The Green Credit programme will channel much needed capital to support the transition to a sustainable economy. Concessional duties on Li-ion batteries will provide further boost to the EV sector and help decarbonize the transport and logistics sectors. The measures announced in Budget 2023 will further strengthen India’s position as a global climate leader, and catalyze sustainable, inclusive development."
Uttarakhand CM Pushkar Singh Dhami said, "I want to thank PM Modi & congratulate FM Nirmala Sitharaman for presenting a spectacular budget before the people of the country. This Budget will meet the expectations of people of the country as well as the world."
MarketsMojo Chief Investment Officer Sunil Damania said, "This is a terrific budget. I believe that the most important aspect of the budget is that it is preparing India for the future. Whether it is through participation, limiting carbon footprint, or ensuring the rural economy has the money, and plans to reduce pressure on urban infrastructure. It's also a step in the right path toward making India Atmanirbhar and easing of doing business.
The government also recognized that there was a lot of strain on the common man as inflation ate into individual savings. The change in the tax system in the personal income tax is a step in the right way to put more money in the hands of taxpayers, which will encourage growth. And if that happens, private capex may return.
What is commendable, and I believe the biggest highlight of this budget, is that while increasing capital expenditure to Rs. 10 lac crores, or 3.3% of GDP, the government has managed to keep the fiscal deficit at 5.9% for FY2024. Overall, the budget is excellent. The absence of negative news is a tremendous source of optimism. And the stock market has been ecstatic about this budget.
However, there was one concern about capital gains. And that hasn't even been mentioned. We wish that every time the market becomes anxious about the budget, the government would use it as an opportunity to clarify its position on how it intends to adjust capital gains on equity. "
"With the Government controlling a large fleet of vehicles, replacing the old and polluting ones is a fantastic move, which will provide a fillip to the auto sector. The scrapping policy will have a lot to gain, making scrapping centres significantly more viable than they were without the vehicle replacement scheme. With INR 19,700 crore on the green hydrogen mission, the Government is keeping all the options open - from green hydrogen-based vehicles to BS VI to e-mobility. All of these options stand a chance to gain from the vehicle replacement scheme.
From a tax perspective, while commitment on electric mobility is seen in the battery segment, alternate fuels, like biogas, also finding a place clearly indicates that the future is open to innovation, and the best technology will win. This is in addition to the push coming on the generation side of biogas under the Gobardhan scheme. Alternate fuel like biogas and hydrogen is a push towards a circular economy, but it also signals e-mobility players to plan for resilience if alternate fuel and technologies come up faster."
-- Manish R Sharma, Partner and Leader- Capital Projects and Infrastructure, PwC India
Abhijit Roy, MD & CEO Berger Paints India Limited opined, “It’s a great budget, in fact, the best delivered by this government. The proposal to raise capex by 33% to 10 lakh crore for the next fiscal will have a multiplier effect on the generation of jobs and demand creation. A 9X increase in the capital outlay(against capital outlay in 2013-14) for Indian railways for infrastructure upgrade augurs well for the long-term mobility requirements of India.
A strong push in the affordable housing segment through a 66% increase in PMAY spending will give a big boost to the housing industry. Direct tax benefits given in the budget, will enable more money in the hands of the consumer and will boost consumption and consumer sentiments. On the agriculture front, steps such as Alternative fertilizers and cooperative warehouses will increase the remuneration prices thereby increasing farmers' income.
The budget also contained a slew of measures to move towards greater digital inclusion. The proposal to establish a Centre of Excellence for Artificial intelligence will help in strengthening India’s credentials in the upcoming field.
With the uptick on spends in critical areas, the target to keep the fiscal deficit at 5.9% of GDP is a welcome step. It will also help in curbing inflation.”
Union Home Minister Amit Shah tweeted in Hindi, "In this budget, it has been decided to start the PM Vishwakarma Kaushal Samman Yojana to make the country's traditional artisans and craftsmen self-reliant. This decision will make a big difference in the lives of Vishwakarmas by enabling them to enhance the quality and market reach of their products."
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