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2023 Budget Highlights vs 2024 Budget Expectations: Key measures for focus groups, tax relief, investment boost

2023 Budget Highlights vs 2024 Budget Expectations: Key measures for focus groups, tax relief, investment boost

The 2023 Union Budget was termed the first budget in 'Amrit Kaal', which laid a special emphasis on incentivising the private sector to create fresh jobs and push growth. In 2024, the government is expected to focus on the four key sectors ahead of the Lok Sabha polls.

Business Today Desk
Business Today Desk
  • Updated Jan 31, 2024 4:27 PM IST
2023 Budget Highlights vs 2024 Budget Expectations: Key measures for focus groups, tax relief, investment boostFM Nirmala Sitharaman is all set to table the Interim Budget 2024-25 on February 1 ahead of the Lok Sabha polls.

Union Budget 2023 was the last full Budget for the NDA II government. On February 1, Finance Minister Nirmala Sitharaman will present the Interim Budget, which is expected to cover only government expenditures before the Lok Sabha elections. This is the second Interim Budget presentation by the Bharatiya Janata Party (BJP)-led government. The last one was presented by former FM Piyush Goyal.

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The 2023 Union Budget was termed the first budget in 'Amrit Kaal', which laid a special emphasis on incentivising the private sector to create fresh jobs and push growth. The second goal of the government was to increase the capital expenditure and disinvesting the government’s stake in the PSUs.

Here are the top highlights of Budget 2023:

1. FM Sitharaman on February 1, 2023, presented a budget, which was worth Rs 45,03,097 crore. Of the total expenditure, the revenue expenditure was estimated to be Rs 35,02,136 crore.

2. Government's total receipts other than borrowings was estimated at Rs 27.2 lakh crore.

3. The net tax receipts were estimated at Rs 23.3 lakh crore.

4. The fiscal deficit was estimated at 5.9 per cent of GDP compared to 6.4 per cent for the current fiscal year.

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5. Net market borrowings from dated securities estimated at Rs 11.8 lakh crore.

6. The gross market borrowings estimated at Rs 15.4 lakh crore.

7. Highest capital outlay of Rs 2.4 lakh crore for Indian Railways.

8. FM Sitharaman said India's economic growth to be 6-6.8 per cent in 2023/24.

9. The finance minister also proposed to hike outlays for road transport by 24.4 per cent to Rs 270,000 crore in 2023/24 from a revised Rs 217,000 crore in 2022/23

10. The education budget was raised to Rs 113,000 crore for 2023/24 vs Rs 99,900 crore in 2022/23.

11. The Health budget was raised to Rs 88,950 crore for 2023/24 from Rs 70,940 crore in 2022/23.

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12. Defence budget was increased by 13.8 per cent at Rs 5.94 lakh crore year-on-year (YoY).

13. Capital outlay for the Defence sector was at Rs 1.62 lakh crore for modernisation of armed forces and infrastructure development and upgradation.

14. 'Saptarishi’ or top seven priorities during Amrit Kaal

> Inclusive development of all sections of the society
> Making government’s policies reach the last mile
> Infrastructure and investment
> Unleashing the potential of the economy by eradicating hurdles
> Green growth
> Harnessing the potential of youth
> Fortifying India’s financial sector to aid growth.

15. Income Tax

The last budget saw increase in basic exemption limits up to Rs 3,00,000 under the new tax regime for individuals and certain taxpayers, along with changes in slab rates. Sitharaman announced an increase in the income tax rebate limit to Rs 7 lakh from the previous Rs 5 lakh.

She also slashed the number of slabs from six to five.

Total Income (Rs) Rate
Up to 3,00,000    Nil
From 3,00,001 to 6,00,000     5%
From 6,00,001 to 9,00,000     10%
From 9,00,001 to 12,00,000    15%
From 12,00,001 to 15,00,000   20%
Above 15,00,000   30%

She also allowed a Rs 50,000 standard deduction to taxpayers under the new regime. The benefit of standard deduction extended to the salaried class and pensioners under the new tax regime.

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Reduction in the highest surcharge rate from 37% to 25% for individuals and certain taxpayers under the new tax regime.

16. Indirect taxes

Increase in basic customs duty on articles made from gold and platinum.

Import duty on silver dore and bars to align with gold and platinum.

Reduction in basic customs duty on crude and glycerine to 2.5 percent.

Increase in National Calamity Contingent Duty (NCCD) on specified cigarettes by about 16 percent.

Nil customs duty on specified capital goods and machinery for the manufacture of lithium-ion cells extended to March 31, 2024.

Reduction in basic customs duty on parts of open cells of TV panels to 2.5% and increase on electric kitchen chimneys to 15%.

Reduction in the number of basic customs duty rates reduced from 21 to 13 for goods, other than textiles and agriculture.

Budget 2024 Expectations

Earlier in the day, PM Narendra Modi said that FM Sitharaman is expected to present the budget with disha-nirdeshak baatein.

"This time, Finance Minister of the country, Nirmala Sitharaman will present the budget with 'disha-nirdeshak baatein'. I am of the firm belief that the country is going ahead by crossing new heights of progress every day. All-round and inclusive development is taking place. This journey will continue with the blessings of people..."

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Here are the top expectations of different sectors:

With tax windfall in its kitty, the Centre is expected to continue with its infrastructure investment. The focus will on the four key sectors -- women, farmers, the impoverished, and youth. The government is expected to announce specific measures for these groups.

MSMEs are seeking streamlined regulatory procedures and improved accessibility to loans and financial aid.

Salaried taxpayers are eagerly awaiting modifications in income tax brackets and revisions in the standard deduction and Section 80C limits, with the aim of potentially increasing tax benefits.  

The middle class is hopeful for policies that will enhance employment prospects, as well as provide easier access to housing schemes and healthcare facilities.

Expectations for skill development in the upcoming budget include a focus on allocating more funds toward faculty development programs. Prioritising reskilling and upskilling programs, along with industry collaboration and public-private partnerships, can effectively tackle the evolving demands of the job market.

Published on: Jan 31, 2024 3:40 PM IST
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