Introduction: Union Budget 2023
Before the 2024 Lok Sabha elections, Finance Minister Nirmala Sitharaman presented the last comprehensive Union Budget of the Modi administration on February 1, 2023.
At the start of her speech, she referred to the budget as “the first budget of Amrit Kaal,” and she used the term many times.
The government has emphasised ‘Amrit Kaal’, saying that the foreseeable future would be very prosperous for India with economic growth and social justice. Amrit Kaal finds its roots in Vedic astrology and refers to the golden era. It will also portend a more independent and prosperous future.
“A technology-driven, knowledge-based economy with solid public finances and a thriving financial sector is part of our vision for the ‘Amrit Kaal.'” To achieve this “jan-bhaagidari” (public participation), “sabka saath, sabka prayas” (shared efforts by all) is essential, according to Sitharaman.
As part of its “Digital India” project, the Indian government is aggressively pushing digital payments in an effort to increase financial inclusion and decrease cash transactions. It has implemented several measures to encourage the adoption of online payment gateway and UPI.
Now that we have established the main topic and objective of this year’s budget, let’s examine some of the most important details and statements made in FM Nirmala Sitharaman’s 2023 budget presentation.
For the most recent information on India’s stance on online payments and UPI rules, it is thus advised to consult official sources or news networks.
Union Budget 2023-24: Key Highlights and Updates
1. Income tax rebate increased to Rs. 7 lakhs
FM Nirmala Sitharaman has proposed a new tax regime that will boost the income tax rebate limit from ₹5 lakhs to ₹7 lakhs.
Incomes up to Rs. 5 lakhs are now exempt from income tax under both the old and new tax regimes. The finance minister has proposed raising the refund cap to Rs. 7 lakhs under the new tax scheme. Individuals would not be obliged to pay any tax on income up to Rs. 7 lakhs under the new tax structure.
2. The Senior Citizens Savings Scheme’s maximum deposit amount increased from Rs. 15 lakhs to Rs. 30 lakhs.
The Senior Citizen Savings Scheme (SCSS) investment cap was increased from Rs 15 lakh to Rs 30 lakh in the 2023 Budget.
For the quarter ending March 31, 2023, the government raised the interest rate on the Senior Citizen Savings Scheme (SCSS) to 8%.
The finance minister also unveiled a new modest savings plan for women.
3. Credit guarantee for MSMEs – revamped scheme from 1st April 2023 with Rs.9000 crore infusion.
It is planned to hire 38,800 educators and support personnel for 740 Eklavya Model Residential Schools.
The budget announced an update to the current guarantee schemes and a new allocation of Rs 9000 crore in the capital with a 1% reduction in the cost of credit.
The industry will be able to access an additional Rs 2 lakh crore in credit, and the smaller businesses, which are still struggling to recover from the stress of Covid stress, will receive relief.
4. It is planned to hire 38,800 educators and support personnel for 740 Eklavya Model Residential Schools.
The centre would employ 38,800 teachers and other personnel for 740 residential schools following the Eklavya Model to educate 3.5 lakh indigenous youngsters.
This would be very beneficial to women, members of the underprivileged groups, OBCs, scheduled castes and scheduled tribes, and scheduled castes.
Building a national digital library and other children’s information resources will also provide them with high-quality books, enhancing their educational experience and the development of our country.
5. A minimum of fifty locations must be chosen and produced as a comprehensive package for both domestic and international travellers.
At least 50 locations would be selected and developed as part of an all-inclusive tourism package for both local and foreign travellers, according to FM Nirmala Sitharaman’s announcement.
These locations would be chosen through a challenge mode using an integrated and creative strategy, with local and international travellers as the main focus of tourism growth.
To improve the tourist experience, the finance minister also suggested creating an app that would make all necessary information about the tourist destination available easily.
6. Economic growth is expected to be at 7% despite the slowdown, the highest among major economies
India’s economic growth is anticipated to fall to 6.5% in the fiscal year beginning in april, according to a World Bank report. The average annual retail inflation rate, according to the research, will be 7.1%.
India will remain the fastest-growing major economy in the world in FY24 despite slowing growth, thanks to solid domestic demand and an increase in capital expenditure amid persisting political and economic uncertainties from abroad.
7. Entity DigiLockers will be established to enable safe online document sharing and storage within the business ecosystem.
In 2015, DigiLocker was released as a safe cloud-based platform for sharing, storing, and verifying documents and certificates.
It works as a secure document exchange mechanism, akin to a payment gateway, between a trusted issuer and a trusted requester/verifier, subject to the user’s consent.
In her budget presentation for 2023–2024, Finance Minister Nirmala Sitharaman said that DigiLocker services will be expanded in order to streamline the KYC process.
She also unveiled a new digital public infrastructure (DPI) for agriculture.
8. Digital Payments recorded 76% in transaction volume and 91% in transaction value
This suggests that there will be more transactions overall and that the average value of each transaction will likewise rise.
One important development in recent years has been the rise of digital payments. This trend is probably being driven by consumers’ rising demand for cashless transactions as well as the efficiency and convenience that digital payments provide.
The banking sector and the whole economy are going to suffer greatly from this if traditional payment methods become less prevalent and digital payments become the standard.
9. 3 AI centres for excellence to be set up in top educational institutes in India
FM Nirmala Sitharaman proposed the creation of three centres of excellence for artificial intelligence at prestigious universities and 100 labs at engineering universities during her budget address in the Lok Sabha.
In order to build applications employing 5G services, Sitharaman stated that those 100 labs would be established in engineering colleges in partnership with various authorities, regulators, banks, and other businesses.
India hosts the G20 summit for 2023: What can it mean for us
India has a rare chance to take the lead in determining the direction of the world economy as it gets ready to host the G20 conference.
India gets the chance to voice its opinions on important international economic problems including trade, investment, and financial stability by serving as the G20 host nation.
Using this platform, the nation may promote a more sustainable and fair international system in which every country has an equal chance to develop and flourish.
Using this platform, the nation may promote a more sustainable and fair international system in which every country has an equal chance to develop and flourish.
India can also use this opportunity to highlight its own achievements in the economic and social spheres and to promote its role as a leader in the developing world.
Furthermore, hosting the G20 summit will provide India with a valuable opportunity to deepen its relationships with other major economies and build stronger links with the global financial and business communities.
By leveraging this opportunity, India can take a step towards fulfilling its vision of becoming a major economic power and playing a more influential role in shaping the future of the world.
Conclusion
In conclusion, FM Nirmala Sitharaman’s Union Budget 2023 placed a strong emphasis on building a more sustainable and inclusive future for the nation. This budget lays the groundwork for a robust and resilient economy by prioritising the creation of jobs, the development of infrastructure, and the enhancement of residents’ quality of life.
It is anticipated that the new tax system, which attempts to lessen the load on taxpayers and streamline the compliance procedure, would provide the middle class a much-needed lift.
The country’s general level of life will be raised in part by the increased funding for healthcare and education.
The general direction of the budget seems favourable and in line with the demands of the people, even though some of the initiatives could take some time to show benefits.
It will be interesting to see how the government plans to implement these proposals and how they will impact the economy in the long term.
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