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Ref. No. KLI/22-23/E-BB/492
Ref. No. KLI/22-23/E-BB/490
With an increase in the basic exemption limit and refund, as well as modifications to the income tax slabs, Union Budget 2023 has some impactful changes to offer.
The Union Budget 2023 is one of the most significant financial statements presented by the Indian government each year. It outlines the government’s revenue and expenditure for the upcoming financial year, along with various policy measures to support economic growth and development.
The government’s primary focus is to boost economic growth and create more job opportunities. This year’s new budget has introduced several key changes in various sectors, such as healthcare, education, infrastructure, agriculture, and taxation, among others.
In this article, we will take a closer look at the key objectives of the government budget 2023 and how they are likely to impact the Indian economy and its people. From new policies to increased funding for various sectors, we will explore the details of this highly-anticipated budget and provide insights on how it may shape the country’s economic future.
The Union Budget is an annual financial statement presented by the Government of India in Parliament. It is one of the most significant economic events in the country, as it sets the tone for the economic policy for the coming year. It also reflects the government’s priorities and initiatives for various sectors of the economy, including agriculture, infrastructure, education, health, and defense.
The Union Budget is prepared by the Ministry of Finance, and its presence in the Parliament is an elaborate affair, marked by much anticipation and media scrutiny. This financial statement serves as a critical tool for the government to meet its socio-economic objectives and is an essential component of India’s governance and policymaking framework.
The Union Budget 2023 was eagerly anticipated by many as it was to come at a time when India was facing several challenges, such as rising inflation, slow economic growth, and unemployment. Union Budget for 2023 has been designed to stimulate economic growth, promote job creation, and improve the standard of living for the citizens of India.
The Union Budget income tax slabs have been modified in the new Budget 2023 under the new tax regime. The basic exemption limit for individuals has increased from ₹2.5 lakh to ₹3 lakh. This means that individuals with an annual income of up to ₹3 lakh will not have to pay any income tax.
For both the previous and current tax regimes, the maximum income tax rebate granted under Section 87A of the Income Tax Act was ₹5 lakh. As a result, people with annual incomes up to ₹5 lakh were exempt from paying taxes. The previous tax system offered exemptions but had a higher tax rate. While the new tax system featured a reduced tax rate, there were no exemptions available. The tax-free threshold has now been raised to ₹7 lakh, but only for those who opt for the new tax structure.
Income tax brackets under the proposed tax framework (New Regime) for fiscal years 2023-24
Income tax slabs
Income tax rate
Between ₹0 and ₹3,00,000
Between ₹3,00,001 and ₹6,00,000
Between ₹6,00,001 and ₹9,00,000
Between ₹9,00,001 and ₹12,00,000
Between ₹12,00,001 and ₹15,00,000
Budget 2023 has raised the maximum investment limit for the Senior Citizen Savings Scheme (SCSS) from ₹15 lakh to ₹30 lakh. Here are the key features of SCSS:
One of the main priorities outlined in the new budget is the promotion of renewable and green energy. The budget proposes several measures to support the renewable energy sector, such as:
These proposals are a step forward in India’s pursuit of its green energy targets.
In the 2023-24 Union Budget, the government introduced a significant change in the healthcare sector aimed at transforming it. The new budget includes the establishment of 157 new nursing colleges located alongside existing medical colleges. This move reflects the government’s focus on ensuring an adequate number of frontline medical professionals in hospitals and bridging the gap in nurse-to-bed ratios as India aims to become a preferred healthcare destination. Additionally, healthcare providers are prioritizing the creation of facilities in tier 2 and tier 3 cities.
The health sector received an allocation of ₹89,155 crores in the 2023-24 Union Budget, an increase of around 13% from the previous year’s allocation of ₹79,145 crores. Of the allocated amount, the Department of Health and Family Welfare will receive ₹86,175 crores, while the Department of Health Research will receive ₹2,980 crores to support these initiatives.
The Union Budget has earmarked a record-high sum of ₹1.12 lakh crore for education, representing an 8.2% increase from the amount allocated in the 2022-23 budget. The previous budget estimated a sectoral allocation of ₹1,04,277.72 crore, but the revised estimate reduced it to ₹99,881.13 crore. The current year’s allocation marks a 13% increase from the revised estimate.
The Union Budget 2023 has several key changes that are important for everyone to know. It focuses on strengthening the economy, boosting growth, and improving the quality of life of citizens across the nation. The government has proposed to allocate a significant amount to various sectors. Overall, the budget has something for everyone, and it is expected to have a positive impact on the economy and the lives of citizens.
Ref. No. KLI/22-23/E-BB/999
Ref. No. KLI/22-23/E-BB/490