The Union Budget 2023-24, presented by the finance minister, highlights the following
key points:
1. The projected FY23 GDP growth rate is 7% and the fiscal deficit for FY24 is estimated to be
5.9% of the GDP, with the FY23 target met at 6.4%. The government aims to reduce the fiscal
deficit below 4.5% of the GDP by FY26.
2. The new tax regime offers tax exemptions for individuals earning up to Rs 7 lakh per
annum, compared to the previous limit of Rs 5 lakh. The highest surcharge rate will
be reduced to 25% from 37.5% under the new regime.
3. The budget size for 2023-24 is 45 Lk Cr, with tax receipts estimated at 27.2 Lk Cr. The gross
borrowing target for FY24 is Rs 15.43 lk cr, and the net borrowing target is Rs 12.31 lk cr.
4. The Pradhan Mantri Anna Yojana, providing free food grains to 80 crore people, has been
extended for an additional year with a total expenditure of Rs 2 Lk Cr.
5. The capital investment outlay has increased by 33% YoY to Rs 10 lakh cr, representing 3.3%
of the GDP, a three-fold increase from 2019-2020.
6. The allocation for the railway sector has increased to Rs 2.40 Lk Cr, a 9x increase from the
2013-14 outlay. The allocation for the affordable housing sector is Rs 79,000 cr.
7. The government has allocated Rs 75,000 cr for transport infrastructure and Rs 10,000 cr for
urban infrastructure development. The outlay for energy transition investment is Rs 35,000
cr, including Rs 20,700 cr for renewable energy in Ladakh and the promotion of 5 MMT
Green Hydrogen.
8. A new credit guarantee scheme for the MSME sector, with an infusion of Rs 9,000 Cr and a
1% interest relief for MSMEs, has been proposed. The 50-year interest-free loan for states
for capex purposes has been increased to Rs 1.3 lakh cr, a 30% increase.
9. The budget proposes the launch of a new program to promote research and innovation in
the Pharma sector and encourages industry investment. The formalization of the economy,
reflected by the growth in UPI payments and EPFO enrolments, has been a key achievement
of the government.
10. The agricultural credit target will be increased to Rs 20 lakh cr, a YoY increase of 11.11%.
The per capita income has doubled to Rs 1.97 lakh in the past nine years, and the Indian
economy has increased in size to become the 5th largest.
11. The budget promotes green growth through policies aimed at reducing carbon intensity and
promoting green jobs. The government aims to encourage 1 crore farmers to adopt natural
farming and has allocated Rs 19,700 crore to the National Hydrogen Mission.
12. The budget also emphasizes the importance of replacing old polluting vehicles and
promoting tourism in a mission mode, selecting 50 destinations for tourism enhancement.
13. The government will spend Rs 2200 cr for high-value horticulture, Rs 6000 cr for the fishing
sector, and Rs 2,516 crore for the computerization of 63,000 primary agricultural credit
societies.
14. The budget proposes the establishment of 157 nursing colleges, the recruitment of 38,800
teachers and support staff for 740 Eklavya Model residential schools, and the return of 95%
of the forfeited amount to MSMEs for contract failure during COVID-19.
15. The government plans to set up 50 additional airports.
Dr Nishant S Mehta
Chartered Accountant
#9821470299