Union Finance Minister Nirmala Sitharaman to present the Union Budget 2023-24 from Parliament
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Union Budget 2023: Live from Parliament
Before presenting the Union Budget, the Union Minister Nirmala Sitharaman called on President Droupadi Murmu at Rashtrapati Bhavan.
Live updates
KEY HIGHLIGHTS
1. EXPENDITURE
Total Expenditure in 2023-24 = Rs. 45.03 Lakh Crore (an increase of 7.5% over 2022-23)
Revenue Expenditure = Rs. 35.02 Lakh Crore in 2023-24 (to grow by 1.2 % )
Capital Expenditure = 10 Lakh Crore in 2023-24 (37.4% increase)
2. INDIRECT TAXES
- Basic customs duty rates on goods, other than textiles and agriculture, reduced from 21 to 13
- Custom duty exempted on import of capital goods and machinery for manufacture of lithium-ion cells for batteries used in electric vehicles
- Exemption in custom duty on various parts of IT & electronics
- Inversion of duty structure rectified for electric kitchen chimneys
- Denatured ethyl alcohol exempted from basic customs duty
- Big push to domestic manufacture of aquatic feed
- No customs duty on seeds used in the manufacturing of lab grown diamonds
- National calamity contingent duty (NCCD) on specified cigarettes raised by about 16%
3. DIRECT TAXES
- Direct tax proposals aimed at reducing compliance burden, promoting entrepreneurial spirit & providing tax relief to citizens
- Next-generation common IT returns form for tax payers’ convenience to be rolled out
- Limits of presumptive taxation enhanced to Rs 3 crore for micro enterprises and Rs 75 lakh for professionals with cash payments less than 5%
- 15 % concessional tax to promote new manufacturing cooperative society
- Threshold limit for co-operatives to withdraw cash without TDS increased to Rs 3 crore
- Date of incorporation for income tax benefits to start-ups extended to 31st march 2024
- Around 100 Joint Commissioners to be deployed for disposal of small appeals
- Deduction from capital gains on investment in residential house capped to Rs 10 crore
- Tax exemption on income of authorities regulating and developing an activity
- Agniveers to get tax exemption on payment received from the Agniveer corpus fund
4. PERSONAL INCOME TAX
- Major announcements in personal income tax to substantially benefit the middle class
- Persons with income up to Rs 7 Lakh will not pay income tax in new tax regime
- Tax exemption limit increased to Rs. 3 Lakh
- Change in tax structure: number of slabs reduced to five
- Salaried class and pensioners to gain on extension of standard deduction benefit to the new tax regime
- Maximum tax rate reduced to 39 per cent from 42.74 per cent
- New tax regime to be the default tax regime
- Citizens to have the option to avail the benefit of old tax regime
5. FISCAL DEFICIT
- Fiscal deficit to be at 5.9% in FY 2023-24
- Revenue deficit to be at 2.9 % in FY 2023-24
- Fiscal deficit on track to reach below 4.5% by FY 2025-26
- 15.5 % Y-o-Y growth in gross tax revenue in 2022-23 over 2021-22
- Direct taxes grew at 23.5% in first 8 months of FY 2022-23
- Indirect taxes grew at 8.6% during the same period
- States to be allowed a fiscal deficit of 3.5 per cent of GSDP
- States to be provided a fifty-year interest free loan
6. GROWTH FORECAST
- Nominal GDP to grow at 15.4 % in FY 2022-23
- Real GDP to grow at 7% in FY 2022-23
- Agriculture sector to grow by 3.5% in FY 2022-23
- Industry to grow at modest 4.1%
- Services sector to rebound with Y-o-Y growth of 9.1% in FY 2022-23 over 8.4 % in 2021-22
- Exports to grow at 12.5% in FY 2023
7. TRANSPORT INFRASTRUCTURE
- Highest ever capital outlay of Rs 2.40 Lakh crore for Railways
- 100 critical transport infrastructure projects identified
- Harmonized master list of infrastructure to be reviewed by expert committee
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Post-Budget Press Conference by Union Finance Minister
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