ANALYSIS OF UNION BUDGET 2023

The Union Budget is a critical document that outlines the government’s financial plans and priorities for the coming year. Every year, this document is eagerly anticipated by citizens, businesses, and economists alike, as it provides insight into the government’s plans for the economy, and the impact that these plans will have on the lives of ordinary people. The Union Budget 2023 was presented by the Finance Minister on 1st February 2023, with a focus on accelerating growth, creating jobs and providing support to the vulnerable sections of the society. The budget aimed at enhancing the competitiveness of Indian economy, promoting ease of doing business and fostering an enabling environment for startups.

In this blog, we will provide a comprehensive analysis of the latest Union Budget, including a review of the key highlights, a breakdown of the major spending areas, and an assessment of the impact that the budget is likely to have on the economy and the people of India. Whether you are an economist, a business owner, or simply a concerned citizen, this blog will provide valuable information and insights into the Union Budget. Join us as we delve into this important and timely topic!

key highlights of the Budget

This is the first budget in ‘Amritkal’ and hopes to build on the foundations laid in the previous Budget and the blueprint drawn for India@100. Indian economy is on the right track and heading towards a bright future and the vision for the Amrit Kaal includes a technology-driven and knowledge-based economy, with strong public finances and a robust financial sector. Here is the key highlights of Union Budget 2023:

The New Personal Income Tax regime which is set as the default now:

This will be indeed the most discussed element in the budget, which turns out to be a great relief to the salaried Indians. The income slabs under the new personal income tax regime have been revised from six to five and the tax exemption limit has been increased to Rs 3 lakh. The new applicable tax rates hold:

  • zero taxes for those earning up to ₹3 lakh
  •  5% for those who earns from  ₹3-6 lakh
  • 10% for those who earns from ₹6-9 lakh
  • 15% for those who earns from  ₹9-12 lakh
  •  20% for those who earns from  ₹12-15 lakh 
  • 30% for those who earn ₹15 lakh and beyond

Raising capital expenditure by the government

Capital expenditure refers to the government’s spending on long-term assets such as roads, bridges, buildings, and machinery. By increasing capital expenditure, the government can create new opportunities for economic growth, improve the standard of living for citizens, and promote sustainable development. It is proposed in the Union budget to raise the capital expenditure target by 33% to Rs. 10 lakh crore for the next fiscal year starting on April 1, which is 3.3% of the country’s economic output, as the government hopes to shore up demand and consumption in the economy.

Fiscal prudence

Fiscal prudence in the Union Budget refers to the responsible and efficient management of government finances. It involves balancing the need for public spending with the need to maintain a stable and sustainable level of government debt. Fiscal prudence is crucial for maintaining the stability of the government’s finances and promoting economic growth. Finance Minister has assured in the Budget that the fiscal deficit that is the market borrowing by the govt will fall to 5.9% of the GDP , which will have a welcoming impact on the broad Indian economy as it suggests that money will be available for private entrepreneurs to borrow.

The Union Budget 2023 is aimed at boosting economic growth, creating job opportunities and improving the standard of living for the citizens. The budget presents a vision for a self-reliant and vibrant India and is expected to set the stage for sustainable and inclusive growth in the years to come. Here are the seven priorities listed out in the Budget:

Inclusive development

The government’s Sabka Saath Sabka Vikas policy has benefitted many sections, including women, SCs, STs, OBCs, and other underprivileged groups.

Reaching the last mile

Building on the huge success of Aspirational District program, we have recently launched the Aspirational Blocks program, covering 500 blocks for saturation of government services.

Infrastructure and investment

The capex outlay is being increased steeply by 33% to Rs 10 lakh crore, which would be 3.3% of the GDP.

Unleashing the potential

A National Data Governance Policy will be brought up enabling access to anonimised data to unleash innovation and research by startups and academia.

 Financial sector

The revamp schemes will take effect from 2023 through an infusion of Rs 9,000 crore in the corpus.

 Green growth

This budget provides for Rs 35,000 crore capital investment towards energy transition and net zero objective and energy security by the Ministry of petroleum and natural gas.

 Youth power

There will be a launch of the PM Kaushal Vikas Yojana 4.0 to skill lakhs of youth. The scheme will cover new age courses.

In conclusion, the Analysis of the Union Budget 2023 provides valuable insights into the government’s economic vision and policy initiatives. The budget showcases a commitment to boosting economic growth, creating job opportunities, and improving the standard of living for citizens. The allocation of resources to various sectors and the measures taken to address pressing issues, such as agriculture, healthcare, and infrastructure, highlight the government’s focus on inclusive development. The budget also indicates a shift towards digitization and technology-driven growth, which is a positive sign for the future. While the budget presents some challenges and uncertainties, it also offers ample opportunities for businesses and individuals to grow and prosper.

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