Article 112 listed in the Indian Constitution provides for introducing Annual Financial Statement in the Parliament. The word ‘Budget’ is nowhere mentioned in the constitution. Annual Financial Statement is the official connotation for the word Budget. The budget contains the statement of
revenue earned and expenditure incurred by the government. It contains estimates of the revenue and expenditure across different sectors for the upcoming period. The Union Budget is presented by the Finance Minister in the Parliament on the 1st of February every year. There is also a provision for an interim budget in case the elections are scheduled in that given year. The Union Budget is debated amongst policymakers, businesses, households, and media channels as every provision included has widespread impacts.
The Finance Minister while announcing the Union Budget 2023-24 emphasized that the growth rate of the Indian economy is estimated at 7% and that is promising considering the position of the world economy. Smt. Nirmala Sitharaman underscored that the economy is on the right path and gearing up for a bright future.
The Finance Minister also outlined a total of 7 priorities and named them ‘SAPTARISHI’ that will champion India’s progress through the Amrit Kaal. The seven priorities are as follows
- Inclusive Development
- Reaching the Last mile
- Infrastructure and Investment
- Unleashing the potential
- Green Growth
- Youth Power
- Financial Sector
Mrs. Sitharaman also stressed the achievement of the government of the day since 2014 in particular and also the recent achievements. The minister pointed out that India has jumped from the 10th to the 5th spot in terms of the largest economy in the world since 2014. India holding the G20 presidency also opens up a plethora of opportunities for the country in the global order. India’s policies can yield positive results for developing nations. She also noted that Jan Bhagidari is fundamental to realizing the vision of Amrit Kaal.
The finance minister also jotted down four crucial opportunities for progress during the Amrit Kaal
- Financial empowerment of women- through empowering the Self Help groups at the local level
- PM VIKAS (Vishwakarma Kaushal Samman) yojana- idea is to provide technological, and financial support, skill provision, and efficient green technology among others to the artisans and craftsmen.
- Reading benefits from the tourism sector- India holds considerable significance in domains of both domestic and international tourism.
- Promoting green growth- In tune with the Panchamrit commitments listed out at the CoP 26, India is moving fast when it comes to fulfilling the locations in installing renewable energy capacity and employing renewable energy sources.
The Saptarishi priorities are as under (in detail)-
- Inclusive Development – India promotes growth and development that is wholesome and takes each section of society together as farmers, youngsters, backward classes(SCs, STs, OBCs) and Economically Weaker Sections (EWS). There has been substantial focus on the North Eastern states, J&K and Ladakh. There are efforts to establish Digital public Infrastructure for agribusiness. It will serve as a public good available as an open source. There are also provisions to promote start-ups in agriculture by setting up the Agriculture Accelerator Fund. For quality production of horticulture products, an Atma Nirbhar Horticulture Clean Plant programme. As India has already spearheaded the announcement of 2023 as the International Year of Millets, the minister has affirmed that India is the largest producer and second biggest exporter of millets I.e. Shree Anna. On the Health front, a mission is formed to eradicate Sickle Cell Anaemia by 2047. Emphasis will also be given to raising the Research and Development (R&D) for the ICMR Labs.
For ensuring accessible education to all, the expenditure on education is enhanced to 2.9% of GDP in 2023. Teachers’ training will be improved by setting up District Institutes of Education and Training. The National Digital Library is also proposed by the Finance Minister.
- Reaching the Last Mile- the plan is to ensure that no one is left behind on the path to progress. Aspirational Block Programme is launched to ensure better governance and public service delivery in 500 blocks. PM Particularly Vulnerable Tribal Groups (PM PVTG) Development Mission will be undertaken. Housing, water, and sanitation are some of the basic services that will be desired in the said areas. 38,800 teachers and support teams for 740 Eklavya Model Schools will be affected in the following three years. The expenditure for PM Awas Scheme is being increased by 66%. Bharat Shared Repository of Inscriptions will also be inaugurated.
- Infrastructure and Investment- Capital Investment will be increased by 33.4% to Rs. 10,00,000 crore. The highest ever capital expenditure of Rs. 2.40 lakh crores is shelved for Railways.
Around 100 infrastructure projects for critical transport for the last mile connectivity for the food grains, ports, steel, etc. Rs. 75 thousand crores are issued for this purpose. Regional air connectivity will be improved with the addition of 50 more airports, and water aerodromes among others.
Smt. Nirmala Sithraman also announced the creation of the Urban Infrastructure Development Fund (UIDF) and it will be fined for the shortfall arising from the Priority Sector Lending (PSL) norms. The National Housing Bank will operate the said fund. The idea is to produce urban infrastructure in Tier 2 and Tier 3 cities.
- Unleashing the Potential- by ensuring transparency and accountability in administration. Approximately 39 thousand compliance needs have been reduced to effect better Ease of Doing Business. 3 Centre for Excellence will be set up about Artificial Intelligence to
further the aim of Making AI in India and work for India. Mrs. Sitharaman has also stressed to release National Data Governance Policy that will make access to anonymous data possible. 100 labs for unloading the potential of 5 G-supported applications will ne developed.
- Green Growth- The Finance Minister mentioned the announcement of the ‘LiFE’ (Lifestyle for Environment) campaign under the guidance of the Honorable Prime Minister. India has also announced the plan to be carbon neutral by 2070. Green Credit Programme is slated to launch for incentivizing sustainable actions. Pradhan Mantri Programme of Restoration, Awareness, Nourishment, and Amelioration of Mother Earth (PM PRANAM) scheme has been launched to give space to alternative fertilizers in place of chemical ones. The Minister also stressed the target of achieving annual production of 5 MMT Hydrogen based energy by 2030 under the ambit of the National Green Hydrogen Mission.
500 fresh ‘waste to wealth’ factories will be founded under Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan scheme).
- Youth Power- India has the youngest population in the world and it plays a crucial role in reaping the benefits accrued by the demographic dividend. The formulation of the New Education Policy, job opportunities, skilling courses, and digital libraries are some of the ideas to enhance the prospects of the younger population.
The idea is to empower Amrit Peedhi by incorporating several steps such as – the National Apprenticeship Promotion scheme and furnishing stipend to around 47 lakh youth in three years. There is also a consistent effort to promote the sale of One District One Product (ODOP) items, Geographically Indication (GI tags), and handicraft products. To effect the same, Unity Mall will be encouraged to be set up by the State government.
- Financial Power –Micro, Small, and Medium enterprises (MSME) are the key to development, and hence, Rs. 2000 crore has been decided to infuse into its corpus. A Central Data Processing center will be set up under the ambit of the Companies Act to ensure quick handling of administrative work. A National Financial Information Registry will be established to encourage financial inclusion, stability, and credit flow. GIFT cities will be promoted to carry out further businesses. The maximum deposit limit for the Saving scheme of Senior citizens will be increased to Rs. 30 lakhs.
There is also a provision to provide 50-year interest-free loans to states. The fiscal Deficit for the period 2022-23 is at 6.4% and is on the path to be less than the targetted 4.5% by 2025-26.
In budget estimates, total receipts stand at Rs. 27.2 lakh crore and total expenditure at Rs. 45 Lakh crore.
On the front of Income-tax, the new regime is made the default choice. However, citizens can switch to the older regime at convenience. Income tax will not be applicable for persons with income up to Rs. 7 lacks. In the new tax regime, standard education of fifty thousand rupees is available for salaried persons and 15000 rupees for pension availed. For income above Rs. 2 crores, the highest surcharge is at 25% in the new tax regime.
Several other decisions were also taken, exempting excuse duty on GST incurred on Compressed biogas, and increasing customs duty in a chimney in the kitchen among others.
As per estimates, revenue to the tune of Rs. 38000 crore will be forgone due to the implementation of these new proposals.
In its entirety, the objective of the Finance Minister is to carve out a budget that meets the demands of all the sections of society and a special focus is accorded to the marginalized sections to realize the vision of Amrit Kaal.
