BUDGET 2023: Making Make in India happen. With a clear focus on capital expenditure, technology, developing skilled and young workforce, and inclusive development, Budget 2023 has set a positive tone for a sustained high-growth trajectory to meet India’s $5 trillion economy goal. It does a fine job of balancing both the strategic and the tactical intent.
With a clear focus on capital expenditure, technology, developing skilled and young workforce, and BUDGET 2023: Making Make in India happen inclusive development, Budget 2023 has set a positive tone for a sustained high-growth trajectory to meet India’s $5 trillion economy goal. It does a fine job of balancing both the strategic and the tactical intent.
We are seeing the ‘Make in India’ vision in a new avatar with the proposed centers of excellence to create a strong AI ecosystem in India.
Three centers will be set up in association with industry partners to develop new-age applications in the fields of agriculture, health, and sustainable cities. This will foster much-needed collaboration between industry and academia to catalyze innovation and growth in technology. BUDGET 2023: Making Make in India happen
The decision to start 100 labs for developing applications using 5G services with a focus on business models and employment potential will not only help diverse sectors but also unlock new user experiences around 5G and drive enterprise use cases of BUDGET 2023: Making Make in India happen.
Similarly, a significant outlay of `35,000 crores for the energy transition to concessions on equipment for Lithium Ion cells was made. The increased impetus on energy transition also focuses on stationary storage of large applications. BUDGET 2023: Making Make in India happen It aims at viability gap funding for large applications in stationary storage which will in turn help boost the electric mobility space.
Here follows a sector-wise detailed reading of the various measures Finance Minister Sitharaman announced in Budget 2023:
Income Tax payers: BUDGET 2023: Making Make in India happen
- No changes in the old tax regime
- New tax regime to become the default tax regime. However, citizens can opt for the old tax regime.
- No tax on income up to Rs 7.5 lakh a year in the new tax regime (with the inclusion of standard deduction)
- Govt proposes to reduce the highest surcharge rate from 37% to 25% in the new tax regime
New Income Tax Slabs Under New Tax Regimes:
Rs 0-3 lakh: NilRs 3-6 lakhs: 5%
Rs 6-9 lakhs: 10%
Rs 9-12 lakhs: 15%
Rs 12-15 lakhs: 20%
Rs Over 15 lakhs: 30%
- An individual with an annual income of Rs 9 lakh will have to pay only Rs 45,000 in taxes: FM Sitharaman.
- Income of Rs 15 lakh will fetch Rs 1.5 lakh tax, down from Rs 1.87 lakh.
- A Rs 50,000 standard deduction to taxpayers has been introduced under the new regime BUDGET 2023: Making Make in India happen.
- Payment received from Agniveer Corpus Fund by Agniveers to be exempted.
- Tax exemption removed in insurance policies with premiums over Rs 5 lakh.
- For online games, govt proposes to provide for TDS and taxability on net winnings at the time of withdrawal or at the end of fiscal.
- Tax exemption on leave encashment on the retirement of non-government salaried employees hiked to Rs 25 lakh from Rs 3 lakh.
- A higher limit of Rs 3 crore for TDS on cash withdrawal is to be provided to cooperative societies.BUDGET 2023: Making Make in India happen.
- Next-generation Common IT Return Form to be rolled out for taxpayer convenience.
- Grievance redressal mechanism to be strengthened.
- TDS rate to be reduced from 30 percent to 20 percent on the taxable portion of EPF withdrawal in non-PAN cases.
What gets cheaper and what gets costlier:
Cheaper BUDGET 2023: Making Make in India happen
- Mobile phones
- TV
- Lab-grown diamonds
- Shrimp feed
- Machinery for lithium-ion batteries
- Raw materials for the EV industry
Costlier:
- Cigarettes
- Silver
- Compounded rubber
- Imitation Jewellery
- Articles made from gold bars
- Imported bicycles and toys
- Imported kitchen electric chimney
- Imported luxury cars and EVs
Indirect Taxes:
- 16% tax hike on certain cigarettes
- New cooperatives that commence manufacturing in March 2024 to get a lower tax rate of 15% BUDGET 2023: Making Make in India happen.
- Basic customs duty on crude, glycerine was reduced to 2.5%.
- Import duty on silver bars hiked to align it with gold, platinum
- Extend customs duty cut on imports of parts of mobile phones by 1 year
- To promote TV manufacturing, customs duty on open cells of TV panels was reduced to 2.5%
- The relief provided on Customs Duty on import of certain parts & inputs like a camera lens
- Concessional duty on lithium-ion cells for batteries extended for another year
- The number of basic custom duty rates on goods other than textiles and agriculture was reduced from 21 to 13. As a result, there are minor changes in taxes on some items toys, bicycles, and automobiles.
Saving schemes announcements
- Maximum deposit limit for Senior Citizen Savings Scheme to be enhanced to Rs 30 lakh from Rs 15 lakh
- The Monthly Income Scheme limit doubled to Rs 9 lakh and Rs 15 lakh for joint accounts BUDGET 2023: Making Make in India happen.
- One-time new saving scheme Mahila Samman Saving Certificate for women to be made available for 2 years up to March 2025.
- It will offer a deposit facility of up to Rs 2 lakh in the name of women or girls for the tenure of 2 years at a fixed interest rate of 7.5 percent with a partial withdrawal option. BUDGET 2023: Making Make in India happen
Railways get a massive boost:
- An outlay of Rs 2.4 lakh crore was provided for railways in FY24.
- It’s the highest-ever allocation for Railways and is nearly nine times over FY14 allocations.
- The allocation for track renewal has been increased from Rs 15,388.05 crore in RE 2022-23 to Rs 17,296.84 crore this year.
- The Railways is likely to roll out 75 Vande Bharat trains by August 2023.
Capex hiked 33%
- Rs 10 lakh crore capital investment, a steep hike of 33 percent for the third year in a row, to enhance growth potential and job creation, crowd-in private investments, and provide a cushion against global headwinds.
- Effective capital expenditure of center to be – Rs 13.7 lakh crore
- Capital investment outlay to be 3.3% of GDP in FY24
- Effective capital expenditure of Centre at Rs 13.7 lakh in FY24
- New Infrastructure Finance Secretariat was established to enhance opportunities for private investment in infrastructure.
Read also- World news
Defence Budget hiked by 13%:
- The defense budget increased to Rs 5.94 lakh crore from last year’s Rs 5.25 lakh crore.
- Rs 1.62 lakh crore was set aside for capital expenditure including purchases of new weapons, aircraft, warships, and other military hardware.
- For 2022-23, the budgetary allocation for capital outlay was Rs 1.52 lakh crore.
- The capital budget of the Border Roads Organisation increased to Rs 5,000 crore. Capital outlay for the Indian Air Force was the highest at Rs 57,137.09 crore
- An amount of Rs 52,804 crore was set aside as the capital outlay for the Indian Navy. BUDGET 2023: Making Make in India happen
- Capital outlay for the Army has been pegged at Rs 37,241 crore.
- Allocation to Defence Research Development Organisation (DRDO) has been put at Rs 23,264 crore.
