Top 10 Highlights of the Indian Union Budget 2023-24 and Takeaways

Posted On Thursday, Feb 02, 2023


Union Finance Minister Nirmala Sitharaman has presented the Union Budget 2023 heralded as the first budget in Amrit Kaal. Amrit Kaal - signifies an auspicious time during which new work can be started. It was first used in 2021 during India's 75th anniversary when PM Modi laid down the roadmap for the 25-year-long leadup to India@100. The Union Budget 2023-24 has been heralded as a pro-people and pro-market Budget. The Union Budget outlined the government's plans and policies for the upcoming financial year. It endeavoured to build on the foundation laid in the previous Budget.

The Union Budget 2023-24 emphasized a boost for technology, green growth, infrastructure, and macro-economic stability & facilitating ample tax opportunities for citizens, especially youth with a strong impetus to job creation.

Highlights of the Indian Union Budget 2023-24 include:

1) Revised Direct Tax Regime:

It has introduced much awaited revised tax slab. The Union Budget has introduced a slew of changes in the income tax slabs in the new tax regime. India's salaried class had been waiting for a direct tax regime that is simple and easy to comply.

As per the rebates, an individual need not pay any income tax for compensation up to Rs 7 lakh p.a. in the new tax regime.

2) Surcharge Relief to HNIs:

The surcharge levied as part of income tax for High Net-Worth Individuals with income over Rs.5 crore was previously as high 37%. Now as per the new tax regime, the surcharge is now reduced to 25% which will reduce the effective tax rate to 39% down from 42.74%.

3) Focusing on Infrastructure Development:

There has been a big jump in capex at Rs 10 lakh crore, 33% higher than the budget estimate of Rs 7.5 lakh crore for 2022-23.

The government has allocated Rs. 1.10 lakh crore for infrastructure development, including the development of roads, railways, airports, ports, and highways.

As pointed out by the Finance Minister, Investments in Infrastructure and productive capacity have a large multiplier impact on growth and employment which will help create job opportunities and stimulate the economy.

Additionally, the government has proposed to set up new medical colleges and hospitals to provide better healthcare facilities to the people.

To boost urban infra development, Govt plans to spend Rs 10,000 crore per year. The Government has increased spending to enhance affordable housing through the PM Awas Yojna (estimated spending enhanced by 66% to over 79000 crore)

To further improve regional air connectivity, Government plans to revive 50 additional airports, helipads, water aero drones and advanced landing grounds.

4) Boosting Agriculture and Rural Economy:

The government has given an agri push in this budget announcing various initiatives to support farmers and rural areas.

The Union Budget 2023-24 has allocated Rs. 2.83 lakh crore for agriculture and rural development, with a focus on increasing farmers' income and creating employment opportunities in rural areas. Centre will spend Rs 2 lakh cr on free food grains for all priority households under PM scheme. The Government through the budget has proposed to set up a new agency to provide credit and other support services to farmers, and a new scheme to provide insurance coverage for farmers. These initiatives are expected to improve the livelihood of farmers and increase food production in the country.

5) Empowering Women:

The budget has allocated Rs. 28,600 crores for various women-centric schemes and programs, including the Pradhan Mantri Mahila Shakti Kendra and the Beti Bachao Beti Padhao initiative.

6) Encouraging Entrepreneurship:

The government has proposed various measures to encourage entrepreneurship, including tax incentives for start-ups and increased access to financing. To facilitate ease of doing business, the government has declared PAN as a common identifier for all digital systems of Government agencies.

7) Boosting Healthcare:

The budget has allocated Rs. 64,180 crores for healthcare, with a focus on increasing the availability of affordable healthcare facilities, especially in rural areas. The government has the mission to eliminate sickle cell anaemia by 2047.

8) Promoting Digitalization:

The budget has allocated Rs. 3,000 crores for promoting digitalization, with a focus on increasing access to digital infrastructure and services. The budget aims to promote digital transactions and boost the country's digital infrastructure. The government has proposed to set up a new institution to provide digital infrastructure and services, and to increase the use of digital payments by providing incentives to merchants.

9) Improving Education:

The government has allocated Rs. 93,224 crores for education, with a focus on improving the quality of education and increasing access to education for all. The Government has plans to set up a National Digital Library for children and adolescents for facilitating the availability of quality books across geographies, languages and genres and levels.

10) Green Growth:

The Union Budget focuses on a ‘green growth’ strategy, it prioritizes the adoption of green fuel, energy, and building practices to reduce carbon intensity and create new green job opportunities.

Overall, the Union Budget 2023 presents a comprehensive approach to strengthening the country's economy and promoting growth. The budget's emphasis on agriculture, rural development, women empowerment, entrepreneurship, infrastructure, healthcare, and education is commendable. The budget has received a positive response from economists and industry experts, who believe that the initiatives proposed in the budget will help to revitalize the economy and create job opportunities and have a positive impact on the country's growth and development.

Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.

Mutual fund investments are subject to market risks read all scheme related documents carefully.

Please visit – to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.

Above article is authored by Quantum.

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