Budget 2023 Live Updates: FM Nirmala Sitharaman Announces Budget Proposals
- Business Finance
Radhika Dayal- 0
- 10 minutes read
Before the 2024 Lok Sabha elections, the last full budget of the Modi government put more money in the hands of middle-class families. Meanwhile, it remained fiscally prudent. In this detailed analysis, FM Sitharaman covers everything from the new ‘default tax regime’ to the infra boost announced in the Union Budget 2023 Live Updates.
This is the fifth budget that Nirmala Sitharaman held where she talked about alterations in the tax slabs, and capex to the affordable housing boost. The budget has something for everyone.
Budget 2023 Live Updates: Support For Economic Recovery
After a three-year gap, the economy is now recovering from external shocks. During this time, the economy needed both fiscal and monetary support due to weak demand. As private demand gathers pace and the economy enters recovery, it will be prudent to reduce fiscal support. Our hopes are high for a revival of construction and homebuilding activity, keeping with the capex spirit. A large pool of unskilled labour will be able to find employment through this initiative.
Budget 2023 drives growth with higher capex at 3.3% of GDP, but Nomura warns that a higher-than-expected revenue expenditure and slower tax collection will lead to fiscal deficit slippages. The optimistic growth projections in Nomura’s report on the Union Budget indicate that it will be difficult to achieve the fiscal deficit target of 5.9% in FY24.
To receive other updates on the Union Budget 2023, keep a close watch at
The report mentioned,
"But fiscal targets could be harder to achieve: In our view, a combination of optimistic nominal GDP growth, higher tax buoyancies, and low revex will challenge the fiscal deficit target of 5.9% of GDP, even as a potential shortfall in capex could yield some fiscal savings."
As she announced the Union Budget for 2023-24, Nirmala Sitharaman allocated a massive ₹10 lakh crore to capital expenditures.
New Health Priorities To Be Set
In the Union Budget, the Union government has expressed confidence that India has moved out of COVID’s shadow and is now poised to become a global leader in drug development, digital health, and health workforce development. With India’s G-20 presidency this year, this aligns well.
Inflation-adjusted health allocations have only increased by a small amount, falling short of the previous year’s allocation. As compared to the previous year’s allocation of ₹83,000 crores, 2023-24 will have an allocation of ₹86,175 crore. Although primary healthcare needs to be improved in both rural and urban areas, the National Health Mission (NHM) has only experienced an increase of 0.78%.
It is appropriate to increase funding for the Pradhan Mantri Jan Arogya Yojana by 12.3% and the Digital Health Mission by 70.6%. In the new budget, the Health Infrastructure Mission will receive ₹4845 crores less funding than last year. Due to last year’s allocation not being fully utilized, the scheme may still be gearing up.
Budget 2023 Live Updates: Sectoral & Thematic Funds Are Essential
If one understands India’s current economic context and the government’s tightrope walk, it would be easy to conclude that India’s Budget is the best because it delivered so many without breaking a sweat. The following are the expected changes:
- General Infrastructure: Basic materials, utilities, power generation and transmission.
- Green Energy: Petrochemical companies with the ability to develop alternate fuels, alternative energy production and transmission and power generation companies.
- Railways: Wagon manufacturing, rail engineering and railway financing.
- Rural Development: Rural consumption, microfinance and credit, agriculture-related goods and services.
With airports, new rail lines, and broad roads connecting various parts of the country, the government has clearly demonstrated its focus on the travel and tourism industry.
As a result of the Union Budget 2023 Live Updates, mutual fund investors can maintain their target assets and core allocations according to their plans. Additionally, an investor in mutual funds might also diversify their portfolio into a tactical component ranging between 15% and 30% of their overall portfolio and bear a higher allocation for even more aggressive and/or long-term investors.
A mutual fund investor might consider investing in highly promising sectoral funds, such as those specializing in infrastructure or banking and financial services. Thematic funds that focus on themes such as transportation, logistics, manufacturing, and broader consumption may be of interest to investors with a slightly broader mandate.
Mahila Samman Saving Certificate Announced In Budget 2023 Live Updates
Finance Minister Nirmala Sitharaman announced a new small savings scheme for women in the Union Budget 2023-24. A Mahila Samman Saving Certificate will be introduced (MSSC).
In this scheme, the deposits can be made in the name of a woman or a girl child. You can deposit up to Rs 2 lakh for a period of two years at a fixed rate of 7.5%. There are no tax benefits, but partial withdrawal is allowed in this scheme. This is a one-time scheme announced in Budget 2023 and will remain available for a two-year period i.e. up to March 2025.
Deepak Amin, Founder and Managing Director, Light mentioned,
“Mahila Samman Savings Certificate with a higher rate of interest will encourage more women to adopt formal financial saving instruments.”
Other Announcements
- Non-Resident Indians (NRIs) weren’t upset by the Finance Minister’s budget speech. A few tweaks have impacted how NRIs invest in or earn from Indian assets, however.
- FM Sitharaman has reduced the number of tax slabs and the peak surcharge rate in the new tax regime. Tax brackets in the high tax brackets will now benefit from the ‘default tax regime’.
- Despite FM Nirmala Sitharaman’s hard-selling, taxpayers are not given a straightforward choice. A break-even point can be calculated with an income of ₹15 lakhs and a deduction of ₹3.75 lakhs.
- India will become the 3rd largest global economy by the turn of this decade with the help of the finance minister’s pragmatic pro-growth budget for 2023-24.
That is all for the update. What do you feel about the result of Union Budget 2023 live updates? Let us know in the comments section. If you like what we shared with you, feel free to pass it on to others who might like it as well. For more business news today and updates on financial affairs, visit the Finance section under the Business category on the News Magnify homepage. You can also follow us on Facebook, Instagram, or Twitter. Additionally, stay connected with India news online via our Telegram Channel.
