Union Budget 2023-24
What is Union Budget 2023-24?
Budget is the Annual Financial Statement or the Statement of the Estimated Receipts and Expenditure of the Government of India in respect of each financial year is popularly known as the Budget.
Significance of Union Budget 2023-24: Union Budget is one of the most essential part of UPSC CSE preparation and it covers a huge portion of UPSC Prelims examination as well as UPSC Mains examination.
Under UPSC Mains Syllabus, it shall cover GS Paper3: Growth & Development, Planning, Government Budgeting, Inclusive Growth, Government Policies & Interventions.
What is Budgetary Process in India? | Union Budget 2023-24
Union Budget 2023-24 Context
Union Budget 2023-24 In News
- Union Finance Minister Smt. Nirmala Sitharaman on February 01, 2023, presented the Union Budget 2023-24.
- The FM said that The Union Budget 2023-24 hopes to build on the foundation of the previous budget and blueprint for India at 100.
What Is Special About Union Budget 2023-24?
- This is the last Budget of Modi 2.0 before Next General Elections 2024.
- This is also the first budget of the “Amrit Kaal”.
- Union Budget 2023-24 hopes to build on the foundation of the previous budget and blueprint for India at 100.
Key Highlights Of Union Economic Survey 2022-23
What Kind of Budgetary Process does Lok Sabha Follows?
- The Union Budget is presented to Lok Sabha on such day as the President may direct.
- Immediately after the presentation of the Budget, the following three statements under the Fiscal Responsibility and Budget Management Act, 2003 are also laid on the Table of Lok Sabha:—
(i) The Medium Term Fiscal Policy Statement;
(ii) The Fiscal Policy Strategy Statement; and
(iii) The Macro Economic Framework Statement. - In 2019, however, only two statements, namely: (a) Medium Term Fiscal Policy cum Fiscal Policy Strategy Statement and (b) Macro-Economic Framework Statement were laid.
- Simultaneously, a copy of the Budget is laid on the Table of Rajya Sabha.
(Important Note: In an election year, the Budget may be presented twice—first to secure a Vote on Account for a few months and later in full.)
Key Provisions of Union Budget 2023-24
Here are the key provisions of Union Budget 2023-24:
Personal income tax slabs revised
- Among the key Provisions of the Union Budget 2023-24 were major changes introduced to the personal income tax structure in the country.
- The tax rebate limit increased to Rs 7 lakh from Rs 5 lakh in the new tax regime.
- FM further announced that the new Income Tax regime would become the default tax regime in India.
PM Garib Kalyan Ann Yojana
- In line with its commitment to ensuring food security, the Centre has implemented PM Garib Kalyan Ann Yojana from January 1, 2023, a scheme to supply free food grain to all Antyodaya and priority households for one year.
Seven Priorities of the Union Budget 2023-24
- FM Sitharaman also listed seven priorities of the Budget.
- Finance Minister Nirmala Sitharaman named Seven Priorities of the Union Budget 2023-24 as the seven ‘Saptarishis’ of the Amrit Kaal budget.
- These are inclusive development, reaching the last mile, infra and investment, unleashing the potential, green growth, youth power, and the financial sector.
Three Focal Points of the Union Budget 2023-24
- There are three focal points that the Centre is focusing in the Union Budget 2023-24, as India moves towards India@100.
- Three Focal Points of the Union Budget 2023-24 are: facilitating ample opportunities for citizens, providing a strong impetus to growth and job creation, and strengthening macroeconomic stability.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0
PMKVY 4.0 will be launched by the government for upskilling youths for job opportunities.
Centre of Excellence for Artificial Intelligence (AI)
The FM, in Union Budget 2023-24, announced that the government will establish a Centre of Excellence for Artificial Intelligence (AI) to conduct research and development on AI based practices in education, agriculture, and pharma sectors.
Skill India International Centres
30 Skill India International Centres in different states will be established along with Unified Skill India Digital Platform for job opportunities of youth globally.
Agriculture Accelerator Fund
- The Centre will set up an agriculture accelerator fund to encourage agri startups in rural areas.
Digital Public Infrastructure for agriculture
- Also, digital public infrastructure for agriculture will be built as open source, open standard and the interoperable public good.
PM-PRANAM
PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth will be launched to incentivize States and Union Territories to promote alternative fertilizers and balanced use of chemical fertilizers.
Aatmanirbhar Clean Plan programme
- The Centre will launch a Rs 2,200 crore Aatmanirbhar Clean Plan programme.
Capital outlay of Rs 2.40 trillion for railways fixed for 2023-24.
Off-Budget Borrowings Explained
Five major announcements Regarding Personal Income Tax In Budget 2023-24?
1. Rebate on personal income tax
- Those with income up to ₹5 lakh do not pay any income tax under both old and new tax regimes. FM proposed to raise this rebate limit to ₹7 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to ₹7 lakh will not have to pay any tax.
2. Tax Slabs Reduced
- The number of tax slabs reduced to five and the tax exemption limit increased to ₹3 lakh.
3. Salaried class and the Pensioners
- The third proposal was for the salaried class and the pensioners including family pensioners. FM proposed extending the standard deduction benefit to the new tax regime. Each salaried person with an income of ₹15.5 lakh or more will thus stand to benefit by ₹52,500.
4. Highest tax rate
- Highest tax rate which currently stands at 42.74 per cent. FM proposed to reduce the highest surcharge rate from 37% to 25% in the new tax regime. the proposed change would result in reduction of the maximum tax rate to 39 per cent.
5. Limit for tax exemption on leave encashment on the retirement of non-government salaried employees also increased. The limit of Rs 3 lakh for tax exemption for such employees was last fixed in 2002 when the highest basic pay in the government was Rs 30,000 per month. In line with the increase in government salaries, the FM increased this limit to Rs 25 lakh.
Union Budget 2023-24 on Agriculture and Farmers Welfare
Provisions For Environment And Ecology In Union Budget 2023-24
The Union Budget 2023-24 has specifically focused on Environment And Ecology by declaring below mentioned schemes:
MISHTI
What Is MISHTI?
- MISHTI(Mangrove Initiative for Shoreline Habitats & Tangible Incomes) is a new programme that is declared in Union Budget 2023-23.
- MISHTI will facilitate mangrove plantation along India’s coastline and on salt pan lands.
Importance of MISHTI Initiative
- Mangroves are not just some of the most bio-diverse locations in India, they also protect the coastlines from the vagaries of inclement weather.
- As climate change increases the incidence of extreme weather events across the world, mangrove plantations have shown to make coastal lands resilient, preventing flooding, land erosion and acting as a buffer for cyclones.
- Furthermore, they are also excellent carbon sinks.
- Mangrove trees can grow in saline waters, and can sequester up to four times more carbon than tropical rainforests.
- So, the MISHTI program which will be operated through convergence between MGNREGS, Campa Fund and other sources, will be a game changer for protecting Mangroves.
PM PRANAM
What Is PM PRANAM Scheme?
- The Full Form of PM PRANAM is ”Prime Minister Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth”
- This programme will seek to incentivise states and union territories promoting alternative fertilisers and the balanced use of chemical fertilisers.
Amrit Dharohar
What Is Amrit Dharohar?
- Amrit Dharohar is a Central Government Scheme to protect wetlands, declared in Union Budget 2023-24.
- Amrit Dharohar will be implemented over the next three years to encourage optimal use of wetlands, and enhance bio-diversity, carbon stock, eco-tourism opportunities and income generation for local communities.
- Amrit Dharohar will emphasise on the importance of wetlands and their preservation, with an outlook that is inclusive of local communities as caretakers of the ecosystem.
What Are Ramsar Sites?
- Ramsar sites are wetlands of international importance that have been designated under the criteria of the Ramsar Convention on Wetlands (1971) for containing representative, rare or unique wetland types or for their importance in conserving biological diversity.
- These sites sustain a diverse variety of flora and fauna, from endangered aquatic life to migratory birds.
- The total number of Ramsar sites in our country has increased to 75. Whereas, before 2014, there were only 26.
- India’s 75 Ramsar sites are spread across the country, covering 1326678 hectares.
- As many as 49 new sites have been added to the list since 2019, with 19 being added in 2022.
Bio-Input Resource Centres
What Is Bio-Input Resource Centres Scheme?
- The Union Budget 2023-24 declared that Bio-Input Resource Centres will be developed across the country.
- To further facilitate the adoption of “natural farming,” 10,000 Bio-Input Resource Centres will be set-up, creating a national-level distributed micro-fertiliser and pesticide manufacturing network.
- This will impact over 1 crore farmers over the next three years.
Why Bio-Input Resource Centre matters?
- Chemical fertilisers revolutionised agriculture when they were introduced, more than half a century ago.
- However, they also pose multiple risks that are increasingly being understood by scientists.
- They are known to be a major source of water pollution – impacting both groundwater and rivers, ponds and lakes.
- Eutrophication caused by excessive use of chemical fertilisers is a death knell for fishes and other aquatic life, often covering lakes and ponds with a thick layer of algae and reducing the oxygen content in the water.
- Over a long period of time, they can also harm the soil, causing acidification, and hence have an impact on the land’s productivity.
- Lastly, studies have found a link between the excessive use of chemical fertilisers and incidence of cancer among farmers.
- The challenge for today’s scientists and policy makers is to slowly wean the agricultural economy of chemical fertilisers while maintaining the high yields that they provide.
Key Highlights Of Union Economic Survey 2022-23
