Union Budget 2023: A Step Forward to 5 Trillion Economy

The Union Budget is meant for maintaining an account of the Union Government’s finances for the fiscal year from 1^st April to 31^st march. Union Budget is divided into two parts “Revenue” and “Capital” budgets. Article 112 of the Constitution of India makes the introduction of the Union Budget mandatory in Parliament every year.

Revenue budget 

The revenue budget focuses on different aspects of revenue receipts and expenditures of the Union Government. Revenue expenditure is diverse expenditures incurred by the Government in the day-to-day functioning of the Government. Revenue receipts are again classified into two heads, viz. tax revenue and non-tax revenue.

Capital budget 

The capital budget has two parts, viz. capital receipts and capital payments of the Union Government. Capital receipts include loans taken from the public through different financial instruments, foreign and domestic banks, and RBI. Foreign Governments and institutes. Capital expenditure is the expenditure incurred by the Government is strengthening the basic infrastructure of the economy.

What is the importance of the Union Budget?

The objective of the Union Budget is to systematize the economy, provide a balance, and give it direction. Meanwhile, it also aims to bring social justice and equality, create employment, and provide an institutional system for the efficient allocation of resources.

The following are the major purposes of the Union Budget:

• Develop strong infrastructure for the homogeneous growth of the economy.
• Reduce the disparities in the wealth and income of different strata of society.
• Reduce unemployment in the country through different measures that can create job opportunities.
• The aim in monitoring the economic fluctuations and take proven measures to bring economic stability.
• Structure and restructure the taxation system of the country that includes both direct and indirect tax.

In every aspect of the Indian economy, Union Budget is crucial. Its impact is intensive in the social and corporate structure of the country.

Key aspects of Union Budget 2023

The Union Budget 2023-24 was introduced in the parliament on 1^st February 2023. This year the budget has kept the focus on the rural and urban sector social schemes, infrastructure development, support for startups and entrepreneurial activities, and middle-class people.

• Economic growth for 2023-24 is estimated at 7%.
• The proposed capital expenditure for 2023-24 is estimated at Rs.10 Lakh crore which is 33% more than the previous fiscal year.
• The proposed expenditure in PM housing is Rs.79000 crores, which is 66% higher.
• A 1000 crore corpus has been announced for start-ups. Out of this 283 Crores will be distributed as seed funds.
• General import custom duty has been lowered to 13% from 21%, as a strategy to boost the manufacturing sector.

There is some good news for the IT Ministry, Road Transport and Highway Ministry, and Agricultural Ministry –

• To boost the IT sector and ITES, the budget has proposed an allocation of Rs.16549.04 crore
• The proposed allocation for the road transport and highways ministry (MoRTH) has been increased by 36% to around Rs 2.7 lakh crore.
• The Union Budget has announced an 11% hike in agriculture credit target to Rs 20 lakh crore for the next fiscal year.

There is good news for middle class and service holders too –

• No tax is to be paid for an income up to 3 Lakhs pa.
• The minimum threshold of Rs10, 000 of TDS is proposed to be removed.
• A new income tax regime is announced that will be regime by default but taxpayers can choose the old system as well.

Several products such as aircraft, semi-finished or unwrought gold, base metal or silver, New or retreaded pneumatic tyres, some types of TVs, and camera parts are made cheaper while imported products like electric vehicles, Vinyl Chloride Monomer, Compounded Rubber, precious metals articles, imitation Jewellery, bicycles, and toys are made expensive in this Union Budget 2023.

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