BUDGET 2023 KEY HIGHLIGHTS NIRMALA SITHARAMAN

   

Introduction            

The Indian government presents a budget every year to outline the spending plans for the country for the upcoming financial year. The budget serves as a tool to provide a roadmap for the Indian economy, providing direction and impetus to various sectors of the economy. The 2023 budget, which was presented on February 1, 2023, has received widespread attention and criticism from various quarters of the society. The government has been widely criticized for not providing enough funds to various important sectors of the economy and not doing enough to address the challenges faced by the economy. This article will provide a comprehensive analysis of the 2023 budget, highlighting its key features and how it will impact the Indian economy.
Increased allocation for health sector: The budget has increased the allocation for the health sector by 137% to Rs 2.23 lakh crore to tackle the COVID-19 pandemic.


Focus on Infrastructure Development: The government has proposed an allocation of Rs 111 lakh crore for the development of roads, ports, airports, and other infrastructure projects.


Agricultural Reforms: The budget has proposed several measures to support the agricultural sector, including the introduction of a new law to regulate trade in agriculture produce, and a Rs 20,000 crore allocation for the development of rural cold storage facilities.


Boost for MSMEs: The government has allocated Rs 15,700 crore for the Micro, Small and Medium Enterprises (MSMEs) sector, with a focus on creating a vibrant ecosystem for entrepreneurship and innovation.


Education Sector Reforms: The budget has proposed a number of initiatives to enhance the quality of education, including the creation of a National Recruitment Agency to streamline the recruitment process for government jobs, and the introduction of new online courses for students.


Digital Transformation: The government has proposed a number of measures to enhance the digital infrastructure of the country, including the creation of a new technology-driven platform to provide information on various government schemes and services.


Increased allocation for Defence: The government has proposed a significant increase in the allocation for defence, with a focus on modernizing the armed forces and enhancing the country's defence capabilities.


Emphasis on Clean Energy: The budget has proposed a number of measures to promote clean energy, including the allocation of Rs 18,000 crore for the development of solar energy projects and the introduction of new tax incentives for electric vehicles.


Boost for Start-ups: The government has proposed a number of measures to support the growth of start-ups, including the creation of a new development fund to support innovation and the introduction of a new tax regime for start-ups.


Increased allocation for Rural Development: The government has increased the allocation for rural development by 19% to Rs 1.41 lakh crore, with a focus on creating job opportunities and enhancing the quality of life in rural areas.






Healthcare for All: The budget has proposed a new scheme called PM Aatmanirbhar Swasthya Bharat Yojana, with a allocation of Rs 64,180 crore, aimed at strengthening the healthcare system in the country and providing universal health coverage to all citizens.


Skill Development: The government has proposed a new National Recruitment Agency to streamline the recruitment process for government jobs and also a new scheme called PM Kaushal Vikas Yojana, with a allocation of Rs 3,000 crore, to enhance the skill development opportunities for the youth.


Increased allocation for Women Empowerment: The budget has proposed a number of measures to empower women, including the allocation of Rs 35,000 crore for the Mahila Shakti Kendra Scheme and the introduction of a new program to provide financial support for women entrepreneurs.


Tax Reforms: The government has proposed several tax reforms to boost the economy, including a reduction in the corporate tax rate for new manufacturing companies and a new tax regime for individuals with taxable income up to Rs 15 lakh.


Emphasis on Environmental Sustainability: The budget has proposed a number of measures to promote environmental sustainability, including the allocation of Rs 3,000 crore for the National Clean Energy Fund and the introduction of a new scheme to promote sustainable agriculture practices.


Boost for the Tourism Industry: The government has proposed several measures to boost the tourism industry, including the allocation of Rs 2,500 crore for the Swadesh Darshan Scheme and the introduction of a new program to provide incentives for hotels and restaurants.

Increased allocation for Science and Technology: The budget has proposed a significant increase in the allocation for science and technology, with a focus on enhancing the research and development capabilities of the country and promoting innovation.

Focus on Disaster Management: The government has proposed several measures to enhance the disaster management capabilities of the country, including the allocation of Rs 3,000 crore for the National Disaster Response Fund and the introduction of a new program to promote the use of technology in disaster management.

Increased allocation for Social Welfare Schemes: The budget has proposed a significant increase in the allocation for various social welfare schemes, including the allocation of Rs 53,700 crore for the Pradhan Mantri Awas Yojana and Rs 9,000 crore for the Jan Dhan Yojana.

Boost for Affordable Housing: The government has proposed a number of measures to promote affordable housing, including the allocation of Rs 11,000 crore for the Affordable Rental Housing Complexes Scheme and the introduction of a new tax deduction for individuals taking a loan for affordable housing.

Emphasis on Financial Inclusion: The government has proposed several measures to enhance financial inclusion, including the allocation of Rs 5,500 crore for the Pradhan Mantri Jan Dhan Yojana and the introduction of a new scheme to provide credit to micro, small and medium enterprises.

Increased allocation for Employment of Women: The budget has proposed a significant increase in the allocation for the empowerment of women, including the allocation of Rs 35,000 crore for the Mahila Shakti Kendra Scheme and the introduction of a new program to provide financial support for women entrepreneurs.

Focus on Technology for Rural Development: The government has proposed several measures to promote the use of technology for rural development, including the allocation of Rs 8,000 crore for the Digital Village Scheme and the introduction of a new program to provide digital infrastructure in rural areas.

Increased allocation for Skill Development: The government has proposed a significant increase in the allocation for skill development, with a focus on enhancing the employability of the youth and promoting entrepreneurship.

Boost for Small Businesses: The government has proposed a number of measures to support the growth of small businesses, including the allocation of Rs 15,700 crore for the Micro, Small and Medium Enterprises (MSMEs) sector and the introduction of a new program to provide credit to small businesses.

Emphasis on Infrastructure Development: The government has proposed several measures to boost infrastructure development, including the allocation of Rs 1.10 lakh crore for the National Infrastructure Pipeline and the introduction of a new scheme to provide financing for infrastructure projects.

Increased allocation for Agricultural Development: The government has proposed a significant increase in the allocation for agricultural development, with a focus on enhancing the productivity of the sector and promoting sustainable agriculture practices.

Focus on Digital Transformation: The government has proposed several measures to promote digital transformation, including the allocation of Rs 3,000 crore for the Digital India Scheme and the introduction of a new program to provide digital infrastructure in rural areas.

Boost for Clean Energy: The government has proposed a number of measures to promote the use of clean energy, including the allocation of Rs 3,000 crore for the National Clean Energy Fund and the introduction of a new scheme to promote the use of renewable energy sources.

Emphasis on Education Reforms: The government has proposed several measures to enhance the education sector, including the allocation of Rs 99,300 crore for the education sector and the introduction of a new program to provide financial support for higher education institutions.

Boost for the Automotive Industry: The government has proposed a number of measures to support the growth of the automotive industry, including the allocation of Rs 2,500 crore for the Production-Linked Incentive Scheme and the introduction of a new scheme to provide incentives for the development of electric vehicles.

Increased allocation for Digital India: The government has proposed a significant increase in the allocation for Digital India, with a focus on enhancing the digital infrastructure and promoting the use of technology in various sectors.

Focus on MSMEs: The government has proposed several measures to support the growth of micro, small, and medium enterprises, including the allocation of Rs 15,700 crore for the sector and the introduction of a new program to provide credit to small businesses.

Boost for the Tourism Industry: The government has proposed a number of measures to support the growth of the tourism industry, including the allocation of Rs 2,500 crore for the Swadesh Darshan Scheme and the introduction of a new program to provide incentives for hotels and restaurants.

Increased allocation for Defense: The government has proposed a significant increase in the allocation for defense, with a focus on enhancing the capabilities of the Indian armed forces and promoting the development of indigenous defense technologies.

Focus on Rural Development: The government has proposed several measures to promote rural development, including the allocation of Rs 1.35 lakh crore for the rural sector and the introduction of a new program to provide financial support to rural entrepreneurs.

Boost for the Pharmaceutical Industry: The government has proposed a number of measures to support the growth of the pharmaceutical industry, including the allocation of Rs 3,000 crore for the Production-Linked Incentive Scheme and the introduction of a new scheme to provide incentives for the development of new drugs.

Increased allocation for Road and Highways: The government has proposed a significant increase in the allocation for road and highways, with a focus on enhancing the connectivity in the country and promoting the development of new highways and expressways.

Conclusion

The 2023 budget is a balanced budget that seeks to address the needs of different sectors of the Indian economy. It proposes reforms aimed at boosting investment, improving infrastructure, and addressing the challenges faced by the agricultural, education, health, and defence sectors. Despite its potential to have a positive impact on the economy, the budget faces several challenges, including limited funds, implementation challenges, and resistance from interest groups. To ensure that the budget has a positive impact on the Indian economy, it is important for the government to address these challenges and ensure that the budget is implemented effectively.