India Budget 2023-24: Finance minister Sitharaman lists govt’s seven priorities for new fiscal year

Indian finance minister Nirmala Sitharaman on Wednesday (February 7) presented the Union Budget 2023-24 in the Parliament and listed the government's seven priorities for the budget. Addressing the Lok Sabha, finance minister Sitharaman said that these seven priorities complement each other. "Inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth and financial sector," she said.

Here are the priorities listed by Finance Minister Nirmala Sitharaman:

1) Inclusive development:

For Agricultural and Cooperatives:

> Building digital public infrastructure

> Setting up an agriculture accelerator fund

> Atmanirbhar Bharat Horticulture Clean Plant programme to be launched.

> Targeted funding

> Making India a global hub for millets

> Setting up of widely available storage capacity

For Health:

> As many as 157 new nursing colleges are to be established

> Sickle Cell Anaemia Elimination Mission to be launched

> New programme to promote research in pharmaceuticals to be launched

> Joint public and private medical research to be encouraged via labs of the Indian Council of Medical Research (ICMR)

For Education and Skilling:

> Revamped Teachers' training via District Institutes of Education and Training

> National Digital Library to be set up for children and adolescents

> States will be encouraged to set up physical libraries at panchayat and ward levels

Few other crucial factors under Inclusive development

> Nine crore drinking water connections to rural houses

> Cash transfer of Rs 2.2 lakh crore to over 11.4 crore farmers under the PM-KisanSamman Nidhi scheme

2) Reaching the last mile:

> Pradhan Mantri Particularly Vulnerable Tribal Group (PVTG) Development Mission to be launched

> Financial assistance to be given for sustainable micro irrigation in drought-prone regions of Karnataka

> More teachers to be recruited for 740 Eklavya Model Residential Schools

> Shared Repository of Inscriptions (SHRI) to be set up for digitisation of ancient inscriptions

3) Infrastructure and investment:

> Increased capital expenditureoutlay by 33.4 per cent to Rs 10 lakh crore

> Continuation of 50-year-interest free loans to state governments to incentivise infrastructure investment

> As many as 100 transport infrastructure projects identified for end-to-end connectivity for ports, coal, steel, and fertiliser sectors.

> Creating urban infrastructure in Tier-2 and Tier-3 cities via the establishment of the Urban Infrastructure Development Fund (UIDF)

4) Unleashing the potential

> Make Artificial Intelligence (AI) work for India by setting up centres of excellence

> National Data Governance policy to be introduced

> Less stringent contract execution for Ministry of Micro, Small and Medium Enterprises (MSMEs)

> Easier and standardised settlement scheme

> Third phase of E-Courts to be launched

> Entity Digi Locker to be set up for use by business enterprises and charitable trusts

> Setting up 100 labs for 5G services-based application development

> R&D grant for Lab Grown Diamonds (LGD) sector

5) Green growth

> PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth to be launched.

> Sustainable ecosystem development

> 500 new Waste to Wealth plants

Few other crucial factors under green growth

> Promotion of battery energy storage systems

> Setting up 10,000 bio-inputs resource centres to facilitate farmers to adopt natural farming

> Promotion of coastal shipping for energy-efficient transportation

> Funds to be allocated for replacing old polluting vehicles

6) Youth power

> Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0 to be launched

Will cover new courses such as coding, robotics, AI and 3D printing etc.

> Measures to boost the tourism sector

At least 50 destinations to be selected, through challenge mode, to be developed as a complete package for domestic and foreign tourists

> States to be encouraged to set up Unity Malls

7) Financial sector

> Setting up of National Financial Information registry

> Setting up of Central Data processing centre

> Credit Guarantee scheme for MSMEs

> Mahila Samman Bachat Patra

> Benefits for senior citizens

Fiscal Management

> 50-year interest-free loans to states

> Fiscal deficit of 3.5 per cent of GSDP allowed for states

> Fiscal consolidation

Targeted Fiscal Deficit to be below 4.5% by 2025-26

Tax Proposals

> Simplification in indirect taxes

> Changes to custom duty on import of capital goods for Li-ion battery manufacturing; import of mobile camera lens; denatured ethyl alcohol; key inputs for producing shrimp feed; seeds for manufacturing lab-grown diamonds; continuing concessional basic customs duty on copper scrap; and compounded rubberto bring it at par with natural rubber.

Simplifying personal income tax

> In the new tax regime, the income limit for the rebate of income tax increased from Rs 5 lakh to Rs 7 lakh

> Highest surcharge rate on income above Rs 5 crore will be reduced from 37% to 25% (under the new tax regime).

> Extending benefits of the standard deduction to the new regime for salaried class and pensioners

> Increasing tax exemption limit to Rs 25 lakh on leave encashment on retirement for non-government salaried employees

Simplifying tax benefits for industries:

For MSMEs:

> Enhanced limits for micro-enterprises and professionals to avail benefits of presumptive taxation; 95% receipts to be non-cash

> Deduction on payments made to MSMEs will be allowed only when the payment is actually made

For cooperatives:

> Extending 15% corporate tax benefits to new cooperatives, commencing manufacturing till March 31, 2024.

> Higher limit of Rs 2 lakh per member for deposits and loans in cash by Primary Agricultural Co-operative Societies (PACS) and Primary Co-operative Agriculture and Rural Development Banks (PCARDBs)

> Higher limit of Rs 3 crore for TDS on cash withdrawal for co-operative societies

For startups:

> Extension of date of incorporation by one year for income tax benefits to start-ups

> Benefit of carry forward of losses on change of shareholding of start-ups from seven years of incorporation to ten years.

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