The Union Budget for the financial year 2023-24 has been laid out by Finance Minister Nirmala Sitharaman recently. The Union Budget is one of the most anticipated annual events, where India has consistently embarked on numerous reforms bringing about structural changes. The Budget proposes major reforms albeit the better plans have been continued and extended further, the Budget lays stress on major services pertaining to women, the middle class, the tribals, the rich and much more. The importance of Budget in the lives of people has been explained, the key highlights of this year’s budget have been elucidated and further the changes that were sought but not included this year has also been provided for a better understanding.
What is a Budget?
Budgets are of various kinds, the concept could be applied to a person, an institution, a State or a nation. The crux of a Budget is planning, a financial outlay, a clear and precise framework that helps along the way in dealings within the stipulated time period. In more formal terms a government budget is a document prepared by the government and/or other political entity presenting its anticipated tax revenues and proposed spending/expenditure.
Importance for People
The economic lives of the common man, or any other person for that reason be it rich or poor is construely tied with the economic life of the country, the theme and the base of which is the Budget. In a way the financial spending, saving or the funding allocation whatever it may be is directed and constrained by the Budgetary content. For example if someone has to buy a house, he must seek a home loan, or has to send his child to a good institution he must seek an education loan. All of the requisite interest rates or any of the government funding present in those plans if they are would help in making better decisions. The other areas of life for example the spending on renewables, focus on green growth and other sustainable business initiatives and the government’s intent on these things too directly affect people’s lives. The role of the Budget in formulating concrete policies pertaining to the aforementioned topics cannot be downgraded. Major life decisions relating to life, career amid other things are determined by the Budget wholly.
Major highlights of the Budget
This year’s Budget has taken several steps towards boosting the economy and strengthening India’s position as a global economic power. Credit guarantee scheme has been revamped. Essential services and amenities will be made more affordable and accessible. This year’s basic theme is a determined push for growth and a tax relief centric Budget. Taxpayer’s will get a ₹35,000 crore relief through lower rates under a significant recast of the new income tax regime with income up to ₹7 lakh facing no tax, up from ₹5 lakh. A move the PM said will buoy the country’s middle class. Equally the surcharge on high income taxpayers has been lowered to bring down the tax rate to 39% from 42.7%.
The number of tax slabs have been reduced. The surcharge for incomes above ₹5 crore has been reduced too. Previously the rate was 37% a year now it stands at 25%, thus aiming to boost consumption and thus
raise demand.
For Senior Citizens
The deposit limit for the Senior Citizens Saving Scheme (SCSS) and the Post Office Monthly Income Scheme (POMIS) has been doubled. Deposit Limit has been raised from ₹15 lakh to ₹30 lakh. So earlier if one deposits a maximum of ₹15 lakh in 5 years he could earn an interest of ₹6 lakh at 8% interest rate. This will now rise to ₹12 lakh.
For Women- The proposal of Mahila Samman Savings Certificate (MSSC) will certainly have an impact on women’s empowerment and provide a financial duress for those in need. It is a new one time scheme for women or girls and has been launched for 2 years till March 2025. Furthermore it will invite a deposit of up to ₹2 lakh at a fixed interest rate of 7.5% which will then accrue an amount of ₹30,000. Financial empowerment for women is especially relevant to the women who are working or regulating forms of small businesses or home services. Entrepreneurial women could certainly benefit from this. The women led startups in villages or Tier 2 or 3 cities could find expression in businesses such as handicrafts, ornaments and jewelleries etc. The dignity of women and girls too would be impacted positively for a degree of economic independence would certainly come with it.
Focus on Local Goods
The Budget boosts the ‘One District, One Product’ initiative by encouraging states to establish a ‘Unity Mall’ in their capitals to showcase their products. Locally made goods will empower the disadvantaged communities by providing employment and at the same time bringing the place to a place of national recognition. The diversity of goods too could be enjoyed by the people and equally, acha niche business community could be created.
Importance of Startups
The Budget outlines the importance of startups. Efforts towards financial support and training for traditional artisans and craftspeople will help women and other disadvantaged sections. The Finance Minister’s call to entrepreneurs to “Make AI in India” and ” Make AI work for India”. Artificial intelligence all around the globe is finding a prominence and recently with the launch of Chatgpt the stirrings in this field is rocking every other sector and a niche development in this area could be sought in India. Various other connected developments too could be coming for the incentivised plans have been put in the domain of the entrepreneurs with the easing up of restrictions taking place simultaneously. Research and development and the allocation for it has been increased considerably, this move could greatly benefit the technology sector and other fields of Educational development. Moreover as the R&D sector and innovations are positively correlated business prospects in the coming years could be greatly enhanced.
A Step towards Green Development
A ₹35,000 crore allocation for priority investments towards net zero objectives reflects the Government’s seriousness in leading the fight against climate change. Duty exemptions to import capital goods and machinery for manufacture of Lithium ion cells for batteries will certainly make Electric Vehicles more affordable and encourage their faster adoption. This government led spending will certainly boost the morale of India in this fight and will provide a leverage for India on the world state. Green growth and sustainable entrepreneurs are the future of this world if it has to tread in a fine manner in future.
Conclusion – Budgetary analysis in a clear and precise manner have been laid out in various newspapers of India, they have fairly and wholly covered this. Of course it has come with its array of set backs especially for insurance owners. The financial outlay are proposals and not definitive, it has its own set of speculations and assumptions. Social welfare policies have been stressed but not in the way people would have wanted. Expenditure on NREGA has been lessened and other forms of rural employment systems have not been looked upon properly. Surely, major transformation in the economic field as well as on people’s lives could potentially happen but only if the plan that has been laid forward is assiduously adhered to.