2023-02-11
Key Highlight of Budget 2023-24
Union Budget 2023
The Union Budget, also known as the Annual Financial Statement, according to Article 112 of the Constitution of India, is an estimate
of income and expenditure for a definite duration. Since, the
Union Budget of India always takes place on 1st February, it also provides
budgetary valuation for the next fiscal year. In economics, a budget is a
systematic list of revenue and expenditure, or we can say it's a plan for income
and expenditure. Each budget is made for a
specified duration.
The Union Budget is a crucial annual exercise of the Government. It helps the Government carry out its constitutional duties and allocate resources in the best interest of the country.
Why the government
works out a budget every year?
The
Government performs two important functions by making a budget every year-
The
Government of India estimates the expenditures for growth, improvement and
development in different sectors. E.g.: - Different sectors of Industries,
Health, Education. As to meet the needs and expenditure of country the
government tries to make income imposing new taxes or making fluctuation in
the rates of previous taxes or removing or imposing subsidy on any commodity.
The
Union Budget 2023-2024 is a forward-looking and well-designed plan that will
provide numerous benefits to the Indian economy, including personal finance. It will be beneficial for common man, they are:
1)
This
government has clearly focus on enhancing and improving the capacity of the economy
and developing the market.
2)
The
increased tax savings will boost personal consumption, which is a key factor of
economic growth
3)
The
simplified financial processes will make it easier for individuals to manage
their finances, which will encourage savings and investment.
4)
The
Government has also introduced more saving schemes for Women and Senior Citizen
which will improve financial inclusion and opportunities for their savings and
to secure the financial future.
5)
The
government has also reduced taxes on high income for individual which will
improve more opportunities for business environments, jobs and also improving
entrepreneurship.
6)
The
Government has increased the rebate limit to INR 7 and exemption limit under the slab to INR 3 which will boost the taxpayer.
7)
Also
reduce TDS from 30% to 20% on withdrawal of EPF and to improve financial
process for individual the convention of gold would not be treated as
electronic gold receipt as capital gain.
8)
A
step towards ensuring that the tax benefits of life insurance policies are
better aligned the proposal to exempt only policies with aggregate premiums up
to INR 5 lakh which may have a temporary impact to secure financial security to
individuals, which help to grow of the economy and individual income for long term.
9)
There
is increase in the capital investments of 3% of GDP which will lead the way for
the private sectors to improve and make capital investments for industries and
infrastructure, which will also help to keep taxes on capital gains and STT unharmed.
And here’s
which product will get cheaper, and which will get costlier:
Cheaper:
·
Mobile
phones
·
TV
·
Lab-grown
diamonds
·
Shrimp
feed
·
Machinery
for lithium-ion batteries
· Raw materials for EV industry
Costlier:
·
Cigarettes
·
Silver
·
Compounded
rubber
·
Imitation
Jewellery
·
Articles
made from gold bars
·
Imported
bicycles and toys
·
Imported
kitchen electric chimney
·
Imported
luxury cars and EVs
Conclusion:
Now that you know what union budget is, it shouldn’t be difficult for you to understand how it impacts the overall Indian economy. A union budget that considers all the different sectors of the Indian society is a must for the economic growth of the country, especially with India aiming to become a $5 trillion economy. Overall, the Union Budget 2023-2024 has taken commendable steps towards promoting personal finance and financial literacy, and which will contribute significantly to the development and sustainable & inclusive growth of the country.
- Team IFA