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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:


·         Mobile phones

·         TV

·         Lab-grown diamonds

·         Shrimp feed

·         Machinery for lithium-ion batteries

·         Raw materials for EV industry


·         Cigarettes

·         Silver

·         Compounded rubber

·         Imitation Jewellery

·         Articles made from gold bars

·         Imported bicycles and toys

·         Imported kitchen electric chimney

·         Imported luxury cars and EVs




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