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The Union Budget 2023, presented by our honourable Finance Minister, Smt. Nirmala Sitharaman marks her fifth consecutive budget and the first of the "Amrit Kaal" - a golden era according to Vedic astrology.

The Finance Minister highlighted seven priority areas, known as "Saptarishis", including a focus on a self-reliant clean planet and empowering the youth. Further, to make the tax system more friendly for taxpayers, the basic exemption limit and rebates have been increased.

Let us take a glimpse at some key highlights of the Budget 2023.

• Fiscal Consolidation

The government remains committed to its mission of fiscal consolidation, by reducing the deficit from 6.4% of GDP in the fiscal year 2022-23 to a more manageable 5.9% in 2023-24. This aligns with their long-term vision of achieving a deficit of 4.5% by the fiscal year 2025-26.

• Revamped Credit Guarantee Scheme for MSME

To enhance the financial stability of the struggling MSME sector, the government has taken proactive measures. An additional amount of Rs.9,000 Crore has been infused via Credit Guarantee Scheme, aiming to encourage banks to lend their support to MSME businesses and alleviate the sector’s cash flow.

• Revised Tax Structure under New Regime

Under the new tax regime, there has been an increase in the basic exemption limit, which has risen from Rs.2.5 Lakhs to Rs.3 Lakhs. Additionally, the rebate for taxpayers has been elevated from Rs.5 Lakhs to a more favourable Rs.7 Lakhs. Furthermore, individuals will now be subject to the updated tax slabs outlined below.

• Record High Allocation for Indian Railways

The Budget 2023 has made a groundbreaking allocation of Rs.2.5 Lakh Crores towards Indian Railways. This historic allocation is a remarkable 9-fold increase compared to the allocation made by the UPA government during the fiscal year 2013-14.

• Price Hikes

The budget report highlights a heightened customs duty on prized commodities such as gold, platinum, and silver, causing a surge in their prices and those of imitation jewellery. The popular household appliance, the kitchen chimney, is also expected to become more expensive. Meanwhile,  cigarettes got a significant hike of 16%

• Agriculture

The government is committed to boosting the development of agriculture-based startups in rural regions. To support this, they have earmarked a sum of Rs.20 Lakh Crores in agri-credit for the agriculture, fisheries, and animal husbandry industries. Furthermore, a new initiative called MISHTI has been launched to encourage mangrove planting in designated locations.

• Healthcare and Education

The government plans to build 157 nursing colleges and rolls out a mission to eradicate sickle cell anaemia by 2047. On the education front, they plan to set up digital libraries at the national level and physical libraries at the local level for children and adolescents.

Conclusion

While this was just a quick summary of the finance minister’s budget speech, there's a lot more to simplify. Check out the Decoding Budget 2023 Video by Angel One where experts explain the budget’s impact.

Don’t forget to subscribe to their YouTube channel where they are bring more post budget analysis videos in their series #BudgetWithAngel. Click here to subscribe now.

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