New Delhi: The Indian economy is still on “the right track” despite a global slowdown caused by the Covid pandemic and the Russia-Ukraine conflict, Union Finance Minister Nirmala Sitharaman said in her Budget speech Wednesday. This was her fifth Budget in Parliament — also the Bharatiya Janata Party-led National Democratic Alliance (NDA) government’s final full-fledged Budget before the 2024 general elections.
In her speech, Sitharaman announced income tax cuts and introduced new income tax slabs to provide relief to the middle class. The Budget, she said in a press conference later in the day, “beautifully balances” growth considerations and fiscal consolidation. With total expenditure for FY 2023-24 pegged at Rs 45 lakh crore, the FM said the revised estimate of the fiscal deficit is 6.4 per cent of GDP and CapEx allocation will be 3.3 per cent of GDP.
Prime Minister Narendra Modi, hailing it as the “first Budget of Amrit Kal”, urged Indians to take new resolutions to make “India prosperous, capable and thriving by 2047”.
Highlights of Budget 2023:
18:30: Union Finance Minister Nirmala Sitharaman announced an increase in the capital expenditure (CapEx) outlay to Rs 10 lakh crore, a 33 per cent hike compared to last fiscal.
Read the full story here.
18:15: Sitharaman announced a slew of measures to aid this “green growth” agenda. The Ministry of Environment, Forest and Climate Change (MoEFCC) got a budgetary allocation of Rs 3,079.40 crore this year, a slight increase from last year’s Rs 3,030 crore.
Read the full story here.
17:45: In the Union Budget, the central government allocated Rs 200.53 crore to the National Intelligence Grid (NATGRID) — a master intelligence database that aims to enhance the efficiency of investigation agencies. The state and UT divisions of the Narcotics Control Bureau (NCB) were directly allocated Rs 5 crore in the Budget.
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17:30: Reacting to the Union Budget, Congress leader and former finance minister P. Chidambaram termed it a “callous budget that has betrayed hopes of vast majority of people”. “Budget for 2023-24 shows how far this government is removed from the people and their concerns about life and livelihood,” he was quoted as saying by news agency PTI.
Delhi Deputy CM Manish Sisodia said the Budget was “full of gimmicks”. He added that the “most worrisome thing about the Budget is that it will drown country in debt”.
17:15: In response to a question during the post-Budget press conference, Union Finance Secretary T.V. Somanathan said revenue estimates in Budget 2023 “conservatively assume tax buoyancy of only one”. He also said that reiterating the commitment to 4.5 per cent fiscal deficit in the Budget shows that the government believes it has the “means and ability” to reach that target by 2025-26. Sitharaman, meanwhile, said in response to a question that India is “moving along to becoming a $5 trillion economy”.
17:00: In her 1 hour 26 minute-long speech, Sitharaman mentioned “infrastructure” about 26 times and both “digital” and “green” 21 times. The word “amrit” appeared 12 times in her Budget speech.
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16:45: In the Union Budget 2023, the Modi government left development assistance to war-torn Afghanistan unchanged, while slashing aid to Sri Lanka and Myanmar by 25 per cent and 33 per cent, respectively.
Read the full story here.
16:30: Addressing a press conference Wednesday, Union Finance minister Nirmala Sitharaman said that the Union Budget 2023 focuses on four emphasis points, and seven priorities.
The government, she said, has been sincerely attending to the issue of inflation while respecting the “glidepath we gave ourselves earlier”.
Sitharaman went further to add that the Budget lays emphasis on empowering women self-help groups, boosting tourism and aims for inclusive growth and last-mile delivery of homes, sanitation facilities and roads to all Indians. Reiterating that the government is looking at unleashing the digital power of India, she said that the government’s idea is to skill Indians including in the fields of artificial intelligence (AI) and Internet of Things (IoT).
The Budget, she added, will simplify direct taxation and taxpayers have the option to remain in the old regime.
16:15: In her Budget speech, Union Finance minister Nirmala Sitharaman announced measures to boost tourism in the country including selection and development of at least 50 destinations as a complete package for domestic and foreign tourists.
Read the full story here.
16:00: “The Budget was presented by the Modi government keeping in view the upcoming assembly polls in three-four states. There’s nothing in the Budget for poor people and to control inflation,” Congress president Mallikarjun Kharge said, reacting to the Union Budget. He also alleged that the Budget has no measures to tackle unemployment or to fill vacancies for government jobs. — ANI
15:45: Skill education was the highlight of this year’s skill development and education budget, with Finance Minister Nirmala Sitharaman announcing the launch of Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0 to skill lakhs of youth within the next three years.
Read the full story here.
15:35: Reacting to the Budget, Rajasthan CM Ashok Gehlot wrote on Twitter that the Budget was a “great disappointment” from the state’s point of view. “People of the state are disappointed because the central government did not accept our fair demand for national status to ERCP (Eastern Rajasthan Canal Project),” he said.
15:25: In her Budget speech, Union Finance minister Nirmala Sitharaman announced an outlay of Rs 2.40 lakh crore for the Railways, the highest-ever capital outlay for the sector since 2013-14. Though she did not announce any specific projects, the massive jump in allocation will accelerate development of new rail infrastructure.
Read the full story here.
15:15: Uttar Pradesh CM Yogi Adityanath said in a tweet that the Budget will fulfill the aspirations of villages, the poor, farmers, youngsters and women. “This budget will undoubtedly prove to be a milestone towards making India an economic superpower,” he wrote.
“It has covered the aspirations of farmers, marginalised sector, youth, MSMEs, OBCs, women, entrepreneurs, salaried class and also has laid a great emphasis on green-growth, startups as well as local manufacturing sectors,” said Goa CM Pramod Sawant.
Madhya Pradesh CM Shivraj Singh Chouhan wrote on Twitter that the new income tax regime envisioned in the Budget will “leave people with more savings, lead to increased expenditure and give pace to development”.
15:10: Reacting to the Union Budget, BJP national president J.P. Nadda hailed it as a “revolutionary” and “visionary” Budget. “First Budget of Amrit Kaal shows the visionary and far-sighted leadership of Prime Minister Narendra Modi,” he said.
BJP National President Shri @JPNadda's remarks on Union Budget 2023-24. #AmritKaalBudget https://t.co/d5P0swMBE2
— BJP (@BJP4India) February 1, 2023
15:00: Criticising the central government over the Union Budget 2023, Congress general secretary (organisation) K.C. Venugopal told news agency ANI that it “only had fancy announcements that were made earlier too”.
Janata Dal (United) national president Rajiv Ranjan (Lalan) Singh said “there is nothing” in the Budget. “It is like ‘Sapno Ka Saudagar’ (merchant of dreams. Nothing comes true when you wake up after a dream,” he said. — ANI
Bharat Rashtra Samithi (BRS) MLC Kavitha Kalvakuntla termed the Budget a “mathematical confirmation” of the Modi government’s “failure”. “This seems like a budget for a few states,” she said. — ANI
“This Budget is the same as the one they have been presenting for the last 8-9 years,” said J&K Peoples Democratic Party leader Mehbooba Mufti told news agency ANI.
14:45: The total allocation for health in the Union Budget stood at 2.1% of GDP, about 0.34% higher than last year’s allocation. Sitharaman said in her speech that the government will set up 157 new nursing colleges in core locations.
Read the full story here.
14:25: Addressing the country after the Union Budget speech, Prime Minister Narendra Modi said in a video address Wednesday that besides the cut in income tax rates, the government has also made an attempt to simplify the process of filing tax returns.
“This government always stands by the middle class,” he said, underlining that the new tax regime will benefit the Indian middle class.
He also said that this “first Budget of Amrit Kaal” will “fulfill” the aspirations of all Indians.
Pointing to the government’s initiatives to empower women, Modi said women self-help groups in India are capable of pulling off a “miracle” if they are strengthened.
The Prime Minister said the government’s thrust on millets will benefit small farmers, adding that his administration has envisioned the “world’s largest storage capacity” scheme. This Budget will drive India’s bid to become a sustainable economy, he declared.
“Come together. The new Budget is now in front of you. Let us take new resolutions and get started. By 2047, we will make India prosperous, capable and thriving,” he said.
This year's Budget infuses new energy to India's development trajectory. #AmritKaalBudget https://t.co/lyV2SMgvvs
— Narendra Modi (@narendramodi) February 1, 2023
13:50: Welcoming the 66% increase in outlay for PM Awas Yojana in Budget 2023, Haryana Chief Minister Manohar Lal Khattar said, “It was a revolutionary budget that will give relief to every section of society. New income tax rates give relief to individuals.”
JD(U) MP Rajiv Ranjan Singh, however, said the budget was like “sapno ka saudagar” (merchant of dreams). “Nothing comes true when you wake up after a dream. Also, nothing was mentioned about how to control inflation and unemployment,” he said.
13:40: “I am a believer in a low tax regime. So, any tax cuts are welcome because giving more money into the hands of the people is the best way to boost the economy,” said Karti Chidambaram, Congress MP. — ANI
Union minister Smriti Irani believes that in Budget 2023, “respect for women has increased”.
“I would like to extend gratitude to PM Modi. I won’t look at the Budget minutely. Going by today’s pronouncements, I believe that in the budget, respect for women increased. I also welcome the announcement of the National Digital Library for children and adolescents,” she added. — ANI
13:15: “I want to thank PM Modi and FM Sitharaman for the announcement of the over Rs 5,000 crore irrigation project for the Upper Bhadra region of Karnataka. This project will be a game changer for the state,” said BJP MP Tejasvi Surya. — ANI
“There are some good things in the Union Budget 2023 but there was no mention of MNREGA, poor rural labour, employment and inflation,” said Congress MP Shashi Tharoor. “Some fundamental questions remained to be answered.” — ANI
13:10: Modi government allots Rs 15,000 crore for tribal development — five times more than the sum announced last year. Read our full report here.
The tribal population is a key vote-bank for political parties this year, with assembly elections scheduled to be held in nine states — Karnataka, Madhya Pradesh, Rajasthan, Chhattisgarh, Telangana, Meghalaya, Mizoram, Nagaland and Tripura.
13:00: Post the Budget speech, BSE Sensex up by 1,128.62 points or 1.90% at 60,678.52 as on 12:56 pm.
12:30: Under the new tax regime, those with an annual income of up to Rs 3 lakh will not be required to pay any income tax, while those with an annual income of Rs 3-6 lakh will be required to pay 5%.
The income tax slab will be 10% for those with an annual income of Rs 6-9 lakh, 15% for those with an annual income of Rs 9-12 lakh, 20% for those with an annual income of Rs 12-15 lakh and 30% for those with an annual income of over Rs 15 lakh.
“We are also making the new income tax regime as the default tax regime. However, citizens will continue to have the option to avail the benefit of the old tax regime,” the FM said.
12:20: Under the new income tax regime, the rebate limit will be increased to Rs 7 lakh from the earlier Rs 5 lakh. This would mean that an individual with an annual income of up to Rs 7 lakh will not be required to pay income tax.
FM begins reading the section on indirect taxes. She said the number of basic custom duties has been reduced from 21 to 13.
Custom relief has been extended for a year on import of certain parts and inputs like camera cells, to enhance production of mobile phones in the country.
Import duty is being reduced for key item of shrimp feed. National calamity contingent duty on cigarettes have been revised to 16%.
12:15: States will be allowed a fiscal deficit of 3.5% of Gross State Domestic Product (GSDP) of which 0.5% will be tied to power sector reforms, said the FM.
Pegging the fiscal deficit at 6.4% of GDP per revised estimates for FY2023-24 and 5.9% of GDP for FY2024-25, she said that the government will work to bring it below 4.5% by FY2025-26.
Allocation for Ministry of Defence, according to the Budget document, has been pegged at Rs 5.94 lakh crore.
12:05: In her Budget speech, the FM said the Modi government is looking to make Rs 10,000 crore available per annum to improve urban infrastructure development in Tier 2 and 3 cities. Cities will be incentivised to improve their creditworthiness through municipal bonds. “An urban infrastructure development fund will be established through use of priority sector lending shortfall,” the FM said.
For enhancing ease of doing business, more than 39,000 compliances have been reduced and more than 3,400 legal provisions have been decriminalised, she added.
For business establishments, Permanent Account Number (PAN) will be used as a common identifier for digital systems of specified government agencies. Moreover, a system of unified filing process will be set up on a common portal as per the filers’ choice, said the FM.
12:00: The finance minister announced the revamping of 50 airports, heliports, water-aero drones, and advanced landing ground for improving regional air connectivity.
She also spoke of creating “sustainable cities for tomorrow” and added that states and cities will be encouraged to undertake urban planning reforms and actions to transform cities.
This will mean “efficient utilisation of land resources, adequate resources of urban infrastructure and enhanced affordability of land,” she said.
11:50: “For trust-based governance, we have introduced the Jan Vishwas Bill to amend 42 central acts. This Budget proposes a series of measures to unleash the potential of our economy,” said the FM.
The newly-formed infrastructure secretariat will assist all stakeholders for more private investments in various sectors, including railways, roads and urban infrastructure.
A total of 100 critical transport infrastructure projects and first mile connectivity for ports, coal, steel and fertilisers, and food grain sectors have been identified, and investments worth Rs 75,000 crore will go into them, including Rs 15,000 crore from private sources.
Three centres of intelligence for Artificial Intelligence (AI) will be set up in top educational institutions, and leading researchers will partner in developing scalable problem solutions.
National governance data policy will unleash research and innovation by start-ups and academia, and a data governance policy will be brought out. This will enable access to anonymised data. The KYC process will be simplified adopting a risk-based instead of a one-size fits all approach.
11:45: Outlay for PM Awas Yojana increased by 66% to Rs 79,000 crore.
In selected ICMR labs across the country, the FM announced facilities will be made available for research by public and private entities, adding that teachers’ training will be re-envisioned via “innovative pedagogy, continuous professional development and ICT implementation”.
As far as support to state governments in capital investments is concerned, FM said: “I have decided to continue the 50-year loan to state governments for one more year to spur investments in infrastructure and incentivise them for complimentary services with a significant enhanced outlay of Rs 1.3 lakh crore.”
11:40: FM Sitharaman announced Rs 10 lakh crore for capital expenditure, up by 33% from last year.
The effective capital expenditure of the Union government is budgeted at Rs 13.7 lakh crore, 4.5% of the GDP.
11:35: To make up for the learning loss during the pandemic, the National Book Trust, will be encouraged to provide access in regional languages and in English, said Sitharaman. “To inculcate financial literacy, regulators and organisations will be encouraged to provide age-appropriate materials to these digital libraries,” she added.
Adding that there has also been a sustained focus on Jammu and Kashmir, Ladakh and the Northeast, Sitharaman said: “PM Vajpayee’s Government had formed the Ministry of tribal affairs and the department of development of the North East region to provide the infrastructure to reaching the last mile
11:30: To develop the farming sector, FM Sitharaman announced an agriculture accelerator fund for young entrepreneurs. A national cooperative storage capacity is also being prepared for countrywide mapping of cooperative societies, she said.
“Digital libraries for children and adolescents will be set up facilitating availability of quality books across geographies, languages, genres and device-agnostic accessibility. States will be encouraged to set up libraries in Panchayat and ward levels,” added the FM .
11:25: Saying that the promotion of tourism will be taken up in “mission mode”, FM said the sector will see public-private partnership.
“We are also implementing many programmes for green mobility and equipment and policies for efficient use of energy,” she said, adding that “inclusive development” and last mile reach are some of the priorities in the Budget.
11:20: According to the FM, “Economic empowerment of women, and of the poor under the Deen Dayal Upadhyaya Antyodaya Yojana, has achieved remarkable success.”
“We will enable self-help groups to ensure there is proper branding and marketing of products in the rural areas,” she added.
11.15: “Rs 7,400 crore digital payments have been recorded this year,” said FM in her speech.
“Some of the schemes include 11.75 crore household toilets constructed under the Swachh Bharat mission and creation of 47.8 crore Jan Dhan bank accounts.”
“Our vision includes tech-driven, knowledge-driven economy,” she added.
11:10: “India’s rising global profile is because of our several accomplishments,” said FM Sitharaman. “We are steering an ambitious, people-centric agenda to facilitate sustainable economic development.”
“The per capita income has surged to Rs 1.97 lakh. We have moved forward from being the 10th largest economy in the world to the 5th largest.”
11:00: FM Nirmala Sitharaman begins the Budget 2023 presentation.
“The Indian economy is on the right path despite challenges,” said FM. “The world appreciates India’s achievements and successes…. Our focus is on wide ranging reforms and sound policies.”
10:45: “This will be the best budget. This will be a pro-poor, pro-middle class budget,” said Pralhad Joshi, Union Minister of Parliamentary Affairs. — ANI
“India’s economy is expected to grow at 6.8%. It will be a pro-people Budget that will support the growth of the economy,” said Karnataka Chief Minister Basavaraj Bommai. — ANI
Suresh, Congress Lok Sabha Chief Whip, said, “We expect that this budget will ideate 2024 general elections, for advantage in 2024 elections and some state elections. Last 3 budgets focussed on corporate and the upper-class. The middle class and common people were completely ignored.”
“We don’t think this government is giving any concession to salaried people. They are announcing the budget only for eyewash schemes. They did the same in previous budgets. This time, focussing on 2024 elections, some schemes and reliefs may be announced,” added Suresh. — ANI
10:20: Prime Minister Narendra Modi arrives at the Parliament and Union Cabinet meeting chaired by the PM begins.
After the Cabinet approves the Budget 2023, it will be presented in Parliament by FM Sitharaman at 11 am — ANI
Prime Minister Narendra Modi arrives at the Parliament.
A Union Cabinet meeting will be held here shortly. Following this, Union Finance Minister Nirmala Sitharaman will present the #UnionBudget2023 at the Parliament, at 11 am. pic.twitter.com/t8pD8LsNfN
— ANI (@ANI) February 1, 2023
10:15: Union Home Minister Amit Shah and Defence Minister Rajnath Singh arrive at the Parliament to attend the Union Cabinet meeting — ANI
10:00: What are the expectations from Modi government’s Budget 2023?
Watch Deputy Editor TCA Sharad Raghavan and Associate Editor Yuthika Bhargava LIVE on the ThePrint YouTube channel.
09:50: FM Nirmala Sitharaman reaches Parliament to attend the Union Cabinet meeting chaired by Prime Minister Narendra Modi — Sansad TV
09:30: Union Finance Minister Nirmala Sitharaman, MoS Dr Bhagwat Kishanrao Karad, MoS Pankaj Chaudhary, and senior Finance Ministry officials with President Droupadi Murmu at Rashtrapati Bhavan before the presentation of the Union Budget 2023-24. — ANI
Sensex opens in green, currently up by 437.32 points and trading at 59,987.22 — ANI
09:15: The Budget as a key policy document has lost a lot of importance over the years. It’s not necessarily a bad thing, writes ThePrint Deputy Editor TCA Sharad Raghavan.
For instance, with the introduction of Goods and Services Tax (GST) in India, proposals pertaining to 45-50% of the government’s tax revenue were taken out of the Budget and placed under the GST Council.
09:10: Finance Minister Nirmala Sitharaman reaches Rashtrapati Bhavan to call on President Droupadi Murmu. The FM will attend a Union Cabinet meeting before presenting the Union Budget 2023 — ANI
09:00: In the defence sector, Snehesh Alex Philip reports that the industry and Defence Ministry are looking for a higher allocation in Budget 2023 to further improve its firepower, and buy submarines, drones and other critical defence infrastructure.
In the 2022-23 budget, the government had increased the capital outlay for procurement of new equipment to Rs 1.52 lakh crore, from the revised estimates of Rs 1.38 lakh crore.
08:50: Police modernisation is an important area that requires additional funding, and all eyes are on Budget 2023 to meet this demand.
In Budget 2022, the Ministry of Home Affairs — to which the CAPF rolls up — was allocated Rs 1,85,776.55 crore — a more than 11% increase over the Rs 1,66,547 crore allotted in the previous fiscal.
In the case of the Central Armed Police Forces (CAPF) or the paramilitary forces, however, the budget allocated was Rs 87,444.06 crore, a little over 7% more than the Rs 81,396 crore allocated in the 2021-22 financial year.
Read the full report here.
08:45: Finance Minister Nirmala Sitharaman arrives at the Ministry of Finance ahead of the Budget 2023 presentation — ANI
Delhi | Finance Minister Nirmala Sitharaman arrives at the Ministry of Finance, ahead of the Budget presentation pic.twitter.com/XzWkXKeV8J
— ANI (@ANI) February 1, 2023
08:30: In the education sector, Kritika Sharma reports that a big announcement made in the last Budget — the setting up of a National Digital University (NDU) — is close to fruition.
Speaking to ThePrint, University Grants Commission Chairman M. Jagadesh Kumar had said the NDU will start offering courses by July 2023.
08:15: Budget 2023 will continue Modi’s infrastructure push. But older projects lag, finds Moushumi Das Gupta. ThePrint brings you the full story.
But there have been positive developments as well. Various flagship schemes, and even some smaller announcements made in the last Budget, have seen considerable progress. Read here.
08:10 Prime minister Narendra Modi said the Budget to be presented on Wednesday, will strive to fulfill people’s hopes, aspirations and also boost the hopes with which the world is looking at India.
08:00 The IMF Tuesday said growth in India is set to decline from 6.8 per cent in 2022 to 6.1 per cent in 2023 before picking up to 6.8 per cent in 2024.
Read the report here.
07:45: How Budget speeches have changed over the years. What are the elements that feature more in speeches now, and what has been discarded along the way? Here is our full report.
07:30: ThePrint looked at the ‘Wit & Humour’ that our Parliamentarians employ in their speeches. Turns out the Budget session is when most of them really turn up their oratory skills!
Read the full story here.
07.00: What India Inc expects and requires from Budget 2023? Read the report by Yuthika Bhargava.