Highlights of the Union Budget 2023

Union Budget of India is the annual budget of the country that is presented every year in the beginning of the month of February (mostly the 1st of February). This budget is materialized before the beginning of the financial year in the month of April.

This article will brief you about the highlights of Union Budget 2023.

Table of Contents

• Vision of Union Budget 2023
• Initiatives to be taken
• Fund allocation
• Taxation

Union Budget 2023 Vision

This year’s union budget comes with the vision of ‘Amrit Kaal’ that is centered around the following three main objectives:

• Growth and job creation
• Strong and stable macro-economic environment
• Opportunities for citizens (with a focus on the youth)

To achieve ‘Amrit Kaal’, the ‘Saptarshi’ initiative will be undertaken during the financial year 2023-24. The Saptarshi initiative is composed of seven objectives, including the following:

1. Green Growth
2. Youth Power
3. Financial Sector
4. Inclusive Development
5. Reaching the last mile
6. Infrastructure & Investment
7. Unleashing the potential

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1. Initiatives To Be Undertaken

1. For Agriculture and Cooperatives

• Digital public infrastructure: accessible, informative, and inclusive solutions for farmers
• Agriculture accelerator fund: innovative startups in rural areas
• Horticulture Clean Plant Program: boosting production of high-value horticultural crops
• Widely available storage capacity: Enhancing farmer’s remuneration by enabling sales at appropriate times
• Financial assistance: to be provided for sustainable micro irrigation in drought-prone areas in Karnataka 

2. Health

• 157 nursing colleges will be established
• Joint public and private medical research to be encouraged at selected ICMR labs
• Sickle Cell Anaemia elimination mission to be launched
• A new program for promoting research in Pharmaceuticals will be launched

3. Education

• Physical libraries at Panchayat and ward levels are to be set up
• National Digital Library to be set up
• Teacher’s training via District Institutes of Education and Training to be revamped
• 3 specialized AI in India to be set up in educational institutions
• Recruitment for 740 Eklavya Model Residential Schools to be done

2. Allocation of Funds in the Union Budget

1. For Ministries

The following ministries are allocated funds (in descending order of funds): 

2. For Schemes

The following schemes have been allotted funds:

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3. Taxation

1. Tax Relief Through Union Budget

To offer tax relief to entrepreneurs and citizens, the following tax proposals have been given:

• 45% of tax returns processed within 24 hours
• The average processing period was reduced from an average of 93 days to 16 days
• The exemption limit increased to ₹ 3 lakh
• Rebate on income tax revised and increased from ₹ 5 lakhs to ₹ 7 lakhs as per the new tax regime
• Surcharge on income above ₹ 5 crores reduced from 37% to 25% as per the new regime
• Tax exemption limit increased to ₹ 25 lakh on leave encashment on retirement for the non-government salaried employees
• 15% tax benefit to new cooperatives that will be involved in manufacturing till 31st March 2024 

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2. Income Tax Highlights in the Union Budget

Deductions Allowed