Tax relief, govt goes on spending spree for growth & jobs in poll Budget
Sandeep Dikshit
New Delhi, February 1
Union Finance Minister Nirmala Sitharaman hiked capital expenditure by a massive 33 per cent to Rs 10 lakh crore and provided direct tax concessions worth Rs 35,000 crore while presenting the last full Budget before the 2024 General Election.
- Editorial: Taking the middle path
The government’s record capital investment will be supplemented by its Rs 3.7 lakh crore as grants-in-aid to states for the creation of capital assets. This will raise effective capital expenditure in 2023-24 to Rs 13.7 lakh crore or 4.5 per cent of the GDP. The Railways with Rs 2.4 lakh crore and roads with Rs 3.44 lakh crore account for the bulk of the outlay.
The Finance Minister announced 100 projects for last and first mile connectivity for ports, coal, steel, fertiliser and foodgrain sectors with an investment of Rs 75,000 crore, including Rs 15,000 crore from the private sector. The capital allocation includes Rs 79,000 crore for the PM Awas Yojana. The government proposed to set up 50 new airports to boost regional connectivity. The capital outlay for the defence sector has been hiked by Rs 10,000 crore to Rs 1.62 lakh crore. Sitharaman said a “Saptarishi” of priorities would guide the government’s plans. These include inclusive development, reaching the last mile, infrastructure and investment, unleashing potential, green growth, youth power and financial sector. These measures would help achieve GDP growth rate of about 6.5 per cent in 2023-24.
For the common man, the Budget has proposed a revision in tax slabs. Among the five major announcements in this respect, the I-T rebate limit in the new regime has been increased from Rs 5 lakh to Rs 7 lakh along with revision of tax slabs for individuals. The other pertain to the reduction of the highest surcharge rate that would reduce the maximum tax rate and extension of tax exemption limit on leave encashment.
In more gestures to the common man, a one-time Mahila Samman Savings Certificate, valid till March 2025, will offer deposits up to Rs 2 lakh at 7.5 per cent interest. The maximum deposit limit for Senior Citizen Savings Scheme and Monthly Income Scheme has been doubled to Rs 30 lakh and Rs 9 lakh, respectively. On the flip side, maturities of insurance policies with a premium of over Rs 5 lakh annually will no longer be exempted from tax.
The government’s total expenditure of over Rs 42 lakh crore will be financed by receipts of Rs 27.2 lakh crore and borrowings of Rs 15.4 lakh crore. The gap or the fiscal deficit will be 5.9 per cent of the GDP. In comparison, the current fiscal’s expenditure of over Rs 38 lakh crore has been funded by total receipts of Rs 24.3 lakh crore and borrowings of Rs 14.21 lakh crore.
As a result, the debt repayment obligations will increase to Rs 8.95 lakh crore as against Rs 7.27 lakh crore. Interest payment next year will be Rs 1.13 lakh crore as against Rs 98,000 crore in the current fiscal – an increase of Rs 15,000 crore. The government’s expenditure plans will also be helped by savings – Rs 49,000 crore less on fertiliser subsidy as compared to the revised estimates of the current fiscal and Rs 76,000 crore less on food subsidy.
No tax up to Rs 7 lakh income under new regime | Capex hiked to record Rs 10 lakh crore
Highest-ever Rs 2.40 lakh crore outlay for Railways | Deposit limit for senior citizens increased to Rs 30 lakh
Seven priorities ‘Saptarishi’
Inclusive development
Reaching the last mile
Infrastructure & investment
Unleashing potential
Green growth
Youth power
Financial sector
CHEAPER
Mobile
Phones
TV
Panels
Lab-grown
Diamonds
EXPENSIVE
Cigarettes
Articles made out of gold bars
Imported cars and EVs
Fiscal deficit
5.9% Rs 42 lakh cr total expenditure
Rs 27.2 lakh cr revenue receipts Rs 15.4 lakh cr borrowings
Anti-farmer, says Mann
It is anti-people, anti-farmer and directionless.
— Bhagwant Mann, Punjab CM
Poor will get poorer
It will help the rich, the poor will get poorer.
— SS Sukhu, Himachal CM
Will prove to be milestone
Govt’s seven priorities will benefit all sections.
— ML Khattar, Haryana CM
‘Inclusive India’ vision
We envision a prosperous and inclusive India, in which the fruits of development reach all regions and citizens, especially our youth, women, farmers, OBCs, Scheduled Castes and Scheduled Tribes. — Nirmala Sitharaman, Finance Minister
