Union Budget 2023-24 : Highlights & Analysis

Union Budget 2023-24: The Union Budget is the annual budget of the Indian Union. It is presented every year in February by the Union Finance Minister. It focuses on development that is inclusive of all. It includes people from certain groups and a few regions under Sabka Sath, and Sabka Vikas. It includes Scheduled Castes, Scheduled Tribes, OBCs, farmers, women, EWS and PwDs.

The main goals include boosting farmers’ income and generating job opportunities in rural regions. Additionally, the government plans to allocate Rs. 2 lakh crore for providing free food grains to all priority households as part of the PM scheme. The budget also focuses on the Northeast Region (NER), UTs of J&K and Ladakh. The act also aims to incentivize the private sector. It will help to create jobs and push growth. To increase the capex and raise more revenues via disinvestment, the Government is focusing on ‘Minimum Government, Maximum Governance’.

Union Budget 2023

The word “Budget” is not mentioned in the constitution instead it is written as Annual Financial Statement (AFS). It is mentioned under Article 112. The budget contains the estimates for the future/budget year, current year, and past year. It contains estimated receipts and expenditures of the Government in a Financial Year (FY). Every Financial Year (FY) begins on 1st April of the current year and ends on 31st March of the next year. The nodal agency responsible for budget preparation is the Budget Division of the Department of Economic Affairs in the Ministry of Finance.

Highlights of Union Budget 2023-24?

Nirmala Sitharaman, Union Finance Minister on the 1st of February 2023 presented the budget. The Union Budget for the fiscal year 2023-24 is designed to build upon the groundwork set in the previous budget.

• The theme of the budget was ‘Vasudhaiva Kutumbakam’.
• The budget proposed to spend Rs 45,03,097 crore in the financial year.
• Among these expenditures, it’s projected that Rs 35,02,136 crore will be dedicated to day-to-day government operations.
• It aims to create a roadmap for India@100. The government’s vision, as outlined in the Budget for 2022-23 is to establish a strong foundation for leading India’s economy towards “Amrit Kaal.”
• Amrit Kaal refers to the 25 years leading up to 2047 because in 2047 India will celebrate its 100 years of Independence.
• The Vision for Amrit Kaal is ambitious, aspiring to develop a knowledge-based economy and technology-driven.

Union Budget 2023-24 Analysis

Here are the points of the analysis of the Union Budget 2023-24:

• Expenditure: The government intends to allocate Rs 45,03,097 crore in the fiscal year 2023-24 which reflects a 7.5% growth compared to the revised figures from 2022-23. The anticipated total expenditure for 2022-23 is projected to surpass the initial budget estimate by 6.1%
• Receipts: In the fiscal year 2023-24 the receipts (excluding borrowings) are anticipated to reach Rs 27,16,281 crore. It reflects an 11.7% surge compared to the revised estimate of 2022-23. The total receipts for 2022-23 are projected to be 6.5% higher than the initial budget estimates
• Gross Domestic Product (GDP): The government has set an expectation for a nominal GDP growth rate of 10.5% in 2023-24
• Deficits: The targeted revenue deficit for 2023-24 is 2.9% of GDP, a reduction from the revised estimate of 4.1% in 2022-23. Additionally, the fiscal deficit for 2023-24 is aimed at 5.9% of GDP which is lower than the revised estimate of 6.4% in 2022-23.

Key Takeaways of the Union Budget

• Creating Opportunities: The focus is on providing opportunities to citizens, especially the youth
• Growth and Employment Generation: The government aims to give a strong boost to economic growth and generate employment opportunities. This involves implementing strategies to enhance productivity and create jobs across various sectors
• Macroeconomic Stability: This includes measures to ensure a stable economic environment that promotes sustainable growth

The Union Finance Minister has outlined seven priorities also known as “Saptarishi” which guides the government through the Amrit Kaal. These priorities include

• Inclusive Development: Ensuring that the benefits of development reach all sections of society, promoting inclusivity
• Reaching the Last Mile: Implementing policies and programs that address the needs of the most remote and marginalised communities. To ensure that development reaches every corner of the country
• Infrastructure and Investment: Focusing on the development of strong infrastructure and encouraging investments to push economic growth
• Unleashing the Potential: Exploring and utilising the untapped potential in various sectors to enhance overall economic performance
• Green Growth: Emphasising environmentally sustainable practices and promoting green initiatives for a more eco-friendly and sustainable future
• Youth Power: Recognizing the potential of the youth as a driving force for the nation’s progress and implementing measures to empower and engage the younger population
• Financial Sector: Strengthening the financial sector to ensure stability and support economic activities

Sources of Receipt for the Government

Revenue receipts refer to those that the government receives which do not result in a liability or a decrease in the government’s assets. These include receipts for customs, fines, taxes, and non-tax income as well as interest and dividend payments on assets and investments held by the government.

Sources	Contribution in Percentage
Borrowings & Other Liabilities	34%
Goods and Services Tax	17%
Income Tax	15%
Corporation Tax	15%
Union Excise Duties	7%
Non-Tax Revenue	6%
Non-Debt Capital Receipts	2%
Customs	4%

Important Schemes and Budgetary Allocations

Hera are the important Schemes and Budget Allocations:

1. Atma Nirbhar Clean Plant Program: In a significant move to support the agricultural sector, the Indian government launched the Atma Nirbhar Clean Plant Program and allocated ₹2200 crore for the initiative. The program aims to enhance the availability of disease-free and high-quality planting materials for valuable horticultural crops. This step is taken to elevate the overall health and productivity of agriculture
2. GOBARdhan scheme: Environmental sustainability is a key focus of this budget. There is the establishment of 500 ‘waste to wealth’ plants under the GOBARdhan scheme. There is a total investment of Rs. 10,000 crore
3. Sickle Cell Anaemia Elimination Mission: A mission to eliminate Sickle Cell Anaemia will be focusing on eradicating this genetic disorder
4. Pradhan Mantri Kaushal Vikas Yojana 4.0: The Pradhan Mantri Kaushal Vikas Yojana 4.0 aims to skill lakhs of young individuals in the next three years. The focus will be on coding, AI, mechatronics, robotics, IoT, 3D printing, soft skills and drones
5. Education and Healthcare: The government recognized the crucial role of education in tribal areas. The government is committed to recruiting 38,800 teachers and support staff for the 740 Eklavya Model Residential Schools in the next three years. These schools play a crucial role in helping 3.5 lakh tribal students. The Government is also focusing on healthcare by establishing 157 new nursing colleges around existing medical colleges since 2014. This strategic move is taken to strengthen the healthcare workforce by providing education and training. It ensures a strong foundation for the future of healthcare in the country
6. Bio-Input Resource Centres: The government plans to support one crore farmers in transitioning to natural farming within the next three years. This initiative involves establishing 10,000 Bio-Input Resource Centres. It will form a nationwide network for manufacturing pesticides and micro-fertilizers
7. Aspirational Blocks Programme: The Indian government has recently initiated the Aspirational Blocks Programme which covers 500 blocks. It has the aim of providing government services in areas such as nutrition, health, education, water resources, agriculture, financial inclusion, skill development, and basic infrastructure. This program seeks to ensure that essential services reach every corner of the country
8. Pradhan Mantri PVTG Development Mission: The government has allocated Rs. 15,000 crore for the implementation of the Pradhan Mantri PVTG Development Mission over the next three years. This initiative is part of the broader Development Action Plan for the Scheduled Tribes. It emphasises the development of particularly vulnerable tribal groups.
9. iGOT Karmayogi: The government has launched the iGOT Karmayogi which is an online training platform for skill development. This platform offers continuous learning opportunities for government employees. It allows them to upgrade their skills and adopt a people-centric approach in their roles.

Union Budget 2023-24 highlights the importance of inclusive growth. It also focuses on 7 principles or pillars known as ‘Saptrishi’ which includes inclusive development. reaching the last mile, infrastructure investment, unleashing potential, green growth, youth power and financial sector. The budget’s theme was ‘Vasudhaiva Kutumbakam’ The budget aimed to boost agriculture, jobs, healthcare, economy and education.

Summary – Union Budget 2023-24 : Highlights & Analysis

The Union Budget for the fiscal year 2023-24, presented by Finance Minister Nirmala Sitharaman, focuses on inclusive development, emphasizing key pillars like reaching every corner of the country, infrastructure investment, unleashing potential, green growth, youth empowerment, and strengthening the financial sector. The theme, ‘Vasudhaiva Kutumbakam,’ signifies a people-centric approach to tackle global challenges. With a total expenditure of Rs. 45,03,097 crore, the budget aims to boost agriculture, create jobs, enhance healthcare and education, and drive economic growth. It introduces schemes like the Atma Nirbhar Clean Plant Program and the GOBARdhan scheme, reflecting a commitment to environmental sustainability. The emphasis on skill development, especially in emerging technologies, and the allocation of funds for tribal development showcase a comprehensive and inclusive vision for India’s progress.

FAQs on Union Budget 2023-24 : Highlights & Analysis

1. What are the key highlights of the Union Budget 2023-24?

The key highlights of Union Budget 2023-24 are a revised direct tax regime, focusing on infrastructure development, boosting agriculture and rural economy, empowering women, boosting healthcare, boosting education etc.

2. What is the budget analysis for India in 2023-24?

The government intends to allocate Rs 45,03,097 crore in the fiscal year 2023-24 In the fiscal year 2023-24, the receipts (excluding borrowings) are anticipated to reach Rs 27,16,281 crore. The total receipts for 2022-23 are projected to be 6.5% higher than the initial budget estimates.

3. What is the central Union Budget 2023-24?

The Finance Minister Ms. Nirmala Sitharaman unveiled the Union Budget for the fiscal year 2023-24 on February 1, 2023. The budget plan is to allocate Rs 45,03,097 crore for government expenses in the coming financial year.

4. What is the theme of Budget 2023 India?

The theme of the budget was ‘Vasudhaiva Kutumbakam’. It is an agenda that puts people at the centre, to tackle global challenges. Its goal is to promote sustainable economic development, improve living standards and ensure a dignified life for everyone.

5. What are the pillars of the budget for 2023?

The Union Finance Minister has given 7 pillars or Saptarishi and those are inclusive development. reaching the last mile, infrastructure investment, unleashing potential, green growth, youth power and financial sector.