Union Budget 2023: Full text of Nirmala Sitharaman’s speech
The Union Budget has given a lot of emphasis on economic growth, digital infrastructure, health care and education.
New Delhi, Feb 01: Finance Minister Nirmala Sitharaman on Wednesday presented her last budget ahead of the crucial 2024 Lok Sabha elections that lasted for nearly 1 hour 25 minutes.
Here is the full text of Finance Minister Nirmala Sitharaman
This Budget hopes to build on the foundation laid in the previous Budget, and the blueprint drawn for India@100. 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.
In the 75th year of our Independence, the world has recognised the Indian economy as a 'bright star'. Our current year's economic growth is estimated to be at 7 per cent. It is notable that this is the highest among all the major economies. This is in spite of the massive slowdown globally caused by Covid-19 and a war. The Indian economy is therefore on the right track, and despite a time of challenges, heading towards a bright future.
Today as Indians stands with their head held high, and the world appreciates India's achievements and successes, we are sure that elders who had fought for India's independence, will with joy, bless us our endeavors going forward.
Resilience amidst multiple crises
Our focus on wide-ranging reforms and sound policies, implemented through Sabka Prayas resulting in Jan Bhagidari and targeted support to those in need, helped us perform well in trying times. India's rising global profile is because of several accomplishments: unique world class digital public infrastructure, e.g., Aadhaar, Co-Win and UPI; Covid vaccination drive in unparalleled scale and speed; proactive role in frontier areas such as achieving the climate related goals, mission LiFE, and National Hydrogen Mission.
During the Covid-19 pandemic, we ensured that no one goes to bed hungry, with a scheme to supply free food grains to over 80 crore persons for 28 months. Continuing our commitment to ensure food and nutritional security, we are implementing, from 1st January 2023, a scheme to supply free food grain to all Antyodaya and priority households for the next one year, under PM Garib Kalyan Anna Yojana (PMGKAY). The entire expenditure of about 2 lakh crore will be borne by the Central Government.
G20 Presidency: Steering the global agenda through challenges
In these times of global challenges, the G20 Presidency gives us a unique opportunity to strengthen India's role in the world economic order. With the theme of 'Vasudhaiva Kutumbakam', we are steering an ambitious, people-centric agenda to address global challenges, and to facilitate sustainable economic development.
Achievements since 2014: Leaving no one behind
The government's efforts since 2014 have ensured for all citizens a better quality of living and a life of dignity. The per capita income has more than doubled to 1.97 lakh.
In these nine years, the Indian economy has increased in size from being 10th to 5th largest in the world. We have significantly improved our position as a well-governed and innovative country with a conducive environment for business as reflected in several global indices. We have made significant progress in many Sustainable Development Goals.
The economy has become a lot more formalised as reflected in the EPFO membership more than doubling to 27 crore, and 7,400 crore digital payments of 126 lakh crore through UPI in 2022.
The efficient implementation of many schemes, with universalisation of targeted benefits, has resulted in inclusive development. Some of the schemes are:
i.
11.7
crore
household
toilets
under
Swachh
Bharat
Mission,
ii.
9.6
crore
LPG
connections
under
Ujjawala,
iii.
220
crore
Covid
vaccination
of
102
crore
persons,
iv.
47.8
crore
PM
Jan
Dhan
bank
accounts,
v.
Insurance
cover
for
44.6
crore
persons
under
PM
Suraksha
Bima
and
PM
Jeevan
Jyoti
Yojana,
and
vi.
Cash
transfer
of
2.2
lakh
crore
to
over
11.4
crore
farmers
under
PM
Kisan
Samman
Nidhi.
Vision for Amrit Kaal an empowered and inclusive economy
Our vision for the Amrit Kaal includes technology-driven and knowledge-based economy with strong public finances, and a robust financial sector. To achieve this, Jan Bhagidari through Sabka Saath Sabka Prayas is essential.
The economic agenda for achieving this vision focuses on three things: first, facilitating ample opportunities for citizens, especially the youth, to fulfil their aspirations; second, providing strong impetus to growth and job creation; and third, strengthening macro-economic stability.
To service these focus areas in our journey to India@100, we believe that the following four opportunities can be transformative during Amrit Kaal.
Economic Empowerment of Women: Deendayal Antyodaya Yojana National Rural Livelihood Mission has achieved remarkable success by mobilizing rural women into 81 lakh Self Help Groups. We will enable these groups to reach the next stage of economic empowerment through formation of large producer enterprises or collectives with each having several thousand members and managed professionally. They will be helped with supply of raw materials and for better design, quality, branding and marketing of their products. Through supporting policies, they will be enabled to scale up their operations to serve the large consumer markets, as has been the case with several start-ups growing into 'Unicorns'.
PM VIshwakarma KAushal Samman (PM VIKAS): For centuries, traditional artisans and craftspeople, who work with their hands using tools, have brought renown for India. They are generally referred to as Vishwakarma. The art and handicraft created by them represents the true spirit of Atmanirbhar Bharat. For the first time, a package of assistance for them has been conceptualized. The new scheme will enable them to improve the quality, scale and reach of their products, integrating them with the MSME value chain. The components of the scheme will include not only financial support but also access to advanced skill training, knowledge of modern digital techniques and efficient green technologies, brand promotion, linkage with local and global markets, digital payments, and social security. This will greatly benefit the Scheduled Castes, Scheduled Tribes, OBCs, women and people belonging to the weaker sections.
Tourism: The country offers immense attraction for domestic as well as foreign tourists. There is a large potential to be tapped in tourism. The sector holds huge opportunities for jobs and entrepreneurship for youth in particular. Promotion of tourism will be taken up on mission mode, with active participation of states, convergence of government programmes and public-private partnerships.
Green
Growth:
We
are
implementing
many
programmes
for
green
fuel,
green
energy,
green
farming,
green
mobility,
green
buildings,
and
green
equipment,
and
policies
for
efficient
use
of
energy
across
various
economic
sectors.
These
green
growth
efforts
help
in
reducing
carbon
intensity
of
the
economy
and
provides
for
large-scale
green
job
opportunities.
Priorities
of
this
Budget
The
Budget
adopts
the
following
seven
priorities.
They
complement
each
other
and
act
as
the
'Saptarishi' guiding
us
through
the
Amrit
Kaal.
1)
Inclusive
Development
2)
Reaching
the
Last
Mile
3)
Infrastructure
and
Investment
4)
Unleashing
the
Potential
5)
Green
Growth
6)
Youth
Power
7)
Financial
Sector
Priority 1: Inclusive Development
The Government's philosophy of Sabka Saath Sabka Vikas has facilitated inclusive development covering in specific, farmers, women, youth, OBCs, Scheduled Castes, Scheduled Tribes, divyangjan and economically weaker sections, and overall priority for the underprivileged (vanchiton ko variyata). There has also been a sustained focus on Jammu & Kashmir, Ladakh and the North-East. This Budget builds on those efforts.
Agriculture and Cooperation
Digital public infrastructure for agriculture will be built as an open source, open standard and inter operable public good. This will enable inclusive, farmer-centric solutions through relevant information services for crop planning and health, improved access to farm inputs, credit, and insurance, help for crop estimation, market intelligence, and support for growth of agri-tech industry and start-ups.
Agriculture Accelerator Fund
An Agriculture Accelerator Fund will be set-up to encourage agri-startups by young entrepreneurs in rural areas. The Fund will aim at bringing innovative and affordable solutions for challenges faced by farmers. It will also bring in modern technologies to transform agricultural practices, increase productivity and profitability.
Enhancing productivity of cotton crop
To enhance the productivity of extra-long staple cotton, we will adopt a cluster-based and value chain approach through Public Private Partnerships (PPP). This will mean collaboration between farmers, state and industry for input supplies, extension services, and market linkages.
Atmanirbhar Horticulture Clean Plant Program
We will launch an Atmanirbhar Clean Plant Program to boost availability of disease-free, quality planting material for high value horticultural crops at an outlay of 2,200 crore.
Global Hub for Millets: 'Shree Anna'
"India is at the forefront of popularizing Millets, whose consumption furthers nutrition, food security and welfare of farmers," said Hon'ble Prime Minister.
We are the largest producer and second largest exporter of 'Shree Anna' in the world. We grow several types of 'Shree Anna' such as jowar, ragi, bajra, kuttu, ramdana, kangni, kutki, kodo, cheena, and sama. These have a number of health benefits, and have been an integral part of our food for centuries. I acknowledge with pride the huge service done by small farmers in contributing to the health of fellow citizens by growing these 'Shree Anna'.
Now to make India a global hub for 'Shree Anna', the Indian Institute of Millet Research, Hyderabad will be supported as the Centre of Excellence for sharing best practices, research and technologies at the international level.
Agriculture Credit
The agriculture credit target will be increased to 20 lakh crore with focus on animal husbandry, dairy and fisheries.
Fisheries
We will launch a new sub-scheme of PM Matsya Sampada Yojana with targeted investment of 6,000 crore to further enable activities of fishermen, fish vendors, and micro & small enterprises, improve value chain efficiencies, and expand the market.
Cooperation
For farmers, especially small and marginal farmers, and other marginalised sections, the government is promoting cooperative-based economic development model. A new Ministry of Cooperation was formed with a mandate to realise the vision of 'Sahakar Se Samriddhi'. To realise this vision, the government has already initiated computerisation of 63,000 Primary Agricultural Credit Societies (PACS) with an investment of 2,516 crore. In consultation with all stakeholders and states, model bye-laws for PACS were formulated enabling them to become multipurpose PACS. A national cooperative database is being prepared for country-wide mapping of cooperative societies.
With this backdrop, we will implement a plan to set up massive decentralised storage capacity. This will help farmers store their produce and realize remunerative prices through sale at appropriate times. The government will also facilitate setting up of a large number of multipurpose cooperative societies, primary fishery societies and dairy cooperative societies in uncovered panchayats and villages in the next 5 years.
Health, Education and Skilling
One
hundred
and
fifty-seven
new
nursing
colleges
will
be
established
in
co-location
with
the
existing
157
medical
colleges
established
since
2014.
Sickle
Cell
Anaemia
Elimination
Mission
A Mission to eliminate Sickle Cell Anaemia by 2047 will be launched. It will entail awareness creation, universal screening of 7 crore people in the age group of 0-40 years in affected tribal areas, and counselling through collaborative efforts of central ministries and state governments.
Medical Research
Facilities in select ICMR Labs will be made available for research by public and private medical college faculty and private sector R&D teams for encouraging collaborative research and innovation.
Pharma Innovation
A new programme to promote research and innovation in pharmaceuticals will be taken up through centers of excellence. We shall also encourage industry to invest in research and development in specific priority areas.
Multidisciplinary courses for medical devices.
Dedicated multidisciplinary courses for medical devices will be supported in existing institutions to ensure availability of skilled manpower for futuristic medical technologies, high-end manufacturing and research.
Teachers' Training
Teachers' training will be re-envisioned through innovative pedagogy, curriculum transaction, continuous professional development, dipstick surveys, and ICT implementation. The District Institutes of Education and Training will be developed as vibrant institutes of excellence for this purpose.
National Digital Library for Children and Adolescents
A National Digital Library for children and adolescents will be set-up for facilitating availability of quality books across geographies, languages, genres and levels, and device agnostic accessibility. States will be encouraged to set up physical libraries for them at panchayat and ward levels and provide infrastructure for accessing the National Digital Library resources.
Additionally, to build a culture of reading, and to make up for pandemic-time learning loss, the National Book Trust, Children's Book Trust and other sources will be encouraged to provide and replenish non-curricular titles in regional languages and English to these physical libraries. Collaboration with NGOs that work in literacy will also be a part of this initiative. To inculcate financial literacy, financial sector regulators and organizations will be encouraged to provide age-appropriate reading material to these libraries.
Priority 2: Reaching the Last Mile
Prime
Minister
Vajpayee's
government
had
formed
the
Ministry
of
Tribal
Affairs
and
the
Department
of
Development
of
North-Eastern
Region.
To
provide
a
sharper
focus
to
the
objective
of
'reaching
the
last
mile',
our
government
has
formed
the
ministries
of
AYUSH,
Fisheries,
Animal
Husbandry
and
Dairying,
Skill
Development,
Jal
Shakti
and
Cooperation.
Aspirational
Districts
and
Blocks
Programme
Building
on
the
success
of
the
Aspirational
Districts
Programme,
the
Government
has
recently
launched
the
Aspirational
Blocks
Programme
covering
500
blocks
for
saturation
of
essential
government
services
across
multiple
domains
such
as
health,
nutrition,
education,
agriculture,
water
resources,
financial
inclusion,
skill
development,
and
basic
infrastructure.
Pradhan
Mantri
PVTG
Development
Mission
To improve socio-economic conditions of the particularly vulnerable tribal groups (PVTGs), Pradhan Mantri PVTG Development Mission will be launched. This will saturate PVTG families and habitations with basic facilities such as safe housing, clean drinking water and sanitation, improved access to education, health and nutrition, road and telecom connectivity, and sustainable livelihood opportunities. An amount of 15,000 crore will be made available to implement the Mission in the next three years under the Development Action Plan for the Scheduled Tribes.
Eklavya Model Residential Schools
In the next three years, centre will recruit 38,800 teachers and support staff for the 740 Eklavya Model Residential Schools, serving 3.5 lakh tribal students.
Water for Drought Prone Region
In the drought prone central region of Karnataka, central assistance of 5,300 crore will be given to Upper Bhadra Project to provide sustainable micro irrigation and filling up of surface tanks for drinking water.
PM Awas Yojana
The
outlay
for
PM
Awas
Yojana
is
being
enhanced
by
66
per
cent
to
over
79,000
crore.
Bharat
Shared
Repository
of
Inscriptions
(Bharat
SHRI)
'Bharat
Shared
Repository
of
Inscriptions'
will
be
set
up
in
a
digital
epigraphy
museum,
with
digitization
of
one
lakh
ancient
inscriptions
in
the
first
stage.
Support
for
poor
prisoners
For poor persons who are in prisons and unable to afford the penalty or the bail amount, required financial support will be provided.
Priority 3: Infrastructure & Investment
Investments in Infrastructure and productive capacity have a large multiplier impact on growth and employment. After the subdued period of the pandemic, private investments are growing again. The Budget takes the lead once again to ramp up the virtuous cycle of investment and job creation.
Capital Investment as driver of growth and jobs
Capital investment outlay is being increased steeply for the third year in a row by 33 per cent to 10 lakh crore, which would be 3.3 per cent of GDP. This will be almost three times the outlay in 2019-20.
This substantial increase in recent years is central to the government's efforts to enhance growth potential and job creation, crowd-in private investments, and provide a cushion against global headwinds.
Effective Capital Expenditure
The direct capital investment by the Centre is complemented by the provision made for creation of capital assets through Grants-in-Aid to States. The 'Effective Capital Expenditure' of the Centre is budgeted at 13.7 lakh crore, which will be 4.5 per cent of GDP.
Support to State Governments for Capital InvestmentI have decided to continue the 50-year interest free loan to state governments for one more year to spur investment in infrastructure and to incentivize them for complementary policy actions, with a significantly enhanced outlay of 1.3 lakh crore.
Enhancing opportunities for private investment in Infrastructure
The newly established Infrastructure Finance Secretariat will assist all stakeholders for more private investment in infrastructure, including railways, roads, urban infrastructure and power, which are predominantly dependent on public resources.
Harmonized Master List of Infrastructure
The
Harmonized
Master
List
of
Infrastructure
will
be
reviewed
by
an
expert
committee
for
recommending
the
classification
and
financing
framework
suitable
for
Amrit
Kaal.
Railways
A capital outlay of 2.40 lakh crore has been provided for the Railways. This highest ever outlay is about 9 times the outlay made in 2013-14.
Logistics
One hundred critical transport infrastructure projects, for last and first mile connectivity for ports, coal, steel, fertilizer, and food grains sectors have been identified. They will be taken up on priority with investment of 75,000 crore, including 15,000 crore from private sources.
Regional Connectivity
Fifty additional airports, heliports, water aerodromes and advance landing grounds will be revived for improving regional air connectivity.
Sustainable
Cities
of
Tomorrow
States
and
cities
will
be
encouraged
to
undertake
urban
planning
reforms
and
actions
to
transform
our
cities
into
'sustainable
cities
of
tomorrow'.
This
means
efficient
use
of
land
resources,
adequate
resources
for
urban
infrastructure,
transit-oriented
development,
enhanced
availability
and
affordability
of
urban
land,
and
opportunities
for
all.
Making
Cities
ready
for
Municipal
Bonds
Through
property
tax
governance
reforms
and
ring-fencing
user
charges
on
urban
infrastructure,
cities
will
be
incentivized
to
improve
their
credit
worthiness
for
municipal
bonds.
Urban
Infrastructure
Development
Fund
Like
the
RIDF,
an
Urban
Infrastructure
Development
Fund
(UIDF)
will
be
established
through
use
of
priority
sector
lending
shortfall.
This
will
be
managed
by
the
National
Housing
Bank,
and
will
be
used
by
public
agencies
to
create
urban
infrastructure
in
Tier
2
and
Tier
3
cities.
States
will
be
encouraged
to
leverage
resources
from
the
grants
of
the
15th
Finance
Commission,
as
well
as
existing
schemes,
to
adopt
appropriate
user
charges
while
accessing
the
UIDF.
We
expect
to
make
available
10,000
crore
per
annum
for
this
purpose.
Urban Sanitation
All cities and towns will be enabled for 100 per cent mechanical desludging of septic tanks and sewers to transition from manhole to machine-hole mode. Enhanced focus will be provided for scientific management of dry and wet waste.
Priority 4: Unleashing the Potential
"Good Governance is the key to a nation's progress. Our government is committed to providing a transparent and accountable administration which works for the betterment and welfare of the common citizen," said Hon'ble Prime Minister.
Mission Karmayogi
Under Mission Karmayogi, Centre, States and Union Territories are making and implementing capacity-building plans for civil servants. The government has also launched an integrated online training platform, iGOT Karmayogi, to provide continuous learning opportunities for lakhs of government employees to upgrade their skills and facilitate people-centric approach.
For enhancing ease of doing business, more than 39,000 compliances have been reduced and more than 3,400 legal provisions have been decriminalized. For furthering the 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.
Centres of Excellence for Artificial Intelligence
For realizing the vision of "Make AI in India and Make AI work for India", three centres of excellence for Artificial Intelligence will be set-up in top educational institutions. Leading industry players will partner in conducting interdisciplinary research, develop cutting-edge applications and scalable problem solutions in the areas of agriculture, health, and sustainable cities. This will galvanize an effective AI ecosystem and nurture quality human resources in the field.
National Data Governance Policy
To unleash innovation and research by start-ups and academia, a National Data Governance Policy will be brought out. This will enable access to anonymized data.
Simplification of Know Your Customer (KYC) process
The KYC process will be simplified adopting a 'risk-based' instead of 'one size fits all' approach. The financial sector regulators will also be encouraged to have a KYC system fully amenable to meet the needs of Digital India.
One stop solution for identity and address updating
A one stop solution for reconciliation and updating of identity and address of individuals maintained by various government agencies, regulators and regulated entities will be established using DigiLocker service and Aadhaar as foundational identity.
Common Business Identifier
For
the
business
establishments
required
to
have
a
Permanent
Account
Number
(PAN),
the
PAN
will
be
used
as
the
common
identifier
for
all
digital
systems
of
specified
government
agencies.
This
will
bring
ease
of
doing
business;
and
it
will
be
facilitated
through
a
legal
mandate.
Unified
Filing
Process
For
obviating
the
need
for
separate
submission
of
same
information
to
different
government
agencies,
a
system
of
'Unified
Filing
Process'
will
be
set-up.
Such
filing
of
information
or
return
in
simplified
forms
on
a
common
portal,
will
be
shared
with
other
agencies
as
per
filer's
choice.
Vivad
se
Vishwas
I
Relief
for
MSMEs
In
cases
of
failure
by
MSMEs
to
execute
contracts
during
the
Covid
period,
95
per
cent
of
the
forfeited
amount
relating
to
bid
or
performance
security,
will
be
returned
to
them
by
government
and
government
undertakings.
This
will
provide
relief
to
MSMEs.
Vivad
se
Vishwas
II
Settling
Contractual
Disputes
To settle contractual disputes of government and government undertakings, wherein arbitral award is under challenge in a court, a voluntary settlement scheme with standardized terms will be introduced. This will be done by offering graded settlement terms depending on pendency level of the dispute.
State Support Mission
The State Support Mission of NITI Aayog will be continued for three years for our collective efforts towards national priorities.
Result Based Financing
To better allocate scarce resources for competing development needs, the financing of select schemes will be changed, on a pilot basis, from 'input-based' to 'result-based'.
E-Courts
For efficient administration of justice, Phase-3 of the E-Courts project will be launched with an outlay of Rs 7,000 crore.
Fintech
Services
Fintech
services
in
India
have
been
facilitated
by
our
digital
public
infrastructure
including
Aadhaar,
PM
Jan
Dhan
Yojana,
Video
KYC,
India
Stack
and
UPI.
To
enable
more
Fintech
innovative
services,
the
scope
of
documents
available
in
DigiLocker
for
individuals
will
be
expanded.
Entity DigiLocker
An Entity DigiLocker will be set up for use by MSMEs, large business and charitable trusts. This will be towards storing and sharing documents online securely, whenever needed, with various authorities, regulators, banks and other business entities.
5G
Services
One
hundred
labs
for
developing
applications
using
5G
services
will
be
set
up
in
engineering
institutions
to
realise
a
new
range
of
opportunities,
business
models,
and
employment
potential.
The
labs
will
cover,
among
others,
applications
such
as
smart
classrooms,
precision
farming,
intelligent
transport
systems,
and
health
care
applications.
Lab Grown Diamonds
Lab Grown Diamonds (LGD) is a technology-and innovation-driven emerging sector with high employment potential. These environment-friendly diamonds which have optically and chemically the same properties as natural diamonds. To encourage indigenous production of LGD seeds and machines and to reduce import dependency, a research and development grant will be provided to one of the IITs for five years.
To reduce the cost of production, a proposal to review the custom duty rate on LGD seeds will be indicated in Part B of the speech.
Priority 5: Green Growth
Hon'ble Prime Minister has given a vision for "LiFE", or Lifestyle for Environment, to spur a movement of environmentally conscious lifestyle. India is moving forward firmly for the 'panchamrit' and net-zero carbon emission by 2070 to usher in green industrial and economic transition. This Budget builds on our focus on green growth.
Green Hydrogen Mission
The recently launched National Green Hydrogen Mission, with an outlay of 19,700 crores, will facilitate transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports, and make the country assume technology and market leadership in this sunrise sector. Our target is to reach an annual production of 5 MMT by 2030.
Energy Transition
This Budget provides 35,000 crore for priority capital investments towards energy transition and net zero objectives, and energy security by Ministry of Petroleum & Natural Gas.
Energy Storage Projects
To steer the economy on the sustainable development path, Battery Energy Storage Systems with capacity of 4,000 MWH will be supported with Viability Gap Funding. A detailed framework for Pumped Storage Projects will also be formulated.
Renewable Energy Evacuation
The Inter-state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh will be constructed with investment of 20,700 crore including central support of 8,300 crore.
Green Credit Programme
For encouraging behavioural change, a Green Credit Programme will be notified under the Environment (Protection) Act. This will incentivize environmentally sustainable and responsive actions by companies, individuals and local bodies, and help mobilize additional resources for such activities.
PM-PRANAM
"PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth" will be launched to incentivize States and Union Territories to promote alternative fertilizers and balanced use of chemical fertilizers.
GOBARdhan scheme
500
new
'waste
to
wealth'
plants
under
GOBARdhan
(Galvanizing
Organic
Bio-Agro
Resources
Dhan)
scheme
will
be
established
for
promoting
circular
economy.
These
will
include
200
compressed
biogas
(CBG)
plants,
including
75
plants
in
urban
areas,
and
300
community
or
cluster-based
plants
at
total
investment
of
10,000
crore.
I
will
refer
to
this
in
Part
B.
In
due
course,
a
5
per
cent
CBG
mandate
will
be
introduced
for
all
organizations
marketing
natural
and
bio
gas.
For
collection
of
bio-mass
and
distribution
of
bio-manure,
appropriate
fiscal
support
will
be
provided.
Bhartiya
Prakritik
Kheti
Bio-Input
Resource
Centres
Over the next 3 years, we will facilitate 1 crore farmers to adopt natural farming. For this, 10,000 Bio-Input Resource Centres will be set-up, creating a national-level distributed micro-fertilizer and pesticide manufacturing network.
MISHTI
Building
on
India's
success
in
afforestation,
'Mangrove
Initiative
for
Shoreline
Habitats
&
Tangible
Incomes',
MISHTI,
will
be
taken
up
for
mangrove
plantation
along
the
coastline
and
on
salt
pan
lands,
wherever
feasible,
through
convergence
between
MGNREGS,
CAMPA
Fund
and
other
sources.
Amrit
Dharohar
Wetlands are vital ecosystems which sustain biological diversity. In his latest Mann Ki Baat, the Prime Minister said, "Now the total number of Ramsar sites in our country has increased to 75. Whereas, before 2014, there were only 26 " Local communities have always been at the forefront of conservation efforts. The government will promote their unique conservation values through Amrit Dharohar, a scheme that will be implemented over the next three years to encourage optimal use of wetlands, and enhance bio-diversity, carbon stock, eco-tourism opportunities and income generation for local communities.
Coastal Shipping
Coastal shipping will be promoted as the energy efficient and lower cost mode of transport, both for passengers and freight, through PPP mode with viability gap funding.
Vehicle Replacement
Replacing old polluting vehicles is an important part of greening our economy. In furtherance of the vehicle scrapping policy mentioned in Budget 2021-22, I have allocated adequate funds to scrap old vehicles of the Central Government. States will also be supported in replacing old vehicles and ambulances.
Priority 6: Youth Power
To empower our youth and help the 'Amrit Peedhi' realize their dreams, we have formulated the National Education Policy, focused on skilling, adopted economic policies that facilitate job creation at scale, and have supported business opportunities.
Pradhan Mantri Kaushal Vikas Yojana 4.0
Pradhan Mantri Kaushal Vikas Yojana 4.0 will be launched to skill lakhs of youth within the next three years. On-job training, industry partnership, and alignment of courses with needs of industry will be emphasized. The scheme will also cover new age courses for Industry 4.0 like coding, AI, robotics, mechatronics, IOT, 3D printing, drones, and soft skills. To skill youth for international opportunities, 30 Skill India International Centres will be set up across different States.
Skill India Digital Platform
The digital ecosystem for skilling will be further expanded with the launch of a unified Skill India Digital platform for: enabling demand-based formal skilling, linking with employers including MSMEs, and facilitating access to entrepreneurship schemes.
National Apprenticeship Promotion Scheme
To provide stipend support to 47 lakh youth in three years, Direct Benefit Transfer under a pan-India National Apprenticeship Promotion Scheme will be rolled out.
Tourism
With an integrated and innovative approach, at least 50 destinations will be selected through challenge mode. In addition to aspects such as physical connectivity, virtual connectivity, tourist guides, high standards for food streets and tourists' security, all the relevant aspects would be made available on an App to enhance tourist experience. Every destination would be developed as a complete package. The focus of development of tourism would be on domestic as well as foreign tourists.
Sector specific skilling and entrepreneurship development will be dovetailed to achieve the objectives of the 'Dekho Apna Desh' initiative. This was launched as an appeal by the Prime Minister to the middle class to prefer domestic tourism over international tourism. For integrated development of theme-based tourist circuits, the 'Swadesh Darshan Scheme' was also launched. Under the Vibrant Villages Programme, tourism infrastructure and amenities will also be facilitated in border villages.
Unity Mall
States will be encouraged to set up a Unity Mall in their state capital or most prominent tourism centre or the financial capital for promotion and sale of their own ODOPs (one district, one product), GI products and other handicraft products, and for providing space for such products of all other States.
Priority 7: Financial Sector
Our
reforms
in
the
financial
sector
and
innovative
use
of
technology
have
led
to
financial
inclusion
at
scale,
better
and
faster
service
delivery,
ease
of
access
to
credit
and
participation
in
financial
markets.
This
Budget
proposes
to
further
these
measures.
Credit
Guarantee
for
MSMEs
Last year, I proposed revamping of the credit guarantee scheme for MSMEs. I am happy to announce that the revamped scheme will take effect from 1st April 2023 through infusion of 9,000 crore in the corpus. This will enable additional collateral-free guaranteed credit of 2 lakh crore. Further, the cost of the credit will be reduced by about 1 per cent.
National Financial Information Registry
A national financial information registry will be set up to serve as the central repository of financial and ancillary information. This will facilitate efficient flow of credit, promote financial inclusion, and foster financial stability. A new legislative framework will govern this credit public infrastructure, and it will be designed in consultation with the RBI.
Financial Sector Regulations
To meet the needs of Amrit Kaal and to facilitate optimum regulation in the financial sector, public consultation, as necessary and feasible, will be brought to the process of regulation-making and issuing subsidiary directions.
To simplify, ease and reduce cost of compliance, financial sector regulators will be requested to carry out a comprehensive review of existing regulations. For this, they will consider suggestions from public and regulated entities. Time limits to decide the applications under various regulations will also be laid down.
GIFT IFSC
To
enhance
business
activities
in
GIFT
IFSC,
the
following
measures
will
be
taken:
Delegating
powers
under
the
SEZ
Act
to
IFSCA
to
avoid
dual
regulation,
Setting
up
a
single
window
IT
system
for
registration
and
approval
from
IFSCA,
SEZ
authorities,
GSTN,
RBI,
SEBI
and
IRDAI,
Permitting
acquisition
financing
by
IFSC
Banking
Units
of
foreign
banks,
Establishing
a
subsidiary
of
EXIM
Bank
for
trade
re-financing,
Amending
IFSCA
Act
for
statutory
provisions
for
arbitration,
ancillary
services,
and
avoiding
dual
regulation
under
SEZ
Act,
and
Recognizing
offshore
derivative
instruments
as
valid
contracts.
Data Embassy
For countries looking for digital continuity solutions, we will facilitate setting up of their Data Embassies in GIFT IFSC.
Improving Governance and Investor Protection in Banking Sector
To improve bank governance and enhance investors' protection, certain amendments to the Banking Regulation Act, the Banking Companies Act and the Reserve Bank of India Act are proposed.
Capacity Building in Securities Market
To build capacity of functionaries and professionals in the securities market, SEBI will be empowered to develop, regulate, maintain and enforce norms and standards for education in the National Institute of Securities Markets and to recognize award of degrees, diplomas and certificates.
Central Data Processing Centre
A
Central
Processing
Centre
will
be
setup
for
faster
response
to
companies
through
centralized
handling
of
various
forms
filed
with
field
offices
under
the
Companies
Act.
Reclaiming
of
shares
and
dividends
For
investors
to
reclaim
unclaimed
shares
and
unpaid
dividends
from
the
Investor
Education
and
Protection
Fund
Authority
with
ease,
an
integrated
IT
portal
will
be
established.
Digital
Payments
Digital payments continue to find wide acceptance. In 2022, they show increase of 76 per cent in transactions and 91 per cent in value. Fiscal support for this digital public infrastructure will continue in 2023-24.
Azadi Ka Amrit Mahotsav Mahila Samman Bachat Patra
For commemorating Azadi Ka Amrit Mahotsav, a one-time new small savings scheme, Mahila Samman Savings Certificate, will be made available for a two-year period up to March 2025. This will offer deposit facility upto 2 lakh in the name of women or girls for a tenor of 2 years at fixed interest rate of 7.5 per cent with partial withdrawal option.
Senior
Citizens
The
maximum
deposit
limit
for
Senior
Citizen
Savings
Scheme
will
be
enhanced
from
15
lakh
to
30
lakh.
The maximum deposit limit for Monthly Income Account Scheme will be enhanced from 4.5 lakh to 9 lakh for single account and from 9 lakh to 15 lakh for joint account.
Fiscal
Management
Fifty-year
interest
free
loan
to
States
The
entire
fifty-year
loan
to
states
has
to
be
spent
on
capital
expenditure
within
2023-24.
Most
of
this
will
be
at
the
discretion
of
states,
but
a
part
will
be
conditional
on
states
increasing
their
actual
capital
expenditure.
Parts
of
the
outlay
will
also
be
linked
to,
or
allocated
for,
the
following
purposes:
Scrapping
old
government
vehicles,
Urban
planning
reforms
and
actions,
Financing
reforms
in
urban
local
bodies
to
make
them
creditworthy
for
municipal
bonds,
Housing
for
police
personnel
above
or
as
part
of
police
stations,
Constructing
Unity
Malls,
Children
and
adolescents'
libraries
and
digital
infrastructure,
and
State
share
of
capital
expenditure
of
central
schemes.
Fiscal
Deficit
of
States
States will be allowed a fiscal deficit of 3.5 per cent of GSDP of which 0.5 per cent will be tied to power sector reforms.
Revised Estimates 2022-23
The
Revised
Estimate
of
the
total
receipts
other
than
borrowings
is
24.3
lakh
crore,
of
which
the
net
tax
receipts
are
20.9
lakh
crore.
The
Revised
Estimate
of
the
total
expenditure
is
41.9
lakh
crore,
of
which
the
capital
expenditure
is
about
7.3
lakh
crore.
The
Revised
Estimate
of
the
fiscal
deficit
is
6.4
per
cent
of
GDP,
adhering
to
the
Budget
Estimate.
Budget
Estimates
2023-24
Coming
to
2023-24,
the
total
receipts
other
than
borrowings
and
the
total
expenditure
are
estimated
at
27.2
lakh
crore
and
45
lakh
crore
respectively.
The
net
tax
receipts
are
estimated
at
23.3
lakh
crore.
The fiscal deficit is estimated to be 5.9 per cent of GDP. In my Budget Speech for 2021-22, I had announced that we plan to continue the path of fiscal consolidation, reaching a fiscal deficit below 4.5 per cent by 2025-26 with a fairly steady decline over the period. We have adhered to this path, and I reiterate my intention to bring the fiscal deficit below 4.5 per cent of GDP by 2025-26.
To
finance
the
fiscal
deficit
in
2023-24,
the
net
market
borrowings
from
dated
securities
are
estimated
at
11.8
lakh
crore.
The
balance
financing
is
expected
to
come
from
small
savings
and
other
sources.
The
gross
market
borrowings
are
estimated
at
15.4
lakh
crore.
I
will,
now,
move
to
Part
B.
PART
B
Indirect
Taxes
My
indirect
tax
proposals
aim
to
promote
exports,
boost
domestic
manufacturing,
enhance
domestic
value
addition,
encourage
green
energy
and
mobility.
A simplified tax structure with fewer tax rates helps in reducing compliance burden and improving tax administration. I propose to reduce the number of basic customs duty rates on goods, other than textiles and agriculture, from 21 to 13. As a result, there are minor changes in the basic custom duties, cesses and surcharges on some items including toys, bicycles, automobiles and naphtha.
Green Mobility
To avoid cascading of taxes on blended compressed natural gas, I propose to exempt excise duty on GST-paid compressed bio gas contained in it. To further provide impetus to green mobility, customs duty exemption is being extended to import of capital goods and machinery required for manufacture of lithium-ion cells for batteries used in electric vehicles.
Electronics
As a result of various initiatives of the Government, including the Phased Manufacturing programme, mobile phone production in India has increased from 5.8 crore units valued at about 18,900 crore in 2014-15 to 31 crore units valued at over 2,75,000 crore in the last financial year. To further deepen domestic value addition in manufacture of mobile phones, I propose to provide relief in customs duty on import of certain parts and inputs like camera lens and continue the concessional duty on lithium-ion cells for batteries for another year.. Similarly, to promote value addition in manufacture of televisions, I propose to reduce the basic customs duty on parts of open cells of TV panels to 2.5 per cent.
Electrical
To
rectify
inversion
of
duty
structure
and
encourage
manufacturing
of
electric
kitchen
chimneys,
the
basic
customs
duty
on
electric
kitchen
chimney
is
being
increased
from
7.5
per
cent
to
15
per
cent
and
that
on
heat
coils
for
these
is
proposed
to
be
reduced
from
20
per
cent
to
15
per
cent.
Chemicals
and
Petrochemicals
Denatured
ethyl
alcohol
is
used
in
chemical
industry.
I
propose
to
exempt
basic
customs
duty
on
it.
This
will
also
support
the
Ethanol
Blending
Programme
and
facilitate
our
endeavour
for
energy
transition.
Basic
customs
duty
is
also
being
reduced
on
acid
grade
fluorspar
from
5
per
cent
to
2.5
per
cent
to
make
the
domestic
fluorochemicals
industry
competitive.
Further,
the
basic
customs
duty
on
crude
glycerin
for
use
in
manufacture
of
epicholorhydrin
is
proposed
to
be
reduced
from
7.5
per
cent
to
2.5
per
cent.
Marine
products
In
the
last
financial
year,
marine
products
recorded
the
highest
export
growth
benefitting
farmers
in
the
coastal
states
of
the
country.
To
further
enhance
the
export
competitiveness
of
marine
products,
particularly
shrimps,
duty
is
being
reduced
on
key
inputs
for
domestic
manufacture
of
shrimp
feed.
Lab
Grown
Diamonds
India is a global leader in cutting and polishing of natural diamonds, contributing about three-fourths of the global turnover by value. With the depletion in deposits of natural diamonds, the industry is moving towards Lab Grown Diamonds (LGDs) and it holds huge promise. To seize this opportunity, I propose to reduce basic customs duty on seeds used in their manufacture.
Precious Metals
Customs Duties on dore and bars of gold and platinum were increased earlier this fiscal. I now propose to increase the duties on articles made therefrom to enhance the duty differential. I also propose to increase the import duty on silver dore, bars and articles to align them with that on gold and platinum.
Metals
To
facilitate
availability
of
raw
materials
for
the
steel
sector,
exemption
from
Basic
Customs
Duty
on
raw
materials
for
manufacture
of
CRGO
Steel,
ferrous
scrap
and
nickel
cathode
is
being
continued.
Similarly,
the
concessional
BCD
of
2.5
per
cent
on
copper
scrap
is
also
being
continued
to
ensure
the
availability
of
raw
materials
for
secondary
copper
producers
who
are
mainly
in
the
MSME
sector.
Compounded
Rubber
The basic customs duty rate on compounded rubber is being increased from 10 per cent to '25 per cent or 30/kg whichever is lower', at par with that on natural rubber other than latex, to curb circumvention of duty.
Cigarettes
National
Calamity
Contingent
Duty
(NCCD)
on
specified
cigarettes
was
last
revised
three
years
ago.
This
is
proposed
to
be
revised
upwards
by
about
16
per
cent.
Direct
Taxes
I now come to my direct tax proposals. These proposals aim to maintain continuity and stability of taxation, further simplify and rationalise various provisions to reduce the compliance burden, promote the entrepreneurial spirit and provide tax relief to citizens.
It
has
been
the
constant
endeavour
of
the
Income
Tax
Department
to
improve
Tax
Payers
Services
by
making
compliance
easy
and
smooth.
Our
tax
payers'
portal
received
a
maximum
of
72
lakh
returns
in
a
day;
processed
more
than
6.5
crore
returns
this
year;
average
processing
period
reduced
from
93
days
in
financial
year
13-14
to
16
days
now;
and
45
per
cent
of
the
returns
were
processed
within
24
hours.
We
intend
to
further
improve
this,
roll
out
a
next-generation
Common
IT
Return
Form
for
tax
payer
convenience,
and
also
plan
to
strengthen
the
grievance
redressal
mechanism.
MSMEs and Professionals
MSMEs are growth engines of our economy. Micro enterprises with turnover up to Rs 2 crore and certain professionals with turnover of up to Rs 50 lakh can avail the benefit of presumptive taxation. I propose to provide enhanced limits of Rs 3 crore and Rs 75 lakh respectively, to the tax payers whose cash receipts are no more than 5 per cent. Moreover, to support MSMEs in timely receipt of payments, I propose to allow deduction for expenditure incurred on payments made to them only when payment is actually made.
Cooperation
Cooperation
is
a
value
to
be
cherished.
In
realizing
our
Prime
Minister's
goal
of
"Sahkar
se
Samriddhi",
and
his
resolve
to
"connect
the
spirit
of
cooperation
with
the
spirit
of
Amrit
Kaal",
in
addition
to
the
measures
proposed
in
Part
A,
I
have
a
slew
of
proposals
for
the
co-operative
sector.
First,
new
co-operatives
that
commence
manufacturing
activities
till
31.3.2024
shall
get
the
benefit
of
a
lower
tax
rate
of
15
per
cent,
as
is
presently
available
to
new
manufacturing
companies.
Secondly,
I
propose
to
provide
an
opportunity
to
sugar
co-operatives
to
claim
payments
made
to
sugarcane
farmers
for
the
period
prior
to
assessment
year
2016-17
as
expenditure.
This
is
expected
to
provide
them
with
a
relief
of
almost
10,000
crore.
Thirdly, I am providing a higher limit of 2 lakh per member for cash deposits to and loans in cash by Primary Agricultural Co-operative Societies (PACS) and Primary Co-operative Agriculture and Rural Development Banks (PCARDBs).
Similarly, a higher limit of 3 crore for TDS on cash withdrawal is being provided to co-operative societies.
Start-Ups
Entrepreneurship is vital for a country's economic development. We have taken a number of measures for start-ups and they have borne results. India is now the third largest ecosystem for start-ups globally, and ranks second in innovation quality among middle-income countries. I propose to extend the date of incorporation for income tax benefits to start-ups from 31.03.23 to 31.3.24. I further propose to provide the benefit of carry forward of losses on change of shareholding of start-ups from seven years of incorporation to ten years.
Appeals
To
reduce
the
pendency
of
appeals
at
Commissioner
level,
I
propose
to
deploy
about
100
Joint
Commissioners
for
disposal
of
small
appeals.
We
shall
also
be
more
selective
in
taking
up
cases
for
scrutiny
of
returns
already
received
this
year.
Better targeting of tax concessions
For
better
targeting
of
tax
concessions
and
exemptions,
I
propose
to
cap
deduction
from
capital
gains
on
investment
in
residential
house
under
sections
54
and
54F
to
10
crore.
Another
proposal
with
similar
intent
is
to
limit
income
tax
exemption
from
proceeds
of
insurance
policies
with
very
high
value.
Rationalisation
There
are
a
number
of
proposals
relating
to
rationalisation
and
simplification.
Income
of
authorities,
boards
and
commissions
set
up
by
statutes
of
the
Union
or
State
for
the
purpose
of
housing,
development
of
cities,
towns
and
villages,
and
regulating,
or
regulating
and
developing
an
activity
or
matter,
is
proposed
to
be
exempted
from
income
tax.
Other
major
measures
in
this
direction
are:
Removing
the
minimum
threshold
of
10,000/-
for
TDS
and
clarifying
taxability
relating
to
online
gaming;
Not
treating
conversion
of
gold
into
electronic
gold
receipt
and
vice
versa
as
capital
gain;
Reducing
the
TDS
rate
from
30
per
cent
to
20
per
cent
on
taxable
portion
of
EPF
withdrawal
in
non-PAN
cases;
and
Taxation
on
income
from
Market
Linked
Debentures.
Others
Other
major
proposals
in
the
Finance
Bill
relate
to
the
following:
Extension
of
period
of
tax
benefits
to
funds
relocating
to
IFSC,
GIFT
City
till
31.03.2025;
Decriminalisation
under
section
276A
of
the
Income
Tax
Act;
Allowing
carry
forward
of
losses
on
strategic
disinvestment
including
that
of
IDBI
Bank;
and
Providing
EEE
status
to
Agniveer
Fund.
Personal
Income
Tax
Now,
I
come
to
what
everyone
is
waiting
for
--
personal
income
tax.
I
have
five
major
announcements
to
make
in
this
regard.
These
primarily
benefit
our
hard-working
middle
class.
The
first
one
concerns
rebate.
Currently,
those
with
income
up
to
5
lakh
do
not
pay
any
income
tax
in
both
old
and
new
tax
regimes.
I
propose
to
increase
the
rebate
limit
to
7
lakh
in
the
new
tax
regime.
Thus,
persons
in
the
new
tax
regime,
with
income
up
to
7
lakh
will
not
have
to
pay
any
tax.
The
second
proposal
relates
to
middle-class
individuals.
I
had
introduced,
in
the
year
2020,
the
new
personal
income
tax
regime
with
six
income
slabs
starting
from
2.5
lakh.
I
propose
to
change
the
tax
structure
in
this
regime
by
reducing
the
number
of
slabs
to
five
and
increasing
the
tax
exemption
limit
to
3
lakh.
The
new
tax
rates
are:
0-3
lakh
Nil
3-6
lakh
5
per
cent
6-9
lakh
10
per
cent
9-12
lakh
15
per
cent
12-15
lakh
20
per
cent
Above
15
lakh
30
per
cent
This
will
provide
major
relief
to
all
tax
payers
in
the
new
regime.
An
individual
with
an
annual
income
of
Rs
9
lakh
will
be
required
to
pay
only
Rs
45,000/-.
This
is
only
5
per
cent
of
his
or
her
income.
It
is
a
reduction
of
25
per
cent
on
what
he
or
she
is
required
to
pay
now,
ie,
Rs
60,000/-.
Similarly,
an
individual
with
an
income
of
Rs
15
lakh
would
be
required
to
pay
only
Rs
1.5
lakh
or
10
per
cent
of
his
or
her
income,
a
reduction
of
20
per
cent
from
the
existing
liability
of
Rs
1,87,500/.
My third proposal is for the salaried class and the pensioners including family pensioners, for whom I propose to extend the benefit of standard deduction to the new tax regime. Each salaried person with an income of Rs 15.5 lakh or more will thus stand to benefit by Rs 52,500.
My fourth announcement in personal income tax is regarding the highest tax rate which in our country is 42.74 per cent. This is among the highest in the world. I propose to reduce the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime. This would result in reduction of the maximum tax rate to 39 per cent.
Lastly, the limit of 3 lakh for tax exemption on leave encashment on retirement of non-government salaried employees was last fixed in the year 2002, when the highest basic pay in the government was 30,000/- pm. In line with the increase in government salaries, I am proposing to increase this limit to 25 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.
Apart
from
these,
I
am
also
making
some
other
changes
as
given
in
the
annexure.
As
a
result
of
these
proposals,
revenue
of
about
38,000
crore.
37,000 crore in direct taxes and 1,000 crore in indirect taxes will be forgone while revenue of about 3,000 crore will be additionally mobilized. Thus, the total revenue forgone is about 35,000 crore annually.
Speaker Sir, with these words, I commend the Budget to this august House.