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SUMMARY OF
UNION BUDGET 2023-24
INTRODUCTION
Budget and Constitutional Provisions
• Article 112 of the Indian Constitution: The Union Budget is referred to as the
Annual Financial Statement (AFS).
• AFS is a statement of estimated receipts and expenditure of the Government in a
financial year.
• The Budget includes:
1. Revenue and capital receipts estimations,
2. Expenditure estimations,
3. Methods and means to increase revenue,

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4. Actual receipts and expenditure detail of the closing financial year and
reasons for any deficit or surplus in that previous year, and
5. The economic and financial policy of the coming year, i.e., tax proposals,
revenue prospects, expenditure programme and new schemes/project’s
introduction.

Objectives of Government Budget

1. It aids in resource distribution while taking the nation's social and economic
climate into consideration.
2. The Budget focuses on avoiding business fluctuations to accomplish the aim
of financial stability through Deficit and Surplus Budgeting.
3. By levying taxes on the wealthy and allocating the proceeds to the welfare of
the underprivileged, the government seeks to achieve economic equality.
4. Managing Public Enterprises– The Budget include a variety of mechanisms for
managing public sector businesses and providing financial assistance to
ensure public welfare.
5. Based on the pace of investment and saving, the fiscal plan emphasizes
setting aside sufficient funds for investing in public sector and raise the total
rate of savings and investment.
6. It aims to reduce regional inequalities by promoting the installation of
production units in the underdeveloped regions.

PART A: BUDGET 2023 – 24

NEW INDIA VISION ON AMRIT KAAL

Youth focused Growth and Job Strengthening

opportunities Creation Macro - economic
and all inclusive Stability
welfare

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Reaching the
last mile

Inclusive
Youth
Development
Power

AMRIT
KAAL
Infrastructure
Financial
and
Investment Sector

Unleashing Green
the potential Growth

PRIORITY 1: INCLUSIVE GROWTH

Government’s philosophy – Sabka Saath Sabka Vikas
Agriculture and Cooperation
• Digital Public Infrastructure: Build an inclusive & informative
solution for farmers.
• Agriculture Accelerator Fund: Aim to bring innovative and
affordable solutions for farmer’s challenges.
• Agriculture Credit: Target will be increased to ₹ 20 lakh crore with
focus on animal husbandry, dairy & fisheries.
• Enhance cotton crop Productivity: A cluster-based and value chain
approach through Public Private Partnerships will be adopted.
• Global Hub for Millets: ‘Shree Anna’: Support to be given IIMR for
promoting Research
• Atmanirbhar Horticulture Clean Plant Program: To boost production
of high value horticultural crops.
• Agriculture Credit: Target will be increased to 20 lakh crores with
focus on animal husbandry, dairy and fisheries.
• Fisheries: Launch new sub-scheme of PM Matsya Sampada Yojana
with targeted investment of 6,000 crores.

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Health, Education and Skilling

• 157 new nursing colleges to be established.
• Mission to eliminate sickle cell Anemia by 2047 will be launched.
• New programme to promote research and innovation in
pharmaceuticals
• Joint public and private medical research will be encouraged
through ICMR labs
• Dedicated course for medical devices to upskill manpower for
futuristic technologies, high end manufacturing & research

Education and Skilling

1. Teacher’s Training: District Institutes of Education and Training
will be developed.
2. National Digital Library for Children and Adolescents: Facilitate
availability of quality books across geographies, languages, genres
and levels, and device agnostic accessibility.

The Big Tent that accommodates all

Insurance cover for 9.6 crore LPG

44.6 crore persons connections under
under PMSBY Ujjawala
and PMJJY
Cash transfer of 9 crore drinking
220 crore Covid
2.2 lakh crore to water connections
vaccinations of 102
over 11.4 crore to rural houses
crore persons
Farmers under
PM-KISAN
47.8 crore PM 11.7 crore household
Jan Dhan bank toilets constructed
accounts under SBM

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PRIORITY 2: REACHING THE LAST MILE

Ministries of AYUSH, Fisheries, Animal Husbandry and Dairying,
Skill Development, Jal Shakti and Cooperation. Government recently
launched the Aspirational Blocks Programme covering 500 blocks for
saturation of essential government services like health, nutrition,
education, agriculture, water resources, financial inclusion, skill
development, and basic infrastructure.

Eklavya Model Water for Support

(PVTG) Residential Drought (Bharat SHRI)
for poor
Schools Prone Region prisoners

Pradhan Mantri Particularly Vulnerable Tribal Group (PVTG)

Development Mission: Saturate PVTG families and habitations with
basic facilities. ₹ 15,000 crore will be provided in next 3 years.

Eklavya Model Residential Schools: In 3 years 38,800 teacher &

support staff for the 740 Schools will be recruited.

Water for Drought Prone Region: Central assistance of ₹ 5,300

crore will be given for sustainable micro irrigation in drought prone
regions of Karnataka.
Bharat Shared Repository of Inscriptions (Bharat SHRI): It will be
set up in a digital epigraphy museum, with digitization of one lakh
ancient inscriptions in the first stage.

Support for poor prisoners: Poor prisoners who can’t afford the
penalty or bail amount will be given financial support.

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PRIORITY 3: INFRASTRUCTURE & INVESTMENT

Investment in Infrastructure and productive capacity have huge
multiplier effect in rise in growth and employment.

Capital Investment: Increased by 33% to ₹ 10 lakh crore (3.3% of GDP).

‘Effective Capital Expenditure’ of the Centre is budgeted at ₹ 13.7
lakh crore (4.5% of GDP).
Railways: Highest ever from 2013-14 Capital outlay of ₹ 2.40 lakh
crore has been provided for the Railways
Logistics: 100 transport infrastructure projects have been identified
for end-to-end connectivity taken on priority with investment of
₹ 75,000 crore.
Regional Connectivity: 50 additional airports, heliports, water
aerodromes and advance landing grounds will be revived.
Sustainable Cities of Tomorrow: Encourage urban planning reforms.
Efficient use of land resources, adequate resources for urban
infrastructure, transit-oriented development, enhanced availability
and affordability of urban land, and opportunities for all.
Urban Infrastructure Development Fund (UIDF): Established
through use of priority sector lending shortfall. Used by public
agencies to create urban infrastructure in Tier 2 & 3 cities.
Urban Sanitation: Enable cities and town for 100% mechanical
desludging ofseptic tanks and sewers to transition from manhole to
machine-hole mode.

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PRIORITY 4: UNLEASHING THE POTENTIAL

Mission Karmayogi: Centre, State and UT are together making an
implementing capacity – building plans for civil servants.
Government launched an integrated online training platform, iGOT
Karmayogi, to provide continuous learning.
Make AI in India: 3 Specialized AI centers to be set up in educational
institutes. AI based solution in agriculture, health and sustainable
cities will be provided through it.
National Data Governance Policy to be introduced to enable
access to anonymized data for research by startups and academia.
Common Business Identifier: PAN will be used as common identifier
all digital systems of specified government agencies bringing an ease
of doing business
E – Courts : to be launched with an outlay of ₹ 7,000 crore for effective
administration of justice.
Vivad se Vishwas I – Relief for MSMEs: Less stringent contract
execution for MSMEs which would relieve the MSMEs affected during
the Covid period.
Vivad se Vishwas II – Settling Contractual Disputes: Easier and
standardized settlement scheme. Help faster settlement disputes of
government and government undertakings

Fintech Services: To enable more Fintech innovative services, the

scope of documents available in DigiLocker for individuals will be
expanded
Entity DigiLocker: Entity DigiLocker will be set up for use by MSMEs,
large business and charitable trusts.
Setup 100 Labs for 5G services: Will tap employment potential and
business opportunities.
Lab Grown Diamonds (LGD): It is a technology-and innovation-
driven emerging sector with high employment potential. R & D grant
for LGD sector will be provided to reduce import dependency by
encouraging domestic production.

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PRIORITY 5: GREEN GROWTH

India is moving forward firmly for the ‘Panchamrit’ and net-zero
carbon emission by 2070.

Green Hydrogen Mission: National Green Hydrogen Mission, with an

outlay of ₹ 19,700 crores, will facilitate transition to low carbon
intensity, reduce dependence on fossil fuel imports.
Energy Transition: Provides ₹ 35,000 crore for priority capital
investments.
Green Credit Programme: Will be notified under the Environment
(Protection) Act to incentivize environmentally sustainable and
responsive actions
PM-PRANAM: “PM Programme for Restoration, Awareness,
Nourishment and Amelioration of Mother Earth” will be launched
to incentivize States and UT 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. I
nclude 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.
Bhartiya Prakritik Kheti Bio-Input Resource Centre: Over the next
3 years, we will facilitate 1 crore farmers to adopt natural farming.
For this, 10,000 Bio-Input Resource Centers will be set-up, creating a
national-level distributed micro-fertilizer and pesticide
manufacturing network
‘Mangrove Initiative for Shoreline Habitats & Tangible Incomes’
(MISHTI): Taken along the coastline and on salt pan lands through
convergence between MGNREGS, CAMPA Fund and other sources.
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PRIORITY 6: YOUTH POWER: AMRIT PEEDHI

Pradhan Mantri Kaushal Vikas Yojana 4.0: Cover courses for
Industry ike coding, AI, robotics, mechatronics, IOT, 3D printing,
drones, and soft skills. On-job training, industry partnership, etc.
Digital ecosystem for skilling will be further expanded with the launch
of a Unified Skill India Digital platform.
National Apprenticeship Promotion Scheme: Stipend support to 47
lakh youth in 3 years

Tourism: At least 50 destination will be selected and will be

developed as complete package for domestic and foreign tourists.

States to encourage Unity mall: For promotion and sale of One

District – One Product, GI and Handicraft product.

PRIORITY 7: FINANCIAL SECTOR

Credit Guarantee for MSMEs: Enable additional collateral-free
guaranteed credit of ₹ 2 lakh crore and cost of credit will reduce by 1 %.
National Financial Information Registry: Facilitate efficient flow of
credit, promote financial inclusion, and foster financial stability.
Setting up of Central Data Processing Centre: For faster handling
of administrative work under Companies Act.

Mahila Samman Bachat Patra: One time small savings scheme for
2 year period with a deposit facility of up to ₹ 2 lakh for women.
Senior Citizens: Maximum deposit limit for Senior Citizen Savings
Scheme will be enhanced from ₹ 15 lakh to ₹ 30 lakh.

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Fiscal Management
50 – year interest free loan to States: To be spent on capital
expenditure within 2023 – 24.
States will be allowed a Fiscal Deficit of 3.5% of GSDP of which 0.5% will
be tied to power sector reforms.
Net tax receipts →
₹ 23.3 lakh crore

Fiscal Deficit → 5.9% of GDP

Total Expenditure →
₹ 45 lakh crore

Fiscal Deficit below Total Receipts other

4.5% by 2025-26 than Borrowings →
₹ 27.2 lakh crore

Budget Estimates 2023-24

PART B: BUDGET 2023 – 24

INDIRECT TAXES

Promote Boost domestic

exports manufacturing

Enhance Encourage
domestic value green energy
addition and mobility.

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CHANGES IN CUSTOM DUTY

Green Mobility: 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: Relief in customs duty on import of mobile camera lens.
Chemicals and Petrochemicals: Denatured ethyl alcohol exempted
from basic customs duty.

Marine products: To raise the exports reduction of basic customs

duty on seeds used in their manufacture.
Exemption from Basic Customs Duty on raw materials of
CRGO Steel, ferrous scrap and nickel cathode will continue.
Compounded Rubber: basic customs duty rate is increased from
10% to ‘25% or ₹ 30/kg whichever is lower’.

DIRECT TAXES

Processed Average 45% of the

more than 6.5 processing returns were
crore returns period reduced processed
this year. from 93 days within 24 hours
in FY 13-14 to
16 days

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MSME
• Enhanced limits for micro enterprises and professionals to avail
benefits of presumptive taxation; 95% to be non – cash receipts.
• Tax deduction on payments made to them only when payment is
actually made.

Cooperatives
• Extend in corporate tax benefits to new co – operatives. Commencing
manufacturing till 31st Mar, 2024.
• Higher limit of ₹ 2 lakh per member for deposits & loans in cash by
PACS & PCARDB.
• Higher limit of ₹ 3 crore for TDS on cash withdrawal for co – operative
societies.

Start – Ups
• Extension in date of incorporation for income tax benefits to
start-ups to 31.3.24.
• Benefit of carry forward of losses on change of shareholding of
start-ups from seven years of incorporation to ten years.

Rationalization
• Income of authorities, boards and commissions set up by statutes of
the Union or State will be exempted from income tax for some sectors.
• Other major measures:
1. Removing the minimum threshold of ₹ 10,000/- for TDS.
2. Not treating conversion of gold into electronic gold receipt and
vice versa as capital gain.
3. Reducing TDS rate 20% on taxable portion of EPF withdrawal in
non-PAN cases.
4. Taxation on income from Market Linked Debentures

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Personal Income Tax

Income tax rebate increased to ₹ 7 lakh.

The new Income tax rates slabs are:
Reduction in highest surcharge rate
0-3 Lakh Nil from 37% to 25% in new tax regime.
Increasing tax exemption limit to ₹ 25 lakh
3-6 Lakh 5 per cent
on leave encashment on retirement for
6-9 Lakh 10 per cent non – government salaried employees.

9-12 Lakh 15 per cent

12-15 Lakh 20 per cent
Above 15 Lakh 30 per cent

Revenue of the Government

Income Tax: 15.0%

Borrowing and other

liabilities: 34.0%
Union Exercise
Duties: 7.0%

Corporation
Tax: 15.0%
Non - Tax
receipts: 6.0%

Non - Dept Capital

receipts: 2.0% Goods and Services &
Customs: 4.0% other taxes: 17.0%

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Expenditure of the Government

Pensions: 4.0%

Interest Payments: 20.0%

Subsidies: 7.0%

Other Expenditure: 8.0%

Defence: 8.0%

States share of Taxes

Finance Commission and and Duties: 18.0%
other transfers: 9.0%

Central Sector
Centrally Sponsored Schemes: 17.0%
Schemes: 9.0%

Ministry of Defence
(5.94 lakh crores)

Ministry of Road Transport

& Highways (2.7 lakh crores)

Ministry of Railways
(2.41 lakh crores)

Ministry of Consumer Affairs,

Food & Public Distribution
(2.06 lakh crores)
Allocation Ministry of Home Affairs
for Specific (1.96 lakh crores)
Ministries
Ministry of Chemicals and
Fertilizers (1.78 lakh crores)

Ministry of Rural Development

(6 lakh crores)

Ministry of Agriculture and

Farmer's Welfare ( 1.25 lakh crores)

Ministry of Communications
(1.23 lakh crores)

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Pradhan Mantri Awaz Yojana (PMAY)

Pharmaceuticals Industry: would more aggressively fullfil the
As compared to the previous dreams of own house for poors.
fiscal year of 2022 – 23 the As government spending on the
pharma industry is scheme would increase
expected to grow by more than
12.5 times to ₹ 30,000 crores.
₹ 1250 crores.

Jal Jeevan Mission would ₹ 5, 172 crore will be invested in the coming
increase by ₹10,000 crores year than ₹ 2,908 as compared to the previous
in the coming fiscal year year on scheme for faster adoption and
from ₹ 60,000 Manufacturing
crores to of EV’s
₹ 70,000 (FAME).
crores.
ALLOCATION TO
MAJOR SCHEMES
To boost infrastructural development in the
Spending on Eklavya Model
North Eastern region ₹ 2,491 crores will be
residential Schools can increase
invested in the FY 2023 – 24 under the scheme
almost 3 times in
of North East Special
the coming year
Infrastructure
to ₹ 5,943
Development
crores from
Scheme.
₹ 2,000 crores.

Receipts and Expenditure (in ₹ lakh crore)

The Revenue receipts in 2023-24 are expected to be ₹ 26.3 crore, an increase of
11.9% over revised estimate of FY 23. Whereas, in FY 24, Capital receipts as per Budget
estimates are estimated to be 6.5% higher than the revised estimates of FY 23.ipsum

Revenue Receipts

26.3

23.5

22.0
21.7

FY22 FY23 FY23 FY24

Actuals (BE) (RE) (BE)

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Capital Receipts

18.7

18.4

17.4
16.2

FY22 FY23 FY23 FY24

Actuals (BE) (RE) (BE)

Revenue Expenditure

35.0

34.6

32.0
31.9

FY22 FY23 FY23 FY24

Actuals (BE) (RE) (BE)

Effective Capital
Expenditure
13.7

10.7 10.5

8.4

FY22 FY23 FY23 FY24

Actuals (BE) (RE) (BE)

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