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Union Budget 2023 Key Highlights

Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24 in Parliament on Wednesday. It is likely to be the last full-fledged Budget of the Narendra Modi government before the 2024 Lok Sabha elections early next year.

The government has announced focus on widening the scope of economic growth, boosting key areas like infrastructure and manufacturing and creating jobs. Here are highlights, key points of today’s Budget.

Budget 2023 Key Highlights:

  • India GDP is projected to grow by 7% in FY23,ahead of RBI’s prediction of 6.8%
  • The rebate limit in the new tax regime is increased from Rs 5 lakh to 7 lakh and there is a corresponding easing of the tax slabs.
  • New tax regime a default regime; will have option to choose old regime.
  • Reduced the highest surcharge rate in personal income tax from 37% to 25% in the new tax regime.
  • Extended the benefit of standard deduction to the new tax regime. Each salaried person with an income of ₹15.5 lakh or more will thus stand to benefit by ₹52,500.
  • Reduce highest surcharge rate to 25% from 37% in new tax regime.
  • The government also said it will increase its capital outlay by 33% to ₹10 lakh crore in FY24 – that’s 3.3% of GDP.
  • 157 new nursing colleges to be started.
  • 100 labs to be set up for 5G solutions across engineering colleges
  • Agricultural credit target raised to ₹20 lakh crore.
  • Allocation to PM Awas Yojana enhanced by 66% to ₹79,000 crore.
  • ₹15,000 crore allocated over three years to the Scheduled Tribe Mission.
  • Rs 2.40 lakh crore has been allocated for Indian Railways.
  • Tax on cigarettes revised upwards by 16%.

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Note: This Post was last updated on February 1, 2023

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