A well-structured budget

Finance Minister, Nirmala Sitharaman while presenting the union budget 2023-24 in Parliament began her speech by calling it the first budget of ‘Amrit Kaal’. This statement was reflected in a well-structured budget, which appeared to hit all the right buttons, as one well-known economist put it. A cursory glance at some of the highlights puts things in perspective.
Among the major changes were those relating to personal income tax. The tax slabs overhauled in the new regime point to a well-thought-out incentive for the middle class. Similarly, the increase in income tax rebate limit to Rs.7 lakhs from Rs.5 lakhs under the new tax regime would come as a welcome breather in the election year to the middle class. As the Finance Minister put it, salaried class and pensioners would gain from the benefit of standard deduction with each salaried person with an income of Rs.15.5 lakhs or more standing to benefit by Rs.52, 500. Prime Minister Modi’s vision for Amrit Kaal as seen from the union budget presented by Nirmala Sitharaman lends a sharp focus to the generation of employment opportunities for youth. For instance, the idea of setting up 30 Skill India International Centres across different states will prepare youth for employment even at the international level. Significantly, capital investment outlay is to be raised by 33% to Rs. 10 lakh crore, which will amount to 3.3% of GDP in fiscal 2024. Women’s empowerment and agricultural credit are among other areas of special focus. The impetus given to infrastructure can be seen in the increase in allocation by 33.4% to Rs. 10 lakh crore. The envision of 50 additional airports to improve air connectivity, in addition to helipads, water, aero drones, and advanced landing grounds are key measures that together would serve to improve regional air connectivity. The rail network is in for a major development curve with the highest ever allocation of Rs. 2.4 lakh crore. Prime Minister Modi hailed the budget describing it as one which reflects the Amrit Kaal vision of aspirational India. Development and welfare appear to lie at the heart of the budget’s vision. The thrust on welfare schemes aimed at the underprivileged segments of society who have supported the Narendra Modi government in the last two Lok Sabha elections, as also the BJP across the country, is visible. For instance, there is a whopping allocation of Rs.79,950 crore for PM Awas Yojana—up by 66% from Rs.48,000 crore last year. About 2.94 crore poor people are targeted to get a roof over their heads by 2024, of which 2.12 crore houses have been completed and handed over to the needy. Water is another important area of focus in the budget with Rs. 70,000 crores allocated for the Jal Jeevan Mission. The scheme is set to cover 20 crore households by providing them with clean drinking water by 2024. The budget seeks to make India the global hub for millet which is a move of far-reaching significance. Millets have been renamed Sree Anna because of their nutritional status and overall importance in India’s agricultural scene. Similarly, encouraging rural, start-ups, age, and innovative steps in bridging the urban-rural divide across multiple sectors. All in all, the budget is a well-organised document based on a strong and stable macroeconomic environment, which is set to drive India’s development story further. The fifth largest economy in the world as well and truly on the move.