The union budget 2023-24 can be summarized in three big takeaways. The government has raised capital expenditure, shown physical prudence, and declared the new personal income tax regime as a default.
1. Raising capital expenditure by the government:
- Capital expenditure is the money that is spent on building productive research such as roads, bridges, and ports. This is a greater return to the economy and every Rs. 100 spent leads to Rs. 250 gain for the economy. Revenue expenditure on the other hand returns less than 100 rupees.
- In the latest budget capital expenditure by the government has been raised by Rs. 10 lakh crore – this is more than double the amount of money allocated when compared to 2020-21 (Rs. 4.39 lakh crore).
2. Fiscal prudence:
- The finance minister has assured that a physical deficit market borrowing by the government will fall to 5.9% of the GDP as promised in the glide path. This will have a salutary impact on the border economy as it suggests that money will be available for private entrepreneurs to borrow.
3. New personal income tax resign is now the default
- This will perhaps be the most talked about decision of the budget. Salaried Indians were expecting some relief on the income tax front. The finance minister seems to have provided it but the so-called new personal tax regime, which was introduced last year but did not have any takers.
- The finance minister has used the incentives to popularize the new Income Tax Regime while also declaring that it will now be available as the default scheme.
References:
https://byjus.com/free-ias-prep/union-budget-2022-23/
