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Wed, 01 February 2023
BUDGET LIVE M'bap'pe of a budget, not Messi: Goenka
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19:07 M'bap'pe of a budget, not Messi: Goenka leads India Inc's cheer
India Inc on Wednesday described Union Budget 2023-24 as a road map for nation building, growth-centric and fiscally prudent with continued focus on capex and inclusion.
With vision, structure and discipline it puts India on the path to become "the world champion", industry leaders said.
Industry body CII's Director General Chandrajit Banerjee said the Budget is growth-oriented and fiscally prudent with continued focus on capex and inclusion.
"The finance minister delivered a growth-centric budget building further on the strategy of high capex. The first Budget of India's Amrit Kaal also lays strong foundations for a Viksit Bharat by 2047," he said.
The continued thrust on capital expenditure will boost overall economic productivity, crowd in private investment, and drive growth through a multiplier effect, Banerjee added.
FICCI President Subhrakant Panda said the announcements captured the pulse of the economy while retaining credibility both in terms of projections as well as committing to the fiscal consolidation glide path.
Most importantly, he said a "historic outlay" for public capex is a continuation of the heavy-lifting since the time of the pandemic and will have a multiplier effect across myriad sectors of the economy besides crowding in private investment.
"A push to investment and consumption was required to keep the growth cycle in motion. We are happy to note that the government has continued the thrust on capital expenditure with a 33 per cent increase in the capital outlay to Rs 10 lakh crore representing 3.3 per cent of GDP," Panda said, adding that it was a step in the right direction amid a global economic situation which is still not at ease.
Another industry chamber ASSOCHAM said the Budget for 2023-24 is a road map for nation building with continued focus on massive public expenditure on infrastructure, sustainable economic growth, encouraging consumption demand while staying on course of strict fiscal prudence.
"A 33 per cent jump in the capital expenditure to Rs 10 lakh crore clearly demonstrates the government's resolve to help India remain the fastest growing economy in the world, despite global headwinds," ASSOCHAM President Sumant Sinha said.
PHD Chamber of Commerce and Industry President Saket Dalmia said the Budget is "demand sustaining, investment inducing and growth-oriented" and it has been presented at a time when India finds itself in the bright spot as the growth of the Indian economy is highest among the leading economies.
Kotak Mahindra Bank CEO Uday Kotak described it as a "Budget with vision, structure, discipline. Immediate benefits to all individual earners. Continues measured path of fiscal consolidation. Sets foundation to increase every Indian's per capita income exponentially from Rs 1.97 lakh( 2400$).True to its name: 1st budget for Amrit Kaal."
Taking a football analogy, RPG Enterprises Chairman Harsh Goenka tweeted, "M'bap'pe of a budget, not 'Messi' at all. A budget that puts India on the path to become the world champion- all set to score goals on infra development, consumption and inclusion. A big boost for domestic manufacturing, job creation and ease of doing business! #Budget2023."
Godrej & Boyce Executive Director and CEO Anil G Verma said this is a balanced and inclusive budget which will provide further impetus to growth.
"The renewed thrust on investment in infrastructure will drive the productivity of our economy and generate employment. Our competitiveness in the global economy will also be improved through the thrust on research in fields like 5G services, AI and agriculture," Verma added.
18:49 J-K gets Rs 35,581.44 crore allocation
The Union Budget 2023-24 on Wednesday allocated Rs 35,581.44 crore to Jammu and Kashmir, the majority of it being central assistance for the union territory.
Other union territories -- Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli and Daman and Diu, Ladakh, Lakshadweep, Puducherry and Delhi -- too got their share.
According to the Budget papers, Rs 35,581.44 crore has been allocated to Jammu and Kashmir, of which Rs 33,923 crore is central assistance. This allocation is substantially lower than the current fiscal's revised estimate of Rs 44,538.13 crore.
The central assistance given to the Union territory is to meet the resource gap and a special fiscal support of Rs 9,486.13 crore.
The Jammu and Kashmir administration will have to spend the amount for mitigation of natural disasters, to meet the expenditure incurred on account of permanent restoration of infrastructure which was damaged due to the 2014 floods, rehabilitation, preservation and restoration of Dal-Nageen lake in Srinagar.
The funds will also be spent as equity contribution for 624 MW Kiru hydroelectric project, 800 MW Ratle hydroelectric project and 540 MW Kwar hydroelectric project, Jhelum Tavi flood recovery project and to meet the resource gap funding for infrastructure projects in Jammu and Kashmir.
The Budget allocated Rs 5,987.14 crore to Andaman and Nicobar Islands as against Rs 5,508.05 crore allocated in 2022-23. Rs 5436.10 crore has been allocated to Chandigarh as against Rs 5,131.12 crore in the current fiscal.
The Budget allocated Rs 2,475.00 to Dadra and Nagar Haveli and Daman and Diu, Rs 5,958 crore to Ladakh, Rs 1,394.75 crore to Lakshadweep, Rs 1,168.01 crore to Delhi and Rs 3,117.77 crore to Puducherry.
14:07
The government on Wednesday proposed an increase in the import duty on silver dore, bars and articles with a view to promoting domestic manufacturing.
In her Budget speech, Finance Minister Nirmala Sitharaman also said that customs duties on articles made from dore and bars of gold and platinum has been increased.
"I also propose to increase the import duty on silver dore, bars and articles to align them with that on gold and platinum," she said.
Customs duties on dore and bars of gold and platinum were increased earlier this fiscal.
Representational image
13:25 Mobile phones to get cheaper after duty cut
Finance Minister Nirmala Sitharaman on Wednesday announced a cut in customs duty on the import of certain inputs for mobile phone manufacturing.
In her Budget 2023-24 speech, she said India's mobile phone output rose from 5.8 crore units in 2014-15 to 31 crore units last fiscal.
Her announcement comes at a time when India has aggressively positioned itself as an electronics powerhouse to the world, as global players look for a China plus 1 strategy.
In fact, India has emerged as the world's second-largest mobile phone manufacturer backed by the Centre's enabling policies, various incentive schemes, and a resolve to provide the industry with a competitive environment.
Sitharaman also announced that customs duty on parts of open cells of TV panels would be cut to 2.5 per cent, while customs duty on kitchen electric chimney has been increased to 15 per cent from 7.5 per cent.
However, she said the government would continue with a concessional basic customs duty of 2.5 per cent on copper scrap.
The finance minister also announced a hike in basic customs duty on articles made from gold bars while increasing the tax on cigarettes by 16 per cent.
The government would also reduce customs duty on shrimp feed to promote exports, she said. Further, she said the government proposes to increase the limit for presumptive taxation for MSMEs and certain professionals to Rs 3 crore and Rs 75 lakh, respectively.
13:08 No income tax upto Rs 7 lakh, says FM
Nirmala Sitharaman announced an increase in income tax rebate limit from Rs 5 lakh to Rs 7 lakh under the new tax regime. Consequently, there will be no income tax on income up to Rs 7 lakh, up from Rs 5 lakh currently, under the new tax regime.
Not under the old tax regime.
13:04 Highest tax surcharge reduced to 25% from 37%
The current tax rate in country is 42.74%, among the highest in world. The Budget proposes to reduce the highest surcharge rate from 37% to 25% in the new tax regime. This will result in the reduction of the maximum tax rate to 39%, Sitharaman announced.
12:58 Tax exemption on leave encashment limit raised to Rs 25 lakhs
The limit of 3 lakhs for tax exemption on leave encashment limit raised to 25 lakhs, Sitharaman announced in her speech.
We are also making the new income tax regime the default tax regime. However, citizens will continue to have the option to avail the benefits of the old tax regime, she said.
12:50 Markets welcome Sitharaman's 5th Budget
Sensex up over 980 points, currently trading at 60,534; Nifty at 17,919.
Obviously the markets have given the thumbs up to Nirmala Sitharaman's fifth Budget.
12:45 Standard deduction extended to new tax regime
Salaried class and 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 lakhs or more will benefit by Rs 52,500, Sitharaman said.
12:36 Here are the new personal Income Tax changes
Here are the new personal Income Tax changes under the new tax regime announced by Finance Minister Nirmala Sitharaman.
The new tax rates are 0 to Rs 3 lakhs: nil
Rs 3 to 6 lakhs: 5%
Rs 6 to 9 lakhs: 10%
Rs 9 to 12 lakhs: 15%
Rs 12 to 15 lakhs: 20%
Above 15 lakhs: 30%
12:29 New income tax regime made default one
After announcing the income tax under the new regime, Finance Minister Nirmala Sitharman concluded her speech, which lasted almost 90 minutes.
12:21
Over to income tax proposals...
12:21 Bad news for smokers, custom duty hiked
I propose to reduce the number of basic custom 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 and automobiles, Sitharaman said.
While on the subject, custom duty on cigarettes has been increased.
12:17 FY23 Fiscal deficit revised to 6.4% of GDP
Disclosing that the revised fiscal deficit for the current fiscal year is at 6.4% of GDP, Sitharaman said the FY-2024 fiscal deficit target has been fixed at 5.9% of GDP.
I reiterate my intention to bring the fiscal deficit below 4.5% of GDP by 2025-26, Sitharaman stated.
12:09 100 labs for apps using 5G to be set up
100 labs for developing apps using 5G services will be set up in engineering institutions. To realise the new range of opportunities, business models and employment potential, labs will cover among others, apps like Smart Classrooms, Precision Farming, Intelligent Transports Systems and Healthcare, said Sitharaman.
Illustration: Uttam Ghosh/Rediff.com
12:04 30 Skill India International Centres coming up
To skill the youth for international opportunities, 30 Skill India International Centres will be set up across different states, Sitharaman announced. The government will launch the Pradhan Mantri Kaushal Vikas Yojana 4.0, she added.
12:03 Another dispute resolution mechanism under Vivad Se Vishwas
The government will bring in another dispute resolution scheme under the Vivad Se Vishwas-2 to settle commercial disputes. If MSMEs fail to execute the contract, 95 pc of performance security will be returned to small business as part of Vivad Se Vishwas, Sitharaman said.
Illustration: Dominic Xavier/Rediff.com
11:58 National Data Governance Policy on anvil
Government to bring National Data Governance Policy, Sitharaman announced.
The National Data Governance Policy will enable anonymised data; and the KYC process will be simplified by adopting risk-based system, she added.
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, Sitharaman said.
11:52 Regional air connectivity gets a boost
50 additional airports, helipods, water aero drones, advanced landing grounds will be revived to improve regional air connectivity, said Sitharaman.
She also said that for business establishments required to have a Permanent Account Number, PAN will be used as a common identifier for all digital systems of specified government agencies.
Pic: Parivartan Sharma/Reuters
11:47 Bye bye sewers in 100 cities
All cities and towns will be enabled for 100 pc transition of sewers and septic tanks from manhole to machine hole mode, said Sitharaman.
100 critical transport infrastructure projects have been identified for implementation, and states and cities will be encouraged to take up urban planning.
Capital outlay of Rs 2.4 lakh cr has been provided for Railways; the highest-ever allocation since 2013-14, she said.
11:43 Capital investment outlay upped by 33%
Capital investment outlay is being increased by 33% to Rs 10 lakh crores, which would be 3.3% of the GDP, said Sitharaman.
50-year interest free loan to state governments extended for one more year.
157 new nursing colleges will be established in colocation with the existing 157 medical colleges established since 2014.
11:40 Rs 6000 cr fund for fisherfolk to be set up
New sub scheme of PM Matsya Sampada Yojana, with targeted investment of Rs 6000 crores, to further enable activities of fishermen, fish vendors and micro and small entrepeneurs, improve value chain efficiences and expand the market, said Sitharaman.
Illustration: Dominic Xavier/Rediff.com
11:38 3 centres of excellence in AI to be set up
3 centres of excellence in artificial intelligence to be set up in leading educational institutions in the country, said Sitharaman.
11:35 Rs 15000 cr for tribal group development mission
To improve the social-economic condition of the Particularly Tribal Groups, PMPBTG development mission will be launched, to saturate PBTG habitations with basic facilities. Rs 15,000 cr to be made available to implement scheme in next 3 years, says Sitharaman.
Eklavya Model Residential Schools: In the next three years the Centre will recruit 38,800 teachers and support staff for 740 schools serving 3.5 lakh tribal students, she added.
11:32 Assistance for traditional artisans, craftsmen: Sitharaman
PM Vishwa Karma Kaushal Samman, a package of assistance for traditional artisans and craftspeople, has been conceptualised, will enable them to improve quality, scale & reach of their products, integrating with MSME value chain, says Sitharaman.
11:31 Accelerator fund for agri startups: FM
An agriculture accelerator fund will be set up to encourage agri-startups by young entrepreneurs, and the the agricultural credit target will be increased to Rs 20 lakh crores with a focus on animal husbandry, dairy and fisheries, says Sitharaman.
Pic by Jayanta Dey/Reuters
11:26 Promotion of tourism to be taken up on mission mode
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, Sitharaman said, adding that promotion of tourism will be taken up on mission mode with active participation of states, the convergence of government programme & and -private partnerships.
11:19 India's per capita income at Rs 1.97lakh: Sitharaman
India's per capita income has increased to Rs 1.97 lakh, Sitharaman said in her speech. Government's efforts since 2014 have ensured better quality of life for citizens of the country, she said.
We have made significant progress in many Sustainable Development Goals, and the government made cash transfer of Rs 2.2 lakh crore under PM-KISAN Yojana, she said.
11:15 Sitharaman lists 7 priorities for Budget
Sitharaman spoke of the 7 priorities for Budget, which act as Sapt Rishis in the Amrit Kaal.
They are, she said, inclusive development, infrastructure and investment, unleashing potential, green growth, youth power, financial sector.
11:12 Centre bearing entire expense of Rs 2 lakh cr on PMGKAY
Entire expenditure of about Rs 2 lakh crore under PM Garib Kalyan Anna Yojana is being borne by the central government, for supplying free food grains for one year to all Antyodaya and priroity households, says Sitharaman.
11:11 Boost to be given for women's self help groups: FM
We will enable women's self help groups to reach the next level, with each having several thousand members and run efficiently so they can scale up their operations to serve the large consumer market, says Sitharaman.
11:07 World has recognised India as a bright star, says Sitharaman
'This is the first budget in Amrit Kaal, this budget hopes to build on the foundation laid in previous budget and the blueprint laid for India@100, we envision a prosperous and inclusive India in which the fruits of development reach all.
'The world has recognised India as a bright star, our growth for current year is estimated at 7.0%, this is the highest among all major economies, in spite of massive global slowdown caused by pandemic and the war,' Sitharaman says in her speech
11:03 First budget in Amrit Kaal: Sitharaman
This is the first Union Budget in Amrit Kaal, FM Sitharaman says in her speech.
11:01 Nirmala Sitharaman begins 5th Budget speech
Finance Minister Nirmala Sitharaman begins her Budget Speech in the Lok Sabha, her fifth consecutive one and the Modi government's last full one before the general elections next year.
11:00 Cabinet approves Union Budget 2023-24
The Union Cabinet headed by Prime Minister Narendra Modi on Wednesday approved the Budget for the fiscal year 2023-24 (April 2023 to March 2024), sources said.
Following this, Finance Minister Nirmala Sitharaman will present the Budget in the Lok Sabha.
10:54 Budget will meet everyone's expectations: MoS
Ahead of the presentation of Union Budget 2023-24 in the Parliament on Wednesday, Minister of State for Finance Pankaj Chaudhary said that the budget will incorporate the expectations of every section of society and will stand on everyone's expectations.
Union Finance Minister Nirmala Sitharaman will table the Budget 2023 in Lok Sabha today at 11 am. This will be the Narendra Modi government's last full Budget in this term of Parliament.
Speaking to ANI ahead of the Budget, MoS Finance said that the people's expectations would be reflected in the Budget which will be presented later today.
"This is the budget incorporating the expectations of every section of society. Indian economy is on track due to the leadership of PM Modi and the supervision of Nirmala Sitharaman. The Economic Survey also suggests the same. The budget has been made keeping in view all sections of society and it will stand on everyone's expectations," Chaudhary said.
MoS Finance Dr B Karad told reporters that all making are making progress, and cited the Economic Survey. "Country has made good recovery from COVID. If we look at Economic Survey, all sectors are making progress. Compared to other countries, our economy is good. When PM took oath in 2014, India was 10th (in terms of economy), today it is 5th," he said.
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