Budget 2023 - 5 Major Announcements Proposed In Union Budget 2023

Budget 2023 - 5 Major Announcements Proposed In Union Budget 2023

The Union Budget of India, presented annually by the Finance Minister, outlines the government's plan for revenue and expenditure for the upcoming financial year. On February 1st, 2023, Union Finance Minister Nirmala Sitharaman delivered the Union Budget 2023. Let’s look at the 5 major announcements in the budget 2023-23.

Below are 5 major announcements for the middle class: 

Increased Income Tax Rebate Limit 

The income tax rebate limit is to be raised from 5 lacs to 7 lacs In The New Tax Regime. FM stated in the budget 2023 - Individuals with income up to Rs.5 lakh will not be required to pay any income tax under both old and new tax regimes. 

However, Finance Minister Nirmala Sithraman proposed to increase the rebate limit to Rs. 7 lacks from Rs. 5 lacs in the new tax regime. Accordingly, individuals whose annual income is up to 7 lacs, are not required to pay the income tax. There is no tax on income up to 7 lacs. 

New Tax Slabs 

Finance Minister Nirmala Sitharaman has revealed in the union budget 2023 that the tax for income of Rs 0-3 lakh is nil; Rs. 3 Lakhs to Rs. 6 Lakhs is 5%; Rs. 6 Lakhs to Rs. 9 Lakhs is 10%; Rs. 9 Lakhs to Rs. 12 Lakhs is 15%; Rs. 12 Lakhs to Rs. 15 Lakhs is 20%; Above Rs. 15 Lakhs is 30%.

The maximum surcharge rate was reduced from 37 percent to 25 percent in the new tax regime 

In terms of personal income tax, the highest tax rate 42.74 percent was announced as the fourth announcement. This was one of the highest levels ever recorded. But In the new tax system, the finance minister suggested lowering the maximum surcharge rate from 37 percent to 25 percent. The maximum tax rate would drop to 39% as a result of this.

Healthcare Development

Finance minister Nirmala Sitheraman stated in budget 2023, “There will be new 157 nursing colleges along with the funding to change the waste or useless old government vehicles and ambulances. She stated “The budget has proposed significant investment in the healthcare sectors. The establishment of 157 new nursing colleges is to be done. 

Agricultural Transformation

The budget of 2023 has brought some reforms with the motive to enhance the agricultural sectors including a cash transfer of Rs 2.2 lakh crore under the PM-KISAN scheme. “Massive decentralized storage capacity to help farmers store produce and realize reasonable prices,” FM said.

In conclusion

Nirmala Sitharaman proposed several changes in the budget 2023-23 for a robust Indian economy. The increased income tax rebate limit, new tax slabs, reduced surcharge rate, investment in healthcare, and agricultural transformation are key points to be noted. These changes have the potential to benefit the middle class and support their financial well-being. However, it's important to keep a watch on the implementation of these proposals and their impact in the coming months.

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