Union Budget 2023-24

What’s in store
for you?

Finance Minister Nirmala Sitharaman presents the

last full Budget of the government before General
Elections 2024. Finance Minister lists seven priorities
of Budget, including infra, green growth, financial
sector, youth power. Four transformative
opportunities can be used in Amrit Kaal for
enhancing economic empowerment.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
 Union Budget 2023-24
Key highlights

ECONOMY 3
AGRICULTURE 4
PHARMA 4
TAX EXEMPTION & INVESTMENTS 5
DIGITAL & AI 6
HOUSING 7
JOBS 7
MSMEs & STARTUPS 7
SOCIO-ECONOMIC 8
FINANCE, INCLUSION & BANKING 9
INFRA & URBAN PLANNING 9
ELECTRIC VEHICLES 10
EDUCATION 10
TELECOM 10
WOMEN & CHILDREN 11
EASE OF BUSINESS 11
DEFENCE 11
RAILWAYS 11
TRAVEL & TOURISM 12
CLIMATE & NET ZERO 12
OTHERS 13

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
 Union Budget 2023-24
Key highlights

Economy
In 75th year of Independence, world has recognised
India as a bright star
Indian economy has increased in size from being 10th
to 5th largest in last nine years
Per capita income has increased to Rs. 1.97 lakh
India's growth at 7% in current fiscal highest among
major economies
Economy has become more formalised as shown by
the EPFO data, with 270 million members
G-20 presidency gives India opportunity to strengthen
role in global order
Govt to launch a Rs 2,200 crore Aatmanirbhar clean
plan programme
Govt to set up Gowardhan Scheme for promoting
circular economy with total investment of Rs. 10,000
crore
States to be allowed 3.5% of GDP as fiscal deficit
50-year interest-free loans to state govts has to be
spent on capital expenditure within 2023-24
FM Sitharaman retains fiscal deficit target of 6.4% in
the Revised Estimate for FY23; cuts it to 5.9% for FY24.
To finance fiscal deficit in 2023-24, net market
borrowing from dated securities estimated at Rs. 11.8
lakh crore

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 Union Budget 2023-24
Key highlights

Agriculture
Cash transfer of Rs. 2.2 trn under PM-KISAN
Agriculture credit target increased to Rs. 20 trn for
FY'24, with focus on animal husbandry, dairy and
fisheries
Digital public infrastructure for agriculture will be
built as open source, open standard and
interoperable public good
To enhance yield of extra-long staple cotton,
government will adopt a cluster-based and value
chain approach
PM-PRANAM will be launched to incentivise states
to promote alternative fertilisers; PM-PRANAM will
be launched to incentivise states to promote
alternative fertilisers
Govt to take up mangrove plantation along the
coastline under the new MISHTI scheme
Govt to promote conservation values through a
scheme to encourage optimal use of wetlands

Pharma
Govt to launch new programme to promote
pharmaceuticals research
Facilities in select ICMR labs will be made available
for research by public and private medical faculties
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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
 Union Budget 2023-24
Key highlights

Tax Exemption
& Investments
Govt proposes to increase income tax rebate limit
from Rs. 5 lakh to Rs. 7 lakh in new tax regime
No tax for income up to Rs. 3 lakh; 5 per cent tax on
Rs. 3-6 lakh; highest tax rate of 30 per cent on
income above Rs. 15 lakh under new I-T regime
An individual with income of Rs. 15 lakh will have to
pay Rs. 1.5 lakh tax down from Rs. 1.87 lakh under
new tax structure
An individual with annual income of Rs. 9 lakh will
have to pay only Rs. 45,000
Reduces highest surcharge rate to 25% from 37% in
new regime
Tax exemption up to Rs. 7 lakh per year under new
tax regime from Rs. 5 lakh per year
New cooperatives that commence manufacturing
activity till March 2024 to attract lower tax rate of
15%
Tax portal processed 6.5 crore returns, processing
time cut; intend to strengthen grievance redressal
mechanism
Govt to enhance grievance redressal mechanism for
direct tax payers
Govt proposes to reduce customs duty on import of
certain inputs for mobile phone manufacturing

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
 Union Budget 2023-24
Key highlights

Govt to continue with concessional basic customs

duty of 2.5% on copper scrap
Customs duty on kitchen electric chimney increased
to 15% from 7.5%
Customs duty on parts of open cells of TV panels cut
to 2.5%
Govt to reduce customs duty on shrimp feed to
promote exports
Basic customs duty hiked on articles made from gold
bars
Basic import duty on compounded rubber increased
to 25% from 10%
Taxes on cigarettes hiked by 16%
Govt to reduce basic customs duty on seeds used in
manufacturing of lab-grown diamonds
FM also announced to extend the custom duty
exemption on lithium-ion batteries for a year
Senior citizens savings scheme cap increased from
Rs. 15 lakh to Rs. 30 lakh
Monthly Income Scheme limit doubled to Rs. 9 lakh
and Rs. 15 lakh for joint accounts

Digital & AI
Three centres of excellence for artificial intelligence
will be set up in top educational institutions

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
 Union Budget 2023-24
Key highlights

Housing
PM Awas Yojana outlay hiked by 66 per cent to
Rs. 79,000 crore
Govt proposes to cap deductions from capital gains
on investments in residential houses to Rs. 10 crore

Jobs
Pradhan Mantri Kaushal Vikas Yojna 4.0 will be
launched to skill lakhs of youth; 30 Skill India
international centres to be set up

MSMEs &
Startup
Govt proposes to increase limit for presumptive
taxation for MSMEs and certain professionals to Rs.
3 crore and Rs 75 lakh, respectively
If MSMEs fail to execute contract, 95 per cent of
performance security will be returned to small
business as part of Vivad Se Vishwas
India now 3rd largest ecosystem for startups; firms
incorporated till March 2024 to get I-T benefits

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
 Union Budget 2023-24
Key highlights

Govt proposes to increase benefit of carry forward of

losses for startups to 10 years
Govt to bring another dispute resolution scheme
under Vivad Se Vishwas-2 to settle commercial
disputes
The revamped Credit Guarantee Scheme for MSME
sector will take effect from April 1, 2023 with an
infusion of Rs. 9,000 crore

Socia-economic
During pandemic we ensured no one would go
hungry through a scheme that provided food for 800
million Indians for over 28 months
Govt implementing scheme to supply free grains to
poor under PMGKAY with expenditure of Rs. 2 lakh
crore from Jan 1, 2023
To improve social-economic condition of the
Particularly Tribal Groups, PMPBTG Development
mission will be launched, to saturate PBTG
habitations with basic facilities. Rs. 15,000 crore to
be made available to implement scheme in next 3
years
Pradhan Mantri Primitive Vulnerable Development
Commission being launched; Rs. 15,000 crore
earmarked for next 3 years
PM Primitive Vulnerable Tribal Group scheme to
benefit 3.5 lakh tribals

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
 Union Budget 2023-24
Key highlights

Finance,
Inclusion
& Banking
Capital investment outlay is being increased steeply
for third year in a row to Rs. 10 lakh crore
Centre to continue 50-year interest-free loans to state
governments for one more year
Capital investment outlay is being increased steeply
for third year in a row to Rs. 10 trn

Infra & Urban

Planning
Enhanced Capex of Rs. 10 trn for infra development
is 3.3% of the GDP
Govt to create Urban Infrastructure Development
Fund on lines of Rural Infrastructure Development
Fund; to be managed by NHB
Newly-established infrastructure finance secretariat
will assist all stakeholders in more private investment
Expert committee to be set up to make infrastructure
classification and financing framework suitable for
Amrit Kaal
100 critical transport infrastructure projects have
been identified for implementation

9
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
 Union Budget 2023-24
Key highlights

All cities and towns will be enabled for 100%

transition of sewers and septic tanks from manhole
to machine hole mode
Cities will be encouraged to increase
creditworthiness for municipal bonds

Electric
Vehicles
Indirect tax proposals to boost green mobility and
EVs. Customs duty exemption extended to import of
capital goods and machinery required for the
manufacture of lithium-ion cells for batteries used in
electric vehicles

Education
A National Digital Library for children and
adolescents will be set up for facilitating the
availability of quality books across geographies,
languages, genres and levels and device-agnostic
accessibility

Telecom
Govt to set up 100 labs for developing applications
for 5G services

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
 Union Budget 2023-24
Key highlights

Women &
Children
National Rural Livelihood Mission has achieved
remarkable success by mobilising rural women into
1 lakh Self Help Groups (SHG)

Ease of
Business
For enhancing ease of doing business, more than
39,000 compliances have been reduced, over 3,400
legal provisions decriminalised

Defence
Defence Ministry has been allocated Rs. 5.94 lakh
crore for the financial year 2023-24

Railways
Capital outlay of Rs. 2.40 trn for railways fixed
for 2023-24
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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
 Union Budget 2023-24
Key highlights

Travel &
Tourism
Large potential to be tapped in tourism. Promotion of
tourism will be taken up on mission mode
Govt to select 50 destinations through 'challenge
mode' to promote tourism
50 additional airports, helipads, water aero drones,
and advanced landing grounds will be revived to
improve regional air connectivity

Climate &
Net Zero
Govt targeting 5 MT of Green Hydrogen production
by 2030
Budget provides for Rs. 35,000 crore for priority
capital investment towards energy transition and net
zero objective
Green credit programme will be notified to
incentivise environmentally sustainable and
responsible actions by companies

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
 Union Budget 2023-24
Key highlights

Others
Mobile phone output rose from 5.8 crore units in
2014-15 to 31 crore units last fiscal
Govt to bring National Data Governance policy
National Data Governance Policy will enable
anonymised data; KYC process will be simplified by
adopting risk-based system
PAN will be used as common identifier for all digital
systems of specified government agencies
One stop solution for reconciliation and updating of
identity of individuals be established
Govt to provide R&D grant to one of the IITs to
encourage indigenous production of lab-grown
diamonds in a bid to reduce imports

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
 Union Budget 2023-24
Key highlights

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Source: Union Budget Speech

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Mutual Fund investments are subject to market risks,

read all scheme related documents carefully. CL107