Union Budget 2023-24 Highlights | Income tax rebate limit increased to ₹7 lakh crore; Railways accorded highest-ever capital outlay
The Hindu
The major budget announcement was the increase in the rebate limit for paying income taxes to Rs 7 lakh. Further, railways has been accorded its highest-ever capital outlay of Rs 2.40 lakh crore.
Announcing its last full budget before the 2024 elections, the NDA government focused on a slew of measures that expanded Capital Expenditure spending and tied in various priorities including Green Growth, Youth Power and Inclusive Development. This was also accompanied by major tax announcements for the salaried class, with changes in tax slabs and a clear intention to shift to the new tax regime.
The Union Finance Minister highlighted that the current year’s economic growth is estimated to be at 7%, “highest among all the major economies.” Finally, with regards to the fiscal deficit, she retained it to the target of 6.4% in the revised estimate for FY2022-23 and reduced it to 5.9% for the next fiscal. Fiscal deficit would be brought down to below 4.5% by 2025-26, Ms. Sitharaman said.
> Finance Minister Nirmala Sitharaman upped the rebate limit for paying income taxes to Rs 7 lakh/annum. This would be facilitated under the new tax regime which would be made the new default regime.
> The income slabs under the new personal income tax regime have been revised from six to five. The tax exemption limit has been increased to Rs 3 lakh.
The new applicable tax rates hold zero taxes for those earning upto ₹3 lakh, 5% for ₹3-6 lakh, 10% for ₹6-9 lakh, 15% for ₹9-12 lakh, 20% for ₹12-15 lakh and 30% for ₹15 lakh and beyond.
> Railways accorded its highest-ever capital outlay: The recently-announced budget increased the capital outlay for railways to its highest ever at ₹2.40 lakh crore. Ms Sitharaman stated that this was 9 times more than the outlay accorded in 2013-14.
> The fiscal deficit is estimated to be 5.9% of the GDP in FY 2023-24.