The second Budget under the BJP government led by PM Narendra Modi presented by Finance Minister Nirmala Sitharaman has a slew of surprises for taxpayers. The biggest takeaway is the massive income tax relief with an increased tax rebate level of Rs 12 lakh annually and reduced tax slabs. Despite this, the government plans to maintain fiscal discipline and reduce the fiscal deficit to 4.4% in the next financial year. However, there is a notable shift away from recent budgets with a decrease in capital expenditure growth and a focus on employment generation by boosting specific sectors.
Union Budget 2023: Income Tax Relief, Fiscal Discipline, and Employment Generation
The second Union Budget under the Bharatiya Janata Party (BJP) government, presented by Finance Minister Nirmala Sitharaman, brought significant surprises for taxpayers. Amidst the focus on fiscal discipline, the budget also prioritized employment generation and economic growth.
Background:
In the past decade, India's fiscal deficit has averaged around 5.5%, well above the target of 3%. This has raised concerns about the sustainability of public finances and its impact on economic growth. Consequently, the government has been implementing gradual fiscal consolidation measures over the past few years.
Key Highlights of Budget 2023:
FAQs:
How will the new income tax regime benefit taxpayers?
Is the government on track to meet its fiscal deficit target?
Why has the government shifted away from capital expenditure growth?
What is the significance of the tax rebate increase?
How will the government balance fiscal discipline with employment generation?
Conclusion:
The Union Budget 2023 provided a mix of tax relief, fiscal discipline, and employment-oriented measures. While the income tax relief will offer benefits to taxpayers, the effectiveness of the government's efforts to reduce the fiscal deficit and promote employment generation will depend on the implementation of these measures and the broader economic environment.
The benchmark indices in India, Sensex and Nifty, surged thanks to a strong performance by Vedanta, whose impressive Q3 results led to investor sentiment. However, the Economic Survey 2025 highlights potential risks to Indian markets, with high valuations and excessive optimism in the US stock market. All eyes are now on the upcoming Budget for further cues, as the Indian market is sensitive to fluctuations in the US market.
As part of the Budget for 2025-26, Finance Minister Nirmala Sitharaman announced that contributions of up to Rs 50,000 per year towards the NPS Vatsalya scheme, a children's welfare scheme, will be eligible for tax exemption. This move aims to make the scheme more appealing, with the tax benefits also available to regular NPS accounts. The number of enrolments in the scheme is expected to increase with this announcement, providing a secure and prosperous financial future for minors.
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BTTV, a leading business news network, has launched a new market show titled 'Daily Calls' that aims to provide viewers with valuable insights and clarity through live sessions with expert analysts. The show, available on BT TV and Reels, is a must-watch for anyone looking for guidance on investing and portfolio building. With this new addition, BTTV continues to be a go-to source for all things business.
In her eighth consecutive Union Budget, Finance Minister Nirmala Sitharaman has announced a major relief for the middle class in India. People with an annual income of up to Rs 12 lakh will not have to pay any income tax, owing to a tax rebate and the availability of a standard deduction of Rs 75,000 under the new tax regime. However, tax experts state that individuals with zero tax liability are still required to file an income tax return, leading to a cleaner financial record.
Enabling works have begun on the £5.2million redevelopment of Bilston Outdoor Market, which is part of the Bilston Health & Regeneration Programme. The project, funded by the UK Government, will include improvements such as new retail units, a taller canopy for the stalls, and improved pedestrian access from the bus/metro station. Despite the temporary relocation of outdoor traders, the Indoor Market will remain open during the construction. City of Wolverhampton Council Cabinet Member for Resident Services, Councillor Bhupinder Gakhal, expressed excitement for the project that has received positive feedback from traders and residents.
The Indian market showed positive signs as the Sensex and Nifty started the day with gains, ahead of the Union Budget 2025 announcement. However, top gainers on the Sensex included Sun Pharma, UltraTech Cement, IndusInd Bank, Zomato, and Adani Ports, while the top losers were Titan, Bajaj Finserv, Kotak Bank, Nestle, and Asian Paint. The Economic Survey presented by Finance Minister Nirmala Sitharaman projected India's economy to grow between 6.3 to 6.8 per cent in the upcoming 2025-26 fiscal year. However, market experts are looking for growth-stimulating measures in the budget rather than market-related taxation relief. The market response to the budget is expected to last only a few days and will be heavily influenced by trends in growth and earnings recovery.
In her budget speech, Finance Minister Nirmala Sitharaman announced that gig workers would now be eligible for healthcare benefits under the PM Jan Arogya Yojana. This move is aimed at providing support and coverage to nearly a crore of gig workers who are involved in income-earning activities outside of traditional employment models. However, the extent of coverage and implementation details are yet to be disclosed. Experts believe that this step is crucial in providing universal health coverage, especially for a vulnerable section of workers who often face precarious working conditions. To ensure the effectiveness of this initiative, it is important for aggregator companies to share data with the government and for the integration of e-Shram registration with existing welfare schemes.