Economy

People's Budget To Make India Self-Reliable And Green: Brief About India's Budget

The Indian constitution makes no mention of a budget; instead, the annual budget is referred to as the "Annual Financial Statement" in Article-112 of the Indian constitution.

Every year, the annual budget is presented by India's finance minister; this year, it was presented by Nirmala Sitaraman, India's current finance minister. 

Let's not get into the long history of the budget's date and time; instead, let's discuss the fine points discussed in the budget by Finance Minister Nirmala Sitaraman.

The budget was not a populous one, as they usually are before election season. This budget has been carefully crafted to benefit a diverse range of classes, including the middle class, the poor, and the corporate or wealthy classes. 

According to the budget, the government plans to expand the field of education to every class, invest in green energy, and start-up businesses, and entice foreign direct investment into the friendly and financially efficient Indian market. 

Let's start with the budget; the fine print will come later, and we'll go over each section in great detail. 

On the eve of the budget, the economic survey predicted that India's growth rate would be between 6.0% and 6.8% in 2023-2024. Other world financial institutions have also predicted positive growth. The World Bank and IMF predicted a similar growth story for India, ranging from 5.9% to 7.0%.

Auto Market-Partner in India's Atmanirbhar Bharat and economic boom 


Auto Market will grow at a significant rate instead of difficulties regarding semiconductor shortages. 

The government has made some provisions in the budget that will be going to help companies to boost car manufacturing. 

FM Nirmala Sitaraman has announced a scheme to assist state governments and municipalities in replacing dilapidated polluting vehicles, including old ambulances.

This is expected to boost sales of automobiles ranging from SUVs to MUVs in the country. The government is also encouraging state and local governments to switch to electric vehicles, as well as pushing its own potential to transition from the old energy regime of oil to a more sustainable green energy regime by 2023.

It will be going to help big automobile manufacturers of India, Tata motors, Maruti Suzuki, Mahindra, and Toyota Kirloskar Motors. 

Indian car manufacturers assisted India in accomplishing an extraordinary feat by displacing Japan as the world's third-largest car manufacturer of the world when Indian car manufacturers are facing shortages in semiconductors since the Covid pandemic. 

That means the Indian car market is expanding and will continue to expand as the Indian middle-class base expands year after year. 

The Income Tax Rebate is a historic move by the Indian government:


The income-tax rebate limit has been increased from 5 lakh rupees to 7 lakh rupees under the new tax regime, according to the budget 2023. The old tax regime will remain in place, but the new regime will be accepted as the default regime beginning with the fiscal year 2023. 

Previously, the government established two income tax regimes, both of which are 5 lakh tax regimes, and continue to exist.

The new tax rates are as follows: 

1. Rs. 0 lakh - Rs. 3 lakh- NiL
2. Rs. 3 lakh - Rs. 6 lakh- 5%
3. Rs. 6 lakh - Rs. 9 lakh-10%
4. Rs. 9 lakh - Rs. 12 lakh-15%
5. Rs. 12 lakh - Rs. 15 lakh-20%
6. Rs. 15 lakh-30% 

This relief will encourage the middle class to spend more, allowing the government to earn more money through indirect taxes such as GST. Ultimately, it will boost India's GDP growth and India's Per capita income. 

Big Relief for MSMEs: Rs. 9,000 crores for revamped Credit Guarantee Scheme:


1. This is expected to boost fund flow to the distressed and fund-starved MSME sectors. 

2. The proposed scheme will take effect from April 1, 2013. Bankers will be in a comfortable position when lending money to MSMEs who can not provide proper collateral against their loans and their proposed investment cap.  

3. The government Emergency Credit Line Guarantee Scheme (ECLGS) was earlier extended up to March 2023 from March 2022. 

4. Its guarantee cover was also expanded by Rs. 50,000 crores to a total cover of rs. 5 lakh crores with the additional amount being earmarked exclusively for hospitality and transport enterprises. This will help India's massive tourism industry to grow. It will also greatly assist entrepreneurs in the tourism industry in growing their businesses and increasing their income.

Government Maintains its Fiscal discipline record: 


During Covid-19, the government's fiscal discipline has taken a hit due to its support to save industries but eventually, the government came back to its path of fiscal discipline. 

The government's fiscal deficit fell from 6.4% of GDP in 2022-23 to 5.9% in 2023-2024 this year.

The fiscal deficit for the coming year is expected to be 4.5%, which is nearly equal to the level when the government took office in 2014.

Boost for Green Energy:  


Finance Minister Nirmala Sitharaman makes an announcement of Rs 35,000 crore for energy transition and Rs 19,700 crore for green hydrogen.

India has already set the goal of Net Zero by 2070. 

According to her, the Centre is also supporting the installation of 4,000 MWh of battery energy storage, and a green credit program will be notified under the Environment Protection Act.

Reliance Industries, Indian Oil, NTPC, Adani Enterprises, JSW Energy, and Acme Solar are all involved in the green hydrogen game, with the Adani Group partnering with TotalEnergies of France. 

The Stock Market of India reached a great high after the Budget but it tumble miraculously and touched the day's lowest. 

The government set goals for every section starting from Youth, Farmers, Middle-class, Corporates, and low-income people.

This is the government's "GAO.GARIB and KISHAN" budget for "Amrit Kal," and it is also the 75th anniversary of India's independence from British colonial rule.

India has become the "Bright Spot" of the world economy according to the IMF and World Bank heads also according to the UNGA head.