New Delhi, 1st February
Federal Finance Minister Nirmala Sitharaman has significantly increased capital expenditure by 33% to Rs. presented a budget.
The center’s record capital investment will be supplemented by Rs.37 lakh as a grant to the state for the creation of capital assets. This will increase India’s effective capital expenditure to Rs 137 crore or his 4.5% of GDP in 2023-2024. Railways at Rs 2.4 lakh and roads at Rs 3.4 lakh account for the majority of the expenditure.
The budget also announced 100 projects for last-mile and first-mile connections in the ports, coal, steel, fertilizer and food grain sectors with an investment of Rs 75,000 including Rs 15,000 from the private sector. Also included is his 79,000 kroner for Prime Minister Aawas Yojna and 50 new airports to increase connectivity in the region.
Defense sector capital expenditure was raised from Rs 1 lakh to Rs 1.62.
Sitharaman said the priority ‘Saptarishi’ will guide the government’s plans. These include inclusive development, reaching the last mile, infrastructure and investment, unlocking potential, green growth, empowering youth and the financial sector. These measures will help achieve GDP growth of around 6.5% in 2023-24.
For aam admi, the budget proposes revision of the tax slab. Among his five major announcements in this regard, the IT rebate cap under the new regime will be raised from Rs. The other three relate to the reduction of the maximum surcharge tax rate, which reduces the maximum tax rate, and the extension of the tax exemption limit for vacation cash.
The one-time Mahira Saman Savings Certificate, valid until March 2025, offers deposits of up to INR 200,000 at 7.5% interest. The maximum deposit limit for Senior Savings Scheme and Monthly Income Account Scheme will be doubled to Rs 30 lakh and Rs 9 lakh respectively. However, hitting the public, insurance policies with premiums over Rs 5 million will no longer be tax exempt.
The total government expenditure of over Rs 42 lakh is covered by income of Rs 27.2 lakh and borrowings of Rs 15.4 lakh. The gap or budget deficit will be his 5.9% of GDP. By comparison, the current fiscal expenditure of about Rs.38 lakh is covered by gross income of Rs.24.3 lakh and borrowing of Rs.14.21 lakh.
As a result, the debt service obligation increased to Rs.8.95 crore against Rs.7.27 crore, an increase of almost Rs.1.5 crore. Next year’s interest payment is Rs 113,000 against his Rs 98,000 for the current financial year, an increase of Rs 15,000.
The government spending plan will also be supported by Rs 49,000 crore less savings in fertilizer subsidies compared to the current budget and revised estimates of Rs. Decrease in food subsidies by INR 7,600 billion.