India Budget 2023 | Ministry of Finance | Governm ent of India | Union Budget 2023-24 Live: Nirmala Sitharaman Budget 2023 Speech Live, In...
The world has recognised the Indian economy as a bright star. India's growth rate is the highest among all the major economies. • The G20 Presidency gives us a unique opportunity to strengthen India's role in the world economic order. • In these 9 years, the Indianeconomy has increased in size from being 10th to 5th largest in the world. • Budget2023-24 adopts seven priorities which complement each other and act as the 'Saptarishi' guiding us through the Amrit Kaal. • The agriculture credit target will be increased to Rs. 20 lakh crore with focus on animal husbandry, dairy and fisheries. • For enhancing ease of doing business, more than 39,000 compliances have been reduced and more than 3,400 legal provisions have been decriminalized. • Our vision for the Amrit Kaal includes technology-driven and knowledge-based economy with strong public finances, and a robust financial sector. • The Indianeconomy has become a lot more formalised as reflected in the EPFO and UPI data. • The new PM VIKAS scheme will enable artisans to improve the quality, scale and reach of their products, integrating them with the MSME value chain. • Our Green growth efforts help in reducing carbon intensity of the economy and provides for large scale green job opportunities. • To make India a global hub for 'Shree Anna', the IndianInstitute of Millet Research, Hyderabad will be supported as the Centre of Excellence. • 'Mangrove Initiative for Shoreline Habitats & Tangible Incomes', MISHTI, will be taken up for mangrove plantation along the coastline and on salt pan lands. • Amrit Dharohar scheme will be implemented over the next 3 years to encourage optimal use of wetlands, and enhance bio-diversity, carbon stock, eco-tourism opportunities and income generation for local communities. • The digital ecosystem for skilling will be further expanded with the launch of a Unified Skill India Digital platform. • States will be encouraged to set up a 'Unity Mall' in their state capital or prominent tourism centre for promotion of their own ODOPs (one district, one product), GI products and other handicraft
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What is the Union Budget?
The Union Budgetor Annual Budgetof India is the country’s comprehensive yearly financial statement consisting of a detailed report of the government’s finances, revenues from different sources and expenditures to be incurred on various activities. According to Article 112 of the IndianConstitution, the Central Government presents a statement of its estimated receipts and expenditure for the year, starting from April 1 and ending on March 31, before both houses of Parliament. The Budgetis prepared by the Finance Ministry in consultation with Niti Aayog and other concerned ministries. The country’s Finance Minister presents the Budgetin February and the presentation speech in the Lok Sabha comprises of Annual Financial Statement (AFS), Appropriation Bill, Expenditure Budget,Receipts Budget,Expenditure Profile, Medium Term Fiscal Policy cum Fiscal Policy Strategy Statement, Macro-economic framework for the relevant financial year, Demand for Grants (DG) and Finance Bill. The Union Budgetincludes Capital Budget,Revenue Budget,and Expenditure Budget.The primary objective of the Union Budgetis to present the annual financial record and plans of the government and help in obtaining all-inclusive economic growth for the country. The budgetaims at empowering the central government to carry out its constitutional duties such as delivering social justice and equality for all.
BudgetFrequently Asked Questions (FAQs):
How is the Union Budgetprepared every year?
The Finance Ministry’s budgetdivision of the department of economic affairs (DEA) prepares the Union Budgetin consultation with various concerned ministries. The process starts six months prior to the date of presentation, in August-September and the budgetneeds to be passed by both Parliament houses before the beginning of the financial year (April 1). The Finance Ministry issues circulars to all ministries, Union territories, States and autonomous bodies requesting them to prepare estimates for the upcoming year. Then the requests are reviewed by the top government officials and upon approval, the report is then forwarded to the Finance Ministry. After that, revenues are allocated to various departments and the Finance Minister then holds pre-budgetmeetings with various stakeholders. Post consultation, the Finance Minister then takes the final call after discussion with the Prime Minister and then the budgetis finalised.
What is the difference between Interim and Final Budget?
The government presents an interim budgetwhen it does not have the needed time for the preparation of the final budget.Most of the time, it is presented when general elections are near and the present government leaves the task of preparing a full budgetfor after the results of the elections. As the Union Budgetis valid till the end of the financial year, i.e. March 31, the spending rights of the government are only up to that date. So when the central government could not present the final budgetbefore the end of the fiscal year, it requires parliamentary approval to incur expenses from the day the new fiscal year starts and until a new budgetis passed. Technically it is just like the full budgetand as the name suggests only for a temporary period.
What are a few interesting facts about Union Budget
The Union Budgetfor the financial year 2023-2024 will be presented by Finance Minister Nirmala Sitharaman on February 1. Here are some interesting historical facts about the budget:
1. Independent India’s first budgetwas introduced on November 26, 1947, by then Finance Minister R K Shanmukham Chetty.
2. Nirmala Sitharaman delivered the longest speech, speaking for 2 hours and 42 minutes while presenting the budgeton February 1, 2020.
3. Former Prime Minister Moraraji Desai presented the most number of budgets(10) during his tenure as Finance Minister between 1962-69, followed by P Chidambaram (9) and Pranab Mukherjee (8).
4. In 2019, Nirmala Sitharaman became the second woman after Indira Gandhi, to have presented the Union budget.
5. For the first time in Independent India, a paperless budgetwas presented due to the Covid-19 pandemic.
What are the different types of budgets?
There are three types of budgets:
Balanced Budget:When the estimated expenditure of the government is equal to the expected receipts in a financial year then it is called a balanced budget.Though it ensures economic stability but is unviable at times of hyperinflation or recession.
Surplus Budget:When the expected revenues of the government exceed the estimated expenditure in a fiscal year then it is called a surplus budget.It means that the government is earning more from taxes than it spent on public welfare.
Deficit Budget:When the government’s estimated expenditure exceeds the revenue in a fiscal year then it is called a deficit budget.Though it enables the government to spend more on public welfare it also increases the burden on the government by accumulating debts.
What is the difference between Revenue receipts and Capital receipts?
The various sources from which a government raises revenue are called government receipts. There are two types of receipts:
Revenue receipts: These are current income receipts from taxes, grants and all other sources. These receipts neither cause any reduction in the government’s assets nor any liability. There are two types of revenue receipts: Tax Revenue and Non-Tax Revenue.
Capital receipts: These receipts cause a reduction in the assets of the government or create liability. Borrowings, disinvestment – Resale of shares of public sector undertakings and recovery of loans are the government’s major sources of capital receipts.
What is the difference between Capital expenditure and Revenue expenditure?
The expenditure of the government is categorised in two ways:
Capital Expenditure: When the government spends to create assets like roads, railway lines, canals, hospitals, schools etc, or reduce its liability like loan repayment etc, then it is called capital expenditure.
Revenue Expenditure: When the government, on the other hand, incurs expenditure that neither reduces liability nor creates any asset then it is called revenue expenditure. Salary payment to government employees, providing free healthand education services, maintenance of public property etc are constituents of revenue expenditure.
