New tax regime to leave higher disposable income with people: Sitharaman

The Union Budget 2023-24, astutely balances the requirement for India's development imperatives within the limit of fiscal prudence, Finance Minister Nirmala Sitharaman tells Lok Sabha

Budget 2023 focuses on the middle class, employment generation, Ministry of Micro, Small and Medium Enterprises (MSME), agriculture sector, rural population, health and green growth, said Union Finance Minister Nirmala Sitharaman during a general discussion in Lok Sabha's Budget session on Friday.

She added that the Budget balances the requirement for India's development imperatives within the limit of fiscal prudence.

"In simple words, Budget 2023-24, astutely balances the requirement for India's development imperatives within the limit of fiscal prudence. That is a very difficult balance, it is a very delicately balanced tact," Sitharaman said in the parliament.

The finance minister further added that since the economy dipped by minus 23 due to the Covid pandemic, the government's efforts to recover the economy have been through the capex route (capital expenditure route) from the government's side due to its great multiplier effect.

Describing the new tax regime as "very attractive", Sitharaman also said that the new tax regime, will leave higher disposable income in the hands of people and empower the middle-class taxpayers as a rebate has been provided on an income of up to Rs 7 lakh. 

"Since the enhanced rebate limit is unconditional, it leaves higher disposable income in the hands of people," Sitharaman said.

A tax exemption limit has been hiked to Rs 3 lakh, from Rs 2.5 lakh earlier. Besides, a standard deduction of Rs 50,000 too has been allowed under the scheme, she further explained.

Govt has insulated farmers from rising fertilizer prices in global markets by increasing subsidy, says FM

The FM also highlighted that "fertilizer subsidy was raised to Rs 2.25 lakh crore for current fiscal, from Budget Estimate of Rs 1.05 lakh crore."

On transfers to state, the FM informed the Lok Sabha that the total resources being transferred to states, that is, Central share from taxes and releases under centrally sponsored schemes put together is estimated to be at Rs 17.98 trillion. Which makes it higher by Rs 1.55 trillion from to last year.