Union Budget 2023: Key highlights of Nirmala Sitharaman's budget speech

Union Finance Minister Nirmala Sitharaman on Wednesday unveiled the last full budget of the second term of the BJP-led NDA government ahead of the general elections in 2024. She said the Budget for 2023-24 hopes to build on the foundation of the previous budget and blueprint for India@100.

Budget 2023-24: Key highlights 

• The first budget in Amrit Kaal is the blueprint for India@100
• Economic growth is expected to be at 7 percent, the highest among major economies.
• Government implementing a scheme to supply free grains to the poor under PMGKAY with an expenditure of Rs 2 lakh crore from January 1.
• Capital Investment outlay increased to Rs 10 lakh crore, 3.3% of GDP
• Three centres of excellence for artificial intelligence to enable 'Make AI for India' and 'Make AI work for India'
• Capital outlay of Rs 2.4 lakh crore for railways in the next financial year, nine times higher than the 2013-24 budget.
• PAN will be used as a common identifier for all digital systems of specified government agencies.
• Government proposes to increase income tax rebate limit from Rs 5 lakh to Rs 7 lakh in new tax regime
• An individual with annual income of Rs 9 lakh will have to pay only Rs 45,000 in taxes
• No tax for income up to Rs 3 lakh; 5 pc tax on Rs 3-6 lakh; highest tax rate of 30 pc on income above Rs 15 lakh under new I-T regime
• In a major change in personal tax, Union Finance Minister Nirmala Sitharam extened income tax rebate on income up to Rs 7 lakh in the new tax regime.
• New tax regime is the default tax regime.
• An individual with income of Rs 15 lakh will have to pay Rs 1.5 lakh tax, down from Rs 1.87 lakh under new tax structure
• Government proposes to reduce highest surcharge rate from 37 pc to 25 pc in new tax regime
• Net tax revenue foregone because of changes in direct and indirect taxes is Rs 35,000 crore.
• Government proposes to make new tax structure the default tax option.