According to Nirmala Sitharaman, India has the highest GDP growth rate of any country. We are the fastest-growing economy.
Facilitating ample opportunities for citizens, especially the youth; stimulating growth and employment; and strengthening macroeconomic stability.
> 11.7cr household toilets
> 9.6 cr LPG connections
> 220 cr COVID vaccination for 102cr persons
> Insurance cover for 44.6cr persons
> Cash transfer of Rs2.2 lakh cr to 11.4 cr farmers under PM Kisan Samman
1. Inclusive Development
2. Reaching Last Mile
3. Infrastructure Investment
4. Unleashing Potential
5. Green Growth
6. Youth Power
7. Financial Sector
For agriculture startups run by young professionals, the government will introduce the Agriculture Accelerator Fund. With this initiative, farmers will be able to find affordable solutions to their challenges. Modern technology will be offered and productivity will increase. We will adopt a cluster-based approach... and promote collaboration between farmer states and industry for input supply, extension services, and market linkages.
A sub-scheme of the PM Sampada Yojana will target investments of Rs 6,000 crore for small entrepreneurs, said Sitharaman.
Sitharaman said, "Will encourage industry to invest in R&D in pharmaceuticals." The center of excellence will offer multi-disciplinary courses on medical devices as part of a new program to promote R&D in pharma.
157 new nursing colleges will be established.
The National Book Trust will be encouraged to replenish non-curricular titles in regional languages and English in physical libraries.
Indian Institute of Millet Research will be supported as a center of excellence.
PM Awas Yojana expenditures are being increased by 66% to over Rs 79,000 crore.
Capital investment outlay will increase by 33 percent to Rs 10 lakh crore, or 3.3 percent of GDP.
The National Housing Bank (NHB) will be responsible for managing the urban infra-development fund, which will be used by public agencies. Government expects to make available Rs 10,000 crore a year for this fund.
In a bid to improve the socio-economic conditions of Particularly Tribal Groups, the PMPBTG Development Mission will be launched to saturate PBTG habitations with basic facilities. Rs 15,000 crore will be allocated to implement the plan in the next three years.
100 labs will be set up to develop 5G services effectively.
Niti Ayog will continue for three years.
FM Nirmala Sitharaman says the PAN (Permanent Account Number) will be used as a common identifier for all digital systems of specified government agencies for businesses.
PM Garib Kalyan Anna Yojana's expenses will be borne by the center.
In her Budget 2023 announcements, Nirmala Sitharaman said the central government will bear Rs 2 lakh crore for the entire year under the PM Garib Kalyan Anna Yojana. All Antyodaya and priority households will receive free food grains for one year as part of this scheme.
Sitharaman announces an outlay of Rs 19,700 crore for green hydrogen.
According to Nirmala Sitharaman, the government will launch Pradhan Mantri Kaushal Vikas Yojana for skill development.
FM announces Rs 35 crore for energy transition and net-zero carbon emissions
Oil and gas ministry to invest Rs 35 crore in energy transition and net zero objectives & energy security.
To boost the IT services industry, Sitharaman said the focus is on digitizing.
FM Ms. Sitharaman discussed the mandatory scrapping of government vehicles to support replacement demand in the auto sector.
Sitharaman also emphasized the importance of theme-based tourist circuits and facilitating rural infrastructure. Tourism development may also boost air travel.
According to FM FM Sitharaman, the government has proposed to reduce the highest surcharge rate from 37% to 25% under the new tax regime.
The government has increased the income tax exemption limit up to Rs 7 lakh under the new tax regime.
Rs 0-3 lakh: NIL
Rs 3-6 lakh: 9%
Rs 6-9 lakh: 10%
Rs 9-12 lakh: 15%
Rs 12-15 lakh: 20%
Above Rs 15 lakh: 30%
For big earners, the highest effective tax rate has been reduced from 42.7 percent to 39%.
In the new tax regime, a proposal to increase the income tax rebate limit from Rs 5 lakh to Rs 7 lakh.
A grievance redressal mechanism for direct taxpayers will be enhanced by the government.
Individuals with an annual income of Rs 9 lakh will have to pay only Rs 45,000.
Under the new tax regime, incomes up to Rs 3 lakh are tax-free- incomes between Rs 3 lakh and Rs 6 lakh are taxed at 5 percent, and incomes over Rs 15 lakh are taxed at 30 percent.
Under the new tax structure, an individual earning Rs 15 lakh will have to pay Rs 1.5 lakh tax, down from Rs 1.87 lakh.
For cash deposits and loans by primary agricultural credit societies, the government will increase the limit to Rs 2 lakh per member.
In the new tax regime, the government proposes reducing the highest surcharge rate from 37 percent to 25 percent.
New I-T return forms are being introduced for easier filing of returns.
The income tax returns processing period has been reduced by 16 days.
Benefit of lower tax rate of 15% to new cooperative societies
FM revises fiscal deficit estimate to 5.9% of GDP for 2022-23
In three years, FM Sitharaman will roll out a pan-India national apprenticeship scheme to support 47 lakh youths.
FM announces new MISHTI scheme
According to FM, the government will plant mangroves along the coastline under the new scheme.
The Rs 2,200 crore Atmanirbhar Clean Plant Programme will increase the cultivation area of high-value horticultural crops from a low 15% to increase disease-free, quality planting material. A major deterrent has been the poor quality of materials, particularly fruit crops.
As FM Sitharaman proposes a hike in customs duties, cigarettes will become more expensive. Sitharaman proposes a 16 percent increase in customs duty on certain cigarettes.
Sitharaman proposes reducing the number of basic customs duty rates. For another year, Sitharaman said, the government will provide relief on customs duties on imports of certain parts and inputs.
Shrimp feed duty to be reduced by government to promote exports
The tax on cigarettes has been raised by 16%.
Compounded rubber import duties have increased from 10 percent to 25 percent.
Articles made from gold bars are subject to a higher basic customs duty.
The customs duty on kitchen electric chimneys has been raised to 15 percent from 7.5 percent.
Parts of open cells of TV panels are subject to a 2.5 percent customs duty.
It is proposed that the government reduce customs duties on certain inputs used in the manufacture of mobile phones.
It is proposed to increase the maximum deposit for the senior citizen saving scheme from Rs 15 lakh to Rs 30 lakh.
A one-time small savings scheme, "Mahila Samman Saving Certificate", will be available for two years until March 2025, offering a deposit facility of up to Rs 2 lakh in the name of women, for the period of two years at a fixed rate of 7.5% and partial withdrawals.
One District, One Product' and GI products and other handicrafts will be promoted and sold at a 'Unity Mall' in the state capital or at the state's most popular tourist destination, says FM Sitharaman, adding that 50 tourist destinations will be selected as a whole package for domestic and international tourism, based on a challenge mode.
FM said the existing limit of Rs 3 lakh for tax exemption on leave encashment has been raised to Rs 25 lakh. We are also making the new income tax regime the default citizens can still take advantage of the old tax regime if they wish.
Although the real estate sector has seen a significant recovery in 2022, it still faces several challenges, including a slowdown in demand, a lack of liquidity, and a scarcity of affordable housing. Will the government provide relief in the Union Budget 2023?
Consumer sentiment regarding the real estate sector was not dampened by rising construction costs or a hike in the repo rate in 2022. Despite these challenges, the country's real estate sector has been facing several challenges in recent years, including sluggish demand, a lack of liquidity, and a lack of affordable housing. The Indian government needs to provide more incentives for real estate in its upcoming budget for 2023 to address these challenges and boost its growth.
Incentives for developers and investors in real estate are one of the main incentives the government should consider. Currently, the Indian government imposes taxes on the sale of real estate properties, which are a significant burden for developers and investors. By providing tax incentives, the government can encourage more investment in the sector and encourage the development of new housing projects.
The Government should also look into providing subsidies and incentives for affordable housing. Pradhan Mantri Awas Yojana has already made strides in the direction of providing housing for all, however, the lack of affordable housing continues to be a major roadblock. Subsidies and incentives will encourage more developers to invest in low-cost housing projects, thereby helping fulfill the residential dreams of those living on a limited income.
The National Real Estate Development Council (NAREDCO), the industry's apex body, has submitted its pre-Budget recommendations to the government ahead of the Union Budget 2023-24.
NAREDCO proposed to the government that the real estate industry could become more productive and flourish if a few regulations and taxation barriers are removed. Predominantly those concerning the deduction of interest for customers getting a home loan, as well as the tax load on developers creating affordable and rental housing. It also emphasized changing or removing particular sections of the Income Tax Act and offering incentives to business entities and individual investors who are eager to invest in this capital-intensive sector. However, it did not single out those sections under the relevant Act.
The apex real estate body has urged the government to revoke Section 23(5) of the Income Tax Act, which relates to notional rental income from the housing.
The idea of notional rent levied opposes the idea of promoting rental housing in India, said Rajan Bandelkar, president of NAREDCO.
The year 2022 ended on a firm note, with a rise in sales of residential properties in major metros. In addition, the report recommends that the government consider increasing the interest deduction limit under Section 24(b) of the I-T Act.
The industry needs to be bolstered by measures so that the momentum can continue. This includes increasing the deduction available under Section 24 (b) for home loans from Rs two lakh to Rs five lakh. Bandelkar said such an incentive would stimulate demand and reduce the nation's housing shortage.
Despite strong headwinds caused by the Covid-19 pandemic, the Indian real estate sector has done relatively well in 2022 with strong growth prospects. In addition to surviving a once-in-a-century pandemic, the real estate sector also adapted well to rising input costs and relatively high borrowing costs.
To maintain momentum, Niranjan Hiranandani, vice chairman of NAREDCO, suggested that the government grant infrastructure status to the real estate industry.
As this interest rate-sensitive sector grapples with inflation-driven high credit borrowing costs, infrastructure status will allow developers to access long-term cheap funding. In addition, Hiranandani said this will help developers deliver affordable housing projects.
On February 1, the union government will present the Budget document.
Budget 2023 is likely to be the last full budget of the Modi government in its second term with the next Lok Sabha elections due in April-May of 2024.
Ahead of the union budget presentation, Dalal Street is abuzz with speculations that Nirmala Sitharaman would present a budget with exceptional attention given to infrastructure.
Stock market experts believe it would be the last full-fledged budget of the current government before five state elections due in 2023. As such, central and state governments will be keen on capitalizing on infrastructure as this sector can create scores of jobs within their limited timeframe.
The union budget for 2023 and the financial year 2022 will be presented in the parliament by our finance minister, Nirmala Sitaraman, on February 1, 2023, at 11 AM.
Finance Minister Nirmala Sitharaman is expected to maintain growth while controlling fiscal deficits and inflation.
Moreover, the subsequent income slabs and the applicable rate of tax may be appropriately adjusted, for example, if the current tax rate is 5% for taxable income between INR 2.5 lakhs and INR 5 lakhs, that 5% tax rate could then be applied to taxable income after the recommended increase of basic exemption limit (to INR 5 lakhs).
Growth of residential real estate sales in the top-seven cities (Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru, Hyderabad, Pune, Kolkata, Chennai) in H1 FY2023 has been considerable.
Improved affordability, low home loan interest rates and persistent aspirations of homeowners for upgrading their properties are the factors for the growth of the residential real estate sector.
To further enhance this growth and its positive multiplier effect on other economic sectors, policymakers can consider the following points-
Raising the income tax benefit on interest paid on housing loans to Rs 0.4 million from Rs 0.2 million.
This could be supplemented by an increase in the deduction limit under Section 80C and tax concessions on income from renting housing properties. Moreover, removing taxes from notional rental income derived from second houses (completed and non-self-occupied) would likely encourage investment in new properties.
PMAY has been influential in improving home ownership, with greater budgetary and non-budgetary expenditure towards the scheme, access to housing will become possible for low- to mid-income sections of the population. Rs. 1 trillion is the pending expenditure in PMAY, while FY2023's (budget estimate) allocation of Rs. 480 billion needs to increase to Rs. 760 billion so that 50 million dwellings can be made available through PMAY. To tackle the problem of 4.6 lakh stuck units nationwide, SWAMIH was announced in November 2019 to collect Rs. 250 billion; authorities managed to obtain Rs. 100 billion from Government funds and the rest from large institutional investors such as LIC, HDFC, and SBI. However, an additional Rs. 520 billion is essential for finishing these delayed projects.
The Government and the PSUs possess a large, resourceful, and non-essential land bank. In the past, certain steps have been taken to extract profit from this asset, yet more impetus is required to quicken the process of divestment/monetization to increase access to land for real estate activities. Concerning the commercial property market, favorable measures enacted in recent years have facilitated successful REIT issuances. Moreover, actions were implemented to facilitate access to long-term capital (insurance and pension funds) and encourage retail investors to direct increased investments into this area.
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