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As India celebrates 75 years of Independence, the finance minister of India, Mrs Nirmala Sitharaman, presented the first budget of Amritkal. The budget focused on Saptarishi. These Saptarishis are:
Inclusive development
Reaching the last mile
Infrastructure and investment
Unleashing the potential
Green Growth
Youth Power
Financial Sector
Now let us see how the budget contributes towards these Saptarishis:
Inclusive Development
This goal reflects the mission statement “Subka Sath Sabka Vishwas”. The budget included measures for various sectors: agriculture, fisheries, cooperation, health, education and skilling.
Let’s start with agriculture; digital public infrastructure for agriculture includes the promotion of startups which aim to use technology to assist farmers with crop planning and health, providing improved access to farm inputs, credit, and insurance. Next up was the agriculture accelerator fund, which will aim to bring innovative, affordable solutions for challenges faced by farmers. Enhancing the productivity of cotton crops by adopting a cluster-based and value-chain approach through a public-private partnership to enhance the productivity of extra-long staple cotton.
Bringing the Atmanirbhar spirit into agriculture, the Government of India proposes an Atmanirbhar Clean Plant Program for providing quality planting material for high-value horticulture crops at an outlay of ₹2200 crore. In the year of millets, GoI proposes to make India a global hub of Millets or Shree Anna. The government would also be increasing the agriculture credit target to ₹ 20 lakh crores focusing on animal husbandry, dairy, and fisheries. Moving towards fisheries, GoI proposes a new sub-scheme of PM Matsya Sampada Yojana with a target investment of ₹ 6000 crore to improve value chain efficiencies and expand the market.
In the budget, a new Ministry of Cooperation was formed with a mandate to realise the vision of Sahakar Se Samriddh. Under this, the GoI has initiated the computerisation of 63000 Primary Agricultural Credit Societies (PACS) with an investment of ₹2516 crore. The ministry would also set up various cooperative societies for fishery and dairy in uncovered panchayats and villages.
The current budget proposed the establishment of 157 nursing colleges in co-location with the existing 157 medical colleges. The finance minister has aimed to eliminate Sickle Cell Anaemia by 2047. ICMR labs would be set up for research in public and private medical college faculty in the public and private medical colleges. Centres of excellence to promote research and innovation in pharmaceuticals. Considering the situation in the pandemic, the GoI plans to launch dedicated semultidisciplinary courses for medical devices to ensure the availability of skilled manpower. National digital library for children and adolescents to also be set up to facilitate the availability of quality books.
Reaching the Last Mile
For a sharper focus on reaching the last mile mission, GoI has formed AYUSH, Fisheries, Animal Husbandry and Dairying, Skill Development, Jal Shakti and Cooperation ministries. The first mention was to launch the Aspirational Blocks program, in which the first 500 blocks would be selected and saturated with all essential government services.
Focusing on tribals, the Pradhan Mantri PVTG Development mission is launched with an allocation of ₹15000 crore. The mission works on improving the socio-economic conditions of particularly vulnerable tribal groups. Over the next three years, the government would be recruiting 38800 teachers and support staff for the 740 Eklavya Model Residential Schools.
Special assistance of ₹5300 crore is given to Upper Bhadra Project in the drought-prone area of central Karnataka. This help will provide sustainable micro irrigation and filling up of surface tanks for drinking water.
Under the PM Awas yojana, the outlay has been enhanced by 66% to over ₹79000 crores. Bharat Shared Repository of Inscriptions would be set up in a digital epigraphy museum to digital one lakh ancient inscriptions in the first stage. Poor prisoners would be provided with financial aid; this is for those who are unable to pay for their bail.
Infrastructure and Investment
The current government has focussed on a lot on the growth of infrastructure in various sectors. GoI proposed the increase of capital investment outlay by 33% to ₹10 lakh crore, which would be 3.3% of GDP, to act as a driver for growth and jobs. The Effective Capital Expenditure of the government is budgeted to be ₹13.7 lakh crores which would be 4.5% of GDP. The central government would be extending the 50-year interest-free loans by an additional year and has enhanced the outlay to ₹1.3 lakh crore.
Finance Secretariate to assist stakeholders with more private investments in various sectors. A harmonised list of infrastructure is to be reviewed by a committee for recommending classifications and deciding the financial framework which would be suitable for the Amrit Kaal. A capital outlay of ₹2.4 lakh crore is given to the railways. An investment of ₹75000 crore would be raised for 100 critical transport infrastructure projects for last and first mile connectivity.
Fifty additional airports, helipads, water aerodromes, and advanced landing grounds will be revived for additional air connectivity. States and cities would be undertaking urban planning reforms for the sustainable cities of tomorrow transformation. Cities would be incentivised to improve their creditworthiness for municipal bonds. An Urban Infrastructure Development Fund is to be established using priority sector lending shortfall. The government is expected to raise ₹10000 crore per annum. All cities will be enabled for 100% mechanical desludging of septic tanks and sewers to transition from manhole to machine-hole mode.
Unleashing the Potential
The government aims to unleash the potential in all fields. Mission Karmayogi is launched to provide government employees with online courses to upgrade their skills. Under the same mission, ease of doing business is also taken up, under which more than 39000 compliances have been reduced, more than 3400 legal provisions are decriminalised, and the introduction of the Jan Vishwas bill to amend 42 central acts is taken into action. The government also brings up a one-stop solution for updating identity and address for all government agencies using DigiLocker and Aadhaar. PAN is to be used as a common business identifier. To remove the issue of multiple filing, a unified filing process will be set up for the filling of information for multiple government agencies.
In case of failure by MSMEs to execute contracts during the pandemic, 95% of the fortified amount relating to bid or performance security would be returned by the government and its undertakings. A new system for settling contractual disputes would be set up. The scope of DigiLocker services would be expanded. MSMEs, Large Businesses, and charitable trusts will be considered entities to create DigiLocker accounts.
The vision of Make AI in India and Make AI work for India has allowed the government to set up three centres for excellence for Artificial Intelligence in top educational institutions. Nation Data Governance Policy will be introduced to enable access to anonymised data. 100 labs would be set up to create 5G applications. To encourage indigenous production of LGD seeds and machines and to reduce import dependency, an R&D grant will be provided to one of the IITs for five years. Following digital transformation, phase-3 of the E-Courts project will be launched with an outlay of ₹7000 crores.
Green Growth
India is moving forward firmly for the ‘panchamrit’ and net-zero carbon emission by 2070 to usher in a green industrial and economic transition. This Budget builds on our focus on green growth. An outlay of ₹19700 crore is provided to facilitate the transition towards low carbon intensity. ₹35000 crores are given as a priority capital investment towards energy transition. A Battery Energy Storage System with a capacity of 4000 MWH will be supported with Viability Gap Funding.
Interstate transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh to be constructed. Green Credit Program to be notified under the Environment Protection Act. PM-PRANAM is to be launched to sensitive people about the ill effects of chemical fertilisers. 500 new waste-to-wealth plants to be set up under the GOBARdhan scheme.
Bhartiya Prakritik Kheti Bio-Input Resource Centres to be set up to encourage natural farming. MISHTI will be taken up for mangrove plantations along the coastline and on saltpan lands. Amrit Dharohar scheme to be launched to encourage optimal use of wetlands and enhance biodiversity. Coastal shipping will be promoted as an energy-efficient and lower-cost mode of transport. Allocation of adequate funds would be given to replace old government-owned vehicles.
Youth Power
To empower our youth and help the ‘Amrit Peedhi’ realise their dreams, the government has formulated the National Education Policy, focused on skills, adopted economic policies that facilitate job creation at scale, and supported business opportunities. Pradhan Mantri Kaushal Vikas Yojana 4.0 to be launched focusing on course for Industry 4.0. Skill India Digital Platform will be expanded to enable demand-based formal skilling and linking with employers. DBT of stipend support to 47 lakh youth would be undertaken pan-India under the National Apprenticeship Promotion Scheme.
Fifty destinations would be selected through challenge mode to increase tourism-related facilities. States will be encouraged to set up Unity Mall ins their state capitals and tourist destinations to promote their own one-district-one product.
Financial Sector
Government reforms in the financial sector and innovative use of technology have led to financial inclusion at scale, better and faster service delivery, ease of access to credit and participation in financial markets. An infusion of ₹9000 crores will be undertaken from 1st April 2023 to provide collateral-free loans to MSMEs.
A national financial information registry will be set up to serve as the central repository of financial and ancillary information. Government to facilitate setting up of data embassies in India. Bank governance is to be improved along with enhancing of investor protection by amending the Banking Regulations Act, Banking Companies Act, and Reserve Bank of India Act.
SEBI to be empowered to develop, regulate, maintain, and enforce norms and standards for education in NISM and to recognise degrees, diplomas and certificates. Central Processing Centre will be set up for faster response to companies through centralised handling of various forms filed with field offices under the Companies Act. Reclaiming of unclaimed shares to be made more accessible. The GoI would support digital payment infrastructure. A one-time new small savings scheme, Mahila Samman Savings Certificate, will be made available for a two-year period, allowing a deposit facility of up to ₹2 lakhs in the name of women or girls with an interest rate of 7.5%.
The budget introduced new income tax slabs consisting of the following provisions:
Up to ₹ 3,00,000: Nil
₹ 3,00,000 to ₹ 6,00,000: 5% on income which exceeds ₹3,00,000
₹6,00,000 to ₹ 900,000: ₹15,000 + 10% on income more than ₹6,00,000
₹9,00,000 to ₹12,00,000: ₹45,000 + 15% on income more than ₹9,00,000
₹12,00,000 to ₹ 15,00,000: ₹90,000 + 20% on income more than ₹12,00,000
Above ₹15,00,000: ₹1,50,000 + 30% on income more than ₹15,00,000
Furthermore, tax exemption limit from the previous regime was increased from ₹5 lakh to ₹7 lakh. This clause was given to those who prefer and opt for the new tax regime.
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