Budget gives Rs 2.40 trillion to Railways: the highest-ever outlay for the national transporter
New Delhi, NFAPost: Focus on agriculture and tourism; relief for small businesses; support for digitisation of the economy: Finance Minister Nirmala Sitharaman’s Budget on Wednesday had something for every sector.
Here are five takeaways on what Budget 2023-24 promises for the economy.
Capital investment outlay hiked by 33%
The Budget doubled down on driving investment in the economy. The allocation for capital expenditure is pegged at Rs 10 trillion 2023-24, up from Rs 7.5 trillion in 2022-23. The Budget also extended the facility of interest-free loan to states for capex.
Big relief for MSMEs
Sitharaman announced that a credit guarantee scheme for hit micro, small and medium enterprises (MSMEs), a sector devastated in the pandemic, will get an infusion of Rs 9,000 crore. This will enable collateral of Rs 2 trillion loans to MSMEs. The credit scheme, which will take effect from April 1 this year, is expected to boost funds for MSMEs.
Highest ever outlay for Railways, revival of ports
The Budget gives Rs 2.40 trillion to the Indian Railways: the highest-ever outlay for the national transporter and 9 times more from 2013-14.
Sitharaman also announced 50 additional airports, water aerodromes, and reviving landing grounds for regional air connectivity. The proposal should offer an additional push to the regional connectivity scheme, UDAAN.
For the common citizen
The Budget announced that the new Income Tax regime would be the default. It increased the Income Tax rebate limit from Rs 5 lakh to Rs 7 lakh under the regime. “Currently, those with an income of Rs 5 lakh do not pay any Income Tax and I propose to increase the rebate limit to Rs 7 lakh in the new tax regime,” the Finance Minister said while presenting the Budget.
Digitisation push
By proposing to establish a Centre for Excellence for Artificial Intelligence and a national data governance policy, the Budget promised to strengthen India’s digital capabilities. Also notable was Sitharaman’s promise to establish a digitised national library and the establishment of sustainable cities with a fully mechanised ecosystem of desludging and waste management.