The Finance Minister Nirmala Sitharaman holds the budget paper, at North Block, in New Delhi on February 01, 2023. Photo Credit: RV Murthy
Finance Minister Nirmala Sitharaman on February 1 raised the personal income tax exemption limit, exempted small savings, and announced the biggest hike in capital expenditure in the past decade, as she budgeted hard to remain fiscally prudent and to meet the expectations of the public in the year before the general elections.
Ms Sitharaman’s fifth straight budget comes at a time when the economy is slowing and there is a need to increase spending on social sectors as well as increase incentives for local manufacturing. The Modi government will seek a third term next year and the BJP will face nine assembly elections this year.
Announcing its last full budget before the 2024 elections, the NDA government focused on a number of measures, expanding capital expenditure and tying in to various priorities including green growth, youth power and inclusive growth. Along with this there were big tax announcements for the salaried class, changes in tax slabs and a clear intention to shift to the new tax regime.