Parliament Budget Session: Finance Minister Nirmala Sitharaman lauded the government’s economic policies during her reply to the Budget 2023 debate in the Lok Sabha on Friday.
He asserted that despite the global slowdown, India is still the fastest growing major economy.
He said that the government has chosen capital expenditure route to revive the economy as its multiplier effect is very high.
“If I may summarize the Budget 2023-24 in a few words – it balances the need for India’s growth imperatives within the limits of fiscal prudence,” Sitharaman said.
He said the total resources being transferred to the states, i.e. the central share from taxes and release under centrally sponsored schemes together were estimated to be ₹17.98 lakh crore and this was ₹1.55 lakh crore more than last year.
He said the budget deftly balances the need for growth imperatives within the limits of fiscal prudence and focuses on middle class, job creation, MSMEs, agriculture sector, rural population, health and green growth.
Sitharaman said the new tax regime announced in the budget is “very attractive” as the tax exemption limit has been increased from Rs 2 to Rs 3 lakh.
5 lakh earlier. Apart from this, standard deduction of Rs 50,000 has also been allowed under the scheme.
This new tax regime will benefit most taxpayers from the middle class, he said, adding that exemption has been provided on income up to Rs 7 lakh.
“Since the increased exemption limit is unconditional, it leaves higher disposable income in the hands of the people,” Sitharaman said.
Under the revised concessional tax regime, which will be effective from the next financial year, no tax will be levied on income up to Rs 3 lakh.
Income between Rs 3-6 lakh will be taxed at 5 per cent; Rs 6-9 lakh will be taxed at 10 per cent, Rs 9-12 lakh at 15 per cent, Rs 12-15 lakh at 20 per cent and Rs 15 lakh and above at 30 per cent. However, no tax will be levied on annual income up to Rs 7 lakh.
Responding to RSP member NK Premachandran’s comment that the new tax regime would not be beneficial to a person earning Rs 9 lakh a year and investing Rs 4.5 lakh in tax saving instruments, Sitharaman said those who save Rs 4.5 lakh There will be “one” for person. effort-intensive exercise”.
“It is not always possible for a person earning Rs 9 lakh to save Rs 4.5 lakh and then have enough money to spend on his family,” Sitharaman said.
The minister also said that the budget has maintained fiscal prudence as announced earlier in the fiscal glide path.
“It is a very delicately balanced budget,” Sitharaman said.
Also read- Nirmala Sitharaman’s sari made headlines on the budget day: ‘Can any male minister…’