Uplifting all sections of society
Several government schemes have been focussed on reaching the masses and uplifting them. To ensure that the benefit is enjoyed by the target group, this budget has proposed to implement on pilot basis, result-based financing to better allocate scarce resources for developmental needs. Select schemes will be changed from input-based to result-based.
There has been increased focus to develop the north eastern states of India and in line with that Rs 94,680 crore has been allocated. This focuses on overall infrastructure, social and livelihood development. To improve participation of vulnerable tribal groups, basic facilities such as safe housing, clean drinking water and sanitation, improved access to education, health and nutrition, road and telecom connectivity, and sustainable livelihood opportunities are to be developed. An amount of Rs 15,000 crore will be made available to implement the mission in the next three years. Around 38,800 teachers and support staff for the 740 Eklavya model residential schools, serving 3.5 lakh tribal students would be recruited over next three years.
An economy doesn’t grow without the participation of all sections of the society. To handhold them, the budget has made allocation for the welfare of women, children and the SC/ST. Allocations of about Rs 6 lakh crore has been made through various ministries. 81 lakh self-help groups are to be pushed to form large producer enterprises with professional management and several thousand members. Support would be provided to them for supply of raw materials and for better design, quality, branding and marketing of their products. They would also be helped to scale up and grow like unicorns. To encourage women to save, a one-time, new small savings scheme, Mahila Samman Savings Certificate has been introduced. To be available for a two-year period up to March 2025, this will offer deposit facility upto Rs 2 lakh for women or girls for a tenure of 2 years at fixed interest rate of 7.5 per cent with partial withdrawal option. The proposed National Digital Library for children and adolescents will help to inculcate a knowledge thirst in the younger generation.
Green economy
Balancing development and emissions have always been a tricky task. But this budget has an equal outlay for green projects that try to reduce the carbon intensity of the economy as well as create larges cale jobs. Several programmes have been proposed across a range of spectrum related to fuel, energy, farming, mobility, buildings, equipment, and policies for efficient use of energy.
Revenue
While the plans for expenditure are bold and ambitious, it is necessary to back them by revenue receipts. The fiscal and revenue deficit are becoming narrower and it is a promising sign.The receipts excluding borrowing is estimated at Rs 27 lakh crore which is a 11.7 per cent increase over the previous year estimates. Gross tax revenue is projected to increase by 10.4 per cent. Devolution to state is also set to increase by 7.7 per cent amounting to Rs 1,021,448 crore. Non tax revenue is also estimated at Rs 3 lakh crore an increase of 15.2 per cent. Thedisinvestment target has been set at Rs 51,000 crore which is a marginal 2 percent increase over the revised estimates of 2022-23. In the current scenario of uncertainty in the global front, raising capital might be an issue.
The tax slabs have been made simple with an option to choose between either the old or new tax regimes. While the indirect tax is projected to record a more robust growth at 10.4 per cent against the 7.1 per cent previous fiscal, the direct tax collection will see a slump. This is due to a slew of tax benefits announced to encourage manufacturing and also the relief given to personal tax. Adding to this, the conservative GDP growth will also affect profits and personal incomes.
The budget is not big bang but its starts to take small steps in the right direction.
