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Union Budget 2023 vs Union Budget 2022

Union Budget 2023 vs Union Budget 2022

Nirmala Sitharaman, the Union Finance Minister, delivered her final comprehensive budget before the 2024 Lok Sabha elections on Wednesday in Parliament. Budget 2023 placed a strong emphasis on increasing government capital spending, fiscal stabilization, and alluring incentives and rebates under the new income tax system. Let us have a comparative study of Union Budget 2023 vs Union Budget 2022.

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Union Budget 2023 vs Union Budget 2022: Key Points

  • Five instead of six tax slabs are now available. When income surpasses Rs 5 crore, a surcharge of 37% will be replaced with a 25% surcharge.
  • A rebate and no taxes are already available to persons with incomes up to Rs 5 lakh; this maximum has been increased to Rs 7 lakh. Additionally, under the new tax system, the standard deduction will be accessible.
  • The tax exemption for news organisations established only for the gathering and dissemination of news will be eliminated.
  • For income tax exemption, charitable trusts must use 85% of their income during the year.
  • As of April 2023, only 85% of a donation made by a charity trust to another charitable trust would be counted as income.
  • For MSMEs to qualify for presumed taxes, the threshold for turnover has increased from Rs 2 crore to Rs 3 crore.
  • For professionals who are subject to presumed taxes, the upper limit on gross revenues has increased from Rs. 50 lakh to Rs. 75 lakh.
  • For new cooperative societies that engage in manufacturing operations, the income tax rate has been reduced from 22% to 15% (with a 10% surcharge).
  • To the extent that another residential property is purchased or built, capital gains from the sale of one residential property may be deducted. The deduction’s maximum amount is Rs 10 crore.
  • If a premium of Rs. 5 lakh was paid in any year, the income from investments in life insurance policies will be taxed. The sum that is paid when a policyholder passes away will still be free from income tax.
  • Online gaming winnings are subject to 30% tax deductibility at source.
  • Startups that are established within the timeframe and satisfy other requirements may deduct up to 100% of their profits; the deadline for doing so has been moved from March 31 to March 31 of the following year.
  • Additionally, the time frame for carrying forward initial losses has been increased from seven to ten years.

Union Budget 2023 vs Union Budget 2022: Expenditure

In 2023–24, the government plans to spend Rs 45,03,097 crore, a 7.5% increase above the updated estimate for 2022–23. The total spending for 2022–23 is anticipated to be 6.1% higher than anticipated in the budget.

Union Budget 2023 vs Union Budget 2022: Receipts

It is anticipated that receipts (other than borrowings) will total Rs 27,16,281 crore in 2023–24, an increase of 11.7% from the revised projection for 2022–23. The total receipts (excluding borrowings) are anticipated to be 6.5% higher in 2022–23 than projected in the budget.

Union Budget 2023-24: All About the Union Budget 2023-24 Presentation

Union Budget 2023 vs Union Budget 2022: GDP

In 2023–2024, the government forecasts a nominal GDP growth rate of 10.5%. (i.e., real growth plus inflation).

Union Budget 2023 vs Union Budget 2022: Deficits

The target revenue deficit for 2023–24 is 2.9% of GDP, which is less than the previously estimated 4.1% for 2022–23. The target fiscal deficit for 2023–24 is 5.9% of GDP, which is less than the previously estimated 6.4% for 2022–23. Although the revised estimate was identical to the budget projection in terms of GDP, the fiscal deficit in 2022–23 was higher in nominal terms by Rs 94,123 crore (an increase of 5.7%). An estimated 41% of revenue revenues, or Rs 10,79,971 crore, will be spent on interest.

Union Budget 2023 vs Union Budget 2022: Ministry allocations

The Ministry of Railways (49%), Ministry of Jal Shakti (31%), and Ministry of Road Transport and Highways (25%) are the top three ministries with the greatest appropriations among the top 13 ministries in 2023–2024.

Also Read: Union Budget 2023: Railways gets Rs 2.40 lakh crore capital outlay

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