The budget of 2023-24 was the last full budget of the second term of the Narendra Modi government. In the budget, there is more emphasis on the income and expenditure of the next one year, but this time, in the Union Budget, a comprehensive blueprint has been prepared for how the Indian economy will be in the next 25 years.
In 2047, 100 years of independence will be completed and by that time India will be included in the line of developed nation, the government is moving forward with this goal. The next 25 years have been considered as Amrit Kaal for India. For this reason, the budget of 2023-24 has been called the first budget of Amrit Kaal. Union Finance Minister Nirmala Sitharaman made it clear at the beginning of the budget that this time’s budget also includes India’s vision of 2047. That’s why she says that it is expected to continue moving forward in this budget on the outline drawn for India @ 100.
Vision for Amrit Kaal
The vision for the next 25 years has been clarified in the budget. This vision includes a technology-driven and knowledge-based economy with a strong financial sector and public finance, in which public participation has been made essential.
Focus on three things in the economic agenda
Under the economic agenda of the next 25 years, adequate opportunities will be provided to every citizen, especially the youth. Special attention will be paid to growth and employment generation and macro-economic stability will be strengthened. Economic empowerment of women, encouragement of traditional artisans and craftsmen, utilization of immense potential of tourism and giving priority to green development have been said to fulfill these agendas. Green development includes fuel, energy, agriculture, mobility, buildings and equipment.
7 priorities from the perspective of 2047
In this budget, 7 priorities have been selected from the perspective of 2047.
1. Inclusive Development
2. Reaching the last mile
3. Infrastructure and Investment
4. Unleashing the Potential
5. Green Growth
6. Youth Power
7. Financial Sector
Saptarishi’s noun to seven priorities
In the budget, the government has named these seven priorities as Saptarshi, following which India will become a developed nation in the next 25 years. It is clear from these priorities that in a developed India, everyone’s progress will be taken care of, including farmers, women, youth, backward classes, scheduled castes, scheduled tribes, differently-abled and economically weaker people. Along with this, the focus will also be on the development of every area. Under inclusive development, special attention will be given to agriculture, cooperation, health, education and skills. It is clear from these priorities that the government wants that no sector should be left behind in India’s development model in the next 25 years. Be it any sector related to the economy or any aspect of socio-cultural significance.
Emphasis on increasing capital investment
Looking at the long term goals, the government is emphasizing on increasing capital investment. From this point of view, for the third consecutive year, there has been a significant increase in capital investment in this budget. Increasing it by 33 per cent, it has been made Rs 10 lakh crore. This will be 3.3% of GDP. This is three times more than in 2019-20. By increasing capital investment, the government wants to increase growth and employment in the long run.
Meaning of increasing capital expenditure
By increasing the capital expenditure, the government is trying to strengthen the infrastructure according to future needs. Along with this, efforts will be made to maintain continuity in growth as well. This is the reason why this time the budget for Effective Capital Expenditure has been kept at Rs 13.7 lakh crore. This is 4.5% of GDP. When the government lays more emphasis on increasing capex, then its main objective is to strengthen the country’s economy in the long term.
future-proof infrastructure development
The intention of the government is that when India completes 100 years of independence, it should have solid infrastructure at that time. For this, the government is focusing on formulating policies from now itself. From this perspective, the government is emphasizing on more private investment in railways, roads, urban infrastructure and energy. For this, a separate Infrastructure Finance Secretariat has been created, which will help all stakeholders for more private investment. All these sectors are such, for whose development, government investment is required on a large scale. The government has decided that an expert committee will review the master list related to infrastructure from the point of view of investment during the Amrit period. The highest ever capital expenditure provision has been made for the Railways. In this budget, there is a provision of capital expenditure of Rs 2.40 lakh for the Railways. This is 9 times as compared to 2013-14. 100 critical transport infrastructure projects have been identified for port, coal, steel, fertilizer and food grains sectors. These projects will be given priority with an investment of Rs 75,000 crore. These include an investment of Rs 15,000 crore coming from private sources.
Heavy investment in infrastructure in cities
An announcement has been made in the budget to create an Urban Infrastructure Development Fund. Through this, infrastructure in Tier 2 and Tier 3 cities will be improved. Finance Minister Nirmala Sitharaman has said that the central government will try to provide Rs 10,000 crore per year for this purpose.
eco-sensitive lifestyle
India will take the environment along with it in its development journey. This thing has also been taken care of in the budget. It has been said in the budget that India is moving strongly towards Panchamrit and net-zero carbon emission by the year 2070 to bring green industry and economic transformation. With this perspective, the National Green Hydrogen Mission has been started recently with an expenditure of Rs 19,700 crore. This will reduce the country’s dependence on the import of fossil fuels ie coal, crude oil and natural gas. Through this mission, a target has been set to produce 5 million metric tonnes (MMT) of green hydrogen annually by 2030. In this budget, it has been announced to notify the Green Credit Program under the Environment Protection Act. Its purpose is to change the behavior of companies, people and local bodies towards the environment. In order to promote the use of alternative fertilizers instead of chemical fertilizers, it has been announced to start a program named PM-PRANAM. Its full name is “PM Program for Restoration, Awareness, Nourishment and Amelioration of Mother Earth”.
Promotion of youth power for the dream of Amrit generation
The government believes that youth power will have the most important contribution in making India a superpower of the world by 2047. For this, in the coming times, economic policies will be adopted which are helpful in generating employment on a large scale and create business opportunities. Pradhan Mantri Kaushal Vikas Yojana in this budget 4.0 The opening has been announced. Under this, skills will be provided to lakhs of youth in the next 3 years. Under this, courses will be included according to the new era. It has also been announced to set up 30 Skill India International Centers in different states.
There will be rules in the financial sector according to Amrit Kaal
Special care has also been taken in the budget to strengthen the financial sector during the Amrit period. For this, it has been said that the finance sector regulation will be made easy and simple according to the needs of Amrit Kaal. It has been assured by the government that the regulator of the financial sector will be asked to review the existing rules. For this, the regulator will also consider suggestions from common people and related organizations. It has also promised to improve governance and investor protection in the banking sector. For this, amendments have also been proposed in the related laws Banking Regulation Act, Banking Companies Act and RBI Act. It has also been announced to increase the powers of SEBI to strengthen the securities market. All these steps will help in making the financial sector more transparent and practical in the next 25 years.
Big relief in personal income tax
In the Budget 2023-24, by giving huge relief on personal income tax, an attempt has been made to highlight the contribution of the middle class in building a new India. New slabs have been declared under the new tax regime. The number of slabs has been reduced to 5. The tax exemption limit has been increased to Rs 3 lakh. Under the new tax regime, people with total income up to Rs 7 lakh will not have to pay any income tax.
Other statistics related to the economy
Despite the global economic slowdown, the real GDP growth rate is estimated to be 7 percent. In 2023-24, total receipts have been estimated at Rs 27.2 lakh crore and total expenditure at Rs 45 lakh crore. Net tax collection is estimated to be 23.3 lakh crore and fiscal deficit is estimated to be 5.9 percent of GDP. Per capita income has doubled to Rs 1.97 lakh in 9 years. Indian economy was the 10th largest economy in the world in 2014 and has now become the 5th largest economy. The number of members in the Employees’ Provident Fund Organization has more than doubled to reach 27 crore.
Strong foundation for developed India
Prime minister Narendra Modi Has also described the first budget of Amrit Kaal as a strong foundation from the point of view of fulfilling the goal of developed India. He has said that in the same way we will make a prosperous India, a capable India, a prosperous India in every way in 2047.
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