India's Union Budget 2023 - A New Tax Regime Has Been Proposed & Capital Investments Will Increase By 33%

India’s Union Budget 2023 Key Highlights: The budget is being presented by the Finance Minister of India, Nirmala Sitharaman. It is Ms. Sitharaman’s fifth Budget since 2019. In the past nine years, India's economy has grown from the 10th to the 5th largest. This time Ms. Sitharaman placed more emphasis on the rural sector, social sector initiatives, infrastructure development, and the middle class. Here are major highlights:

• The amount spent on capital investments will increase by 33% to 10 lakh crore, or 3.3% of the GDP in the fiscal year 2023–2024.

• Indian Economy to grow at 7% in the current year.

• The government plans to spend 2.4 lakh crore on the railroads.

• The government plans to spend Rs. 79000 crores more on PM Housing.

• Over 3,400 law provisions have been decriminalized, and over 39,000 compliances have been lowered in order to make conducting business easier.

• Over half of India's population is under 30. For them, the focus would be on job security and reduced tax on products that they prefer to buy, such as electronic goods. Better terms for education loans and other forms of financial help for school and higher education will be keenly watched.

• The PAN will serve as a standard identifier for all digital systems of the designated government entities for the business establishments required to obtain a permanent account number.

• Indian Government to launch a Rs 2,200 crore Aatmanirbhar clean plan program.

• Green growth would be one of the priorities of the budget.

• Launch of digital platform.

• 157 new nursing colleges will be established in colocation with the existing 157 medical colleges established since 2014.

• Custom duty exemptions to be provided for the manufacturing sectors.

• Most importantly, FM has announced change in income tax slabs where an amount up to ₹7 lakh rebate under new income tax regime. 

On the other hand, the budget of Nepal for the Fiscal Year 2080/81 is generally released on the first week of May. For the FY 2079/80, Nepal Government had declared a Budget Size of 17.93 Kharba. However, due to a negative balance of around Rs. 90 Arba in the government reserve fund for the current fiscal year – 79/80 and in order to maintain the government's financial balance through prudent budgeting and spending in the current fiscal year, the Ministry of Finance has chosen to reduce and freeze the expenditure/spending.