ME ASSIGNMENT

GD -3
SUBMITTED BY

AAKASH

REG. NO. 221248

BATCH 2022-24

SUBMITTED TO

PROF. SANJYOTI

RAMAIAH INSTITUTE OF MANAGEMNET

NEW BEL ROAD, – 560054

Indian budget 2023 - An analysis
The Union price range 2023-24 became provided on February 1, 2023 by way of the Finance Minister
Ms. Nirmala Sitharaman. It proposes to spend Rs 45,03,097 crore within the monetary year. Out of the
overall expenditure, sales expenditure is estimated to be Rs 35,02,136 crore (1.2% increase from revised
estimates of 2022-23). interest expenditure is 41% of sales receipts. Capital expenditure is expected to
be Rs 10,00,961 crore, a 37.4% growth from revised estimates of 2022-23. The increase in capital
expenditure is pushed through better outlay on transport infrastructure and capital loans to states. sales
deficit in 2023-24 is targeted at 2.9% of GDP, that is lower than the revised revenue deficit of 4.1% in
2022-23. monetary deficit in 2023-24 is targeted at five.9% of GDP, lower than the revised financial
deficit of 6.4% in 2022-23.
under the Finance bill, 2023, some of changes had been made to the new tax regime. The income
restriction to avail a rebate and not pay any taxes has multiplied from Rs 5 lakh to Rs 7 lakh. further, the
variety of tax slabs have been decreased from six to five. The surcharge for the very best slab (income
over Rs 5 crore) has been reduce from 37% to twenty-five%.

2023-24 finances Highlights

Expenditure: The authorities proposes to spend Rs forty five,03,097 crore in 2023-24, that is an growth
of 7.5% over the revised estimate of 2022-23. In 2022-23, overall expenditure is estimated to be 6.1%
higher than the budget estimate.
▪ Receipts: The receipts (apart from borrowings) in 2023-24 are expected to be to Rs 27,16,281 crore, an
increase of 11.7% over revised estimate of 2022-23. In 2022-23, overall receipts (aside from borrowings)
are anticipated to be 6.5% higher than the price range estimates.
▪ GDP: The government has predicted a nominal GDP boom fee of 10.5% in 2023-24 (i.e., real increase
plus inflation).
▪ Deficits: sales deficit in 2023-24 is focused at 2.9% of GDP, that is decrease than the revised estimate of
4.1% in 2022-23. monetary deficit in 2023-24 is targeted at five.9% of GDP, lower than the revised
estimate of 6.4% of GDP in 2022-23. whilst the revised estimate as a percentage of GDP changed into
similar to the price range estimate, in nominal terms, financial deficit was better by Rs 94,123 crore
(boom of 5.7%) in 2022-23. hobby expenditure at Rs 10,79,971 crore is anticipated to be 41% of revenue
receipts.
▪ Ministry allocations: the various top thirteen ministries with the highest allocations, in 2023-24, the
very best percentage boom in allocation is determined within the Ministry of Railways (49%), observed
by way of the Ministry of Jal Shakti (31%), and the Ministry of road shipping and Highways (25%)

▪ Adjustments inside the new earnings tax regime: The quantity of tax slabs has been decreased from six
to five. The surcharge on the income when it exceeds Rs 5 crore can be reduced from 37% to 25%.
currently, people with earnings up to Rs 5 lakh can avail a rebate and no longer pay any taxes; this
restrict has been raised to Rs 7 lakh. further, the standard deduction can be to be had below the new tax
regime.

▪modifications in tax exemptions: The tax exemption for news businesses installation completely for the
collection and distribution of news can be removed.
Finances estimate of 2023-24 in comparison to revised
estimates of 2022-23
▪ total Expenditure: The government is envisioned to spend Rs 45,03,097 crore in 2023-24. that is an
growth of seven.5% over the revised estimate of 2022-23. Out of the whole expenditure, sales
expenditure is envisioned to be Rs 35,02,136 crore (1.2% boom) and capital expenditure is predicted to
be Rs 10,00,961 crore (37.4% increase). The boom in capital expenditure is because of a boom in capital
outlay on shipping (such as railways, roads and bridges, and inland water shipping) by using Rs 1,28,863
crore (36.1% increase). Expenditure on overall capital outlay is envisioned to be Rs 8,37,127 crore in
2023-24, an increase of 35% over the revised estimates for 2022-23.
▪ total Receipts: government receipts (apart from borrowings) are estimated to be Rs 27,16,281 crore,
an increase of eleven.7% over the revised estimates of 2022-23. the distance among these receipts and
the expenditure may be plugged via borrowings, budgeted to be Rs 17,86,816 crore, an boom of 1.8%
over the revised estimate of 2022-23.
▪ transfer to states: The significant authorities will transfer Rs 18,62,874 crore to states and union
territories in 2023-24, an increase of eight.9% over the revised estimates of 2022-23. switch to states
consists of devolution of Rs 10,21,448 crore out of the divisible pool of important taxes, offers worth Rs
6,86,773 crore, and special loans really worth Rs 1.3 lakh crore for capital expenditure.
▪ Deficits: revenue deficit is focused at 2.9% of GDP, and monetary deficit is targeted at five.9% of GDP in
2023-24. The goal for number one deficit (which is economic deficit aside from interest bills) in 2023-24
is 2.3% of GDP. The revised estimate for the revenue deficit goal has expanded from the budgeted
estimate in 2022-23. The revised monetary deficit goal for 2022-23 has remained the identical,
notwithstanding better receipts. In 2022-23, the principal government’s revenue deficit is predicted to
be 4.1% of GDP towards finances estimate of 3.8% of GDP.
▪ GDP growth estimate: The nominal GDP is envisioned to grow at a price of 10.5% in 2023-24

Expenditure by Ministries
In 2023-24, the ministries with the highest allocations account for 45% of the estimated total
expenditure. of those, the Ministry of Defence has the very best allocation in 2023-24, at Rs 5,93,538
crore. It money owed for 13.2% of the full budgeted expenditure of the valuable government. other
ministries with high allocation encompass: (i)road shipping and Highways (6% of general expenditure),
(ii) Railways (five.4%), and (iii) client Affairs, meals, and Public Distribution (4.6%). desk 5 suggests the
expenditure on Ministries with the thirteen maximum allocations for 2023-24 and the adjustments in
allocation compared to the revised estimate of 2022-23.

Expenditure on most important Schemes

▪ Pradhan Mantri Awas Yojana (rural and urban components taken together) has the very best allocation
in 2023-24 at Rs 79,590 crore. that is a boom of 3.2% over the revised estimate of 2022-23. as compared
to the revised estimates of 2022-23, the allocation for the agricultural element of the scheme has
improved through thirteen% and the city element has declined with the aid of thirteen% in 2023-24. For
2022-23, the allocation in the direction of the scheme has been accelerated by using 60.7% compared to
the price range estimates.
▪ The Jal Jeevan task has the second highest allocation in 2023-24 at Rs 70,000 crore, an increase of
27.3% over the revised estimate of Rs 45,000 crore in 2022-23.
▪ Allocation for PM-KISAN has been kept consistent at Rs 60,000 crore, and for MGNREGS has been
decreased by 33% to Rs 60,000 crore.
▪ some other schemes with a comparatively higher increase in allocation in 2023-24 include: (i) Reform
connected Distribution Scheme (a hundred and one.2%), (ii) Swachh Bharat assignment (74.2%), and (iii)
guarantee Emergency credit Line to MSME borrowers (34.3%).
Expenditure on Scheduled Caste and Scheduled Tribe sub-plans
and schemes for welfare of women, children and NE Region

▪ Programs for the welfare of girls and children had been allocated Rs 3,27,010 crore in 2023-24, a boom
of 6.3% over the revised estimate of 2022-23. these allocations include programs being carried out
throughout all ministries.
▪ The allocation closer to scheduled castes and scheduled tribes in 2023-24 is estimated to increase with
the aid of 4.3% and 26.7%, respectively. The budget for road works under allocation for welfare of
scheduled tribes has expanded through 265% in 2023-24 in comparison to revised estimate of 2022-23.
The allocation in the direction of North eastern region is predicted to growth via 30.5% in 2023-24 over
the revised estimates of 2022-23.
 

PRE price range-economic SURVEY 2022-23

• India To Witness GDP growth Of 6.0 in keeping with Cent to six.8 consistent with Cent In 2023-24,
depending at the Trajectory Of financial And Political traits Globally
• financial Survey 2022-23 projects A Baseline GDP growth Of 6.5 in step with Cent In real terms In Fy24
• economy Is predicted to develop At 7 according to Cent (In actual phrases) For the 12 months finishing
March 2023, This Follows An eight.7 in step with Cent boom in the preceding monetary year
• credit score boom to The Micro, Small, And Medium corporations (MSME) quarter Has Been
Remarkably high, Over 30.5 in step with Cent, On common for the duration of Jan-Nov 2022
• Capital Expenditure (Capex) Of the vital authorities, Which elevated via 63.four in keeping with Cent
inside the First 8 Months Of Fy23, turned into any other growth driving force Of The Indian economic
system within the modern-day year
• Rbi tasks Headline Inflation At 6.eight consistent with Cent in Fy23, that is outdoor Its goal range
• return Of Migrant workers to creation sports Helped Housing marketplace Witnessing a large Decline
In stock Overhang To 33 Months In Q3 Of Fy23 From 42 Months final year
• Surge In boom of Exports in Fy22 and the primary half Of Fy23 brought on A Shift inside the Gears Of
The production approaches From slight Acceleration To Cruise Mode
• non-public consumption as A percentage Of GDP Stood At 58.4 consistent with Cent In Q2 Of Fy23, the
very best a few of the 2d Quarters Of all the Years due to the fact 2013-14, Supported via A Rebound in
contact-extensive services which includes alternate, inn And transport
• Survey points to The lower Forecast For growth In worldwide exchange by using the arena exchange
organization, From 3.5 in keeping with Cent In 2022 to one.0 according to Cent In 2023

The Survey says, India’s recuperation from the pandemic was pretty brief, and boom in the approaching
12 months could be supported by solid home call for and a pickup in capital investment. It says that
aided by wholesome financials, incipient symptoms of a brand-new personal quarter capital formation
cycle are visible and extra importantly, compensating for the non-public quarter’s warning in capital
expenditure, the authorities raised capital expenditure extensively.

Budgeted capital expenditure rose 2.7 times within the closing seven years, from FY16 to FY23, re-
invigorating the Capex cycle. Structural reforms inclusive of the introduction of the goods and offerings
Tax and the Insolvency and bankruptcy Code more suitable the efficiency and transparency of the
economic system and ensured financial field and better compliance, the Survey delivered.

global growth is forecasted to gradual from 3.2 in keeping with cent in 2022 to 2.7 consistent with cent
in 2023 as in keeping with IMF’s international financial Outlook, October 2022. A slower increase in
monetary output coupled with extended uncertainty will dampen alternate increase. that is visible in
the decrease forecast for boom in international trade by using the world exchange company, from 3.five
consistent with cent in 2022 to one.0 in keeping with cent in 2023.
at the outside the front, risks to the present-day account balance stem from more than one sources.
even as commodity costs have retreated from document highs, they are still above pre-war degrees.
strong home call for amidst excessive commodity charges will enhance India’s total import invoice and
make contributions to damaging traits inside the present-day account balance. these may be
exacerbated via plateauing export boom on account of slackening worldwide demand. must the modern
account deficit widen similarly, the currency can also come below depreciation stress.

Entrenched inflation may additionally lengthen the tightening cycle, and therefore, borrowing expenses
may additionally stay ‘better for longer’. In this kind of state of affairs, worldwide economy may be
characterized via low growth in FY24. however, the state of affairs of subdued international increase
offers two silver linings – oil prices will live low, and India’s CAD will be better than currently projected.
the overall outside state of affairs will continue to be potential.