India has announced plans to increase capital expenditure by 33 per cent to Rs 10 lakh crores ($122 billion), which will account for 3.3 per cent of the GDP, in the next financial year.
Presenting the 2023-24 Union Budget in Parliament, Finance Minister Nirmala Sitharaman said the government has estimated the fiscal deficit for 2023-24 at 5.9 per cent of the GDP. She said the government remains committed to bringing the fiscal deficit down to 4.5 per cent of the GDP by 2025-26.
The revised fiscal deficit for this yeat is at 6.4 per cent of the GDP.
Sitharaman listed seven priorities of budget - inclusive development, reaching the last mile, infrastructure development, potential, green growth, youth power and finance sector.
In a releif to the middle class she announced an increase in the income tax rebate limit from Rs 5 lakhs (500,000) to Rs 7 lakhs under the new tax regime. She also reduced the number of tax slabs in the new tax regime. The tax ranges from 5% to 30%.
Three centres of excellence for artificial intelligence in top educational institutions and 100 labs in engineering institutions for developing applications using 5G services will be set up.
A Green Hydrogen Mission will facilitate the transition of economy to reduce dependence on fossil fuel imports.