The Union Budget 2023: A Complete Guide

The Union Budget is a statement of the government’s total receipts and expenditures for a particular financial year. Every year, the Finance Minister of India announces the Union Budget for the upcoming financial year. While the Budget lays out the government’s financial plan for the next fiscal year, it also has an impact on the daily lives of the citizens. Let us discuss some important things about the Union Budget for FY2023-2024.

The Union Budget 2023 Date and Time

The Union Budget 2023 will be presented in the Lok Sabha on the 1^st of February at 11:00 am. It is presented by the Union Finance Minister, the post presently held by Nirmala Sitharaman. Prior to 2016, the Union Budget was presented on the last day of February. The Railway Budget was merged with the Union Budget in 2017.

The Budget Session of Parliament

Since the announcement of the Union Budget is right around the corner, the preparations for the same are going on with full force. The Parliament’s Budget session will commence on January 31 and end on April 6. The session will consist of a total of 27 sittings and will be spread over a span of 66 days. The recess for the same will fall on February 14 to March 12.

The Union Budget 2023 Expectations

While it can be challenging to speculate about the Budget prior to its announcement, experts do have certain expectations from the same. It is supposed that since the past few years have seen volatility unlike before and despite such headwinds, India has outperformed various global economies, there is an expectation of a slowdown in the upcoming financial year.

Keeping that in mind, the Budget is expected to be growth-oriented with an emphasis on Make-in-India by providing support to local manufacturing and export. Additionally, experts believe that indirect and direct tax breaks could help citizens combat rising inflation. To help the middle class of the country, experts also suggest incentives and subsidies in the real estate sector along with tax breaks when it comes to home loans.

The Union Budget 2023 on Income Tax

As far as income tax is concerned, there is speculation that measures will be taken to make the new tax regime more appealing to taxpayers. The new regime allows taxpayers to opt for lowered income tax rates. Further, experts are also looking to the 2023 Budget for simplifying the capital gains tax structure, especially when it comes to long-term and short-term capital gains tax. It is also expected that increased deductions on home loans would greatly help the middle-class segment of the economy and help attract homebuyers.

The Union Budget 2023 on New Schemes

It is being speculated that the upcoming Budget is set to focus on the manufacturing sector and will push for long-term growth and increased employment opportunities. To that end, the government might extend the scope of the Production-Linked Incentive (PLI) to cover more areas that have helped generate employment. Additionally, some new schemes can be announced in the areas of healthcare, food, transport, finance, education, etc. Moreover, efficient implementation of the existing schemes and providing additional funding to these schemes can also be expected from the budget.

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