Budget 2023 is the first Amrit Kaal Budget, and I think it unleashes the exemplary spirit of growth and infrastructure. This budget is trying to bring India’s gigantic hunger for development.
Extending tax benefits on the incorporation of startups and allowing set off and carry forward of losses against future profits for ten years instead of 7 is a strong move for the country’s economic development and the start-up ecosystem
Since 2014, government efforts have indeed ensured better quality of life for Indian citizens. Well, the budget for 2023 is no different. It aims to grow the Indian economy by 7%, the highest among all major economies despite the massive slowdown globally as a result of COVID-19 and the Russia-Ukraine war.
In a major tax relief for the middle class, the income tax rebate has been extended on an income of up to Rs. 7 lakhs under the new tax regime. Which I think is outstanding. However, to benefit from this, people will have to move to the new tax regime from the old one that offered various tax deductions that now are removed in the new one. It will be great if people make rational choices here.
This year’s budget has not only come up with benefits for the middle class but for big earners too, the highest effective rate has been reduced from 42.7% to 39%.
The government will set up digital libraries for children and adolescents, this will facilitate quality education. On the other hand, the agriculture credit target will be increased to Rs. 20 lakh crore— focusing mainly on animal husbandry, dairy, and fisheries. The decision to increase presumptive taxation limits under sections 44AD and 44ADA to 3 crore and 75 lakhs respectively, plus returning 95% of performance security if an MSME fails to execute a contract is a great move to comfort start-ups and MSMEs. Alongside this, the infusion of 9000 crores in the corpus for MSME credit is icing on the cake.
With 2.4 lakh crore for railways, 100 labs to develop apps using 5G services to be set up in engineering institutions, and 3 centers for excellence to be set up in top educational institutions with the goal “Make AI India” and “Make AI Woro For India” this budget is a balanced one focused on long-term growth for the country’s economy.
In the entire speech, it was clear that our honorable Finance Minister highlighted the need for Tech and a knowledge-driven economy.
Overall, we can clearly see that budget 2023 is aiming for the Indian economy to be heading towards a bright future. However, it could have been even better if the government also introduced something to encourage the habit of saving and investing among Indians.
–Avneesh Kumar Agarwal, Founder & CEO at SpeckyFox
