GDP growth expected at 9.2 % in the current fiscal FY2021-22.
Focus on four pillars of development — PM Gatishakti, inclusive development, productivity enhancement, energy transition climate action and Financing of investments.
Significant boost to the capex spending at Rs 7.5 lakh crore in FY23, an increase of over 35% from FY22.
Fiscal Deficit at 6.4% of the GDP (Rs 16.61 lakh crore) in FY23, compared with the revised estimate of 6.9% in FY22 (15.91 lakh crore). Gross borrowing is estimated at Rs 14.95 lakh crore in FY23 while it has been revised downwards for FY22 from 12.06 lakh crore to 10.47 lakh crore.
FY23 total expenditure seen at Rs 39.45 lakh crore. Total Receipts other than borrowing seen at Rs 22.84 lakh crore.
Disinvestment target has been revised from a budgeted Rs 1.75 lakh core for FY22 to Rs 78,000 crore in FY23 indicating the government likely to proceed with the LIC IPO during this fiscal. For the upcoming fiscal FY23, disinvestment target has been pegged at a realistic Rs 65,000 crore.
States will be allowed 4% fiscal deficit to GDP in FY23.
Issuance of sovereign green bonds for funding green infrastructure. Sovereign green bonds will be part of government’s borrowing programme in FY23. Proceeds to be deployed in public sector projects.
The Budget proposes to allocate additional Rs.19,500 crore for PLI for manufacturing high-efficiency solar modules with priority on fully integrating manufacturing of various components.
Schemes on Low Income Housing + Tap Water in Homes sustained.
Current coverage of Har Ghar Nal Se Jal is 8.7 crore of this 5.5 crore households were provided tap water in last two years itself. Allocation of Rs 60,000 crore has been made to this scheme in 2022-23. Housing projects allotted Rs 48,000 cr for FY23 under PM Housing scheme.
Announcements on Taxation:
Taxpayers can file an updated return on payment of taxes within two years from the end of relevant assessment year. The new provision will ensure voluntary tax filing and reduce litigation.
30% tax on proceeds of virtual/digital assets with no deductions other than cost of acquisition. No set off permitted against other income. 1% TDS to be levied on payments made on transfer of digital assets. Digital rupee will be issued using blockchain and other technologies, to be issued by RBI starting 2022-23.
Minimum Alternate Tax rate for cooperatives at 18.5% has been reduced to 15% to bring it with parity of the rate for corporates. Also, the surcharge for cooperatives has been reduced to 7 % from 12 % for total income ranging between Rs 1-10 crore.
The Budget has also extended the timelines for benefits under the new corporate tax regime. The government had announced a 15% corporate tax rate for newly incorporated manufacturing companies till March 31, 2023, which has now been extended till March 31, 2024.
Deduction for employer contribution to NPS increased to 14% from 10% earlier for State govt employees on par with central govt employees.
Conclusion Remarks
The budget is a continuation of the existing government policies and holds no negative surprises or major announcements. The Government has continued with its policy to support economic growth, with its spending focused on increased capital expenditure. At the same time, the Government continues down the fiscal consolidation path but very gradually, notwithstanding the fragile economic recovery, thus reducing fiscal deficit from a revised 6.9% in FY22 to 6.4% in FY23 which is higher than the market expectations. It plans to bring down the fiscal deficit below 4.5% by FY2025-26. The disinvestment targets are scaled down to a more realistic levels in the upcoming fiscal.
Disclaimer: Investments in debt securities/ municipal debt securities/ securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully.
<
Previous News
Apr’23 RBI Policy Highlights
Next News
Aug’21 -RBI Policy Highlights
>
Table of Contents
Bonds you may like...
SATYA MICROCAPITAL LIMITED
Coupon
13.8500%
Maturity
Jul 2029
Rating
CRISIL
BBB+
Type of Bond
Subordinate Debt
Yield
14.7000%
Price
₹ 1,00,059.86
MANBA FINANCE LIMITED
Coupon
11.7500%
Maturity
Jun 2026
Rating
CARE
BBB+
Type of Bond
Secured - Regular Bond/Debenture
Yield
12.2500%
Price
₹ 1,00,588.78
KRAZYBEE SERVICES PRIVATE LIMITED
Coupon
10.2000%
Maturity
Dec 2025
Rating
CRISIL
A-
Type of Bond
Secured - Regular Bond/Debenture
Yield
12.2000%
Price
₹ 98,724.25
AYE FINANCE PRIVATE LIMITED
Coupon
10.6000%
Maturity
Jan 2026
Rating
Ind-Ra
A
Type of Bond
Secured - Regular Bond/Debenture
Yield
11.5000%
Price
₹ 1,00,009.52
SPANDANA SPHOORTY FINANCIAL LIMITED
Coupon
11.1000%
Maturity
Apr 2026
Rating
Ind-Ra
A+
Type of Bond
Secured - Regular Bond/Debenture
Yield
11.5000%
Price
₹ 1,00,620.28
NAMRA FINANCE LIMITED
Coupon
11.0000%
Maturity
May 2026
Rating
CARE
A-
Type of Bond
Secured - Regular Bond/Debenture
Yield
11.4576%
Price
₹ 1,00,482.19
ESAF SMALL FINANCE BANK LIMITED
Coupon
11.0000%
Maturity
Apr 2030
Rating
CARE
A
Type of Bond
Subordinate Debt Tier 2 - Lower
Yield
11.2954%
Price
₹ 99,668.49
NAVI FINSERV LIMITED
Coupon
10.9000%
Maturity
Jun 2026
Rating
CRISIL
A
Type of Bond
Secured - Regular Bond/Debenture
Yield
11.0000%
Price
₹ 1,051.69
Note:
The listing of products above should not be considered an endorsement or recommendation to invest. Please use your own discretion before you transact. The listed products and their price or yield are subject to availability and market cutoff times. Pursuant to the provisions of Section 193 of Income Tax Act, 1961, as amended, with effect from, 1st April 2023, TDS will be deducted @ 10% on any interest payable on any security issued by a company (i.e. securities other than securities issued by the Central Government or a State Government).
Note: The listing of products above should not be considered an endorsement or recommendation to invest. Please use your own discretion before you transact. The listed products and their price or yield are subject to availability and market cutoff times. Pursuant to the provisions of Section 193 of Income Tax Act, 1961, as amended, with effect from, 1st April 2023, TDS will be deducted @ 10% on any interest payable on any security issued by a company (i.e. securities other than securities issued by the Central Government or a State Government).