Name: Budget 2023: Tax & Non-tax revenue; Key terms explained
Uploaded: 2023-01-23T18:03:47.000+05:30
Duration: T01M35S
Channel: Avni Raja
Description: With budget 2023 round the corner, here are some often used phrases explained. Learn all about the govt's tax revenue and non-tax revenue.

Seven priorities of the Budget, 'Saptarishi', are inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and the financial sector

Budget 2023: Key takeaways by Finance Minister Sitharaman 

Sitharaman is presenting her fifth full Budget after she took over as Finance Minister in July 2019

Budget 2023 Finance Minister Nirmala Sitharaman has tabled the Union Budget 2023 in Parliament. Editorji brings you the key takeaways from her speech:&nbsp; 1. India as a bright star: The world has recognised India as a bright star as the country is recording healthy economic growth despite global uncertainties, Finance Minister Nirmala Sitharaman said during the budget.
2. Indian Economy 5th Largest Now: FM Sitharaman started the Budget by saying that the Indian economy has increased in size from being the 10th largest to the 5th largest in the world in the past nine years.
3.&nbsp; Seven budget priorities (Saptarishi): FM Sitharaman announced seven priorities of the Budget or 'Saptarishi'. These are inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and the financial sector.
4. &nbsp;Highest-ever capital outlay for railways The capital outlay for the railways has been increased to the highest-ever Rs 2.40 lakh crore in the Union Budget for 2023-24, Finance Minister Nirmala Sitharaman said on Wednesday.
Presenting the budget in Lok Sabha, Sitharaman said the outlay for the railways is nine times the amount provided in 2013-2014.
5. Journey to India@100: To service these focus areas in our journey to India@100, we believe that the following four opportunities can be transformative during Amrit Kaal. Amrit Kaal is described by the government as the 25-year period culminating in the centenary of India's independence.&nbsp; "The budget adopts following seven priorities -- inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector," she said.&nbsp;

Finance Minister Nirmala Sitharaman presented the last union budget of the Modi govt before the 2024 Lok Sabha polls 

Finance minister explains four key points of Union Budget 2023 

Finance Minister Nirmala Sitharaman presented the last union budget of the Modi govt before the 2024 Lok Sabha polls&nbsp;

After presenting the Union Budget 2023 in the Parliament, Finance Minister Nirmala Sitharaman addressed the post-budget press conference in New Delhi.
Sitharaman said the budget largely focussed on 4 major points: empowering women, focus on tourism, helping out &ldquo;vishvakarma&rdquo; or those toiling traditionally through their hands for the country, and green growth.
Also Watch: <a href="https://www.editorji.com/business-news/budget-2023/budget-2023-switching-to-new-tax-regime-not-necessary-says-fm-elaborates-on-personal-i-t-changes-1675256296179">Budget 2023: switching to new tax regime not necessary, says FM; elaborates on personal I-T changes</a>

The budget has retained the fiscal deficit projection for 2022-23 at 6.4 per cent, while the target for the next fiscal year has been set at 5.9 per cent

Budget 2023: Big announcements 

The budget has retained the fiscal deficit projection for 2022-23 at 6.4 per cent, while the target for the next fiscal year has been set at 5.9 per cent

Budget 2023&nbsp; Finance Minister Nirmala Sitharaman has tabled the Union Budget 2023 in Parliament, pegging total expenditure for the fiscal year 2023-24 at Rs 45 lakh crore. Of this over Rs 10 lakh crore has been allocated for capital expenditure. The allocation for capital expenditure is the highest ever, with a whopping increase of 33% compared to the previous year's allocation.
The Finance Minister has also announced the highest-ever capital outlay for the Railways at Rs 2.4 lakh crore. &nbsp;The FM said that the allocation for the Railways is now nine times the amount provided in 2013-14. On the receipts front, the government is expecting to earn Rs 26.3 lakh crore through the next fiscal year.
This includes Rs 23.3 lakh crore rupees in tax revenue and Rs 3 lakh crore in non-tax revenue. The government also expects to earn Rs&ensp;23,000 crore through the recovery of loans and Rs&ensp;61,000 crore through other receipts. Apart from these, the government has pegged its borrowings and other liabilities at Rs 17.8 lakh crore during the next fiscal year.
Shifting the focus to fiscal deficit, the budget has retained the projection for 2022-23 at 6.4 per cent. Some experts were expecting the figure to be revised downwards. The fiscal deficit target for the next fiscal year has been set at Rs 17.86 lakh crore or 5.9 per cent of the GDP. Finance Minister Nirmala Sitharaman has also reiterated that she aims to bring the fiscal deficit below 4.5 per cent by the fiscal year 2024-25.

editorji's Business Editor Avni Raja decodes the big announcements in Budget 2023 for personal tax. 

Budget 2023 | Explained: tweaks to the personal tax regime

Finance Minister Nirmala Sitharaman on Wednesday tweaked the slabs to provide some relief to the middle class

editorji's Business Editor Avni Raja decodes the big announcements in Budget 2023 for personal tax.&nbsp;

Finance Minister Nirmala Sitharaman on Wednesday tweaked the slabs to provide some relief to the middle class by announcing that no tax would be levied on annual income of up to Rs 7 lakh under the new tax regime.
editorji's Business Editor Avni Raja decodes the big announcements in Budget 2023 for personal tax.&nbsp;
Also Watch: <a href="https://www.editorji.com/india-news/politics/union-budget-not-futuristic-anti-people-mamata-banerjee-1675245330349">Union Budget 'not futuristic', 'anti-people': Mamata Banerjee</a>

As with every Budget, Union Finance Minister Nirmala Sitharaman on 1 February 2023 announced changes in customs and excise duties for various items.

Budget 2023: What's cheaper, what's costlier? Cigarette, mobile phone, TV, electric car duties changed

Budget 2023: What's cheaper, what's costlier? Cigarette, mobile phone, TV, electric car parts duties changed


As with every Budget, Union Finance Minister Nirmala Sitharaman on 1 February 2023 announced changes in customs and excise duties for various items.

As with every Budget, Union Finance Minister Nirmala Sitharaman on 1 February 2023 announced changes in customs and excise duties for various items.
Mobile phones may get cheaper as the government reduced customs duty on the camera lens and camera module parts. Customs duty has also been cut on some parts of the open cell of TV panels. Lab-grown diamonds may become cheaper with the duty reduced on their manufacturing seeds. Good news was also announced for electric car buyers as the finance minister cut customs duty on machinery for manufacture of lithium-ion cell. Also reduced was customs duty on the heating coil for making electric kitchen chimneys.
However, there are many items which may get costlier as the new rates kick in.
Cigarette prices are set to rise with the government hiking the National Calamity Contingent Duty (NCCD). Customs duty has also been increased on articles made of gold, silver, and platinum. Similarly, duty has been increased for imitation jewellery. Both internal combustion and electric vehicles in semi-knocked down form or completely built unit form are set for a customs duty hike. Bicycles, toys, and foreign-made electric kitchen chimneys are also set for a customs hike.

It will benefit only one class of people. This Budget will not help address the country's unemployment issue. It has been prepared with an eye on the 2024 Lok Sabha elections," West Bengal Chief Minister said
 

Union Budget 'not futuristic', 'anti-people': Mamata Banerjee 

It will benefit only one class of people. This Budget will not help address the country's unemployment issue. It has been prepared with an eye on the 2024 Lok Sabha elections," West Bengal Chief Minister said

It will benefit only one class of people. This Budget will not help address the country's unemployment issue. It has been prepared with an eye on the 2024 Lok Sabha elections," West Bengal Chief Minister said
&nbsp;

Terming the Union Budget "anti-people", West Bengal Chief Minister Mamata Banerjee on Wednesday said it will deprive the poor.
Addressing a government function at Bolpur in Birbhum district, she claimed that the changes in the income tax slabs will not help anyone.
"This Union Budget is not futuristic, totally opportunistic, anti-people and anti-poor. It will benefit only one class of people. This Budget will not help address the country's unemployment issue. It has been prepared with an eye on the 2024 Lok Sabha elections," she said.
"The changes in the income tax slabs will not help anyone. There is no ray of hope in this Budget -- it is a dark dark budget. Give me half an hour and I will show you how to prepare a Budget for the poor," she added.
Union Finance Minister Nirmala Sitharaman placed the Budget for 2023-24 in Parliament.
She announced no tax for those with an annual income of up to Rs 7 lakh under the new tax regime but made no changes for those who continue in the old regime.
Also Watch: <a href="https://www.editorji.com/india-news/budget-2023-middleclasszindabad-trends-on-amid-tax-relief-move-but-not-everyone-is-happy-1675256262952">Budget 2023: #MiddleClassZindabad trends on amid tax relief move but not everyone is happy</a>

This budget will fulfil dreams of aspirational society including poor people, middle-class people, farmers: Prime Minister Modi

Budget 2023: PM Modi calls it a budget for the aspirational society

PM Modi calls Budget 2023 a budget for the aspirational society

This budget will fulfil the dreams of an aspirational society including poor people, middle-class people, and farmers: Prime Minister Modi

First budget of Amrit Kaal will build a strong foundation for building a developed India. This budget will fulfil the dreams of an aspirational society including poor people, middle-class people, and farmers: PM Narendra Modi&nbsp;
Also Watch: <a href="https://www.editorji.com/business-news/budget-2023-no-income-tax-upto-7-lakhs-slab-for-the-new-regime-1675236960081">Budget 2023: No income tax upto ₹7 lakhs slab for the new regime&nbsp;</a>

Opposition leaders have criticised the Centre for failing to adequately address the issues of unemployment and inflation in the country.
 

Opposition leaders criticise Union Budget 2023, say it doesn't address key issues

Opposition leaders have criticised the Centre for failing to adequately address the issues of unemployment and inflation in the country.

Opposition leaders have criticised the Centre for failing to adequately address the issues of unemployment and inflation in the country.
&nbsp;

Opposition leaders have criticised the Centre for failing to adequately address the issues of unemployment and inflation in the Union Budget 2023.&nbsp;
RJD leader and Rajya Sabha MP Manoj Jha has criticised the Union Budget 2023 for failing to address the issue of unemployment.&nbsp;
Congress leader K Suresh called it a &ldquo;pro-corporate&rdquo; budget that was only in the interest of &ldquo;Adani, Ambani and Gujarat&rdquo;.&nbsp;
Also Watch: <a href="https://www.editorji.com/business-news/budget-2023-no-income-tax-upto-7-lakhs-slab-for-the-new-regime-1675236960081">Budget 2023 No income tax upto ₹7 lakhs slab for the new regime</a>
&nbsp;

Govt proposes to increase income tax rebate limit from Rs 5 lakh to Rs 7 lakh in new tax regime

Budget 2023: No income tax upto ₹7 lakhs slab for the new regime 

Govt proposes to increase income tax rebate limit from Rs 5 lakh to Rs 7 lakh in the new tax regime

BUDGET 2023: INCOME TAX&nbsp; Finance Minister Nirmala Sitharaman on Wednesday raised the personal income tax rebate limit, doled out sops on small savings and announced one of the biggest hikes in capital spending in the past decade as she did a tight rope walk in the Budget between staying fiscally prudent and meeting public expectations in the year before general elections.
The personal income tax rebate limit has been increased to Rs 7 lakh from the fiscal year starting April 1 under the new tax regime from the previous Rs 5 lakh. Tax slabs has been cut to five from seven earlier. Also, the maximum income tax rate has been reduced to about 39 per cent from 42.7 per cent after a reduction in the highest surcharge to 25 per cent from 37 per cent.
Besides, the deposit limit for senior citizen savings schemes has been doubled to Rs 30 lakh and for Monthly Income Account Scheme to Rs 9 lakh. A new small savings scheme for women, offering 7.5 per cent interest rate on deposits of up to Rs 2 lakh for a tenor of 2 years, has been announced.

Budget's big numbers: ₹45 lakh crore, ₹27 lakh crore, 5.9% - earning, spending, fiscal deficit estimates

The FM further said India continues to be on the path of fiscal consolidation targeting to achieve a 4.5 per cent fiscal deficit of GDP by 2025-26.&nbsp;

The fiscal deficit would be brought down to below 4.5 per cent by 2025-26, Finance Minister Nirmala Sitharaman said on Wednesday.
She also said that tax receipts for the next fiscal are budgeted at Rs 23.3 lakh crore and states would be allowed 3.5 per cent of GDP as fiscal deficit.
To finance the fiscal deficit in 2023-24, net market borrowing from dated securities is estimated at Rs 11.8 lakh crore, Sitharaman said while presenting the Union Budget for 2023-24 in the Lok Sabha.
She retained the fiscal deficit target of 6.4 per cent in the revised estimate for FY2022-23 and reduced it to 5.9 per cent for the next fiscal. The government had pegged the fiscal deficit at 6.4 per cent of the GDP for the current financial year.
The fiscal deficit or the gap between expenditure and revenue for 2022-23 is estimated to be Rs 16,61,196 crore. The country's fiscal deficit was projected higher at 6.9 per cent for 2021-22 as against the 6.8 per cent estimated earlier.
The Revised Estimates for 2021-22 indicate a fiscal deficit of Rs 15,91,089 crore as against the Budget Estimates of Rs 15,06,812 crore. &nbsp;The minister also announced a new savings scheme, Mahila Samman Savings Certificate, for two years to 2025 with a maximum deposit limit of Rs 2 lakh and an interest rate of 7.5 per cent.
She added that 50-year interest-free loans to state governments have to be spent on capital expenditure within 2023-24.
The minister announced that the monthly income scheme limit would be doubled to Rs 9 lakh and Rs 15 lakh for joint accounts. The finance minister said that indirect tax proposals would boost green mobility and electric vehicles (EVs).
&nbsp;

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With budget 2023 round the corner, here are some often used phrases explained. Learn all about the govt's tax revenue and non-tax revenue. 

 Budget 2023: Tax & Non-tax revenue; Key terms explained 

With budget 2023 round the corner, here are some often used phrases explained.&nbsp;

Budget 2023 will be presented on the 1st of February. Ahead of the budget speech, here are some of the key words and phrases explained.&nbsp; 
<h2>What is tax-revenue?&nbsp;</h2>
Tax revenue is one of the ways the govt earns money. This include both direct as well as indirect taxes. All taxes including income tax, corporate tax, customs duty, excise duty, GST, Cess are all part of what makes up the govt&rsquo;s tax revenue bucket. Tax revenue is one of the main ways that the govt actually earns money.&nbsp;
<h2>What is non tax revenue?&nbsp;</h2>
Non-tax revenue encompasses all other sources of revenue for the govt excluding tax revenue . For example, profits from govt companies, returns on investments the govt makes, the money that the govt gets by selling either a part of or an entire company that it owns, govt services which include the tolls that we pay, electricity bills. All of this forms the govt&rsquo;s non-tax revenue stream.&nbsp;

As the Budget 2023 is around the corner, just like other sectors, real state industry also has a slew of expectations from FM Nirmala Sitharaman 

Budget 2023: What homebuyers want 

Budget 2023: What the real estate sector & homebuyers expect 

The real estate industry and homebuyers alike are hoping that the upcoming budget will have measures to inventivise homebuyers and boost the sector.&nbsp;

The real estate industry saw a promising 2022. A research report by Anarock consultants says that residential property sales grew by 50% last year as compared to 2021. However, now, the industry is hoping for significant measures in Budget 2023, to sustain the growth that the sector has seen.&nbsp;
Affordable housing: In cities like Mumbai, Delhi-NCR and Bengaluru, the definition of affordable housing is changing. Therefore the real estate industry is seeking an increase in the price cap of affordable housing from the current Rs 45 lakh to Rs 75-80 lakh.&nbsp;
Home loan interest rates: The real estate industry has also recommended that government should increase deduction limit under Section 24. Currently, taxpayers can claim a deduction for interest paid on a home loan up to Rs. 2 lakhs. If it is extended to Rs 5 lakh, it would be a big boost the real estate sector.
Affordable rental housing: In order to boost rental housing for the affordable sector, the&nbsp; government should include measures such as providing tax incentives for developers who build rental housing projects. Single-window clearance: According to Anuj Puri, Chairman of Real estate agency - Anarock Group, the demands for single-window clearance and industry status for real estate are among the recurrent ones and have yet to be addressed. The sector hopes that the forthcoming budget will finally address it.&nbsp;

Modi 2.0's last full budget before 2024 elections was presented in Parliament on Wednesday. We dissect the budget with leading experts. 

The India Story | Union Budget 2023: key takeaways 

It was the fifth budget of Modi 2.0 and the last full budget before the 2024 general elections. Claiming that the Indian economy is on the right path and heading towards a bright future, Finance Minister Nirmala Sitharaman announced major changes in tax slabs under the new tax regime and big hike in allocation for railways and capital expenditure.

In this week’s episode of The India Story, we get you the latest on Budget 2023, key takeaways, views from experts and a lot more.

On the show tonight, Vikram Chandra speaks with Investment Mogul Madhusudan Kela, Tata Steel Managing Director TV Narendran, and former FICCI president Naina Lal Kidwai. Also a peak into a conversation between G20 Sherpa Amitabh Kant and Director-General of CII, Chandrajit Banerjee.

Modi government 2.0's last full budget before 2024 elections was presented in the Parliament on Wednesday. We dissect the budget with leading experts.&nbsp;

It was the fifth budget of Modi 2.0 and the last full budget before the 2024 general elections. Claiming that the Indian economy is on the right path and heading towards a bright future, Finance Minister Nirmala Sitharaman announced major changes in tax slabs under the new tax regime and big hike in allocation for railways and capital expenditure.
In this week&rsquo;s episode of The India Story, we get you the latest on Budget 2023, key takeaways, views from experts and a lot more.
On the show tonight, Vikram Chandra speaks with investment mogul Madhusudan Kela, Tata Steel Managing Director TV Narendran, and former FICCI president Naina Lal Kidwai. Also a peak into a conversation between G20 Sherpa Amitabh Kant and Director-General of CII, Chandrajit Banerjee.

Finance Minister Nirmala Sitharaman announced a hike in taxes on cigarettes in the Union Budget

Budget 2023: Smoking to get more expensive; shares of cigarette companies slump

Finance Minister Nirmala Sitharaman announced a hike in taxes on cigarettes in the Union Budget

Smoking a cigarette to cost more for smokers as Finance Minister Nirmala Sitharaman announced a 16 per cent increase in the customs duty on cigarettes in the Budget 2023.&nbsp; In her speech, Finance minister Nirmala Sitharaman proposed the National Calamity Contingent Duty (NCCD) on specified cigarettes be revised upwards by about 16 per cent. The hike in NCCD on cigarettes comes two years after it was kept unchanged. Though the announcement was initially seen as negative for the cigarette makers but analysts believe cigarette companies would not find it difficult to pass on the meagre cost bump to the customers as prices have not increased much in the last two years.

Shares of LIC, SBI Life, HDFC Life and ICICI Prudential closed the day with losses of up to 12 per cent each

Budget 2023: Insurance stocks tank

Shares of LIC, SBI Life, HDFC Life and ICICI Prudential closed the day with losses of up to 12 per cent each

Shares of insurance companies ended the budget day deep in the red. Two key announcements from Finance Minister Nirmala Sitharaman in Budget 2023 were seen as the triggers for this sharp decline. The Finance Minister&rsquo;s renewed push for the new tax regime, with the income tax rebate limit being increased from 5 lakh rupees to 7 lakh rupees, was seen as a big dampener for the insurance companies. Remember, unlike the old tax regime, the new tax regime doesn&rsquo;t allow any exemptions for insurance premium payments. Therefore, experts believe that higher adoption of the new tax regime could lead to lower sales for insurance companies. The other big announcement in the Budget, that hit the insurance sector shares, was regarding the proposal to limit income tax exemption for proceeds of insurance policies with very high value. &nbsp;The budget document said that where the aggregate of premium for life insurance policies (other than ULIP) issued on or after April 1, 2023, is above Rs 5 lakh, income from only those policies with an aggregate premium of up to Rs 5 lakh shall be exempt. However, the document added that the change to will not affect the tax exemption provided to the amount received on the death of a person insured. It will also not affect insurance policies issued till March 31, 2023&rdquo;. On the back of these two announcements, shares of LIC, SBI Life, HDFC Life and ICICI Prudential closed the day with losses of up to 12 per cent each.

Speaking to reporters after presentation of the Budget, Sitharaman said the country has been waiting for a direct tax regime which is simplified and easy in compliance.

Budget 2023: switching to new tax regime not necessary, says FM; elaborates on personal I-T changes

Speaking to reporters after presentation of the Budget, Sitharaman said the country has been waiting for a direct tax regime which is simplified and easy in compliance.

Finance Minister Nirmala Sitharaman on Wednesday said the government has made the new income tax regime more attractive for taxpayers and has thus brought about 'substantial changes' in its structure for the benefit of the middle class.
The Budget 2023-24 has proposed changes in the optional tax regime, which was introduced in 2020-21.
Speaking to reporters after presentation of the Budget, Sitharaman said the country has been waiting for a direct tax regime which is simplified and easy in compliance.
"The personal income tax has had substantial changes (in the Budget) which will benefit the middle class. The new taxation regime has now got greater traction and incentive so that people can now unhesitatingly move to the new regime from old," the finance minister said.
As per the changes proposed in the Budget, no tax would be levied on people with annual income of up to Rs 7 lakh under the new tax regime but it made no changes for those who continue in the old regime that provides for tax exemptions and deductions on investments and expenses such as HRA.
In what is being seen as a push for the salaried class to switch to the new tax regime where no exemptions on investments are provided, the finance minister in her Budget for 2023-24 allowed a standard deduction of Rs 50,000 under the new regime.
The old tax regime provides for a similar deduction and no tax on income up to Rs 5 lakh.
Also Watch: <a href="https://www.editorji.com/india-news/budget-2023-what-s-cheaper-what-s-costlier-cigarette-phone-tv-electric-car-parts-duties-changed-1675245581924">Budget 2023: What's cheaper, what's costlier? Cigarette, phone, TV, electric car parts duties changed</a>
Sitharaman said the government wants to make the new tax regime attractive enough and compliance should not be burdensome on taxpayers. However, if someone feels the old regime is more beneficial, he/she can continue in it.
"The ultimate interest is to make the simpler (new) regime more attractive," Sitharaman said.
Revenue Secretary Sanjay Malhotra said majority of individual taxpayers would find it more attractive to shift to the new regime.
Malhotra, however, did not give details on the number of taxpayers who have migrated to new tax regime since 2020-21.
Under the revamped new tax regime, no tax would be levied for income up to Rs 3 lakh. Income between Rs 3-6 lakh would be taxed at 5 per cent; Rs 6-9 lakh at 10 per cent, Rs 9-12 lakh at 15 per cent, Rs 12-15 lakh at 20 per cent and income of Rs 15 lakh and above will be taxed at 30 per cent.
"I propose to extend the benefit of standard deduction to the new tax regime. Each salaried person with an income of Rs 15.5 lakh or more will thus stand to benefit by Rs 52,500," Sitharaman said.&nbsp;

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