Decoding the union budget 2023

Union Budget 2023 was unveiled by the Hon’ble Finance Minister, Mrs. Nirmala Sitharaman, who carried a digital tablet with the Budget papers.  

The overall theme of the Budget was to set the stage for India@100, focusing on the critical pillars, including infrastructure, education, logistics, agriculture, and the digital economy.  

Here are some of the key highlights:  

• India’s GDP growth for the current year is estimated to be 9.2% – the highest among all large economies 

• Over six million jobs under PLI (Production Linked Incentive Scheme) in 14 sectors for Aatmanirbhar Bharat

• ECLGS (Emergency Credit Line Guarantee Scheme) to be extended up to March ’23 with guaranteed cover increasing by Rs. 50,000 crore 

• Promoting a digital economy with a focus on financial inclusion, through digital partners 

• IPO of Life Insurance Corporation of India 

Wondering what that means? 

Here’s a simplified explanation of these significant announcements under education, small savings investments, cryptocurrency, and digital currency. 

1. Education 

The Union budget has declared that there will be advancement and development in the education sector as several initiatives are introduced. 

• ‘One class, one TV channel’ program of PM eVIDYA to expand TV channels from 12 to 200. This will enable all States to provide supplementary education in their regional languages for all the classes from 1st to 12th.  
• Digital universities that will provide world-class quality education to students will be personalized for ease and will be available at their doorstep through online media on mobile phones or television. 
• The Digital Desh EPortal scheme has also been introduced to empower citizens to develop skills, upskill and reskill through online training in their respective languages.  

2. Small savings, investments & financial inclusion 

• India witnessed a paradigm shift when it came to adopting digital modes of payment. The Finance Minister emphasized setting up 75 digital banking units across 75 districts by scheduled commercial banks. The move shall bring banking as a service to every Indian citizen. 
• The finance minister announced that all the 1.5 lakh post offices would come onto the core banking system. This is a move to improve financial accessibility.
• The long-term capital gains arising on the transfer of any assets are at 15%. The step is likely to boost the start-up community. 

Finally, the most-awaited highlights. Here are all the updates you’ve been looking for, in regard to cryptocurrency.  

• The finance minister has made it clear that the Central Bank (the RBI) will issue a digital currency. Other digital/virtual currencies created by an individual/organization will be considered assets.  
• The digital assets will be taxed at 30%, and 1% TDS will be levied on every transaction to capture the transactions by the Government 
• Reserve Bank of India will issue a new digital rupee with the help of blockchain technology, Central Bank Digital Currency(CBDC) 

Overall, the budget has been different from what a common man expects, setting up the stage for Atmanirbhar Bharat and the grand vision of the Prime Minister for India@100.  

And, that was our take on the Union Budget 2023.