Budget 2023 – The Budget adopts the following seven priorities. They complement each other and act as the ‘Saptarishi’ guiding us through the Amrit Kaal.
1) Inclusive Development
2) Reaching the Last Mile
3) Infrastructure and Investment
4) Unleashing the Potential
5) Green Growth
6) Youth Power
7) Financial Sector
Priority 1: Inclusive Development
The Government’s philosophy of Sabka Saath Sabka Vikas has facilitated inclusive development covering in specific, farmers, women, youth, OBCs, Scheduled Castes, Scheduled Tribes, divyangjan and economically weaker sections, and overall priority for the underprivileged (vanchiton ko variyata). There has also been a sustained focus on Jammu & Kashmir, Ladakh and the North-East. This Budget builds on those efforts.
Priority 2: Reaching the Last Mile
Prime Minister Vajpayee’s government had formed the Ministry of Tribal Affairs and the Department of Development of North-Eastern Region. To provide a sharper focus to the objective of ‘reaching the last mile’, our government has formed the ministries of AYUSH, Fisheries, Animal Husbandry and Dairying, Skill Development, Jal Shakti and Cooperation
Priority 3: Infrastructure & Investment
Investments in Infrastructure and productive capacity have a large multiplier impact on growth and employment. After the subdued period of the pandemic, private investments are growing again. The Budget takes the lead once again to ramp up the virtuous cycle of investment and job creation.
Priority 4: Unleashing the Potential
“Good Governance is the key to a nation’s progress. Our government is committed to providing a transparent and accountable administration which works for the betterment and welfare of the common citizen,” said Hon’ble Prime Minister
Priority 5: Green Growth
Hon’ble Prime Minister has given a vision for “LiFE”, or Lifestyle for Environment, to spur a movement of environmentally conscious lifestyle. India is moving forward firmly for the ‘panchamrit’ and net-zero carbon emission by 2070 to usher in green industrial and economic transition. This Budget builds on our focus on green growth.
Priority 6: Youth Power
To empower our youth and help the ‘Amrit Peedhi’ realize their dreams, we have formulated the National Education Policy, focused on skilling, adopted economic policies that facilitate job creation at scale, and have supported business opportunities.
Priority 7: Financial Sector
Our reforms in the financial sector and innovative use of technology have led to financial inclusion at scale, better and faster service delivery, ease of access to credit and participation in financial markets. This Budget proposes to further these measures.
Personal Income Tax
The first one concerns rebate. Currently, those with income up to 5 lakh do not pay any income tax in both old and new tax regimes. FM propose to increase the rebate limit to 7 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to 7 lakh will not have to pay any tax.
Substantial relief is proposed under the new regime with new slabs and tax rates as under: Total Income Rate (per cent) Budget 2023
Upto 3,00,000 = Nil
From 3,00,001 to 6,00,000 = 5 %
From 6,00,001 to 9,00,000 = 10 %
From 9,00,001 to 12,00,000 = 15 %
From 12,00,001 to 15,00,000 = 20 %
Above 15,00,000 = 30 %
Union Budget 2023 | Key Highlight to Real Estate Sector
The real estate sector had several expectations from the Union Budget 2023 given that the past year had witnessed a significant recovery from the pandemic period and expectation was that long standing demands from a tax perspective would be addressed in the Budget so as to sustain the recovery in the sector.
On the policy front, outlay for PM Awas Yojana has been enhanced to INR 79,000 crores which demonstrates that the Government is cognizant of the need to increase investments for growth of affordable housing in the country. Amendments introduced in the real estate sector seem to be with aligning the intent of the Government with the existing provisions. Although this should bring clarity to the tax authorities as well as taxpayers but the same has not met the expectations of the real estate sector.
Especially, the change in taxation in Business Trust regime with respect to taxation of distributions by business trusts that do not suffer taxation either in the hands of business trusts or in the hands of unit holders, which could be negative for the growth of REITs in India.
Union Finance Minister Nirmala Sitharaman is presented the last full budget of the second term of the Narendra Modi government in Parliament on February 1. Here’s what experts, industry insiders are expecting from this year’s Budget. This budget lays greater emphasis on further development in the fields of infrastructure and real estate: “India is yet to achieve the true potential especially in real estate and allied sectors, this budget lays greater emphasis on further development in the fields of infrastructure and real estate.
This will definitely help the sector in generating more employment. Along with these we will also see more technology led innovation happening in real estate in order to cater to the change in demand landscape.
“The Budget 2023 in a pre-election year, sought to build on the roadmap laid down by previous budgets, focusing on inclusive development, fostering growth and job creation while keeping the macro-economy in a stable yet growth-oriented mode. It has given more money into the hands of individuals and households which would, to a large extent, ease out the increasing pressure on account of home loan EMIs and rising home prices.
The increase in allocation for PMAY by a significant 66% would help continue capital flow under CLSS and other related schemes. Addressing the need for creating sustainable cities of tomorrow through urban planning, ease of land availability and promoting TOD schemes will be key towards sustainable development moving forward. Budget 2023 Focus on overall infrastructure development and on Tier 2 and 3 cities will be key to overall economic development.
The Budget is a balanced one for the economy while missing out on key real estate sector demands Government looks promising in fulfilling its pledge towards affordable housing for everyone: PM Awaz Yojana has been one of the most talked about and awaited aspects in the real estate sector this budget.
Pradhan Mantri Awas Yojna promised the citizens of the country, pukka houses for everyone in the country by 2024. And increasing the PM Awas Yojana outlay by 66 per cent to ₹79000 crore this budget, is a great move by the government. Government looks promising in fulfilling its pledge towards affordable housing for everyone. This will improve the sentiments for real estate developers and consumers and real estate will witness a bigger boost in the smaller cities and towns now.