- Date : 28/01/2023
- Read: 4 mins
Indirect taxes, start-ups, digital and technology, drone application, natural farming, income tax, virtual currency, and defence R&D were some of the significant categories highlighted in the Indian Union budget 2022. Moreover, exemption of personal loans, gold loan regulations, rising EV production, and an update in the tax slabs are some of the predicted sectors in the 2023 budget.
Union Budget 2022 Highlights and Predictions for 2023
The Indian Republic's national budget is known as the "Union Budget." Year after year, it is typically presented in February by the union minister of finances. The Union Budget 2023 will be released on February 1. The 2023 budget is expected to convert India into the most appealing destination for investment in current times. The previous Union Budget 2022 focused on multiple categories to lay the foundation of the "Amrit Kal" economy for the next 25 years, from India's 75th to its 100th year.
Also Read: The Union Budget 2022: Women
There are multiple predictions and expectations about the 2023 budget, as this is the time of year when union budget activities quicken. One of the multiple predictions from the media sector states that the expected financial debt of 6.4% of GDP will be achieved in 2023. Read further to learn more about the predictions and expectations for the Union Budget 2023 while also looking at the significant budget highlights from 2022 that are listed in the table below:
Speculative predictions and expectations for the financial year 2023-2024
The announcement of the Union Budget for 2023–2024 comes at a difficult time for the world economy, where there is geographical and political uncertainty, price inflation, and slow development. To keep the nation's economy consistently growing, deliberate actions need to be taken to increase domestic sources of expansion. And the central government is still dedicated to initiating and carrying out changes that enable "Ease of Doing Business," focused on attracting capital to turn India into "Aatma-nirbhar" by vigorously boosting "Make in India" projects.
Some of the key predictions or expectations about the budget for 2023 include the following:
- The Indian government is expected to revise tax slab values this year, according to citizens. They want the highest tax rate of 30% to be lowered to 25% and the threshold limit increased to Rs. 20 lakhs from Rs. 10 lakhs.
- For a better understanding of Indian communities, the government is expected to promote partnerships between gold loan companies and banks to make gold loans accessible to all communities.
- Tax deductions on capital or operating expenditures are available for production levels, capacity expansion, and the adoption of cutting-edge technologies like the Internet of Things (IoT), artificial intelligence (AI), machine learning (ML), etc.
- Consumers are expecting to get tax exemptions for the interest paid on the EV loans. It is predicted by looking at the budget and the government’s initiatives in 2022 to increase EV production.
- It is predicted that the Indian government will increase the limit on 80C, 80D, 80EEA, and 80EEB reductions. This step is expected to be taken for lower- and middle-class people affected by COVID-19.
- Reduction of the anticipated 12 percent interest rate for overdue GST payments from the present 18 percent rate. This new recommendation from ASSOCHAM (Associated Chambers of Commerce and Industry of India) will vastly improve the level of competition.
- According to various media reports, consumers anticipate a reduction in the tax interest paid on personal loans.as there is no such tax exemption on personal loans yet.
- The GST on building materials like steel, iron, and cement is expected to be lowered.
- People expect the government to give benefits to businesses that install solar panel plants and to individuals who install rooftop power systems. This will help the government and the people of India reach the 2030 solar mission target.
Also read: Smart financial habits
The budget for 2022 has set a high bar for the union budget for 2023 as it has focused on multiple sectors like health, education, digital and technology, e-services, and others. In 2023, the government is predicted to promote solar energy, digitalization, tax revisions, electric vehicles, etc.