Highlights Of The Union Budget 2023-24

  • 01-Feb-2023
  • 2 mins read

Let us have a look at the Live Updates of Budget 2023-

Priorities for the Budget2023 include

Inclusive Development

Infra and investment

Reaching the Last Mile

Unleashing the potential

Green growth

Youth Power

Financial sector

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1. Announcement:

An agriculture accelerator fund is to be set up to encourage Agri to start up 

2200 cr allocated for high-value horticulture

The impact expected: Encouragement for Agri related activities

Stocks to watch: UPL, Kaveri Seed, Apex frozen

2. Announcement: Tourism Sector

50 destinations to be selected on challenged mode and to be made digital on an Application to boost tourism

Infrastructure to be built

Impact: Positive

Stocks to watch: INDHOTEL, LEMONTREE

3. Announcement:

In the New Tax Regime, there is no deductions are available. The new tax regime will be the default tax regime

Impact expected: Negative for insurance and re-insurance stocks

Stocks to watch: LIC, SBILIFE, ICICPRU, GICRE, NIACL

4. Announcement:

6000 cr allotted to boost fisheries

Impact expected: Positive

Stocks to watch: Avanti Feeds, Godrej Agrovet

5. Announcement:

PM AVAS YOJNA Allocation 66% UP to 79000 cr

Impact expected: Positive

Stocks to watch: ACC, Ultratech Cement, Kajaria, Astral Pipes

6. Announcement:

Investments in Infra increased 33% to 10 lakh cr. 4.5% of GDP

2.4 lakh cr allocation for Railways. Highest ever outlay.

50 additional Airports, Heliports, Aerodomes

100 critical Project identified

Impact expected: Positive

Stocks to watch: Titagarh Wagons, IRCTC, GMR, L&T, Ultratech Cements, IRB Infra

7. Announcement: INFRASTRUCTURE

Capital expenditure increased by 33% to 10Lac cr.

Impact – Positive

Stocks to watch: LT, SIEMENS, IRB, ABB

8. Announcement:

Green Hydrogen Mission target to reach annual production to 5MMT

Budget for 45000 crores for this sector.

Impact: Positive

Stocks to watch: Reliance, NTPC

9. Announcement: Telecomm Sector

100 labs for 5G applications.

R&D by IIT

Impact expected: Positive

Stocks to watch: Bharti Airtel, Reliance

10Announcement Railway Sector

Highest ever capital outlay at 2.4 lakh crores allocated to railways

Impact – Positive

Stocks: RVNL, IRCTC, IRCON, L&T, Siemens, BEML

11. Announcement: Auto sector 

Replacement/scrapping of Old Government Vehicles and ambulances

Impact expected: Positive

Stocks to watch: Force Motors, Ashok Leyland, SML Isuzu

12BIG FOR UNCLAIMED SHARES AND DIVIDEND HOLDERS:

To reclaim IEPF shares with ease a new integrated IT portal will be established.

13. Announcement: Financial Sector

Credit Guarantee Scheme: 9000 cr infused in the corpus for revamping the scheme

Impact expected: POSITIVE

Stocks to watch: SBI, KOTAK MAHINDRA, AXIS BANK

14. BIG BREAKING NEWSFISCAL DEFICIT

FISCAL DEFICIT 6.4 GDP VS GOAL 6.4%

FISCAL DEFICIT TARGET NOW AT 5.9% OF GDP which is as expected by markets.

Fiscal deficit:

6.4% of GDP FY23

FY24 TARGET AT 5.9%

TARGET OF 4.5% by 2025

Important Fiscal Deficit Break Up:

Total receipts (minus borrowings) = Rs. 2 lakh crores

Total expenditure = Rs.45 lakh crores

Net tax receipts = Rs.23.3 lakh crores

Fiscal deposit = 5.9% of GDP

Centre aims to bring down the fiscal deficit to 4.5% by 2025-2026.

15. ITC Update:

Jefferies’s note indicated 35% jump in NCCD would mean a 3.5% tax hike.

This would imply a 1.5-2% price hike in cigarettes at best.

Lower increase than what the street expected which is a bit good.

16. Income Tax

Personal income tax:

1) Rebate: limit increased to 7 lakhs in the new tax regime

2) New tax regime is the default tax regime.

3) Number of Tax slabs 5 in the new tax regime and upto 3 lakhs tax is nil

The new tax rates are 0 to Rs 3 lakhs – nil, Rs 3 to 6 lakhs – 5%, Rs 6 to 9 Lakhs – 10%, Rs 9 to 12 Lakhs – 15%, Rs 12 to 15 Lakhs – 20% and above 15 Lakhs – 30%,

For example Individual income of 9 lakhs tax only 45000. Ie 5% tax avg

4) For Salary personal: Standard Deduction increased to 52500

5) Highest surcharge rate was reduced to 25% from 37%. Now max tax rate is 39%


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