Union Budget Expectations 2023

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That time of the year is already here when people in every nook and corner are talking about major expectations from Government as Annual Union Budget is near and will be presented on 1st February 2023 for the financial year 2023-24.

With the budget day almost upon us, there could be announcements of new schemes, changes to the existing ones, and other tax sops favoring both individuals and companies. Therefore expectations from this budget are plenty.

Let’s look at a glimpse of the Budget expectations at what all the salaried and other individuals expect from the budget.

  • First of all, we are expecting Huge Benefits for Entrepreneurs and Startups in India which give contribute to the Economy of India.
  • Social and Economic Schemes for poor Families, Farmers, Weavers, and peasants are also expected in the Union Budget 2023.
  • Apart from this, we are also expecting the Vande Bharat Trains to be launched this year in addition to already running trains.
  • The UDAN Budget will also be increased this year which will allow the citizens to fly in flights at a nominal price.
  • Apart from this, Common People and Middle Class can expect the Relaxations in Income Tax Slab along with other benefits

As we know, citizens are expecting the Indian Budget 2023 which is yet to be announced. So in order to remove all the confusion from the minds of Citizens we are here with India Budget 2023 Date which is 1st February 2023. We have huge expectations from the Budget this year and the Indian Government will deliver many promises as made in the Elections by PM Modi.

  • We are also expecting relaxations in the Income-tax Slab for Common Citizens which will be helpful for them.
  • Citizens are also expecting Social Economic Welfare Schemes for the Poor Section of Society and Farmers are also expecting Debt Relief Measures from the Government of India.
  • Apart from this, GoI will also increase the Defence Budget this year and may spend on the Research and Analysis of New Weapons.

All eyes are on how the government plans its expenditure and controls fiscal deficit and inflation. If the government spends more on capital and revenue expenditure than expected then it is likely to increase the fiscal deficit. This could result in higher market borrowing by the government, which exerts pressure on the interest rates and triggers inflation.

Lets look at the Tax slab and Deduction.

Tax slab

The current tax slab has a basic exemption limit of ₹ 2.5 lakhs for individual taxpayers, which has not been changed since 2014-15. It means that individuals with income below this limit are not required to file income tax returns. Now the income tax exemption limit is expected to be increased to ₹ 5 lakhs in the upcoming budget.

Standard deduction

The taxpayers also expect the government is likely to double the standard deduction from ₹ 50,000 to ₹ 1 lakh. According to experts, the standard deduction limit should be doubled to account for the growing cost of living and rising inflation.

Look at Individuals expecting for Infrastructure and Fintech Sector.

Keep going through the blog to have an estimate of the budget.

Infrastructure and social schemes spending

Increased spending on infrastructure is also expected in this year's budget. With this, big infrastructure projects are likely to be launched in the coming years. As this will be the budget ahead of the 2024 general elections, the government is expected to allocate more funds for infrastructure projects and social sector welfare schemes.

Union Budget for Fintech Sector:

The Fintech sector has served as a catalyst for the transformation and growth of the Indian financial services industry. Currently, India, which is among the world’s fastest-growing fintech markets, has around 6,600 Fintech startups with consumers becoming more financially literate, tech-savvy, and comfortable with buying financial products through apps and on-line portals.

The sector is justly seen as an important player to support the Indian government’s vision of financial inclusion and digital India, and a bridge to reach the US$ 5 trillion economy target by 2025. With the Union Budget 2023-24 just around the corner, the timing couldn’t be better for the government to introduce policy measures and tax measures to boost the Indian Fintech sector.

With all of these things in line, the whole of India will be expecting a lot from this budget, and market participants will also be watching the budget with great expectations.