Finance Minister Nirmala Sitharaman on Wednesday presented the Union Budget 2023 in Parliament, at a time when India’s economy faces challenges from a host of global factors, steep rise in inflation and a possible GDP growth slowdown in FY24.

“This is the first budget in Amrit kaal, it hopes to build on the foundation laid by the previous budget and the blueprint drawn for India at 100,” Sitharaman said.

Here are some of the highlights from the finance minister’s budget speech:

Big Relief Under New Tax Regime

The finance minister announced that under the new tax regime:

Income of Rs 0-3 lakh will attract nil tax.

Income above Rs 3 lakh and up to Rs 5 lakh to be taxed at 5%.

Income of above Rs 6 lakh and up to Rs 9 lakh to be taxed at 10%.

Income of above Rs 9 lakh and up to Rs 12 lakh to be taxed at 15%.

Income above Rs 12 lakh and up to Rs 15 lakh to be taxed at 20%.

Income above Rs 15 lakh to be taxed at Rs 30%.

The surcharge on the highest earners lowered from 37% to 25%.

The new tax regime will be the default choice, but citizens can still opt for the old tax regime.

Agri Focus, Farm Credit Target Raised
Agriculture credit target for FY24 has been set at Rs 20 lakh crore.

The government will launch the Atmanirbhar clean plant programme to improve availability of disease-free quality planting material for high-value horticultural crops at an outlay of Rs 2,200 crore.

Indian Institute of Millet Research will be supported as a centre of excellence to boost millet cultivation.

A sub scheme under PM Matsya Sampada Yojna with an outlay of Rs 6,000 crore will be launched to further enable activities of fishermen.

Agriculture accelerator fund will be setup to encourage start-ups in rural areas.

Capital Investment Outlay Raised By 33%
Capital expenditure outlay raised by 33% to Rs 10 lakh crore in FY24, representing 3.3% of the GDP.

The effective capital expenditure of centre for FY24 has been pegged at Rs 13.7 lakh crore.

Capital outlay of Rs 2.40 lakh crore will be provided for railways in FY24.

Centre will continue 50-year interest-free loan to state governments for one more year.

Fiscal Deficit Seen At 5.9% In FY24
Fiscal deficit for FY24 has been estimated to be at 5.9% of the GDP. It is estimated to meet the budget estimate of 6.4% in FY23, the finance minister said in her speech.

The government is estimated to borrow Rs 15.45 lakh crore via bonds in FY24, with net borrowings at Rs 11.8 lakh crore.

New Urban Infra Development Fund With Rs 10,000 Crore
The fund will be established to mitigate priority sector lending shortfall to the housing sector.

National Hydrogen Mission To Receive Rs 19,700 Crore
Nirmala Sitharaman allocates Rs 19,700 crore to National Hydrogen Mission. The objective is to reach hydrogen production capacity of 5 metric million tonnes by 2030

Budget Sets Aside Rs 35,000 Crore For Energy Transition
Budget 2023 provides Rs 35,000 crore for priority capital investment towards energy transition and net zero objectives and energy security.

Interstate transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh to be constructed with outlay of Rs 20,700 crore including central support of Rs 8,300 crore.

Rs 9,000 Crore For Credit Guarantee Scheme For MSMEs
The revamped credit guarantee for MSMEs to take effect from April 1, 2023 with infusion of Rs 9,000 crore in corpus.

Rs 79,000 Crore For PM Awaas Yojana
PM Awaas Yojana outlay has been increased by 66% to Rs 79,000 crore in the next fiscal.

The overall expenditure outlay for the Pradhan Mantri Awas Yojana or the mission for 'housing for all' has been increased by 66% for the fiscal 2024 to Rs 79,000 crore, Finance Minister Nirmala Sitharaman said in her budget speech.