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Business News/ Money / Personal Finance/  Budget 2023: From women to startups; Here are 6 key takeaways
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Budget 2023: From women to startups; Here are 6 key takeaways

The budget 2023 presented by Finance Minister Nirmala Sitharaman focuses on capex and infrastructure development, with an emphasis on empowering the common man, women and senior citizens, while also pushing for green energy and healthcare initiatives.

New Delhi: Union Finance Minister Nirmala Sitharaman presents the Union Budget 2023-24 in the Lok Sabha, in New Delhi, Wednesday, Feb. 1, 2023. (PTI Photo) (PTI02_01_2023_000158B) (PTI)Premium
New Delhi: Union Finance Minister Nirmala Sitharaman presents the Union Budget 2023-24 in the Lok Sabha, in New Delhi, Wednesday, Feb. 1, 2023. (PTI Photo) (PTI02_01_2023_000158B) (PTI)

This year’s budget is pro-growth and well balanced with major initiatives across various key segments. Let’s analyse the segment specific key takeaways:

1. Women: The launch of the new small savings scheme for women “Mahila Samman Bachat Patra" for 2 years with 7.5% fixed interest rate up to 2 lacs, will boost micro-savings and financial inclusion for women. Women are the most disciplined savers, and the scheme will further promote regular saving behaviour in women.

2. Salaried/Professionals - Taxpayers: With rebate limit increased to 7 lacs in new tax regime, no. of tax slabs reduced with new lower tax rates introduced, the budget has been a boon to the middle class and will lead to increase in their purchasing power. However, it’s important to understand what will be best for taxpayers – the old or the new regime. For people with income less than 15 lacs, the new regime will give more benefits and flexibility. For the higher income group, the old regime with several exemptions and deductions, may turn out to be better.

3. Senior Citizens: Senior citizens savings scheme’s maximum deposit level increased from 15 to 30 lacs is a positive move. Also, Monthly income account schemes’ limit increased. Both these initiatives will make life easier for senior citizens who live on monthly interest income.

4. HNIs High Net Worth Individuals: HNI Investors may prefer investing in debt mutual funds over insurance products, especially post April 1 when income from policies with premium over 5 lacs will get taxable. Long term capital gains tax left unchanged, is a big relief for capital market participants. The highest effective tax rate has been reduced from 42.7% to 39%, which certainly benefits high income earners.

5. Digital customers: While Aadhaar, UPI, Jan Dhan, Video KYC, etc. have simplified banking and finance, the initiative to expand the Digilocker services, will further boost digital innovations and bring more ease and transparency for digital customers. Also, use of PAN Permanent Account no. cards as a common identifier for all digital systems, will go a long way in simplifying KYC process and documentation.

6. Self-employed Businessman / MSMEs / Startups: Credit Guarantee of Rs 9000 crores for MSMEs will lead to enhanced credit to the sector. Presumptive taxation for MSMEs with enhanced limits to 3 crores, promoting startups in rural areas through agriculture accelerator, entity-based Digi lockers, etc. will lead to a boost in hassle-free credit uptake and growth of MSMEs.

Thus, the Budget 2023 is a well-rounded one, offering benefits to all key segments – a Pragmatic, Progressive and Pro-Growth Budget.

Dr. Jasmin B Gupta is a Co-founder and the CEO at LXME.

Budget 2023: Allocation for specific ministries
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Budget 2023: Allocation for specific ministries

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Published: 05 Feb 2023, 10:54 AM IST
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