The Indian budget is the annual financial report that contains the government's proposed expenditures for the fiscal year. It provides an overview of the allocation of financial resources to various departments and ministries. A country's budget document helps in analyzing macroeconomic conditions and estimating budget deficits unless it is misused by politicians as a vote-catching tool. The finance minister presents this financial report to parliament, usually every February or March. The Ministry of Finance also publishes details of all financial proposals on its official website.

Union Budget 2023-2024

The Indian finance minister presented the budget in Parliament on Feb. 1. FM Nirmala Sitharaman highlighted some interesting trends in the economy, startups, and entrepreneurship this year. She called this budget the "Amrit Kaal" budget.

Vision for Amrit Kaal - a strengthened and inclusive economy

The Finance Minister stated that Janbhagidari Sabka Saath Sabka Prayas is critical to achieving our vision for Amrit Kaal, which envisions a knowledge and technology-based economy with sound public finances and a healthy financial sector. According to her, the economic plan to achieve this vision focuses on three key areas: first, creating sufficient opportunities for residents, especially young people, to realize their dreams; second, creating growth and jobs; and third, improving macroeconomic stability. She went on to say that the following four opportunities could be transformative during Amrit Kaal to support these focus areas in our journey to India@100.-

• Women's economic empowerment
• PM Vishwakarma Kaushal Samman (PM VIKAS)
• Tourism
• Green Growth

Priorities of this budget

In her list of seven priorities for the Union Budget, Smt. Nirmala Sitharaman that they all work harmoniously together and serve as our "Saptarishi" to guide us through the Amrit Kaal. They are:

1) Inclusive development 
2) Reaching the last mile
3) Investment and Infrastructure
4) Realising the potential
5) Green development
6) Strength of youth
7) Financial Industry

The Union Budget 2023 provides for substantial allocations to various ministries in India:

• 5.94 million has been allocated to the Ministry of Defence, an increase of 13% over last year's budget. This allocation will help the ministry further develop weapon systems, ships, and aircraft, and facilitate emergency procurement of essential ammunition and spare parts. The increase in funding is particularly important given the situation along the Line of Actual Control (LAC).
• 1.67 billion has been allocated to the Ministry of Agriculture and Rural Affairs for agricultural sector development and 20 billion for livestock, fisheries, and livestock production.
• The Ministry of Road Transport and Highways was allocated 2.7 billion, a significant increase from the previous year's allocation of 1.99 billion. This will give a boost to PM Gati Shakti's master plan.
• The Ministry of Railways has been allocated 2.4 billion for the period FY 2023-24, which will be used to expand the production of Vande Bharat trains. A fully hydrogen-fueled train is also to be completed by December 2023 to run on the historic Kalka-Shimla route.
• The Ministry of Education has received a budget of 1.12 million, a slight increase over last year's allocation of 1.04 million.
• The Ministry of Health has received a budget of ₹ 89,155 million, a 3.43% increase from the previous allocation of ₹ 86,200.65 million. 86,175 million was allocated to the Department of Health and Family Welfare, while the remaining ₹ 2,980 million went to the Department of Health Research
• 16,361.42 million was allocated to the Ministry of Science and Technology, representing a nominal increase of 15% over the previous budget estimate. The Department of Science and Technology (DST) has received 7,931.05 million euros, an increase of 32.1% over the previous budget estimate

Income Tax:

Budget 2023 has brought significant changes to the income tax system, the most notable of which is the increase in the income tax refund limit. Previously, individuals earning less than 5 lakhs were exempt from paying tax. This limit has now been raised to 7 lakhs, which is a much-needed relief for middle-class taxpayers.

In addition to this change, the new tax regime has been made the default option for filing tax returns, simplifying the tax filing process for taxpayers. The revised tax rate for FY 2023-24 is as follows:

Income	Tax Rate
Rs 0 – 3,00,000	0%
Rs 3,00,001 to Rs 6,00,000	5%
Rs 6,00,001 to Rs 9,00,000	10%
Rs 9,00,001 to Rs 12,00,000	15%
Rs 12,00,001 to Rs 15,00,000	20%
Rs 15,00,001+	30%

These changes to the income tax system aim to reduce the tax burden on the middle class and promote compliance and ease of use for taxpayers.