It is that time of the year in India when everyone is just concerned about and discussing one thing: Union Budget 2023-24. From news channels and online news portals to dinner table conversations at home everyone is debating about this year’s Union Budget before the beginning of a new financial year. Even though most people have heard the term 'union budget ' several times, they don't know much about it. So, what is the union budget? And why is everyone so concerned about it? Here’s what you need to know.
In simple terms, the union budget of India is our country's annual financial statement. According to Article 112 of the Indian Constitution, budget presentation is compulsory before the beginning of a new fiscal year.
Earlier it used to be tabled on the last day of February, but in 2017, then Finance Minister Arun Jaitley had announced that the Union Budget will be presented on February 1. It was also announced that there will be no separate budget for Railway. After the announcement of the budget, it will remain valid for the following fiscal year that starts on April 1 and ends on March 31 of the following year.
The union budget is divided into two parts-
The capital budget contains information regarding the capital payments and capital receipts of the government. The capital payments can be the money spent on infrastructure, healthcare facilities, etc. The capital receipts account for the loans taken from the RBI or the general public.
The revenue budget includes the revenue expenditure and revenue receipts. The government is known to be suffering from a revenue deficit in case if the revenue receipts are lower than the revenue expenditure.
The common focus of the Union Budget is to bring about a rapid and balanced economic growth of our country along with social justice and equality. Below are few of the objectives that highlight the importance of Union Budget in India.
It is essential to utilize the available resources in the best interest of the country. Efficient allocation of these resources helps to achieve profit maximization for the government which in turn encourages public welfare.
Another important aim of the Union Budget is to do away with poverty and create more job opportunities. This will ensure that every citizen of the country is able to look after their respective basic needs of food, shelter, and clothing, along with facilities for healthcare and education.
The budget helps to control the distribution of income through subsidies and taxes. It helps to make sure that a high rate of tax is levied on the financially privileged, thereby reducing their disposable income. On the other hand, a lower rate of tax is charged on the lower income group to ensure they have sufficient income in hand.
The Union Budget helps in controlling the economic fluctuations as well. It looks to handle inflation and deflation properly, thus bringing about economic stability. During inflation, surplus budget policies are implemented, while deficit budget policies are implemented during deflation. This helps in maintaining a price stability in the economy.
The Union Budget also controls the possible changes in the direct and indirect taxes of the country. It brings about changes to income tax rates and tax brackets.
Union Finance Minister Nirmala Sitharaman will present the 2023-24 Union Budget on Wednesday, February 1. In Budget 2023-24, a few expectations include focus on technology-oriented development, speeding up the electronic vehicle productive, suitable change in tax slabs, decision regarding India’s climate commitments etc. As per a news report, the insurance industry is expecting a reduction in GST to 5% from 18%, to make insurance affordable. According to another news report, the government is eager to tame its fiscal deficit, which is targeted at 6.4% of GDP for the current fiscal year. The expectation from Union Budget 2023-24 also includes strengthening public as well as private healthcare sectors by supporting hospital infrastructure, improving medical resources, providing specialized services, health insurance schemes and more.
Even though the COVID-19 pandemic is under control, it is not over yet. With new COVID-19 variants being discovered every few months, the pandemic is still lingering on us. While we wait and hope that the Union Budget 2023-24 has a solid healthcare plan, it is essential that every person buys a good health insurance plan which gives comprehensive coverage. The widespread coverage should not only include hospitalization and medical costs, but alternate treatment costs for AYUSH treatments as well. Hence, if you still haven’t purchased the right medical insurance for you and your loved ones, you need to do it as soon as possible.
Finance Minister Nirmala Sitharaman will present the Union Budget 2023-24. This is the fifth time she will present the annual budget.
Union Budget 2023 will be presented on Wednesday, 1 February 2023. The budget session will commence at 11 am.
The average duration of budget presentations is 1.5 to 2 hours. But, in 2021, Nirmala Sitharaman delivered the budget speech for 2 hours and 40 minutes. It was the longest speech ever in the history of India.
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