Parliament Budget Session: Finance Minister Nirmala Sitharaman on Friday hailed the government's economic policies during the reply to the Budget 2023 debate in Lok Sabha.
She asserted despite of global slowdown India is still the fastest-growing major economy.
The government chose capex route to revive the economy as it has a great multiplier effect, she added.
"If I can put in a few words the essence of budget 2023-24- it balances the requirement for India's development imperatives within the limits of fiscal prudence," said Sitharaman.
She added the total resources being transferred to states, that is, Central share from taxes and releases under centrally sponsored schemes put together was estimated to be at 17.98 Lakh Crores and this was higher by 1.55 Lakh crores compared to last year.
She said the Budget astutely balances the requirement of development imperatives within the limits of fiscal prudence and it focuses on the middle class, employment generation, MSME, agri sector, rural population, health and green growth.
Sitharaman said the new tax regime announced in the Budget is "very attractive" as the tax exemption limit has been hiked to Rs 3 lakh, from Rs 2.
5 lakh earlier. Besides, a standard deduction of Rs 50,000 too has been allowed under the scheme.
This new tax regime will benefit the majority of middle-class taxpayers, she said, adding that the rebate has been provided on an income of up to Rs 7 lakh.
"Since the enhanced rebate limit is unconditional, it leaves higher disposable income in the hands of people," Sitharaman said.
Under the revamped concessional tax regime, which will be effective from the next fiscal, no tax would be levied for income up to Rs 3 lakh.
Income between Rs 3-6 lakh would be taxed at 5 per cent; Rs 6-9 lakh at 10 per cent, Rs 9-12 lakh at 15 per cent, Rs 12-15 lakh at 20 per cent and income of Rs 15 lakh and above will be taxed at 30 per cent. However, no tax would be levied on annual income of up to Rs 7 lakh.
Responding to RSP member NK Premachandran's remark that the new tax regime will not be beneficial for a person earning Rs 9 lakh annually and having an investment of Rs 4.5 lakh in tax savings instruments, Sitharaman said for a person saving Rs 4.5 lakh will be an "effort-ridden exercise".
"For a person earning Rs 9 lakh, it's not always possible to have Rs 4.5 lakh as saving and then also have enough money to spend on your family," Sitharaman said.
The minister also said the Budget has maintained fiscal prudence as announced in the fiscal glide path earlier.
"It is a very, very delicately balanced Budget," Sitharaman said, adding the government chose the capital expenditure route to revive the economy as it has a greater multiplier effect.
