Highlights from Budget 2023-24.
Understanding budget is important for anyone to comprehend the fuctioning of taxes, home loans, stock portfolio and more
It is when the Finance Leader of India decides which sectors will government invest in, what will the total expense be, how much revenue will India make - all the in next 12 months.
This year's budget was announced last week and here are 3 key highlights that I want to point out
Fiscal Consolidation - Indian Government spends money on two things - 1. For businesses to flourish 2. To the welfare of people. One such example is Gloden Quadilateral highway that was built for more than 10 years connecting Mumbai-Chennai-Delhi-Kolkata. Lot of money was invested here by the government, and businesses are now being thankful for such an thougtful expenditure. Currently India is a deficit economy because it spends more than it earns.
Major chunk of conversations at the parliament revolved around how will government carry out a fiscal consolidation exercise.
Increase in Capital Expenditure - Government plans to turnaround our deficit economy to a more surplus one. And so decides increasing capital expeditures upto 33% from last year, while keeping the revenue expenditure same. It also wants to execute a 51,000 Crore disinvestment stratergy to pile up capital for other investments.
Changes/Rebate in the tax regime - The new tax regime has good news for the working middle class, because the base eligibility to pay taxes is now increased from 5 Lakhs to 7 Lakhs.
Along with these do know which sectors does the Government want to invest this year - Road/Logistics/Steel/Cargo Terminals, Ports/AV Industry.
For a fact this is the first time where I carefully observed, effects of budget and what goes behind arriving at such decisions. Fascinated to see how this pans out, hope this was useful to you.
Cheers,
Your Noob Friend