Budget 2023: Talking about the big announcement in this time's budget, there will be no tax on income up to Rs 7 lakh under the new tax regime. However, no changes have been made in the old tax system.
Finance Minister Nirmala Sitharaman presented the last full budget of the Modi government on 1 February 2023. Talking about the big announcement in this time's budget, under the new tax regime there will be no tax on income up to Rs 7 lakh. However, no changes have been made in the old tax system. Let us know which sectors the Finance Minister has focused on.
1- Who got the gift?
agriculture sector
Farmers have always been at the center of Modi government. Before this budget, Modi government has launched many schemes like PM Kisan Samman Nidhi keeping the farmers in mind. The government has increased agriculture expenditure in the budget for the financial year 2023-24. Which will be 19 percent of the entire economy. Sir, a lot of money has been showered on this sector to promote horticulture, agriculture startups etc. Stock market listed companies like Kaveri Seeds, Dhanuka Agritech, Bombay Super Hybrid Seeds and Rashtriya Chemical and Fertilizers Limited can benefit from the government's announcement.
There is also immense potential for tourism in India. Keeping this in mind, the government has announced to identify 50 domestic tourism areas and promote them. Apart from this, an app will be created from where tourists can get information about food, security, connectivity etc. IRCTC, Thomas Cook India, Indian Hotels and EIH Limited can benefit from this announcement.
infrastructure
The current government has a special focus on infrastructure. Keeping this in mind, it has been announced to build 50 new airports and heliports. Apart from this, a record allocation of Rs 2.4 lakh crore has been made in this budget. Adani Airports, GMR Airports Infrastructure Limited, GVK Airport Developers Limited, L&T and Bharat Heavy Electrical Limited.
Relief to taxpayers
After a long time, the government has given big relief to the taxpayers. People adopting the new tax system will not have to pay any tax on income up to Rs 7 lakh. Apart from this, the number of tax slabs has also been reduced.
metal and cement
The government has allocated a huge amount in the budget for infrastructure. Which will be good for metal and cement industry. Companies like Tata Steel, JSW Steel, Jindal Steel and Power Limited can benefit from this announcement of the government.
electric vehicles
The government has announced a reduction in custom duty on lithium oil batteries. Which will directly benefit this sector.
green energy
The government had already expressed its intention to reduce carbon emissions. The same has been announced in the budget also. The government will provide financial support to companies manufacturing 4000 mega watt battery energy storage systems.
2- Which sectors remained empty handed?
defense sector
Gaurav, head of aerospace at KMPG, says that the country's capital expenditure has increased by 33 percent but the military budget has been increased by only 7 percent. Gaurav says that this is quite surprising amidst the increasing tensions with China. Government companies Hindustan Aeronautics Limited and Mazagon Dock Shipbuilders Limited have been badly affected. Both companies fell more than 6 percent on February 1.
cigarettes become expensive
The government has increased the tax on cigarettes. Due to which there has been a decline in the shares of the companies manufacturing it on the budget day. Let us tell you, the government's announcement will be effective from February 2.
Shares of jewelery companies have also seen a decline after the budget. For the first time, the government has not made any changes in the import tax of gold. Apart from this, the import tax on import of silver has been increased by the government.
Oil Refinery
No announcement has been made by the government for oil refinery companies either. Whereas the Oil Ministry had said in its proposal that the government should cover the losses of these companies from the budget.
foreign car manufacturers
Automobiles imported from abroad, including electric vehicles, will now have to pay higher taxes. The government has increased the import tax on cars and EVs worth more than $40,000 from 60 percent to 70 percent.
