The Indian Union Budget 2023, which is the annual financial statement of the Government of India, was presented by Finance Minister Nirmala Sitharaman on 1 February 2023. This year’s budget has witnessed a significant shift in focus, as the Union Government has made substantial investments to stimulate the economy, improve access to education and health care, as well as promote environmental sustainability and agricultural promotion. This article will analyze the Union Budget 2023-24 and examine how it will affect the Indian economy.
The budget allocated 1.41 trillion rupees for health and wellbeing in the country. This includes the world’s largest public health insurance scheme, the Ayushman Bharat scheme, which targets 500 million Indians facing extreme poverty. This scheme provides up to ₹ 5 lakhs in health insurance to each beneficiary family. Additionally, the government increased the expenditure for health and wellbeing by 22.8 percent from previous year and has allocated 44,000 crores for the National Health Mission. Furthermore, this budget has allocated 5,000 crores for the establishment of a national medical commission and for the setup of national medical research centers.
The Union Budget 2023-24 has reserved 93,847 crore rupees for education, which is a 15 percent increase over the previous year. This budget has taken a more diverse approach to education and has identified various areas where funds have been invested, ranging from grants to educational institutions to scholarships, to educational infrastructure. The government has also committed to setting up more than 5000 Eklavya Model Schools in tribal districts and Blocks. Furthermore, the Kasturba Gandhi Balika Vidyalaya Scheme, a programme to encourage education among girls in rural areas, has been allocated 8,000 crore rupees.
The union budget 2023-24 has allocated 1.44 trillion rupees for agriculture and rural development. This includes a focus on micro-irrigation and water management systems, such as the Sustainable Use of Modern Technology and Systems (SUMTS) and the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY). The budget also focuses on strengthening rural institutions for farmers and providing them access to markets, technologies, and information networks. This includes the introduction of a new crop insurance scheme, Pradhan Mantri Fasal Bima Yojana, and the establishment of agricultural credit card networks to provide farmers access to financial services.
The union budget 2023-24 emphasizes infrastructure building in the country, with a focus on rural infrastructure and digital infrastructure. A total of 15,28,056 crore rupees have been allocated for infrastructure and industrial developments which is a 18.5 percent increase over the previous year. This year, the budget also focuses on strengthening rural infrastructure, as well as digital infrastructure. A total of 18,000 crores have been allocated towards the Pradhan Mantri Gram Sadak Yojana, which focuses on connecting rural villages to the road network and 6,000 crores has been allocated towards the Digital India initiative.
The budget also highlighted the importance of manufacturing in the country. A total of 18,73,323 crore rupees have been allocated for the manufacturing sector which is 35.4 percent higher than the previous year’s allocation. Additionally, measures have been taken to boost India’s exports, such as the introduction of the Trade Infrastructure For Export Scheme (TIES) which aims to promote Indian exports and the setting up of the National Traders Welfare Board which will provide assistance to small and medium scale enterprises. Additionally, measures have been taken to promote the Make in India campaign through the introduction of the National Action Plan for Promotion of Manufacturing.
Table 1 presents the Union Budget allocations for different sectors for the financial year 2023-24
Sector Allocation (Rs crore)
|Social Services||Rs. 3,20,711|
|Science and Technology||Rs. 9,934|
|Digital India||Rs. 13,664|
The Union Budget 2023-24 marks a significant shift in focus of the Government of India. It has made substantial investments and allocations across all sectors, particularly in health and education. Infrastructure has received significant focus with the government allocating 15,28,056 crore rupees. The budget also has measures to boost India’s exports and promote the Make in India campaign. This budget will therefore have a positive impact on the Indian economy.