MANAGERIAL

ECONOMICS
PRESENTED BY GROUP 4 (PD BATCH)
-SANITH THYAGARAJAN
-JENIL SALEJKAR
-CHELSEE RAJORIA
-RICHA TIWARI
-VIJAYA SURBHI
-SAHIL BHOSALE
-AKSHAT MISHRA
ECONOMIC ANALYSIS

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 The Union Minister of Finance and Corporate Affairs Smt. Nirmala
Sitharaman presented the Union Budget 2023-24. The highlights are : -
• Per capita income has more than doubled to ₹1.97 lakh in around nine
years.
• Indian economy has increased in size from being 10th to 5th largest in
UNION the world in the past nine years.
• EPFO membership has more than doubled to 27 crore.

BUDGET • 7,400 crore digital payments of ₹126 lakh crore has taken place
through UPI in 2022.

2023-24 • 11.7 crore household toilets constructed under Swachh Bharat Mission.
• 9.6 crore LPG connections provided under Ujjwala.

HIGHLIGHT • 220 crore covid vaccination of 102 crore persons.

• 47.8 crore PM Jan Dhan bank accounts.
S • Insurance cover for 44.6 crore persons under PM Suraksha Bima and
PM Jeevan Jyoti Yojana.
• Cash transfer of ₹2.2 lakh crore to over 11.4 crore farmers under PM
Kisan Samman Nidhi.
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 Continued…
• Seven priorities of the budget ‘Saptarishi’ are inclusive development, reaching the last mile, infrastructure and
investment, unleashing the potential, green growth, youth power and financial sector.
• Atmanirbhar Clean Plant Program with an outlay of ₹2200 crore to be launched to boost availability of disease-free,
quality planting material for high value horticultural crops.
• 157 new nursing colleges to be established in co-location with the existing 157 medical colleges established since 2014.
• 500 new ‘waste to wealth’ plants under GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme to be
established for promoting circular economy at total investment of Rs 10,000 crore. 5 per cent compressed biogas
mandate to be introduced for all organizations marketing natural and bio gas.
• Centre to facilitate one crore farmers to adopt natural farming over the next three years. For this, 10,000 Bio-Input
Resource Centres to be set-up, creating a national-level distributed micro-fertilizer and pesticide manufacturing
network.
• Pradhan Mantri Kaushal Vikas Yojana 4.0, to be launched to skill lakhs of youth within the next three years covering
new age courses for Industry 4.0 like coding, AI, robotics, mechatronics, IOT, 3D printing, drones, and soft skills.
• Targeted Fiscal Deficit to be below 4.5% by 2025-26.
• Annual production of 5 MMT under Green Hydrogen Mission to be targeted by 2030 to facilitate transition of the 4
economy to low carbon intensity and to reduce dependence on fossil fuel imports.
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 Continued…
• ₹35000 crore outlay for energy security, energy transition and net zero objectives.
• Battery energy storage systems to be promoted to steer the economy on the sustainable development path.
• 20,700 crore outlay provided for renewable energy grid integration and evacuation from Ladakh.
• To commemorate Azadi Ka Amrit Mahotsav, a one-time new small savings scheme, Mahila Samman Savings
Certificate to be launched. It will offer deposit facility upto Rs 2 lakh in the name of women or girls for tenure of 2 years
(up to March 2025) at fixed interest rate of 7.5 per cent with partial withdrawal option.
• The maximum deposit limit for Monthly Income Account Scheme to be enhanced from Rs 4.5 lakh to Rs 9 lakh for single
account and from Rs 9 lakh to Rs 15 lakh for joint account.
• The entire fifty-year interest free loan to states to be spent on capital expenditure within 2023-24. Part of the loan is
conditional on States increasing actual Capital expenditure and parts of outlay will be linked to States undertaking specific
loans.
• Fiscal Deficit of 3.5% of GSDP allowed for States of which 0.5% is tied to Power sector reforms.
• To further improve taxpayer services, proposal to roll out a next-generation Common IT Return Form for taxpayer
convenience, along with plans to strengthen the grievance redressal mechanism.
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• Rebate limit of Personal Income Tax to be increased to Rs. 7 lakh from the current Rs. 5 lakh in the new tax regime.
Thus,
ITM persons
BUSINESS in the new tax regime, with income up to Rs. 7 lakh to not pay any tax.
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 Continued…
• Revised Estimates 2022-23:
• The total receipts other than borrowings is Rs 24.3 lakh crore, of which the net tax receipts are Rs 20.9 lakh
crore.
• The total expenditure is Rs 41.9 lakh crore, of which the capital expenditure is about Rs 7.3 lakh crore.
• The fiscal deficit is 6.4 per cent of GDP, adhering to the Budget Estimate.
• Budget Estimates 2023-24:
• The total receipts other than borrowings is estimated at Rs 27.2 lakh crore and the total expenditure is
estimated at Rs 45 lakh crore.
• The net tax receipts are estimated at Rs 23.3 lakh crore.
• The fiscal deficit is estimated to be 5.9 per cent of GDP.
• To finance the fiscal deficit in 2023-24, the net market borrowings from dated securities are estimated
at Rs 11.8 lakh crore.
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• The gross market borrowings are estimated at Rs 15.4 lakh crore.

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 REFERENCES
• https://pib.gov.in/PressReleasePage.aspx?PRID=1895315 (union budget)
• https://www.businesstoday.in/latest/economy/story/centres-fiscal-deficit-narrows-down-to-64-of-gdp-
meets-set-budgeted-target-383647-2023-05-31#:~:
text=At%20Rs%2017.33%20lakh%20crore,at%20Rs%2041.89%20lakh%20crore (fiscal deficit)

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Fiscal deficit What is Fiscal Deficit ?
The difference between total revenue and total expenditure of the
government is termed as fiscal deficit. It is an indication of the total
and its borrowings needed by the government. While calculating the total
revenue, borrowings are not included.

financing Formula used to calculate the Deficit is :

Fiscal deficit = Total expenditure - Total receipts (excluding borrowings).

India meets fiscal deficit target of 6.4% for FY23

 Total receipts for fiscal 2023 stood at Rs 24.56 lakh crore, while overall
Expenditure was at Rs 41.89 lakh crore.

 In absolute terms, the central government's fiscal deficit in 2022-23 was

Rs 17.33 lakh crore as against the revised estimate of Rs 17.55 lakh crore.

 At Rs 17.33 lakh crore, the fiscal deficit for 2022-23 amounts to 6.4 per
cent of the GDP, data released by the Controller General of Accounts (CGA)
showed on Wednesday.
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 Continued…
The Centre's fiscal deficit during the month of April 2023, which is the first month of the current fiscal, came in at
Rs 1.34 lakh crore. This is 7.5 per cent of the fiscal deficit target set for FY24.

Total receipts in the first month of this fiscal year stood at Rs 1.71 lakh crore rupees, while overall expenditure in
April was at Rs 3.04 lakh crore. They were 6.3 per cent and 6.8 per cent of this fiscal year's budget target.

Revenue receipts stood at 1Rs .70 lakh crore, including tax revenue of Rs 1.59 lakh crore and non-tax revenue of Rs
10,958 crore.

The revenue deficit for the month of April was at Rs 55,780 crore or 6.4 per cent of the fiscal year's budget target,
data showed.

Earlier, Finance Minister Nirmala Sitharaman had retained the country's aim to narrow the fiscal gap to 6.4 per cent
of GDP from 6.7 per cent in the previous fiscal.

The Finance Ministry has set a target to further narrow the deficit for 2023-24 to 5.9 per cent, and 4.5 per cent of the
GDP by 2025-26.

It is to be noted that the Centre borrows from the market to finance its fiscal deficit. The CGA data stated that the
revenue deficit worked out to be 3.9 per cent of GDP, while the effective revenue deficit was 2.8 per cent of GDP .

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 Continued…
Tax and non-tax revenues were 100.5 per cent and 109.3 per cent of the revised estimates, which were lowered
than 102.2 per cent and 116.4 per cent in the year-earlier period.

Revenue receipts stood at Rs 23.84 lakh crore, of which tax revenue was Rs 20.97 lakh crore and non-tax revenue
was Rs 2.86 lakh crore.

However, the government missed the disinvestment targets. The proceeds came at Rs 46,035 crore in FY23,
missing the revised target of Rs 60,000 crore.

According to CGA data, the direct tax collection stood at Rs. 16.61 lakh crore in the last fiscal year, which was
higher than the revised target of Rs 16.5 lakh crore on the back of a resilient economy.

Gross GST collection in the last fiscal year rose 22 per cent on year to Rs 18.10 lakh crore and the average gross
monthly collection for the full year was Rs 1.51 lakh crore.

On the expenditure side, The Centre has spent about Rs 5.31 lakh crore on major subsidies such as food,
fertilisers and petroleum. This was 102 per cent of the revised annual aim, a little less than 103 per cent of
budgeted expenditure in the comparable period last year.

The Centre transferred Rs 9.48 lakh crore to states as Devolution of Share of Taxes by the Government of India in
the last financial year, which was Rs 50,015 crore higher than the previous year, according to CGA data.

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