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Brain-booster / 10 Mar 2023

Brain Booster for UPSC & State PCS Examination (Topic: Union Budget 2023-24 - Part 1)

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Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman, while presenting the Union Budget 2023-24 in Parliament emphasized that Indian economy is on the right track, and despite a time of challenges, heading towards a bright future.

Smt. Sitharaman said that this Budget hopes to build on the foundation laid in the previous Budget, and the blueprint drawn for India@100, which envisions a prosperous and inclusive India where the fruits of development reach all regions and citizens, especially our youth, women, farmers, OBCs, Scheduled Castes and Scheduled Tribes.

Budget Highlights

  • Expenditure: The government proposes to spend Rs 45,03,097 crore in 2023-24,
  • Which is an increase of 7.5% over the revised estimate of 2022-23.
  • In 2022-23, total expenditure is estimated to be 6.1% higher than the budget estimate.
  • Receipts: The receipts (other than borrowings) in 2023-24 are expected to be to Rs 27,16,281 crore.
  • Which an increase of 11.7% over revised estimate of 2022-23.
  • In 2022-23, total receipts (other than borrowings) are estimated to be 6.5% higher than the budget estimates.
  • GDP: The government has estimated a nominal GDP growth rate of 10.5% in 2023-24 (i.e., real growth plus inflation).

Deficits: Revenue deficit in 2023-24 is targeted at 2.9% of GDP,

  • Which is lower than the revised estimate of 4.1% in 2022-23.
  • Fiscal deficit in 2023-24 is targeted at 5.9% of GDP, lower than the revised estimate of 6.4% of GDP in 2022- 23.
  • The revised estimate as a percentage of GDP was the same as the budget estimate, in nominal terms, fiscal deficit was higher by Rs 94,123 crore (increase of 5.7%) in 2022-23.
  • Interest expenditure at Rs 10,79,971 crore is estimated to be 41% of revenue receipts.

Ministry Allocations:

  • Among the top 13 ministries with the highest allocations, in 2023-24, the highest percentage increase in allocation is observed in the Ministry of Railways (49%).
  • It was followed by the Ministry of Jal Shakti (31%),
  • Then stands the Ministry of Road Transport and Highways (25%).