Towards

ATMANIRBHARTA

The union Budget for FY 2023-24 is by far the best effort from the Modi government.
It is a balanced effort to rationalize tax regime, curtail populism and foster growth
while maintaining the fiscal discipline.

The markets reacted negatively due to extraneous reasons, but this effort from the
FM deserves an applause, at last. At a time, we are under continuous onslaught for
not being subservient to the US hegemony while our peers got succumbed to the
stratagem, this effort is a step in right direction of becoming truly ATMANIRBHAR.
Looks like the bear assault will continue for some more time but it is not unusual
considering the one way rise many stocks have witnessed post Covid.

Investors should not go overboard expecting immediate recovery but wait for
opportunities to enter right growth stories.
Union Budget - Key numbers

Deficit
Expenditure

Receipts Fiscal Deficit

Rs 17.87 lk cr
Revenue Receipts - Revenue A/c -
5.90% GDP
Rs 36.62 lk cr Rs 35.02 lk cr

Tax Revenues - Rs 33.60 lk cr Interest Payments - Revenue Deficit

Non-Tax Revenues - Rs 3.01 lk cr Rs 10.80 lk cr Rs 8.70 lk cr
2.9% GDP
Capital Receipts - Grants in aid of creation of
Rs 18.82 lk cr capital assets - Rs 3.70 lk cr

Recovery of Loans - Rs 0.23 lk cr

Capital A/c - Rs 10 lk cr
Other Receipts - Rs 0.61 lk cr
Borrowing & Others - Rs 17.98 lk cr
 Budget Pie

Interest
24%
Borrowings
32.4%

Disinvestments
1.1%
Receipts Bal Revenue Exp
Expenditure
Loan
53.8%
Recoveries Tax
0.4% 60.7%
Capital A/c
Non-Tax 22.2%
5.4%

(Interest payment is part of

revenue expenditure)

Deficit as % of GDP

5.9% 2.9% 2.3%

Rs 17.87 lk cr Rs 8.70 lk cr Rs 7.07 lk cr
Fiscal Deficit Revenue Deficit Primary Deficit
 Receipts Trends Expenditure Trends
(Rs in lk cr) (Rs in lk cr)

2017-18 2017-18

2018-19 2018-19

2019-20 2019-20

2020-21 2020-21

2021-22 2021-22

2022-23 (BE) 2022-23 (BE)

2022-23 (RE) 2022-23 (RE)

Rs 26.32 lk cr Rs 35.02 lk cr
2023-24 (BE) 2023-24 (BE)
Rs 18.71 lk cr Rs 10 lk cr
0 10 20 30 0 10 20 30 40

Revenue Receipt Capital Receipts Revenue Exp Capital Exp

Revenue Exp includes Interest payments of Rs 10.8 lk cr

Capital Exp grew 37% YoY from Rs 7.3 lk cr to Rs 10 lk cr
 Deficit Trends
(Rs in lk cr)

Rs 5.91 lk cr
2017-18 Rs 4.44 lk cr
Rs 6.49 lk cr
2018-19
Rs 4.54 lk cr
Rs 9.34 lk cr
2019-20
Rs 6.67 lk cr
Rs 18.18 lk cr
2020-21
Rs 14.50 lk cr
Rs 15.85 lk cr
2021-22
Rs 10.31 lk cr
Rs 16.61 lk cr
2022-23 (BE)
Rs 9.90 lk cr
Rs 17.55 lk cr
2022-23 (RE)
Rs 11.11 lk cr
Rs 17.87 lk cr
2023-24 (BE)
Rs 8.70 lk cr
0 5 10 15 20

Fiscal Deficit Revenue Deficit

Fiscal Deficit of Rs 17.87 lk cr will be majorly funded by Market borrowings (G-sec + T Bills)
and Securities against Small Savings which accounts 69% and 26% respectively
 Deficit Trends
10%

7.5%
5.9%

5%
2.9%

2.5%
2.3%

0%
8

E)

E)

E)
-2

-2
-1

-2
-1

(B

(R

(B
20
18
17

21
19

3
3

4
20

20

20
20
20

-2
-2

-2
22
22

23
20
20

20
Fiscal Deficit Revenue Deficit Primary Deficit
Difference between the total The excess of revenue expenses Fiscal Deficit less interest
revenue and total expenditure over revenue receipts payments
 Receipts of GOI
RECEIPTS

Rs 45.03 lk cr

REVENUE RECEIPTS CAPITAL RECEIPTS

Rs 26.32 lk cr Rs 18.71 lk cr

TAX REVENUES NON-TAX REVENUES DEBT NON-DEBT

Rs 23.31 lk cr Rs 3.01 lk cr Rs 17.87 lk cr Rs 0.84 lk cr

DIVIDEND, INTEREST, DISINVESTMENTS

DIRECT TAX INDIRECT TAX
GRANTS, OTHERS

Rs 18.23 lk cr Rs 15.38 lk cr Rs 3.02 lk cr Rs 0.61 lk cr

RECOVERIES OF L&A
CORPORATE TAX GST CUSTOMS & EXCISE
Rs 0.23 lk cr
Rs 9.23 lk cr Rs 9.57 lk cr Rs 5.72 lk cr

INCOME TAX TAXES OUT OF UT

Rs 9 lk cr Rs 0.085 lk cr
 Tax vs Non-Tax Direct vs Indirect tax
Tax Revenue (Rs in lk cr)
Direct Tax Indirect tax
2019-20
2020-21
2020-21
2021-22
2021-22
2022-23 (RE)
2022-23 (RE)

2023-24 (BE) Rs 18.23 lk cr

2023-24 (BE) Rs 33.61 lk cr Rs 15.38 lk cr
0 10 20 30 40 0 5 10 15 20
(Rs in lk cr)

Non-tax Revenue (Rs in lk cr) Tax share (%)

Direct Tax Indirect Tax

2019-20
100%
2020-21
75% 45.75%
2021-22
50%
2022-23 (RE)
25% 54.25%
2023-24 (BE) Rs 3.02 lk cr
0%
0 1 2 3 4
6

20 0

22

E)

E)
-2
-1

-1
-1

-1

-2

(R

(B
1-
16

20
18
15

17

19

4
20

20
20

20

20
20

-2

-2
22

23
20

20
 Income tax Corporation Tax
(Rs in lk cr) (Rs in lk cr)

2019-20 2019-20

2020-21 2020-21

2021-22 2021-22

2022-23 (RE) 2022-23 (RE)

2023-24 (BE) Rs 9.01 lk cr 2023-24 (BE) Rs 9.23 lk cr

0 2.5 5 7.5 10 0 2.5 5 7.5 10

GST Union Excise

(Rs in lk cr) (Rs in lk cr)

2019-20 2019-20

2020-21 2020-21

2021-22 2021-22

2022-23 (RE) 2022-23 (RE)

2023-24 (BE) Rs 9.57 lk cr 2023-24 (BE) Rs 3.39 lk cr

Lorem ipsum dolor sit amet, consectetur
adipiscing0elit. 2.5 5 7.5 10 0 1 2 3 4
 Expenditure of GOI
EXPENDITURE

Rs 45.03 lk cr

CENTRE'S EXPENDITURE TRANSFERS

Rs 35.14 lk cr Rs 9.89 lk cr

ESTABLISHMENT CENTRALLY SPONSORED

EXPENDITURE SCHEMES

Rs 7.44 lk cr Rs 4.76 lk cr

CENTRAL SECTOR FINANCE COMMISSION

SCHEMES/PROJECTS GRANTS

Rs 14.68 lk cr Rs 1.65 lk cr

OTHER CENTRAL SECTOR OTHER GRANTS/

EXPENDITURE LOANS/TRANSFERS

Rs 13.02 lk cr Rs 3.48 lk cr

INTEREST PAYMENTS BALANCE CSE

Rs 10.80 lk cr Rs 2.22 lk cr
 Centre's Exp Vs Interest Payments
Transfers Interest Payment Trends (Rs in lk cr)

(Rs in lk cr) Centre's Exp Transfers 2019-20

40
35.14 2020-21

2021-22
30
2022-23 (RE)

2023-24 (BE) Rs 10.80 lk cr

20
0 5 10 15

9.89
10 Interest as a % of Total Exp
(Rs in cr)

0 2019-20
1

E)

E)
-2

-2

(R

(B

2020-21
20

21

4
20
20

-2

-2
22

23

2021-22
20

20

Centre's Exp includes Establishment exp, Central

Sector Schemes, Interest Payments & Others 2022-23 (RE)

Transfers includes transfers to Centrally 2023-24 (BE) 24%

sponsored schemes, Finance commission grants,
0% 5% 10% 15% 20% 25%
Other grants & loans
Budget Allocation for Exp

Transport Transfer to States

Rs 5.17 lk cr Rs 3.24 lk cr

7.2%
11.5%
Defence
Rs 4.33 lk cr
9.6%

Subsidies
39.4% Bal Budget spending
Rs 3.75 lk cr 8.3% under Ministries

Rs 17.74 lk cr

Interest
24%
Rs 10.8 lk cr
Highlights
Fiscal Deficit for FY23 at 6.4% of GDP and Estimate of 5.9% of GDP for FY24
Capital Investment Outlay at ₹10 lakh crore for FY24E, up 33% YoY. Capital outlay of Rs. 2.40
lakh crore for Railways.
Credit guarantee scheme for MSME extended with infusion of Rs 9,000 Cr
KYC procedure to be simplified. PAN to be come common business identifier
Mahila Samman Bachat Scheme for Women for Rs. 2,00,000 @ 7.5% for 2 yrs

Indirect Tax
1. Tax exemption on capital goods for mfg of Lithium batteries, Mobiles, camera lenses, Lab grown
diamond seeds
2. Increase in customs duty on Silver to 10% and articles of gold, silver, platinum to 25%
3. Excise duty component NCCD on cigarettes increased by 16%

Direct Tax
1. Presumptive Taxation - new limit for business & profession : 3 crore & 75 Lacs
2. New cooperatives manufacturing tax @ 15% if opened upto 31.03.24
3. Section 54/54F provide relief on Capital Gains Tax on sale of capital assets increased to 10 cr
4. New tax regime: Change in tax slabs, lowest tax slab 0-Rs 3 lk & new tax rates. Tax rebate limit
extended to 7 lk. Highest surcharge reduced to 25%. MMTR : 39%. New tax regime is default tax
regime. However, old tax regime will continue
5. Leave encashment exemption (pvt) increased from 3Lacs to 25 Lacs
6. Insurance payouts on cumulative premiums paid above Rs 5 lakh would be taxed
PHONE
9346336312, 8247528776
9673134567, 9673934567

EMAIL
Info@enrichinvestment.in

Disclaimer:Enrich investments makes no guarantee or

FACEBOOK
warranty of any information provided in the documentsThe
Enrich.Investment information provided, views and analysis expressed in the
report are purely of the authorAll efforts are made to provide
data as accurately as possible and the data is extracted from
the sources which are considered reliableHowever, Enrich
Investments do not take responsibility for any errors or
omissionsEnrich Investments is not, in any manner
TWITTER
whatsoever, responsible for any losses incurred from action
Enrich_Invest taken on basis of the data or analysis presented in the
document