Finance Minister Nirmala Sitharaman holding the Budget Papers at the North Block in New Delhi on February 01, 2023.
| Photo Credit: R.V. Moorthy

Finance Minister Nirmala Sitharaman on February 1 raised the personal income tax rebate limit, doled out sops on small savings, and announced one of the biggest hikes in capital spending in the past decade as she did a tightrope walk in the Budget between staying fiscally prudent and meeting public expectations in the year before general elections.

Ms. Sitharaman’s fifth straight Budget comes at a time when the economy is slowing and there is a need for increased spending on social sectors as well as ramping up incentives for local manufacturing. The Modi government will seek third term next year and the BJP will face nine Assembly elections this year.

Announcing its last full budget before the 2024 elections, the NDA government focused on a slew of measures that expanded Capital Expenditure spending and tied in various priorities including Green Growth, Youth Power, and Inclusive Development. This was also accompanied by major tax announcements for the salaried class, with changes in tax slabs and a clear intention to shift to the new tax regime.

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File photo of officials collecting data as part of Census in 2011.
| Photo Credit: MURALI KUMAR K

In an indication that the census exercise — meant to be completed in 2021, but delayed because of COVID-19 — may not be conducted in 2023-24, the Union Budget allocation for the Census Survey and Statistics head has been slashed to ₹1,565 crore from the ₹3,676 crore allocated in 2022-23. The last census was held in 2011.

Overall, the Ministry of Home Affairs (MHA) has been allocated ₹1.96 lakh crore in the Budget 2023-24, a 5% hike from the almost ₹1.86 lakh crore allotted to it in the current fiscal.

In her Budget speech on Wednesday, Finance Minister Nirmala Sitharaman said that States must spend the entire fifty-year loan given to them on capital expenditure within the 2023-24 financial year. Parts of the outlay will also be linked to, or allocated for scrapping old government vehicles and housing for police personnel above or as part of police stations, she said.

Intelligence database funding up

The allocation for the National Intelligence Grid (NATGRID) has been more than doubled, growing a whopping 128% from ₹87.77 crore in 2022-23 to ₹200.53 crore in the coming year. NATGRID is one-stop destination for security and intelligence agencies to access databases related to immigration entry and exit, and the banking and telephone details of terror and crime suspects, using a “secured platform”. The Intelligence Bureau has seen an increase of 7% with an allocation of ₹3,418 crore in 2023-24.

The Official Languages division that promotes the use of Hindi language in official government work has been allocated a budget of ₹93.26 crore.

The Special Protection Group, which only provides security cover to the Prime Minister of India, has seen a 12% increase in budgetary allocation from ₹385 crore to ₹433 crore.

The Indo Tibetan Border Police Force that is deployed along the 3,488 km border with China has seen an 8% increase in its budget from ₹7,461 crore in the current fiscal to ₹8,097 crore in the next fiscal.

Managing border infra, movement

The budget for the Immigration, Visa and Foreigners Registration and Tracking System (IVFRT) has increased 30% from ₹175 crore to ₹229 crore. IVFRT’s core objective is to develop and implement a secure and integrated service delivery framework that facilitates legitimate travellers, while strengthening security.

Border infrastructure and management has seen its budget grow 29%, from ₹2,744 crore in 2022-23 to ₹3,545 crore in 2023-24. The provision is allocated for barbed wire fencing, construction of roads, observation posts and border outposts, installation of flood lights, induction of hi-tech surveillance along the Bangladesh and Pakistan borders, and for other such construction activities at India’s international borders

The Indian Cyber Crime Coordination Centre has been allocated ₹94 crore, almost 60% more than the ₹59 crore allocated the previous year

A large component of the budget, a total of ₹2,092 crore, has been reserved for “research,” which is almost 50% higher than the ₹1,400 crore revised estimates for 2021-22.

The modernisation of the Central Armed Police Forces, newly introduced as a budget head in 2022-23, has seen its allocation fall more than 18% to ₹202 crore, down from the ₹248 crore allotted earlier.

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Tribal women walk to their villages in Chhattisgarh. Image for representation only
| Photo Credit: AP

Finance Minister Nirmala Sitharaman on Wednesday announced the Pradhan Mantri-PVTG Development Mission to focus on improving the overall socio-economic conditions of 75 Particularly Vulnerable Tribal Groups across the country, who live in around 31,000 villages of India’s 18 States and one Union Territory. The announcement was made during the presentation of the Union Budget for 2022-23.

Ms. Sitharaman said that the Union government was putting forward an expenditure outlay of ₹15,000 crore, making this amount available over the next three years for the implementation of this mission. 

“This will saturate PVTG families and habitations with basic facilities such as safe housing, clean drinking water and sanitation, improved access to education, health and nutrition, road and telecom connectivity, and sustainable livelihood opportunities,” the Finance Minister said, adding that the amount being set aside for this will be spent under the Development Action Plan for the Scheduled Tribes. 

The detailed Budget statement for FY 2023-24 showed that the Ministry of Tribal Affairs has been allocated a total of Rs 12,461.88 crore, out of which the Ministry’s scheme for the Development of PVTGs, has been allocated ₹256.14 crore. 

Senior officials in the Tribal Affairs ministry told The Hindu that its own scheme for the development of PVTGs, is just a small component of the PM-PVTG Mission. “But like the FM said, the goals are to build roads, telecom connectivity, water and sanitation. The monies for these efforts will go into the Scheduled Tribe Component (STC) of these respective ministries from where it will be allocated for the development of these groups,” he explained. 

Among the ministries that are expected to be roped in to implement the PM-PVTG Mission are the Rural Development Ministry, through which housing component and road connectivity will be implemented; the Water Resources Ministry, under whose Jal Jeevan Mission clean drinking water connections will be taken care of; the Education Ministry, which will take care of building schools and hostels; and the Health Ministry, which will look at filling gaps in healthcare for PVTGs. 

In addition to this, the Women and Child Development Ministry is also going to be roped in to get Anganwadi workers on ground to work towards sensitisation of PVTGs and ensuring they are able to sign up for government benefits. 

One senior official of the Tribal Affairs Ministry said, “In most of these 31,000 villages, the need for infrastructure development is the most urgent.”

The Ministry of Tribal Affairs’ Development Scheme for PVTGs, running since 2008, has already been providing for livelihood, employment opportunities, education, health, provision of safe drinking water, land distribution, land development, social security, housing and habitat, connectivity (road and telecommunication), supply of electricity, irrigation, urban development, etc.

However, the expenditure reports show that spending under this scheme has declined significantly in the last five years since 2018-19, when ₹250 crore was spent on it. The following year, it dropped to ₹249.99 crore, dipping further to Rs 140 crore in 2020-21, rising slightly to ₹160 crore in 2021-22 and then going back down to ₹124.79 crore in 2022-23. 

Ministry officials said that the reason for this dip in spending was initially the Covid-19 pandemic, “but more so because the money we were sanctioning to states were not being spent properly, lying in their treasuries”.

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Prime Minister Narendra Modi addressed the media at Parliament House on the first day of the Union Budget session of Parliament
| Photo Credit: Shiv Kumar Pushpakar

Prime Minister Narendra Modi on February 1 termed the Union Budget as the “first budget of Amrit Kaal” (the 25-year period between the 75th year of independence and its centenary) and said that it would lay a strong foundation for building a developed India.

“The first budget of Amrit Kaal will build a strong foundation for building a developed India. It gives priority to the deprived. This Budget will fulfil the dreams of an aspirational society including poor people, middle-class people, and farmers. I congratulate Nirmala Sitharaman and her team for this historic budget,” Prime Minister Modi said in a televised address after the presentation of the Union budget.

Also Read | Budget 2023 | Income tax rejig signals BJP’s return to core middle class support base close to 2024 polls

The Prime Minister called the middle class a big force to fulfil dreams of prosperous, developed India and said his government has taken many decisions to empower them. The Budget for this year rejigs tax slabs and exempts those with an income of ₹7 lakh per annum (up from ₹5 lakh per annum in the past) from paying personal income tax and also brings down the effective rate of tax for the higher tax brackets as well.

He hailed the unprecedented investment of ₹10 lakh crore in infrastructure and said it will give speed and new energy to development. Noting that PM Vishvakarma Kaushal Samman will bring a huge change in the lives of “Vishvakarmas,” the Prime Minister said that for the first time schemes relating to their support has been incorporated into the budget.

“Those toiling traditionally through their hands for the country, ‘Vishvakarmas’ are the creators of this country. For the first time scheme related to training and support for ‘Vishvakarma’ has been brought into the budget. Preparations have been made for their training, technology, credit and market support. PM Vishvakarma Kaushal Samman means PM Vikas will bring about a huge change in the lives of crores of Vishwakarma,” the Prime Minister said.

Prime Minister Modi underlined the government’s efforts to enhance the lives of women. “The government has taken several steps to make the lives of women, in rural and urban areas, easy. Women’s self-help groups will further enhance them. Special savings scheme will be started empowering women in households,” the Prime Minister said.