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Key Features of
Budget 2023-2024
Released by: BUDGET DIVISION, Department of Economic Affairs, MINISTRY OF FINANCE

The document contains static part and

Budget 2023-24 Highlights and 100 MCQs on
Budget.

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Budget Basics
Budget:
Budget Procedure
The budget is presented in the parliament on the first working day of February at 11.00 am. The
General Budget is presented in Lok Sabha by the Finance Minister and he makes a speech
introducing the budget and after the speech it is presented in the Rajya Sabha. No discussion on
Budget takes place on the day it is presented to the house.

The main budget documents presented to parliament comprise, besides the Finance Minister
Budget Speech, of the following:

 Annual Financial Statement

 Demand for Grants
 Appropriation Bill
 Finance Bill

Budget is discussed in two stages - the general discussion followed by detailed discussion.
Voting on
General Houses Appropriation
Budget Presentation Demand for Finance Bill
Discussion Adjourned Bill
grants

1st Feb 31st March

Detailed Discussion

General Discussion
The general discussion on the Budget is held on a day subsequent to the presentation of the
Budget by the Finance Minister. Discussion at this stage is confined to the general examination
of the Budget and policies of taxation expressed during the budget speech. General discussion on
the budget happens in both the houses of the parliament. After the general discussion is over, the
houses are adjourned for a fixed number of days.

Detailed Discussion (Discussion on Demand for Grants)

During this period the demand for grants of various ministries/ departments including Railways
are considered by the "Departmentally Related Standing Committees" (DRSC). (There are 24
DRSCs and approximately 100 ministries. One DRSC needs to prepare reports on about 5
ministries' demands for grants). These committees are required to make their reports to the house
within the specified period without asking for more time. After the reports of the standing
committees are presented to the house (Lok Sabha), the house proceeds to the discussion and
voting on Demands for Grants, ministry wise.

Article 113 of the Constitution mandates that the estimates of expenditure from the Consolidated
Fund of India included in the Annual Financial Statement and required to be voted by the Lok
Sabha, be submitted in the form of Demands for Grants.

The time for discussion and voting of Demands for Grants is allocated by the speaker in
consultation with the leader of the house. On the last day of the allocated days, the speaker puts
all the outstanding demands to the vote of the house. This device is popularly known as
"Guillotine". It concludes the discussion on demand for grants. In Rajya Sabha, there is only a
General Discussion on the budget. It does not vote on the Demand for Grants.

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Appropriation Bill
After the voting on Demand for Grants is over, government introduces the Appropriation Bill as
per Article 114 of the Constitution. The Appropriation Bill is intended to give authority to the
government to incur expenditure and meet grants from and out of the Consolidated Fund of India.
Finance Bill
The Finance Bill (Article 110) seeking to give effect to the Government's taxation proposals is
introduced in the Lok Sabha immediately after the presentation of the General Budget on the same
day but is taken up for consideration and passing after the Appropriation Bill is passed. However
certain provisions in the Bill related to levy and collection of fresh duties or variations in the
existing duties come into effect immediately on the expiry of the day on which the Bill is introduced
by virtue of a declaration under the Provisional Collection of Taxes Act 1931. The Parliament has
to pass the Finance Bill within 75 days of its introduction.

Appropriation and Finance Bills are Money Bills. These bills are sent to the Rajya Sabha for
passing but it is on the Lok Sabha whether to accept any recommendations of the Rajya Sabha or
not. Whether Lok Sabha accepts the recommendations of the Rajya Sabha or not, the Bills are
deemed to be passed by both the houses.

Supplementary Demand for Grants

If the amount authorized to be expended for a particular service for the current financial year is
found to be insufficient for the purpose of that year or when a need has arisen during the current
financial year for supplementary or additional expenditure upon some 'new service' not
contemplated in the budget for that year then another statement showing the estimated amount
of expenditure is laid before both the houses of the parliament.

Budgets of Union Territories (which do not have their own assemblies) and States under
President's Rule are also presented to Lok Sabha. The procedure in regard to the budget of the
Union government is followed in such cases with such variations or modifications, as the Speaker
may make. All the State governments also prepare their own budget each year of their income and
expenditure.

Annual Financial Statement (AFS) The Annual Financial Statement (AFS) for 2023-24, the
document as provided under Article 112, shows the estimated receipts and expenditure of the
Government of India for 2023-24 along with estimates for 2022-23 as also actuals for the year
2021-22. The receipts and disbursements are shown under three parts in which Government
Accounts are kept viz.,
(i) The Consolidated Fund of India,
(ii) The Contingency Fund of India and
(iii) The Public Account of India.

The Annual Financial Statement distinguishes the expenditure on revenue account from the
expenditure on other accounts, as is mandated in the Constitution of India. The Revenue and the
Capital sections together, make the Union Budget. The estimates of receipts and expenditure
included in the Annual Financial Statement are net of refunds and recoveries respectively

Government Accounts
The Accounts of government of India are kept in three parts.
1. Consolidated Fund of India (CFI):
 All revenues received by the government by way of taxes whether direct or indirect and
other receipts flowing to the government in connection with the conduct of government
business like receipts from Railways, Post, transport, government PSU's etc. are credited
into the CFI.

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 Similarly all loans raised by the government by issue of public notifications, treasury
bills and loans obtained from foreign governments and international institutions are
credited into this fund.

 All expenditures incurred by the government for the conduct of its business including
repayment of internal and external debt and release of loans to States/ Union Territory
governments for various purposes are debited against this fund and no amount can be
withdrawn from the Fund without the authorization from the Parliament.

2. Contingency Fund of India:

 This fund is in the nature of an imprest (a fixed fund for a specific purpose) account and
is kept at the disposal of the President of India (by the Secretary to the Government of
India, Ministry of Finance, Department of Economic Affairs) to enable the government
to meet unforeseen expenses pending authorization by the Parliament.

 The money is used to provide immediate relief to victims of natural calamities and also
to implement any new policy decision taken by the Government pending its approval by
the Parliament.

 In all such cases after the Parliament meets, a Bill is presented indicating the total
expenditure to be incurred on the scheme/ project during the current financial year.

 After the Parliament votes the Bill, the money already spent out of the Contingency Fund
is recouped/ withdrawn from the Consolidated Fund of India to ensure that the corpus
of the Contingency Fund remains intact.

 Currently the corpus is Rs. 30000 crore and is enhanced from time to time by the
Parliament.

3. Public Account of India:

The Public Account draws its existence from Article 266 of the Constitution of India
All the public money received by the government other than those which are credited to the
Consolidated Fund of India are accounted for Public Account.

Provident Funds, Small Savings collections, receipts of Government set apart for expenditure
on specific objects such as road development, primary education, other Reserve/Special Funds
etc., are examples of moneys kept in the Public Account.

Public Account funds that do not belong to the Government and have to be finally paid back
to the persons and authorities, who deposited them, do not require Parliamentary authorization
for withdrawals.

In respect of such deposits, the government is acting as a Banker or Trustee and refunds the
money after the completion of the contract/ event.

Every State Government has its own Consolidated Fund, Public Account and Contingency
Fund (as mandated by the Constitution). Every Union Territory has their own Consolidated
Fund, Contingency Fund and Public Account as per "The Government of Union Territories Act,
1963". The Contingency Fund of Union Territories lie with their "Administrators" or "Lieutenant
Governors".

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Accounting Classification:
The estimates of receipts and disbursements in the Annual Financial Statement and of
expenditure in the Demands for Grants are shown according to the accounting classification
referred to under Article 150 of the Constitution.
The Annual Financial Statement shows, certain disbursements distinctly, which are charged on
the Consolidated Fund of India. The Constitution of India mandates that such items of expenditure
such as emoluments of the President, salaries and allowances of the Chairman and the
Deputy Chairman of the Rajya Sabha and the Speaker and the Deputy Speaker of the Lok
Sabha, salaries, allowances and pensions of the Judges of the Supreme Court, the
Comptroller and Auditor-General of India and the Central Vigilance Commission, interest
on and repayment of loans raised by the Government and payments made to satisfy decrees
of courts etc., may be charged on the Consolidated Fund of India and are not required to be
voted by the Lok Sabha.

Fiscal Policy Statements mandated under FRBM Act:

Macro-Economic Framework Statement: The Macro-economic Framework Statement is
presented to Parliament under Section 3 of the Fiscal Responsibility and Budget Management Act,
2003 and the rules made thereunder. It contains an assessment of the growth prospects of the
economy along with the statement of specific underlying assumptions. It also contains an
assessment regarding the GDP growth rate, the domestic economy and the stability of the
external sector of the economy, fiscal balance of the Central Government and the external
sector balance of the economy.
Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement The Medium-Term Fiscal
Policy cum Fiscal Policy Strategy Statement is presented to Parliament under Section 3 of the
Fiscal Responsibility and Budget Management Act, 2003. It sets out the three-year rolling targets
for specific fiscal indicators in relation to GDP at market prices, namely (i) Fiscal Deficit, (ii)
Revenue Deficit, (iii) Primary Deficit (iv) Tax Revenue (v) Non-tax Revenue and (vi) Central
Government Debt
The Statement includes the underlying assumptions, an assessment of the balance between
revenue receipts and revenue expenditure and the use of capital receipts including market
borrowings for the creation of productive assets.
It also outlines for the existing financial year, the strategic priorities of the Government relating to
taxation, expenditure, borrowings, guarantees etc
Explanatory Documents: To facilitate a more comprehensive understanding of the major features
of the Budget, certain other explanatory documents are presented. These are briefly summarized
below:
 Expenditure Budget The provisions made for a scheme or a programme may be spread
over a number of Major Heads in the Revenue and Capital sections in a Demand for Grants.
In the Expenditure Budget, the estimates made for a scheme/programme are brought
together and shown on a net basis on Revenue and Capital basis at one place.

Expenditure of individual Ministries/ Departments are classified under 2 broad Umbrellas

(i)Centres’ Expenditures and (ii) Transfers to States/ Union Territories( UTs).

Under the Umbrella of Centres’ Expenditure there are 3 sub-classification

(a) Establishment expenditure of the Centre
(b) Central Sector Schemes and

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(c) Other Central Expenditure including those on Central Public Sector Enterprises(CPSEs)
and Autonomous Bodies.

The Umbrella of Transfers to States/UTs includes the following 3 sub- classification:

(a) Centrally Sponsored Scheme
(b) Finance Commission Transfers
(c) Other Transfer to States

 Receipt Budget Estimates of receipts included in the Annual Financial Statement are
further analysed in the document “Receipt Budget”. The document provides details of tax
and non-tax revenue receipts and capital receipts and explains the estimates.
The document also provides a statement on the arrears of tax revenues and non-tax
revenues, as mandated under the Fiscal Responsibility and Budget Management Rules,
2004.
Trend of receipts and expenditure along with deficit indicators, statement pertaining to
National Small Savings Fund (NSSF), Statement of Liabilities, Statement of Guarantees
given by the government, statements of Assets and details of External Assistance are also
included in Receipts Budget.
This also includes the Statement of Revenue Impact of Tax Incentives under the Central
Tax System which seeks to list the revenue impact of tax incentives that are proposed by
the Central Government.
This document also shows liabilities of the Government on account of securities (bonds)
issued in lieu of oil and fertilizer subsidies in the past.

Budget Classification
The article 112 specifies that the budget must distinguish the expenditures on revenue account from other
expenditures (capital account). Therefore, the budget comprises of the Revenue Budget and Capital Budget.

BUDGET

Revenue Capital
Budget Budget

Revenue
Revenue Exp. Capital Capital
Receipts Receipts Exp.

Tax Non Tax

Revenue Revenue

Revenue Receipts
Those receipts of the government which neither creates a liability for the government nor reduces
the assets (physical or financial) of the government are called revenue receipts. Revenue receipts
are non-redeemable i.e. they cannot be reclaimed from the government. Revenue receipts can be
of two types.

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 Tax Revenues consists of direct and indirect taxes of the central government.

 Non-Tax Revenue consists of interest receipts on account of loans given by central government,
dividend and profits on investments made by the central government (i.e. PSUs), fees and fines
and other receipts for services rendered by the government like passport fees etc. Cash grants-
in-aid from foreign countries and international organisations are also part of the non-tax
revenue.

Revenue Expenditure
Those expenses of the government which neither creates any asset (physical or financial) nor
reduces any liabilities are called revenue expenditure. Revenue expenses relate to the expenses
incurred for the normal functioning of the government departments and various services,
establishment of defence services, interest payments on debt incurred by the central government
and grants given to the state government and local bodies and subsidies

Capital Receipts
Those receipts of the government which either creates liability or reduces the assets (physical or
financial) are called capital receipts. The main items of capital receipts are loans raised by the
government from the public (market borrowings), borrowing by the government from the RBI,
commercial banks and other financial institutions through the sale of government securities
(treasury bills and dated securities), loans received from foreign governments and international
organizations, and recovery of loans previously granted by the central government. It also includes
small savings schemes (Post office savings accounts, National Savings Certificates etc.), Provident
Funds and net receipts obtained from the sale of shares in PSUs (disinvestment).

Capital Expenditure
Those expenses of the government which either creates assets (physical or financial) or reduces
liabilities are called capital expenditures. Capital expenditures include acquisition of land,
building, machinery, equipment, Capital Outlay of the Defence Services, purchase of shares, by
the government and loans and advances by the central government to state and union territory
governments, PSUs and other parties.
REVENUE RECEIPTS:
1. Tax Revenue

 Corporation Tax
 Taxes on Income
 Wealth Tax
 Excise Duties (ALCOHOL, PETROLEUM products, Cess, Surcharge etc)
 Customs
 Goods and Services Tax
2. Non-Tax Revenue:

 Interest receipts
 Dividends and Profits (Dividends from Public Sector Enterprises and other investments,
Dividend/Surplus of Reserve Bank of India, Nationalised Banks & Financial Institutions)
Capital Receipts:

 Non-debt Receipts: Recoveries of loans and advances, Disinvestment of Government stake

in Public Sector Banks and Financial Institutions, Issue of Bonus Shares
 Debt Receipts: Market Loans, Short Term/T-Bill Borrowings, External Loans(net), Small
saving schemes, State Provident Fund (Net), Gold Bonds, Gold Monetisation etc

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Government Deficits:
When a government spends more than it collects by way of revenue, it incurs a deficit. There are
mainly three ways through which government captures this deficit.

1. Revenue Deficit: Revenue Deficit is the difference between the government's revenue
expenditure and revenue receipts.

Revenue Deficit = Revenue Expenditure - Revenue Receipts

Revenue Deficit implies that government's current expenses are more than its current revenues
and will have to use up the savings of other sectors of the economy to finance its consumption
expenditure. Since a major part of the revenue expenditure (salary, pension, interest payments,
subsidies etc.) is committed expenditure, it cannot be reduced. When the government is faced
with revenue deficit, it generally reduces the productive capital expenditure and welfare
expenditure to cover up the excess revenue expenses. This would mean lower future growth
and adverse welfare implications. Revenue Deficit is bad because it implies that government is
spending more on its current and day to day needs (which may not give return in future) than
its current revenues.

2. Fiscal Deficit: Fiscal deficit is the difference between the government's total expenditure
(Revenue and Capital) and its total receipts (Revenue and Capital) except the borrowings.

Fiscal Deficit = Total Expenditure - Total Receipts except borrowing

= (Rev Exp. + Cap Exp.) - (Rev Rec. + Cap Rec. except borrowing)
= (Rev Exp. - Rev Rec.) + (Cap Exp. - Cap Rec. except borrowing)
= Revenue Deficit + Cap Exp. - Cap Rec. except borrowing
= Total borrowing
= Net borrowing at home + borrowing from RBI + Borrowing from
abroad

Let us understand with an example.

Suppose, government's total expenditure = 17 lakh crore
and total receipts = 13 lakh crore

Then government will have to borrow (17 lakh crore -13 lakh crore) 4 lakh crore to meet its
expenditure. And this 4 lakh crore is called the fiscal deficit. That is why fiscal deficit is also
equal to the total borrowing i.e. 4 lakh crore.

But this 4 lakh crore which government borrows is also part of capital receipt for the
government and it must be included in capital receipts. So in actual sense government's total
receipts will become 17 lakh crore (i.e. 13 lakh crore + 4 lakh crore borrowing).
Hence, in the above example:
Fiscal Deficit = Total expenditure - total receipts except borrowing
Otherwise the difference of total expenditure and total receipts will always be zero.

Fiscal deficit indicates the total borrowing of the government from all sources i.e. domestic
borrowing plus borrowing from external sources. Domestic borrowing includes governments
debt securities like Treasury Bills and Dated Securities. Commercial banks purchase these
securities on a major scale to meet their SLR requirements. Other financial institutions and
RBI also purchases these securities.

The fiscal deficit is a key variable in judging the financial health of the government sector and
the stability of economy. It can be seen from above that revenue deficit is a part of fiscal deficit.

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A large share of revenue deficit in the fiscal deficit indicates that a large part of borrowing is
being used to meet its consumption expenditure needs rather than investment.
3. Primary Deficit: A large part of the government's fiscal deficit is because it needs to pay
interest on its previous accumulated debt. If we want to measure the government's deficit
excluding the interest payment on the previous debt then it is called the primary deficit. The
goal of measuring the primary deficit is to focus on present fiscal imbalances.

Primary Deficit = Fiscal Deficit - Net interest liabilities

So, primary deficit tells about the deficit in the government's budget excluding the interest
liabilities on the government's accumulated debt.

In the Union Budget 2011-12, government introduced a new term called the "effective revenue
deficit".
The definition of the revenue expenditure is that it shall not create any physical or financial assets.
But this creates a problem in accounts. There are several grants given by the Central Government
to the States / UTs which comes under revenue expenditure for the central government but some
of these grants create assets, which are owned by the State government and not by the Central
government. Hence, for Central Government it is basically a revenue expenditure but ultimately it
is creating asset for the State government.
For example, under the MGNREGA programme, some capital assets such as roads, ponds etc. are
created, thus the grants for such expenditure shall not strictly fall in the revenue expenditure.
Hence the central government also calculates "effective revenue deficit" which excludes such
grants which are used for creation of assets.

Effective Revenue Deficit = Revenue Deficit - Grants for creation of capital assets
Deficit financing is the budgetary situation where government expenditure is higher than its
revenue. It is a practice adopted for financing the excess expenditure with outside resources by
either printing of additional currency or through borrowing.
Sources of Financing for Fiscal Deficit:

 Market Borrowings (G-sec +T Bills) (Highest share)

 Securities against Small Savings
 State Provident Funds
 Other Receipts (Internal Debts and Public Account)
 External Debt (Lowest share)
Receipts:

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Highest contributor – GST

Highest contributor – Other Non-Tax Revenue

Examples of Other Non-Tax Revenue: Fiscal Services (Currency, Coinage and Mint), Social
Services, Economic Services, Grants-in-aid and Contributions.
Social Services:

Economic Services

 Agriculture and allied activities

 Industry and Minerals
 Energy (Power, petroleum, coal, royalties from energy sector etc)
 Transport
 Communications

Fiscal Responsibility and Budget Management (FRBM) Act, 2003: The FRBM framework
mandated Central Government to limit the fiscal deficit upto three per cent of gross domestic
product by the 31st March, 2021. It further provides that, the Central Government shall endeavour
to limit the General Government Debt to 60 per cent of GDP and the Central Government Debt to
40 per cent of GDP, by 31st March, 2025.

Output Outcome Monitoring Framework Output-Outcome Monitoring Framework (OOMF)

for Central Sector Schemes (CSs) and Centrally Sponsored Schemes (CSSs) with financial outlay
of `500 crore and more each, will be laid in the House along with Budget 2023-24. With regard to
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CS and CSS schemes with outlay less than `500 crore each, the output-outcome monitoring
framework with itemized expenditure of the schemes will be prepared by the respective
Ministry/Department and the same will be presented in the Parliament along with the Detailed
Demand for Grants (DDG).

Public Debt: Article 292 of the Constitution states that the government of India can borrow
amounts specified by the Parliament from time to time. Article 293 of the Constitution mandates
that the state governments in India can borrow only from internal sources. Thus the government
of India incurs both internal and external debt while state governments incur only internal debt.

As per the recommendations of the 12th Finance Commission, access to external financing by the
various states is facilitated by the Central Government which provides the Sovereign guarantee for
these borrowings. From 1st April 2005 all General Category states borrow from multilateral and
bilateral agencies (World Bank, ADB etc) on a back to back basis viz. the interest cost and the risk
emanating from currency and exchange rate fluctuations are passed on to states but Central
Government acts as a guarantor.
In India, the Central Government (Government of India) liabilities include the following:
GoI Liabilities = Internal Debt + External Debt + Public Account Liability/ other liabilities
In India, Public Debt refers to the Internal Debt and External Debt of Govt. of India
External Debt of India refers to all the external debt taken either by central govt or state govt or
any Indian company.
External Debt of India = External Debt of Govt. of India + External debt of State Govt. + ECB by
PSUs and Private Companies + NRI Deposits + FPIs etc

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Budget 2023-24
Highlights
Introduction:
● This Budget hopes to build on the foundation laid in the previous Budget, and the
blueprint drawn for India@100.
● Current year’s economic growth is estimated to be at 7 per cent
○ It is notable that this is the highest among all the major economies
● Proactive role in frontier areas such as achieving the climate related goals, mission
LiFE, and National Hydrogen Mission.
● A scheme to supply free food grains to over 80 crore persons for 28 months.
○ From 1st January 2023, a scheme to supply free food grain to all Antyodaya
and priority households for the next one year, under PM Garib Kalyan Anna
Yojana (PMGKAY).
○ The entire expenditure of about Rs 2 lakh crore will be borne by the
Central Government.
● In these times of global challenges, the G20 Presidency with the theme of
‘Vasudhaiva Kutumbakam’.

Achievements since 2014: Leaving no one behind

● The per capita income has more than doubled to Rs 1.97 lakh.
● In these nine years, the Indian economy has increased in size from being 10th to
5th largest in the world.
● The economy has become a lot more formalised as reflected in the EPFO
membership more than doubling to 27 crore.
● 7,400 crore digital payments of Rs 126 lakh crore through UPI in 2022.
● The efficient implementation of many schemes, with universalisation of targeted
benefits, has resulted in inclusive development. Some of the schemes are:
○ 11.7 crore household toilets under Swachh Bharat Mission
○ 9.6 crore LPG connections under Ujjawala
○ 220 crore Covid vaccination of 102 crore persons
○ 47.8 crore PM Jan Dhan bank accounts
○ 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.

Vision for Amrit Kaal – an empowered and inclusive economy

● The economic agenda for achieving this vision focuses on three things:
○ First, facilitating ample opportunities for citizens, especially the youth, to
fulfil their aspirations;

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○ Second, providing strong impetus to growth and job creation; and
○ Third, strengthening macro-economic stability.

● To service these focus areas in our journey to India@100,the following four

opportunities can be transformative during Amrit Kaal.

1. Economic Empowerment of Women: Deendayal Antyodaya Yojana National Rural

Livelihood Mission has achieved remarkable success by mobilising rural women
into 81 lakh Self Help Groups.

2. PM VIshwakarma KAushal Samman (PM VIKAS): For the first time, a package of
assistance for traditional artisans has been conceptualised.
● The new scheme will enable them to improve the quality, scale and reach of
their products, integrating them with the MSME value chain.
● This will greatly benefit the Scheduled Castes, Scheduled Tribes, OBCs,
women and people belonging to the weaker sections.

3. Tourism: The sector holds huge opportunities for jobs and entrepreneurship for
youth in particular. Promotion of tourism will be taken up on mission mode.
4. Green Growth: Implementing many programmes for green fuel, green energy, green
farming, green mobility, green buildings, and green equipment, and policies for
efficient use of energy across various economic sectors.

Priorities:
● The Budget adopts the following seven priorities. They complement each other
and act as the ‘Saptarishi’ guiding us through the Amrit Kaal.
1. Inclusive Development
2. Reaching the Last Mile
3. Infrastructure and Investment
4. Unleashing the Potential
5. Green Growth
6. Youth Power
7. Financial Sector
Priority 1: Inclusive Development
1. Agriculture and Cooperation
1.1. Digital Public Infrastructure for Agriculture
This will enable inclusive, farmer-centric solutions through relevant
information services for crop planning and health, improved access to farm
inputs, credit, and insurance, help for crop estimation, market intelligence,
and support for growth of agri-tech industry and start-ups.

1.2. Agriculture Accelerator Fund: An Agriculture Accelerator Fund will be set-

up to encourage agristartups by young entrepreneurs in rural areas.

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1.3. Atma Nirbhar Horticulture Clean Plant Program
To boost availability of disease-free, quality planting material for high value
horticultural crops at an outlay of Rs 2,200 crore.

1.4. Global Hub for Millets: ‘Shree Anna : India is the largest producer and
second largest exporter of ‘Shree Anna’ such as jowar, ragi, bajra, kuttu,
ramdana, kangni, kutki, kodo, cheena, and sama in the world. The Indian
Institute of Millet Research, Hyderabad will be supported as the Centre of
Excellence for sharing best practices, research and technologies at the
international level.

1.5. Agriculture Credit: The agriculture credit target will be increased to Rs 20

lakh crore with focus on animal husbandry, dairy and fisheries.

1.6. Fisheries: A new sub-scheme of PM Matsya Sampada Yojana with targeted

investment of Rs 6,000 crore.

1.7. Cooperation
To realise this vision of ‘Sahakar Se Samriddhi’, the government has already
initiated computerisation of 63,000 Primary Agricultural Credit Societies
(PACS) with an investment of Rs 2,516 crore.

The government will also facilitate setting up of a large number of

multipurpose 8 cooperative societies, primary fishery societies and dairy
cooperative societies in uncovered panchayats and villages in the next 5
years.

2. Health, Education and Skilling

2.1. Nursing Colleges: One hundred and fifty-seven new nursing colleges will
be established in co-location with the existing 157 medical colleges
established since 2014.

2.2. Sickle Cell Anaemia Elimination Mission

A Mission to eliminate Sickle Cell Anaemia by 2047 will be launched.
Universal screening of 7 crore people in the age group of 0-40 years in
affected tribal areas

2.3. Teachers’ Training: The District Institutes of Education and Training will be
developed as vibrant institutes of excellence for this purpose.

2.4. National Digital Library for Children and Adolescents

States will be encouraged to set up physical libraries for them at panchayat
and ward levels

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Priority 2: Reaching the Last Mile
1. Aspirational Districts and Blocks Programme Aspirational Blocks Programme
covering 500 blocks for saturation of essential government services.

2. Pradhan Mantri PVTG Development Mission

a. To improve socio-economic conditions of the particularly vulnerable tribal
groups (PVTGs), Pradhan Mantri PVTG Development Mission will be
launched.
b. An amount of Rs 15,000 crore will be made available to implement the
Mission in the next three years under the Development Action Plan for the
Scheduled Tribes.

3. Eklavya Model Residential Schools In the next three years, the centre will recruit
38,800 teachers and support staff for the 740 Eklavya Model Residential
Schools, serving 3.5 lakh tribal students.

4. Water for Drought Prone Region In the drought prone central region of Karnataka,
central assistance of Rs 5,300 crore will be given to Upper Bhadra Project to
provide sustainable micro irrigation and filling up of surface tanks for drinking
water.

5. PM Awas Yojana The outlay for PM Awas Yojana is being enhanced by 66 per cent
to over Rs 79,000 crore.
6. Bharat Shared Repository of Inscriptions (Bharat SHRI) ‘Bharat Shared
Repository of Inscriptions’ will be set up in a digital epigraphy museum, with
digitization of one lakh ancient inscriptions in the first stage.

Priority 3: Infrastructure & Investment

1. Capital Investment as driver of growth and jobs
a. Capital investment outlay is being increased steeply for the third year in a
row by 33 per cent to Rs 10 lakh crore, which would be 3.3 per cent of
GDP.
b. This will be almost three times the outlay in 2019-20.

2. Effective Capital Expenditure Grants-in-Aid to States. The ‘Effective Capital

Expenditure’ of the Centre is budgeted at Rs 13.7 lakh crore, which will be 4.5
per cent of GDP.

3. Support to State Governments for Capital Investment- To continue the 50-year

interest free loan to state governments for one more year with a significantly
enhanced outlay of Rs 1.3 lakh crore.

4. Harmonized Master List of Infrastructure will be reviewed by an expert

committee for recommending the classification and financing framework suitable

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for Amrit Kaal.
5. Railways A capital outlay of ` 2.40 lakh crore has been provided for the Railways.
This highest ever outlay.

6. Logistics
a. One hundred critical transport infrastructure projects.
b. They will be taken up on priority with investment of 75,000 crore, including
Rs 15,000 crore from private sources.

7. Regional Connectivity - Fifty additional airports, heliports, water aerodromes.

8. Urban Infrastructure Development Fund -

a. Like the RIDF, an Urban Infrastructure Development Fund (UIDF) will be
established through use of priority sector lending shortfall.
b. This will be managed by the National Housing Bank, and will be used by
public agencies to create urban infrastructure in Tier 2 and Tier 3 cities.
c. Rs 10,000 crore per annum for this purpose.

9. Urban Sanitation - All cities and towns will be enabled for 100 per cent
mechanical desludging of septic tanks.

Priority 4: Unleashing the Potential

1. Mission Karmayogi The government has also launched an integrated online
training platform, iGOT Karmayogi.
For enhancing ease of doing business, more than 39,000 compliances have been
reduced and more than 3,400 legal provisions have been decriminalized. For
furthering the trustbased governance, we have introduced the Jan Vishwas Bill to
amend 42 Central Acts.

2. Centres of Excellence for Artificial Intelligence For realizing the vision of “Make
AI in India and Make AI work for India”, three centres of excellence for
Artificial Intelligence will be set-up in top educational institutions.

3. National Data Governance Policy will be brought out.

4. Common Business Identifier The PAN will be used as the common identifier for
all digital systems of specified government agencies.

5. Vivad se Vishwas I – Relief for MSMEs : In cases of failure by MSMEs to execute

contracts during the Covid period, 95 per cent of the forfeited amount relating to
bid or performance security, will be returned to them by government and
government undertakings.

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6. Vivad se Vishwas II – Settling Contractual Disputes

7. State Support Mission The State Support Mission of NITI Aayog will be continued
for three years.

8. Result Based Financing The financing of select schemes will be changed, on a pilot
basis, from ‘input-based’ to ‘result-based’.

9. E-Courts For efficient administration of justice, Phase-3 of the E-Courts project

will be launched with an outlay of ` 7,000 crore.

10. Fintech services in India have been facilitated by our digital public
infrastructure including Aadhaar, PM Jan Dhan Yojana, Video KYC, India Stack
and UPI. Entity DigiLocker An Entity DigiLocker will be set up for use by MSMEs,
large business and charitable trusts.

11. Lab Grown Diamonds: To encourage indigenous production of LGD seeds

and machines and to reduce import dependency, a research and development grant
will be provided to one of the IITs for five years.

Priority 5: Green Growth

1. a vision for “LiFE”, or Lifestyle for Environment, to spur a movement of
environmentally conscious lifestyle. India is moving forward firmly for the
‘panchamrit’ and net-zero carbon emission by 2070

2. Green Hydrogen Mission - The recently launched National Green Hydrogen

Mission, with an outlay of ` 19,700 crores. Our target is to reach an annual
production of 5 MMT by 2030.

3. Energy Transition This Budget provides ` 35,000 crore.

4. Energy Storage Projects To steer the economy on the sustainable development

path, Battery Energy Storage Systems with capacity of 4,000 MWH will be
supported with 18 Viability Gap Funding.

5. Renewable Energy Evacuation - The Inter-state transmission system for

evacuation and grid integration of 13 GW renewable energy from Ladakh will be
constructed with investment of ` 20,700 crore including central support of Rs
8,300 crore.

6. Green Credit Programme - This will incentivize environmentally sustainable and

responsive actions by companies, individuals and local bodies, and help mobilize
additional resources for such activities.

7. PM-PRANAM - “PM Programme for Restoration, Awareness, Nourishment and

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Amelioration of Mother Earth” will be launched to incentivize States and Union
Territories to promote alternative fertilizers and balanced use of chemical
fertilizers.

8. GOBARdhan scheme
a. 500 new ‘waste to wealth’ plants under GOBARdhan (Galvanizing Organic
Bio-Agro Resources Dhan) scheme will be established for promoting circular
economy.
b. These will include 200 compressed biogas (CBG) plants, including 75
plants in urban areas, and 300 community or cluster-based plants at
total investment of ` 10,000 crore
c. In due course, a 5 per cent CBG mandate will be introduced for all
organizations marketing natural and bio gas.

9. Bhartiya Prakritik Kheti Bio-Input Resource Centres Over the next 3 years,
facilitate 1 crore farmers to adopt natural farming. For this, 10,000 Bio-Input
Resource Centres will be set-up.

10. MISHTI - Building on India’s success in afforestation, ‘Mangrove Initiative

for Shoreline Habitats & Tangible Incomes’, MISHTI, will be taken up for
mangrove plantation.

11. Amrit Dharohar - The government will promote their unique conservation
values through Amrit Dharohar, a scheme that will be implemented over the next
three years to encourage optimal use of wetlands. The total number of Ramsar
sites in our country has increased to 75. Whereas, before 2014, there were only
26.

Priority 6: Youth Power

1. To empower our youth and help the ‘Amrit Peedhi’ realize their dreams, we
have formulated the National Education Policy, focused on skilling, adopted
economic policies that facilitate job creation at scale, and have supported
business opportunities.
2. Pradhan Mantri Kaushal Vikas Yojana 4.0
a. Pradhan Mantri Kaushal Vikas Yojana 4.0 will be launched to skill lakhs of
youth within the next three years.
b. On-job training, industry partnership, and alignment of courses with needs
of industry will be emphasized.
c. The scheme will also cover new age courses for Industry 4.0 like coding, AI,
robotics, mechatronics, IOT, 3D printing, drones, and soft skills.
d. To skill youth for international opportunities, 30 Skill India International
Centres will be set up across different States.

3. Skill India Digital Platform - enabling demand-based formal skilling, linking with
employers including MSMEs, facilitating access to entrepreneurship schemes.
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4. National Apprenticeship Promotion Scheme: To provide stipend support to 47
lakh youth in three years, Direct Benefit Transfer under a pan-India National
Apprenticeship Promotion Scheme will be rolled out.
5. Tourism With an integrated and innovative approach, at least 50 destinations will
be selected through challenge mode.
a. Every destination would be developed as a complete package. The focus of
development of tourism would be on domestic as well as foreign tourists.
b. achieve the objectives of the ‘Dekho Apna Desh’ initiative. This was launched
as an appeal by the Prime Minister to the middle class to prefer domestic
tourism over international tourism.
c. For integrated development of theme-based tourist circuits, the ‘Swadesh
Darshan Scheme’ was also launched.
d. Under the Vibrant Villages Programme, tourism infrastructure and
amenities will also be facilitated in border villages.

6. Unity Mall States will be encouraged to set up a Unity Mall in their state capital or
most prominent tourism centre or the financial capital for promotion and sale of
their own ODOPs (one district, one product).

Priority 7: Financial Sector

● Credit Guarantee for MSMEs - Tthe revamped scheme will take effect from 1st
April 2023 through infusion of ` 9,000 crore in the corpus.
○ This will enable additional collateral-free guaranteed credit of ` 2 lakh
crore.
○ Further, the cost of the credit will be reduced by about 1 per cent.

● National Financial Information Registry - A national financial information

registry will be set up to serve as the central repository of financial and ancillary
information.
● GIFT IFSC:
○ Delegating powers under the SEZ Act to IFSCA to avoid dual regulation.
○ Setting up a single window IT system for registration and approval from
IFSCA, SEZ authorities, GSTN, RBI, SEBI and IRDAI.
○ Permitting acquisition financing by IFSC Banking Units of foreign banks
○ Establishing a subsidiary of EXIM Bank for trade re-financing,
○ Recognizing offshore derivative instruments as valid contracts.
○ Amending IFSCA Act for statutory provisions for arbitration, ancillary
services, and avoiding dual regulation under SEZ Act
○ For countries looking for digital continuity solutions, setting up of their Data
Embassies in GIFT IFSC.
● Improving Governance and Investor Protection in Banking Sector: To improve
bank governance and enhance investors’ protection, certain amendments to the
Banking Regulation Act, the Banking Companies Act and the Reserve Bank of
India Act are proposed.

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● Capacity Building in Securities Market: To build capacity of functionaries and
professionals in the securities market, SEBI will be empowered to develop,
regulate, maintain and enforce norms and standards for education in the
National Institute of Securities Markets and to recognize award of degrees,
diplomas and certificates.

● Central Data Processing Centre: A Central Processing Centre will be setup for
faster response to companies through centralized handling of various forms filed
with field offices under the Companies Act.

● Reclaiming of shares and dividends: For investors to reclaim unclaimed shares

and unpaid dividends from the Investor Education and Protection Fund Authority
with ease, an integrated IT portal will be established

● Digital Payments - Digital payments continue to find wide acceptance. In 2022,

they show an increase of 76 per cent in transactions and 91 per cent in value.
○ Fiscal support for this digital public infrastructure will continue in 2023-24.

● Azadi Ka Amrit Mahotsav Mahila Samman Bachat Patra

○ For commemorating Azadi Ka Amrit Mahotsav, a one-time new small savings
scheme, Mahila Samman Savings Certificate, will be made available for a
two-year period up to March 2025.
○ This will offer deposit facility upto ` 2 lakh in the name of women or girls
for a tenor of 2 years at fixed interest rate of 7.5 per cent with partial
withdrawal option.

● Senior Citizens
○ The maximum deposit limit for Senior Citizen Savings Scheme will be
enhanced from ` 15 lakh to ` 30 lakh.
○ The maximum deposit limit for the Monthly Income Account Scheme will
be enhanced
■ from ` 4.5 lakh to ` 9 lakh for single account and
■ from ` 9 lakh to ` 15 lakh for a joint account.

Fiscal Management
Fifty-year interest free loan to States
● The entire fifty-year loan to states has to be spent on capital expenditure within
2023-24.
● Parts of the loan outlay will also be linked to, or allocated for, the following
purposes:
○ Scrapping old government vehicles,
○ Urban planning reforms and actions,
○ Financing reforms in urban local bodies to make them creditworthy for
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municipal bonds,
○ Housing for police personnel above or as part of police stations,
○ Constructing Unity Malls,
○ Children and adolescents’ libraries and digital infrastructure, and
○ State share of capital expenditure of central schemes.

Fiscal Deficit of States

● States will be allowed a fiscal deficit of 3.5 per cent of GSDP of which 0.5 per
cent will be tied to power sector reforms.

● Revised Estimates 2022-23

○ The Revised Estimate of the total receipts other than borrowings is ` 24.3
lakh crore, of which the net tax receipts are ` 20.9 lakh crore.
○ The Revised Estimate of the total expenditure is ` 41.9 lakh crore, of which
the capital expenditure is about ` 7.3 lakh crore.
○ The Revised Estimate of the fiscal deficit is 6.4 per cent of GDP, adhering
to the Budget Estimate.

Budget Estimates 2023-24

● Coming to 2023-24, the total receipts other than borrowings and the total
expenditure are estimated at ` 27.2 lakh crore and ` 45 lakh crore respectively.
The net tax receipts are estimated at ` 23.3 lakh crore.
● The fiscal deficit is estimated to be 5.9 per cent of GDP in 2023-24.
● Reaching a fiscal deficit below 4.5 per cent by 2025-26 with a fairly steady
decline over the period.
● To finance the fiscal deficit in 2023-24, the net market borrowings from dated
securities are estimated at ` 11.8 lakh crore.
○ The balance financing is expected to come from small savings and other
sources.
● The gross market borrowings are estimated at ` 15.4 lakh crore.

Part B Taxes
1. Indirect Taxes
● The aim is to promote exports, boost domestic manufacturing, enhance domestic
value addition, encourage green energy and mobility.
● Reduced the number of basic customs duty rates on goods, other than textiles
and agriculture, from 21 to 13.

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Green Mobility
● To exempt excise duty on GST-paid compressed bio gas contained in it. To further
provide impetus to green mobility, customs duty exemption is being extended to
import of capital goods and machinery required for manufacture of lithium-ion cells
for batteries used in electric vehicles.
Electronics
● Mobile phone production in India has increased from 5.8 crore units valued at
about ` 18,900 crore in 2014-15 to 31 crore units valued at over ` 2,75,000 crore
in the last financial year.
Basic Custom Duty (BCD):
● the basic customs duty on electric kitchen chimney is being increased from 7.5
per cent to 15 per cent and that on heat coils for these is proposed to be reduced
from 20 per cent to 15 per cent.
● Denatured ethyl alcohol is used in chemical industry and has been exempted
from basic customs duty on it. This will also support the Ethanol Blending
Programme and facilitate our endeavour for energy transition.
● Basic customs duty is also being reduced on acid grade fluorspar to 2.5 per cent
to make the domestic fluorochemicals industry competitive.
● the basic customs duty on crude glycerin for use in manufacture of
epicholorhydrin is proposed to be reduced to 2.5 per cent.
● proposed to reduce the basic customs duty on parts of open cells of TV panels to
2.5 per cent.
● The basic customs duty rate on compounded rubber is being increased from 10 per
cent to ‘25 per cent or ` 30/kg whichever is lower’.
● Marine products: To further enhance the export competitiveness of marine
products, particularly shrimps, duty is being reduced on key inputs for
domestic manufacture of shrimp feed.
● BCD on Toys and parts of toys (other than parts of electronic toys) increased to
70%
● BCD on Bicycles increased to 35%

Lab Grown Diamonds

● India is a global leader in cutting and polishing of natural diamonds, contributing
about three-fourths of the global turnover by value.
● NIL tax till 2024 March.
Cigarettes
● Taxes to be revised upwards by about 16 per cent.

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2.Direct Taxes
● The tax payers’ portal received a maximum of 72 lakh returns in a day;
● processed more than 6.5 crore returns this year;
● average processing period reduced from 93 days in financial year 13-14 to 16 days
now; and
● 45 per cent of the returns were processed within 24 hours.

MSMEs and Professionals

● MSMEs are growth engines of our economy. Micro enterprises with turnover up
to ` 2 crore and certain professionals with turnover of up to ` 50 lakh can avail
the benefit of presumptive taxation. Limits enhanced of ` 3 crore and ` 75 lakh
respectively, to the tax payers whose cash receipts are no more than 5 per
cent

Cooperation
● new co-operatives that commence manufacturing activities till 31.3.2024 shall
get the benefit of a lower tax rate of 15 per cent
● a higher limit of ` 2 lakh per member for cash deposits to and loans in cash by
Primary Agricultural Co-operative Societies (PACS
● a higher limit of ` 3 crore for TDS on cash withdrawal is being provided to co-
operative societies.
● sugar co-operatives can claim payments made to sugarcane farmers for the period
prior to assessment year 2016-17 as expenditure. This is expected to provide them
with a relief of almost ` 10,000 crore.
Start-Ups:
● India is now the third largest ecosystem for start-ups globally, and ranks second
in innovation quality among middle-income countries
● to extend the date of incorporation for income tax benefits to start-ups from
31.03.23 to 31.3.24.
● The benefit of carry forward of losses on change of shareholding of start-ups from
seven years of incorporation to ten years.
Appeals: 100 Joint Commissioners for disposal of small appeals related to tax returns.

Other major proposals in the Finance Bill relate to the

following:
● Extension of period of tax benefits to funds relocating to IFSC, GIFT City till
31.03.2025;
● Decriminalisation under section 276A of the Income Tax Act;
● Allowing carry forward of losses on strategic disinvestment including that of IDBI
Bank; and
● deduction from capital gains on investment in residential house under sections 54
and 54F is capped to ` 10 crore
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● For online games, it is proposed to provide for TDS and taxability on net winnings
at the time of withdrawal or at the end of the financial year. the minimum
threshold of ` 10,000/- for TDS removed.
● Not treating conversion of gold into electronic gold receipt and vice versa as capital
gain (means no tax on such capital gains)
● Reducing the TDS rate from 30 per cent to 20 per cent on taxable portion of EPF
withdrawal in non-PAN cases.
● Providing EEE status to Agniveer Fund.
● EEE-Exempt Exempt Exempt: The first exempt here means that your
investment qualifies for a deduction. Therefore, part of your salary that is equal
to the invested amount is not taxable. The second exempt implies that the
interest earned during the accumulation phase is also exempted. The third and
final exempt here means that the income you generate from the investment
would not be taxable at the time of withdrawal. EEE status is usually applies to
long-term investment instruments, such as Employee Provident Fund and Public
Provident Fund. Some other instruments such as life insurance policies and equity-
linked savings schemes (ELSS) also fall under the EEE status.
● The rate of TCS for foreign remittances for education and for medical
treatment is proposed to continue to be 5 per cent for remittances in excess of
` 7 lakh.
● The aggregate of premium for life insurance policies (other than ULIP) issued
on or after 1st April, 2023 is above ` 5 lakh, income from only those policies with
aggregate premium up to `5 lakh shall be exempted. This will not affect the
tax exemption provided to the amount received on the death of person insured.
It will also not affect insurance policies issued till 31st March, 2023.
● It is proposed to provide a penalty of ` 5,000 if there is any inaccuracy in the
statement of financial transactions submitted by a prescribed reporting
financial institution due to false or inaccurate information submitted by the
account holder.
● the time period for filing of appeal against the order of the Adjudicating authority
under Benami Act within a period of 45 days from the date when such order is
received by the Initiating Officer or the aggrieved person.
● tax exemption to Specified Undertaking of Unit Trust of India (SUUTI) till 30th
September, 2023.
● Amendments are being made in the CGST Act to enable unregistered suppliers
and composition taxpayers to make intra-state supply of goods through
ECommerce Operators (ECOs), subject to certain conditions.

What is TDS and TCS:

● TDS stands for Tax Deducted at Source. As per Section 194Q, the income tax
department mandates any company or individual to deduct tax at the source if the
payment exceeds Rs. 50 lakhs for the purchase of goods and services, like rent,
consulting, legal fees, royalty, technical services, etc.

● Tax Collected at Source, or TCS is a tax imposed on goods by the seller, who

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collects it from the buyer at the time of sale. Section 206C of the Income Tax Act,
1961 specifies the goods and services on which TCS is applicable. The threshold
for TCS on the sale of goods is Rs. 50 lakhs.
Personal Income Tax
● To increase the rebate limit to ` 7 lakh in the new tax regime.
● To change the tax structure in this regime by reducing the number of slabs to five
and increasing the tax exemption limit to ` 3 lakh. The new tax rates are:

● This will provide major relief to all tax payers in the new regime. An individual with
an annual income of ` 9 lakh will be required to pay only ` 45,000/-. This is
only 5 per cent of his or her income. It is a reduction of 25 per cent on what
he or she is required to pay now, ie, ` 60,000/-. Similarly, an individual with an
income of ` 15 lakh would be required to pay only ` 1.5 lakh or 10 per cent of
his or her income, a reduction of 20 per cent from the existing liability of `
1,87,500/.
● new income tax regime will be the default tax regime.
● Standard deduction of Rs 50,000 to salaried individuals, and deduction from family
pension up to Rs 15,000, is currently allowed only under the old regime. It is
proposed to allow these two deductions under the new regime also. Each salaried
person with an income of ` 15.5 lakh or more will thus stand to benefit by ` 52,500
under the new regime.
● the limit increased to 25 lakhs for tax exemption on leave encashment on
retirement of non-government salaried employees.
● To reduce the highest surcharge rate from 37 per cent to 25 per cent in the new
tax regime. This would result in reduction of the maximum tax rate to 39 per
cent. (from 42.74%).
● Surcharge on income-tax under both old regime and new regime is:
○ 10 per cent if income is above ` 50 lakh and up to ` 1 crore,
○ 15 per cent if income is above `1 crore and up to ` 2 crore,
○ 25 per cent if income is above ` 2 crore and up to ` 5 crore,
○ 37 per cent if income is above ` 5 crore
○ Now after removing 37% highest surcharge shall be 25 per cent for income
above ` 2 crore in the new tax regime while No change in surcharge is
proposed for those who opt to be under the old regime.

● As a result of these proposals, revenue of about ` 38,000 crore – ` 37,000 crore

in direct taxes and ` 1,000 crore in indirect taxes – will be forgone while revenue
of about ` 3,000 crore will be additionally mobilized. Thus, the total revenue
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forgone is about ` 35,000 crore annually

Budget at a Glance:
Budget at a Glance presents broad aggregates of the Budget for easy understanding. This
document shows receipts and expenditure as well as the Fiscal Deficit (FD), Revenue Deficit
(RD, Effective Revenue Deficit (ERD) and the Primary Deficit (PD) of the Government of India.

BUDGET PROFILE:
Receipt:
2023-24 ( lakh crs)
Capital Receipt 18.70
Revenue receipt 26.3
● Tax receipt ● 23.30
● Non tax receipt ● 3.01
Total budget 45.03

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Expenditures:
2023-24 ( lakh crs)
Capital Expenditure 10.00
Revenue Expenditure 35.03
Total budget 45.03
REVENUE RECEIPTS

 Tax Revenue sources: GST > Corporation Tax > Taxes on Income > Customs
 Non-Tax Revenue sources: Dividends and Profits > Interest receipts >others
Deficit:
RE 2022-23 (%) BE 2023-24 ( %) BE 2023-24
Revenue Deficit 4.1 2.9 8.69 lakh crs
Effective Revenue 2.9 1.7
Deficit
Fiscal Deficit 6.4 5.9 17.86 lakh crs
Primary Deficit 3.0 2.3

In Revised Estimate (RE) 2022-23:the total expenditure has been estimated at `41,87,232
crore (41.87 lakh crores ), is more than Actuals of FY 2021-22 by `3,93,431 crore. The
total capital expenditure in RE 2022-23 is estimated at `7,28,274 crore (7.28 lakh crores).

The total expenditure in Budget Estimates (BE) 2023-24 is estimated at `45,03,097

crore (45.03 lakh crores).

 out of which total capital expenditure is `10,00,961 crore (10 lakh crore) leading
to an increase in capital expenditure by 37.4 per cent over RE 2022-23.

 Effective Capital Expenditure, at `13,70,949 crore in BE 2023-24, shows an increase

of 30.1 per cent over RE 2022-23.

 Effective Capital Expenditure = Capital Expenditure + Grants in Aid for creation of

capital assets
Total resources being transferred to the States including the devolution of State’s share,
Grants/Loans and releases under Centrally Sponsored Schemes, etc. in BE 2023-24 is
`17,97,537 crore (17.9 lakh crore) , which shows an increase of `1,43,056 crore (1.43
lakh crore) over Actuals of FY 2021-22.
TOTAL TRANSFERS TO STATES AND UTs in 2023-24: 18.63 lakh crores
Nominal GDP for BE 2023-2024 has been projected at `3,01,75,065 crore assuming 10.5
% growth over the estimated Nominal GDP as per the First Advance Estimates of FY 2022-
23.
TAX RECEIPTS (%GDP):
RE 2022-23: Direct – 6.0% Indirect- 5.1% (Total 11.1%)
BE 2023-24: Direct – 6.0% Indirect- 5.1% (Total 11.1%)

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Sources of Financing Fiscal Deficit in 2023-24: 17.86 lakh crores =Debt Receipts

 Market Borrowings (G-sec +T Bills) (Highest share)

 Securities against Small Savings (2nd highest share)
 State Provident Funds
 External Debt
 Other Receipts (Internal Debt and Public Account)
Total Schemes expenditures in 2023-24: 19.44 lacs crore
● Total Central Sector Schemes expenditures in 2023-24: 14.67 lacs crore
Major Schemes Outlay:
 MGNREGA: 60000 crs
 Ayushman Bharat (PMJAY): 7200 crs
 Jal Jeevan Mission (JJM): 70000 crs
 National Education Mission: 38953 crs
 National Health Mission: 36785 crs
 Pradhan Mantri Awas Yojna (PMAY): 79590 crs
 Pradhan Mantri Gram Sadak Yojna: 19000 crs
 Pradhan Mantri Krishi Sinchai Yojna: 10787 crs
 Swachh Bharat Mission: 5000 crs
 Swachh Bharat Mission (Gramin): 7192 crs
 AMRUT and Smart Cities Mission: 16000 crs
 PM Schools for Rising India (PM SHRI): 4000 crs
 PM Ayushman Bharat Health Infrastructure Mission (PMABHIM): 4200 crs
 PM Poshan Shakti Nirman (PM POSHAN): 11600 crs
 Saksham Anganwadi and POSHAN 2.0: 20554 crs
 Pradhan Mantri Kisan Samman Nidhi (PMKisan): 60000 crs
 Modified Interest Subvention Scheme (MISS): 23000 crs
 Urea Subsidy: 131100 crs
 Nutrient Based Subsidy: 44000 crs
 Food Subsidy: 197350 crs
 Eklavya Model Residential Schools (EMRS): 5943 crs
 FAME: 5172 crs
 North East Special Infrastructure Development Scheme (NESIDS): 2491 crs
 Prime Minister's Development Initiative for North East Region (PM-DevINE): 2200 crs
 GST Compensation Fund: 145000 crs

Gross Tax receipt in BE 2023-24 = 33.60 lakh crores

State Share of Taxes in BE 2023-24 =10.22 lakh crores

Expenditure on Health in 2022-23 (% of GDP): 2.1

Expenditure on Education in 2022-23 (% of GDP): 2.9

Highest rupees come from: Borrowing and other liabilities > GST > Corporation tax
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Highest rupees goes to: Interest Payment > state share of taxes & duties > Central sector
scheme

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MCQs Part-1
Q1. How many priorities are mentioned in the Budget?
A) Six
B) Five
C) Seven
D) Four
Answer: C) Seven
The Budget adopts the following seven priorities. They complement each other and act as
the ‘Saptarishi’ guiding us through the Amrit Kaal.
1) Inclusive Development
2) Reaching the Last Mile
3) Infrastructure and Investment
4) Unleashing the Potential
5) Green Growth
6) Youth Power
7) Financial Sector
Q2. Which of the following is NOT a priority mentioned in the Budget?
A) Health Care
B) Inclusive Development
C) Youth Power
D) Agriculture
Answer: A) Health Care
The Budget adopts the following seven priorities. They complement each other and act as
the ‘Saptarishi’ guiding us through the Amrit Kaal.
1) Inclusive Development
2) Reaching the Last Mile
3) Infrastructure and Investment
4) Unleashing the Potential
5) Green Growth
6) Youth Power
7) Financial Sector
Q3. What is the purpose of building digital public infrastructure for agriculture?
A) To improve access to farm inputs and credit
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B) To support the growth of agri-tech industry and start-ups
C) To provide relevant information services for crop planning and health
D) All of the above
Answer: D) All of the above
Q4. How will the digital public infrastructure for agriculture be built?
A) As a closed source, proprietary infrastructure
B) As an open source, open standard and inter operable public good
C) As a private infrastructure for a specific group of farmers
D) As a limited infrastructure only for certain regions
Answer: B) As an open source, open standard and inter operable public good
Q5. How much money has been allocated for the Atmanirbhar Clean Plant Program
according to the Budget (in Rs.)?
A) 2,200 crore
B) 2,500 crore
C) 1,500 crore
D) 3,000 crore
Answer: A) Rs. 2,200 crore
Q6. What is the significance of 'Shree Anna' according to the Budget?
A) It is a type of fruit
B) It is a type of vegetable
C) It is a type of grain
D) It is a type of spice
Answer: C) It is a type of grain
Q7. In which position is India in terms of production and export of 'Shree Anna'
mentioned in the Budget?
A) Largest exporter and largest producer
B) Largest producer and second largest exporter
C) Second largest producer and largest exporter
D) Second largest producer and second largest exporter
Answer: B) Largest producer and second largest exporter
Q8. What are the different types of 'Shree Anna' mentioned in the Budget?
A) Jowar, wheat, and corn
B) Jowar, ragi, and bajra

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C) Rice, wheat, and corn
D) Rice, maize, and corn
Answer: B) Jowar, ragi, and bajra
Q9. How many nursing colleges will be established in total?
A. 157
B. 314
C. 471
D. 628
Answer: A. 157
Q10. What is the age group of people who will be screened under the Mission to
eliminate Sickle Cell Anaemia?
A. 0-40 years
B. 40-60 years
C. 20-40 years
D. 60-80 years
Answer: A. 0-40 years
Q11. What facilities will be provided to PVTG families and habitations under the
Pradhan Mantri PVTG Development Mission?
a) Safe housing
b) Clean drinking water and sanitation
c) Improved access to education, health, and nutrition
d) All of the above
Answer: d) All of the above
Q12. How much amount will be made available to implement the Pradhan Mantri
PVTG Development Mission (in Rs.)?
a) 15,000 crore
b) 50,000 crore
c) 100,000 crore
d) 500 crore
Answer: a) Rs. 15,000 crore
Q13. As per the Union Budget 2023-24, what is the capital investment outlay for
FY24 (in Rs.)?
a) 10 lakh crore
b) 8 lakh crore
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c) 9 lakh crore
d) 6 lakh crore
Ans: a) 10 lakh crore
Q14. How many critical transport infrastructure projects, for last and first mile
connectivity for ports, coal, steel, fertilizer, and food grains sectors have been
identified?
a) 10
b) 100
c) 200
d) 300
Ans: b) 100
Q15. As per the Union Budget 2023-24, an Urban Infrastructure Development Fund
(UIDF) will be established through use of priority sector lending shortfall. Which of
the following organisations will manage the UIDF?
a) RBI
b) NABARD
c) NHB
d) NITI AAYOG
Ans: c) NHB
Q16. As per the Union Budget 2023-24, for realizing the vision of “Make AI in India
and Make AI work for India”, how many centres of excellence for Artificial
Intelligence will be set-up in top educational institutions?
a) 3
b) 6
c) 5
d) 10
Ans: a) 3
Q17. As per the Union Budget 2023-24, the State Support Mission of NITI Aayog will
be continued for how many years?
a) 2
b) 3
c) 5
d) 7
Ans: b) 3

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Q18. What is the main objective of the recently launched National Green Hydrogen
Mission?
A) To reduce dependence on fossil fuel imports
B) To make the country a leader in technology
C) To reduce carbon intensity
D) All of the above
Answer: D) All of the above
Q19. As per the Union Budget 2023-24, what is the estimated cost of the National
Green Hydrogen Mission (in Rs.)?
a) 19,700 crores
b) 20,700 crores
c) 20,800 crores
d) 15,700 crores
Answer: A) 19,700 crores
Q20. As per the Union Budget 2023-24, how many new ‘waste to wealth’ plants under
GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme will be
established for promoting circular economy?
a) 100
b) 200
c) 300
d) 500
Ans: d) 500
These will include 200 compressed biogas (CBG) plants, including 75 plants in urban
areas, and 300 community or cluster-based plants at total investment of Rs. 10,000 crore.
Q21. As per the Union Budget 2023-24, Amrit Dharohar Scheme is not related to
which of the following?
a) Wetlands
b) Biodiversity
c) Eco-Tourism
d) SEZs
Ans: d) SEZs
The government will promote their unique conservation values through Amrit Dharohar,
a scheme that will be implemented over the next three years to encourage optimal use of
wetlands, and enhance bio-diversity, carbon stock, eco-tourism opportunities and income
generation for local communities.

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Q22. As per the Union Budget 2023-24, under Pradhan Mantri Kaushal Vikas Yojana
4.0, to skill youth for international opportunities, how many Skill India
International Centres will be set up across different States?
a) 10
b) 20
c) 30
d) 40
Ans: c) 30
Pradhan Mantri Kaushal Vikas Yojana 4.0 will be launched to skill lakhs of youth within
the next three years. To skill youth for international opportunities, 30 Skill India
International Centres will be set up across different States.
Q23. As per the Union Budget 2023-24, how many youths will be provided stipend
under a pan-India National Apprenticeship Promotion Scheme in next 3 years?
a) 10 lakh
b) 24 lakh
c) 47 lakh
d) 71 lakh
Ans: c) 47 lakh
To provide stipend support to 47 lakh youth in three years, Direct Benefit Transfer under
a pan-India National Apprenticeship Promotion Scheme will be rolled out.
Q24. What is the purpose of setting up a National Financial Information Registry?
a. To promote financial stability
b. To serve as a central repository of information
c. To foster financial inclusion
d. All of the above
Answer: d. All of the above
A national financial information registry will be set up to serve as the central repository of
financial and ancillary information. This will facilitate efficient flow of credit, promote
financial inclusion, and foster financial stability.
Q25. Who will be involved in designing the legislative framework of the National
Financial Information Registry?
a. NABARD
b. RBI
c. NHB
d. All of the above

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Ans: b. RBI
A new legislative framework will govern this credit public infrastructure, and it will be
designed in consultation with the RBI.
Q26. As per the Union Budget 2023-24, the maximum deposit limit for Senior
Citizen Savings Scheme will be enhanced from Rs. 15 lakhs to how much?
a. Rs. 20 lakhs
b. Rs. 25 lakhs
c. Rs. 30 lakhs
d. Rs. 18 lakhs
Ans: c. Rs. 30 lakhs
Q27. As per the Union Budget 2023-24, states will be allowed a fiscal deficit of 3.5
per cent of GSDP of which ___ per cent will be tied to power sector reforms.
a. 1.5
b. 2.0
c. 2.5
d. 0.5
Ans: d. 0.5%
Q28. What is the estimated total receipt in the union budget 2023-24 (in Rs.)?
A) 27.2 lakh crore
B) 28.9 lakh crore
C) 23.3 lakh crore
D) 31.2 lakh crore
Answer: A) Rs. 27.2 lakh crore
Q29. What is the estimated total expenditure in the union budget 2023-24 (in Rs.)?
A) 27.2 lakh crore
B) 45 lakh crore
C) 28 lakh crore
D) 31 lakh crore
Answer: B) Rs. 45 lakh crore
Q30. What is the estimated net tax receipt in the union budget 2023-24 (in Rs.)?
A) 27.2 lakh crore
B) 45 lakh crore
C) 23.3 lakh crore

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D) 21 lakh crore
Answer: C) Rs. 23.3 lakh crore
Q31. What is the estimated fiscal deficit as per the union budget 2023-24?
A) 4.5% of GDP
B) 5.9% of GDP
C) Below 4.5% of GDP
D) 6.4% of GDP
Answer: B) 5.9% of GDP
Q32. What is the target fiscal deficit as announced in Budget Speech for 2021-22 by
2025-26?
A) 4.5% of GDP
B) 5.9% of GDP
C) Below 4.5% of GDP
D) 4% of GDP
Answer: C) Below 4.5% of GDP
Q33. What is the expected year to reach the target fiscal deficit?
A) 2023-24
B) 2025-26
C) 2021-22
D) 2029-30
Answer: B) 2025-26
Q34. What recorded the highest export growth in the last financial year?
A) Marine products
B) Agricultural products
C) Manufacturing products
D) Food products
Answer: A) Marine products
In the last financial year, marine products recorded the highest export growth benefitting
farmers in the coastal states of the country. To further enhance the export competitiveness
of marine products, particularly shrimps, duty is being reduced on key inputs for domestic
manufacture of shrimp feed.
Q35. As per the Union Budget 2023-24, the date of incorporation for income tax
benefits to start-ups has been extended from 31.03.23 to which date?
A) 01.09.23

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B) 01.12.23
C) 31.12.23
D) 31.03.24
Ans: D
Q36. Currently, those with income up to Rs. 5 lakh do not pay any income tax in
both old and new tax regimes. Union Budget 2023-24 proposes to increase the rebate
limit to how much in the new tax regime?
A) Rs. 6 lakh
B) Rs. 7 lakh
C) Rs. 7.5 lakh
D) Rs. 8 lakh
Ans: B) 7 lakh
Q37. As per the Union Budget 2023-24, how much tax will be charged on the
payment received from the Agniveer Corpus Fund by the Agniveers enrolled in
Agnipath Scheme, 2022?
A) 10%
B) 20%
C) 5%
D) 0%
Ans: D) 0%
The payment received from the Agniveer Corpus Fund by the Agniveers enrolled in
Agnipath Scheme, 2022 is proposed to be exempt from taxes. Deduction in the
computation of total income is proposed to be allowed to the Agniveer on the contribution
made by him or the Central Government to his Seva Nidhi account.
Q38. What is the gross market borrowing target set by the Budget 2023-24?
a) Rs. 10.8 trillion
b) Rs. 11.8 trillion
c) Rs. 12.8 trillion
d) Rs. 15.4 trillion
Ans: d) Rs. 15.4 trillion
Q39. What is the net market borrowing target set by the Budget 2023-24?
a) Rs. 10.8 trillion
b) Rs. 11.8 trillion
c) Rs. 12.8 trillion
d) Rs. 15.4 trillion
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Ans: b) Rs. 11.8 trillion
Q40. What is the budgeted amount for disinvestment receipts according to the
Budget 2023-24 (in Rs.)?
a) 20,000 crore
b) 65,000 crore
c) 51,000 crore
d) 75,000 crore
Ans: c) 51,000 crore
Q41. As per the Union Budget 2023-24, how much amount has been allocated for PM
KISAN for 2023-24?
a) Rs. 68,000 crore
b) Rs. 60,000 crore
c) Rs. 65,000 crore
d) Rs. 80,000 crore
Ans: b) Rs. 60,000 crore
Q42. As per the Union Budget 2023-24, which of the following sectors has received
maximum allocation for 2023-24?
a) Health
b) Education
c) Agriculture
d) Transport
Ans: d) Transport – Rs. 5.17 Lakh crore
Q43. As per the Union Budget 2023-24, how much amount has been allocated for
Mahatma Gandhi National Rural Employment Guarantee Program for 2023-24?
a) Rs. 68,000 crore
b) Rs. 70,000 crore
c) Rs. 73,000 crore
d) Rs. 60,000 crore
Ans: d) Rs. 60,000 crore
Q44. As per the Union Budget 2023-24, how much amount has been allocated for
Ayushman Bharat - Pradhan Mantri Jan Arogya Yojna (PMJAY) for 2023-24?
a) Rs. 6800 crore
b) Rs. 6000 crore
c) Rs. 6500 crore

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d) Rs. 7200 crore
Ans: d) Rs. 7200 crore
Q45. As per the Union Budget 2023-24, how much amount has been allocated for Jal
Jeevan Mission (JJM) for 2023-24?
a) Rs. 68,000 crore
b) Rs. 60,000 crore
c) Rs. 70,000 crore
d) Rs. 80,000 crore
Ans: c) Rs. 70,000 crore
Q46. As per the Union Budget 2023-24, how much amount has been allocated for
Pradhan Mantri Awas Yojna (PMAY) for 2023-24?
a) Rs. 68,780 crore
b) Rs. 79,590 crore
c) Rs. 80,360 crore
d) Rs. 80,000 crore
Ans: b) Rs. 79,590 crore
Q47. As per the Union Budget 2023-24, how much amount has been allocated for
National Education Mission for 2023-24?
a) Rs. 38,593 crore
b) Rs. 38,953 crore
c) Rs. 46,323 crore
d) Rs. 38,993 crore
Ans: b) Rs. 38,953 crore
Q48. As per the Union Budget 2023-24, how much amount has been allocated for
National Health Mission for 2023-24?
a) Rs. 38,875 crore
b) Rs. 36,785 crore
c) Rs. 46,375 crore
d) Rs. 38,775 crore
Ans: b) Rs. 36,785 crore
Q49. As per the Union Budget 2023-24, how much amount has been allocated for
Pradhan Mantri Gram Sadak Yojna for 2023-24?
a) Rs. 12,000 crore
b) Rs. 18,000 crore

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c) Rs. 19,000 crore
d) Rs. 20,000 crore
Ans: c) Rs. 19,000 crore
Q50. As per the Union Budget 2023-24, how much amount has been allocated for
Pradhan Mantri Krishi Sinchai Yojna for 2023-24?
a) Rs. 38,875 crore
b) Rs. 10,785 crore
c) Rs. 10,375 crore
d) Rs. 10,787 crore
Ans: d) Rs. 10,787 crore

UNION BUDGET 2023-24 MCQs (Part 2)

Q1. As per Union Budget 2023-24, how much is the agricultural credit allocated for
2023-24?
a) Rs. 1.2 lakh crore
b) Rs. 20 lakh crore
c) Rs. 18 lakh crore
d) Rs. 15 lakh crore
Ans: b) Rs. 20 lakh crore
The agriculture credit target has been increased to Rs 20 lakh crore (from Rs 18 lakh crore
last year) with a focus on animal husbandry, dairies and fisheries. This will be initiated
by computerisation of 63,000 primary agricultural credit societies with an investment of
Rs 2,516 crore.
Q2. As per Union Budget 2023-24, how much is the total expenditure estimated to
be spent for 2023-24?
a) Rs. 42.9 lakh crore
b) Rs. 45 lakh crore
c) Rs. 41.9 lakh crore
d) Rs. 39.45 lakh crore
Ans: b) Rs. 45 lakh crore
The government proposes to spend Rs 45 lakh crore in 2023-24, which is an increase of
7.5% over the revised estimate (Rs 41.9 lakh crore) of 2022-23, and an increase of 14%
over the budgeted estimate (Rs 39.45 lakh crore) of 2022-23. In 2022-23, total expenditure
is estimated to be 6.1% higher than the budget estimate.

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Q3. As per Union Budget 2023-24, how much is the increase of total expenditure for
2023-24 over the revised estimate of 2022-23?
a) 3%
b) 7%
c) 5.5%
d) 7.5%
Ans: d) 7.5%
The government proposes to spend Rs 45 lakh crore in 2023-24, which is an increase of
7.5% over the revised estimate (Rs 41.9 lakh crore) of 2022-23, and an increase of 14%
over the budgeted estimate (Rs 39.45 lakh crore) of 2022-23. In 2022-23, total expenditure
is estimated to be 6.1% higher than the budget estimate.
Q4. As per Union Budget 2023-24, how much is the increase of total expenditure for
2023-24 over the budgeted estimate of 2022-23?
a) 13%
b) 17%
c) 14%
d) 7.5%
Ans: d) 14%
The government proposes to spend Rs 45 lakh crore in 2023-24, which is an increase of
7.5% over the revised estimate (Rs 41.9 lakh crore) of 2022-23, and an increase of 14%
over the budgeted estimate (Rs 39.45 lakh crore) of 2022-23. In 2022-23, total expenditure
is estimated to be 6.1% higher than the budget estimate.
Q5. As per Union Budget 2023-24, how much is the capital expenditure estimated
to be spent for 2023-24?
a) Rs. 7.2 lakh crore
b) Rs. 7.5 lakh crore
c) Rs. 10 lakh crore
d) Rs. 7 lakh crore
Ans: c) Rs. 10 lakh crore
Capital Expenditure for 2023-24 to be spent: Rs. 10 lakh crore, which is an increase of
38.8% over the revised estimate (Rs 7.2 lakh crore) of 2022-23, and an increase of 33.33%
over the budgeted estimate (Rs 7.5 lakh crore) of 2022-23.
Q6. As per Union Budget 2023-24, what percent of GDP is the estimated Capital
Expenditure for 2023-24?
a) 10%
b) 4.5%
c) 3.3%
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d) 6%
Ans: c) 3.3%
Smt. Sitharaman said, investments in Infrastructure and productive capacity have a large
multiplier impact on growth and employment and in view of this capital investment outlay
is being increased steeply for the third year in a row by 33 per cent to Rs 10 lakh crore,
which would be 3.3 per cent of GDP. She said that this will be almost three times the
outlay in 2019-20
Q7. What is the budgeted 'Effective Capital Expenditure' of the Centre for the current
year?
A) Rs 13.7 lakh crore
B) Rs 10.5 lakh crore
C) Rs 15 lakh crore
D) Rs 12 lakh crore
Answer: A) Rs 13.7 lakh crore
The ‘Effective Capital Expenditure’ of the Centre is budgeted at Rs 13.7 lakh crore.
Q8. What percentage of GDP does the budgeted 'Effective Capital Expenditure'
represent?
A) 5.5%
B) 4.5%
C) 3.5%
D) 6.5%
Answer: B) 4.5%
The ‘Effective Capital Expenditure’ of the Centre is budgeted at Rs 13.7 lakh crore, which
will be 4.5 per cent of GDP.
Q9. What impact does the budgeted 'Effective Capital Expenditure' have on the
economy?
A) It stimulates economic growth
B) It has a negative impact on the economy
C) It has no significant impact
D) It reduces inflation
Answer: A) It stimulates economic growth
Q10. As per Union Budget 2023-24, how much is the revenue expenditure estimated
to be spent for 2023-24?
a) Rs. 35 lakh crore
b) Rs. 31.9 lakh crore

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c) Rs. 10 lakh crore
d) Rs. 3.5 lakh crore
Ans: a) Rs. 35 lakh crore
Revenue Expenditure for 2023-24 to be spent: Rs. 35 lakh crore, which is an increase of
9% over the budgeted estimate (Rs 31.9 lakh crore) of 2022-23.
Q11. What is the expected increase in receipts (other than borrowings) from 2022-
23 to 2023-24?
A) 6.5%
B) 7.5%
C) 11.7%
D) 16.7%
Answer: C) 11.7%
The receipts (other than borrowings) in 2023-24 are expected to be to Rs 27,16,281 crore,
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.
Q12. What is the estimated nominal GDP growth rate in 2023-24?
A) 7.5%
B) 8.5%
C) 9.5%
D) 10.5%
Answer: D) 10.5%
The government has estimated a nominal GDP growth rate of 10.5% in 2023-24 (i.e., real
growth plus inflation)
Q13. What is the targeted revenue deficit as a percentage of GDP in 2023-24?
A) 2.5%
B) 2.9%
C) 4.1%
D) 4.9%
Answer: B) 2.9%
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.
Q14. What is the targeted fiscal deficit as a percentage of GDP in 2023-24?
A) 5.5%
B) 5.9%
C) 6.4%
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D) 6.9%
Answer: B) 5.9%
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. While 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.
Q15. What percentage of revenue receipts is the interest expenditure estimated to
be in 2023-24?
A) 31%
B) 41%
C) 51%
D) 61%
Answer: B) 41%
Interest expenditure at Rs 10,79,971 crore is estimated to be 41% of revenue receipts.
Q16. Which ministry observed the highest percentage increase in allocation among
the top 13 ministries in 2023-24?
A) Ministry of Railways
B) Ministry of Jal Shakti
C) Ministry of Road Transport and Highways
D) Ministry of Finance
Answer: A) Ministry of Railways
Allocation is estimated to increase by Rs 78,956 crore (48.6%) in 2023-24, over the revised
estimate of 2022- 23. This is mainly on account of increased capital outlay on commercial
lines.
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 (48.6%), followed
by the Ministry of Jal Shakti (31%), and the Ministry of Road Transport and Highways
(25%).
Q17. As per Union Budget 2023-24, what is the amount of money that the central
government will transfer to states and union territories in 2023-24?
A) Rs 16,62,874 crore
B) Rs 18,62,874 crore
C) Rs 20,62,874 crore
D) Rs 15,62,874 crore
Answer: B) Rs 18,62,874 crore
The central government will transfer Rs 18,62,874 crore to states and union territories in
2023-24, an increase of 8.9% over the revised estimates of 2022-23. Transfer to states
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includes devolution of Rs 10,21,448 crore out of the divisible pool of central taxes, grants
worth Rs 6,86,773 crore, and special loans worth Rs 1.3 lakh crore for capital expenditure.
Q18. What is the increase in the transfer of funds to states and union territories
compared to the revised estimates of 2022-23?
A) 8.9%
B) 7.9%
C) 9.9%
D) 6.9%
Answer: A) 8.9%
The central government will transfer Rs 18,62,874 crore to states and union territories in
2023-24, an increase of 8.9% over the revised estimates of 2022-23. Transfer to states
includes devolution of Rs 10,21,448 crore out of the divisible pool of central taxes, grants
worth Rs 6,86,773 crore, and special loans worth Rs 1.3 lakh crore for capital expenditure.
Q19. What is the target for primary deficit in 2023-24 as a percentage of GDP?
A) 4.1%
B) 2.9%
C) 5.9%
D) 2.3%
Answer: D) 2.3%
Revenue deficit is targeted at 2.9% of GDP, and fiscal deficit is targeted at 5.9% of GDP in
2023-24. The target for primary deficit (which is fiscal deficit excluding interest payments)
in 2023-24 is 2.3% of GDP. The revised estimate for the revenue deficit target has
increased from the budgeted estimate in 2022-23.
Q20. What is the estimated increase in gross tax revenue compared to the revised
estimates of 2022-23?
A) 10.4%
B) 11.7%
C) 12%
D) 9.4%
Answer: A) 10.4%
Gross tax revenue is budgeted to increase by 10.4% over the revised estimates of 2022-
23, which is about the same as the estimated nominal GDP growth of 10.5% in 2023-24.
Q21. What is the estimated increase in corporation tax and income tax in 2023-24
compared to the revised estimates of 2022-23?
A) 5.9%
B) 10.5%

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C) 11.7%
D) 12%
Answer: B) 10.5%
Corporation tax and income tax are estimated to increase at the same rate as the nominal
GDP (10.5%).
Q22. What is the expected rate of increase in excise duties in 2023-24?
A) 10.5%
B) 11.7%
C) 5.9%
D) 12%
Answer: C) 5.9%
Excise duties (mainly imposed on petroleum products) are expected to rise by 5.9% in
2023-24.
Q23. What is the estimated rate of increase in GST revenue in 2023-24?
A) 10.5%
B) 11.7%
C) 5.9%
D) 12%
Answer: D) 12%
GST revenue is budgeted to increase at a higher rate (12%).
Q24. What is the estimated net tax revenue of the central government (excluding
states' share in taxes) in 2023-24?
A) Rs 23,30,631 crore
B) Rs 20,30,631 crore
C) Rs 25,30,631 crore
D) Rs 18,30,631 crore
Answer: A) Rs 23,30,631 crore
The net tax revenue of the central government (excluding states’ share in taxes) is
estimated to be Rs 23,30,631 crore in 2023-24, which is 11.7% over the revised estimates
for 2022-23.
Q25. What is the estimated indirect tax collection in 2023-24?
A. Rs 15,29,200 crore
B. Rs 9,56,600 crore
C. Rs 8,11,600 crore

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D. Rs 1,45,000 crore
Answer: A
The total indirect tax collections are estimated to be Rs 15,29,200 crore in 2023-24.
Q26. What is the estimated GST collection in 2023-24?
A. Rs 15,29,200 crore
B. Rs 9,56,600 crore
C. Rs 8,11,600 crore
D. Rs 1,45,000 crore
Answer: B
The total indirect tax collections are estimated to be Rs 15,29,200 crore in 2023-24. Of
this, the government has estimated to raise Rs 9,56,600 crore from GST. Out of the total
tax collections under GST, 85% is expected to come from central GST (Rs 8,11,600 crore),
and 15% from the GST compensation cess (Rs 1,45,000 crore).
Q27. What is the estimated increase in income tax collection in 2023-24?
A. 10.4%
B. 10.5%
C. 15%
D. 16.4%
Answer: B
The collections from income tax are also expected to increase by 10.5% in 2023-24 to Rs
9,00,575 crore. Income tax collection is expected to be 16.4% higher than the budget
estimate in 2022-23.
Q28. What was the main reason for lower dividend receipts in 2022-23?
A. Lower GDP growth
B. Lower disinvestment target
C. Lower dividend from Reserve Bank of India
D. Lower interest receipts on loans
Answer: C
Non-tax revenue consists mainly of interest receipts on loans given by the centre,
dividends, license fees, tolls, and charges for government services. Dividend receipts were
lower in 2022-23 than originally budgeted mainly on account of lower dividend from
Reserve Bank of India. In 2023-24, non-tax revenue is expected to increase by 15% over
the revised estimates of 2022-23.
Q29. What is the disinvestment target for 2023-24?
A. Rs 15,200 crore
B. Rs 65,000 crore
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C. Rs 51,000 crore
D. Rs 50,000 crore
Answer: C
Disinvestment is the government selling its stakes in Public Sector Undertakings (PSUs).
In 2022-23, the government is estimated to meet 77% of its disinvestment target (Rs
50,000 crore against a target of Rs 65,000 crore). The disinvestment target for 2023-24 is
Rs 51,000 crore. This is a marginal increase of 2% over the revised estimate of 2022-23
(Rs 50,000 crore). In 2022-23, the receipts from disinvestment are expected to be 23%
lower than the budget estimate.

Q30. What is the estimated increase in disinvestment receipts in 2023-24 compared

to 2022-23 revised estimates?
A. 2%
B. 10.5%
C. 15%
D. 23%
Answer: A
In 2022-23, the government is estimated to meet 77% of its disinvestment target (Rs
50,000 crore against a target of Rs 65,000 crore). The disinvestment target for 2023-24 is
Rs 51,000 crore. This is a marginal increase of 2% over the revised estimate of 2022-23
(Rs 50,000 crore). In 2022-23, the receipts from disinvestment are expected to be 23%
lower than the budget estimate.
Q31. What is the main component of non-tax revenue?
A. Dividends
B. Interest receipts on loans
C. License fees
D. All of the above
Answer: D
Q32. Which ministry received the highest allocation in 2023-24?
A. Ministry of Defence
B. Ministry of Education
C. Ministry of Health
D. Ministry of Agriculture
Answer: A. Ministry of Defence
In 2023-24, the ministries with the highest allocations account for 55% of the estimated
total expenditure. Of these, the Ministry of Defence has the highest allocation in 2023-24,
at Rs 5,93,538 crore.
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Q33. What percentage of total budgeted expenditure does the Ministry of Defence
account for in 2023-24?
A. 10.5%
B. 13.2%
C. 15.9%
D. 18.7%
Answer: B. 13.2%
In 2023-24, the ministries with the highest allocations account for 55% of the estimated
total expenditure. Of these, the Ministry of Defence has the highest allocation in 2023-24,
at Rs 5,93,538 crore.
It accounts for 13.2% of the total budgeted expenditure of the central government. Other
ministries with high allocation include: (i) Road Transport and Highways (6% of total
expenditure), (ii) Railways (5.4%), and (iii) Consumer Affairs, Food, and Public Distribution
(4.6%). Table 5 shows the expenditure on Ministries with the 13 highest allocations for
2023-24 and the changes in allocation as compared to the revised estimate of 2022-23.
Q34. What percentage of the total estimated expenditure in 2023-24 is accounted
for by the ministries with the highest allocations?
A. 40%
B. 45%
C. 50%
D. 55%
Answer: D. 55%
In 2023-24, the ministries with the highest allocations account for 55% of the estimated
total expenditure. Of these, the Ministry of Defence has the highest allocation in 2023-24,
at Rs 5,93,538 crore.
Q35. What is the estimated total expenditure on subsidies in 2023-24?
A) Rs 4,03,084 crore
B) Rs 5,03,084 crore
C) Rs 6,03,084 crore
D) Rs 1.3 lakh crore
Answer: A) Rs 4,03,084 crore
In 2023-24, the total expenditure on subsidies is estimated to be Rs 4,03,084 crore, a
decrease of 28.3% from the revised estimate of 2022-23.
Q36. Which government scheme received the highest allocation in 2023-24?
A) PM KISAN
B) PMAY

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C) Jal Jeevan Mission
D) MGNREGA
Answer: B) Pradhan Mantri Awas Yojana
Pradhan Mantri Awas Yojana (rural and urban components taken together) has the
highest allocation in 2023-24 at Rs 79,590 crore.
Q37. What is the purpose of the FRBM Act, 2003?
A) To reduce the outstanding debt
B) To increase the fiscal deficit
C) To progressively reduce outstanding debt, revenue deficit and fiscal deficit
D) To increase revenue deficit
Answer: C) To progressively reduce outstanding debt, revenue deficit and fiscal deficit
The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 requires the central
government to progressively reduce its outstanding debt, revenue deficit and fiscal deficit,
and give three year rolling targets.
Q38. What is the difference between fiscal deficit and interest payments known as?
A) Borrowings
B) Primary deficit
C) Revenue deficit
D) Subsidies
Answer: B) Primary deficit
Primary deficit is the difference between fiscal deficit and interest payments. It is estimated
to be 2.3% of GDP in 2023-24.
Q39. What is the revised estimate for special interest-free loans to states for capital
expenditure in 2022-23?
A) Rs 76,000 crore
B) Rs 1 lakh crore
C) Rs 1.3 lakh crore
D) Rs 84,000 crore
Answer: A) Rs 76,000 crore
The Centre has budgeted Rs 1.3 lakh crore for special interest-free loans to states for
capital expenditure. The revised estimates for 2022-23 at Rs 76,000 crore were lower than
the budgeted Rs 1 lakh crore.
Q40. What was the budgeted amount for special interest-free loans to states for
capital expenditure in 2022-23?
A) Rs 1 lakh crore

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B) Rs 76,000 crore
C) Rs 1.3 lakh crore
D) Rs 4,03,084 crore
Answer: A) Rs 1 lakh crore
The Centre has budgeted Rs 1.3 lakh crore for special interest-free loans to states for
capital expenditure. The revised estimates for 2022-23 at Rs 76,000 crore were lower than
the budgeted Rs 1 lakh crore.
Q41. What is the Budgeted estimated for special interest-free loans to states for
capital expenditure for 2023-24?
A) Rs 76,000 crore
B) Rs 1 lakh crore
C) Rs 1.3 lakh crore
D) Rs 84,000 crore
Answer: C) Rs 1.3 lakh crore
The Centre has budgeted Rs 1.3 lakh crore for special interest-free loans to states for
capital expenditure. The revised estimates for 2022-23 at Rs 76,000 crore were lower than
the budgeted Rs 1 lakh crore.
Q42. The largest share of the Centre's expenditure goes towards which of the
following?
A) Pensions
B) Subsidies
C) Defence
D) Interest Payments
Ans: D) Interest Payments
The largest share of the Centre's expenditure goes towards paying the interest on
borrowings. According to the Budget, they account for one-fifth or 20 per cent of the total
expenditure. It is followed by the money given to the states as their share of taxes and
duties. It accounts for 18 per cent of the total spending.
The allocations towards the central sector and centrally sponsored schemes are the next
two big expenses accounting for 17 and 9 per cent of the total expenditure. Finance
Commission and other transfers make up 9 per cent and Defence 8 per cent in the total
expense. They are followed by Subsidies and Pensions at 7 and 4 per cent, respectively.

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Q43. What is the percentage of allocation towards Central sector schemes in the
total expenditure?
A. 20%
B. 18%
C. 17%
D. 9%
Answer: C. 17%
The allocations towards the central sector and centrally sponsored schemes are the next
two big expenses accounting for 17 and 9 per cent of the total expenditure.
Q44. What is the percentage of allocation towards Centrally sponsored schemes in
the total expenditure?
A. 20%
B. 18%
C. 17%
D. 9%

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Answer: D. 9%
The allocations towards the central sector and centrally sponsored schemes are the next
two big expenses accounting for 17 and 9 per cent of the total expenditure.
Q45. What is the highest source of the Centre's income according to the Budget?
A) Borrowings and other liabilities
B) GST and other taxes
C) Income Tax and Corporation Tax
D) Non-tax receipts
Answer: A) Borrowings and other liabilities
According to the Budget, the highest share of the Centre's income comes from borrowings
and other liabilities. They account for 34 per cent of the total income. It is followed by GST
and other taxes, which account for 17 per cent of the total income.

46. Surplus reserve of RBI transferred to Government of India (GOI) will come under which
of the following?
(a) Market borrowings and other liabilities
(b) Non-tax revenue receipts
(c) Non-debt capital receipts
(d) Debt receipts

The RBI transferred its (accumulated) surplus reserve to its annual income and then this
annual income was transferred to Govt. of India as dividend. Dividend from PSUs (RBI is
a PSU which is 100% owned by Govt. of India) is considered as non-tax revenue receipts.
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47. The Grants-in-aid given by the Central Government to the State Governments and
local bodies for creation of capital assets are classified in the Union budget under?
(a) Revenue expenditure
(b) Capital Expenditure
(c) Both Revenue and Capital expenditure
(d) None of the above

Grants in aid by the Centre to the States will always be revenue expenditure for the Centre.
Whether States spend it on capital expenditure or revenue expenditure, does not matter.

48. Payment of interest is

(a) Revenue expenditure
(b) Capital expenditure
(c) Primary deficit
(d) Fiscal deficit

Revenue Expenditure:
a. Interest payments
b. Defence Services
c. Subsidies
d. Economic, social and other services

49. Which is the example of Administrative non-tax Revenue of Central Government?

(a) Profit from PSUs
(b) Disinvestment
(c) Excise duty
(d) Recovery of loan.

Non-Tax Revenue:

 Interest receipts
 Dividends and Profits (Dividends from Public Sector Enterprises and other
investments, Dividend/Surplus of Reserve Bank of India, Nationalised Banks &
Financial Institutions)

50. Capital receipt may come from

(a) Market borrowing
(b) Provident fund
(c) Recoveries of loan
(d) All the above.

Capital Receipts:

 Non-debt Receipts: Recoveries of loans and advances, Disinvestment of

Government stake in Public Sector Banks and Financial Institutions, Issue of Bonus
Shares

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 Debt Receipts: Market Loans, Short Term/T-Bill Borrowings, External Loans(net),
Small saving schemes, State Provident Fund (Net), Gold Bonds, Gold Monetisation
etc

51. Which is a capital expenditure of govt.

(a) Salaries of Staff
(b) Payment of Interest
(c) Purchase of machinery
(d) Subsidy

Capital Expenditure
Those expenses of the government which either creates assets (physical or financial) or reduces liabilities
are called capital expenditures. Capital expenditures include acquisition of land, building, machinery,
equipment, purchase of shares by the government and loans and advances by the central government to
state and union territory governments, PSUs and other parties.

52. Those inflows of money to the government account against which no liability of
repayment is created, is called-
(a) Revenue receipts;
(b) Capital receipts;
(c) Revenue expenditure;
(d) Capital expenditure.

Revenue Receipts
Those receipts of the government which neither creates a liability for the government nor reduces the assets
(physical or financial) of the government are called revenue receipts. Revenue receipts are non-redeemable
i.e. they cannot be reclaimed from the government. Revenue receipts can be of two types.

 Tax Revenues consists of direct and indirect taxes of the central government.

 Non Tax Revenue consists of interest receipts on account of loans given by central government, dividend
and profits on investments made by the central government (i.e. PSUs), fees and fines and other receipts
for services rendered by the government like passport fees etc. Cash grants-in-aid from foreign countries
and international organisations are also part of the non-tax revenue.

53. Those inflows of money to the government against which a liability of repayment
devolves upon the government, is known as-
(a) Revenue receipts;
(b) Capital receipts;
(c) Revenue expenditure;
(d) Capital expenditure.

Capital Receipts
Those receipts of the government which either creates liability or reduces the assets (physical or financial)
are called capital receipts. The main items of capital receipts are loans raised by the government from the
public (market borrowings), borrowing by the government from the RBI, commercial banks and other financial
institutions through the sale of government securities (treasury bills and dated securities), loans received

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from foreign governments and international organizations, and recovery of loans previously granted by the
central government. It also includes small savings schemes (Post office savings accounts, National Savings
Certificates etc.), Provident Funds and net receipts obtained from the sale of shares in PSUs (disinvestment).

54. A statement relating to the revenue expenditure and revenue receipts of the
government is known as-
(a) Revenue budget;
(b) Budget;
(c) Capital budget;
(d) None of these.

55. A budget in which the receipts of the government exceed its expenditure is called-
(a) Surplus budget;
(b) Deficit budget;
(c) Balanced budget;
(d) None of the above

Surplus budget: If the receipts of the government are more than its expenditure, it is
called surplus budget. A surplus budget implies that the government is pumping out more
money from the economic system. It has a contractionary effect and level of economic
activity falls.

56. A budget in which the receipts of the government fall short of its expenditure is
known as-
(a) Surplus budget;
(b) Deficit budget;
(c) Balanced budget;
(d) None of the above.

Deficit budget: If the receipts of the government are less than its expenditure, then the
budget is called deficit budget. It implies that the government is pumping in more money
in the economy. It has an expansionary effect and the level of economic activities rise.
Government of developing countries always plan for a deficit budget.

57. A budget in which the receipts of the government are matched by its expenditure is
known as-
(a) Surplus budget;
(b) Deficit budget;
(c) Balanced budget;
(d) None of the above.

Balanced budget: If the receipts of the government are equal to its expenditure, it is called
balanced budget. It will have a neutral effect on the level of economic activity. It will neither
have an expansionary effect nor contractionary effect on the economy.

58. When revenue expenditure of the government is greater than the revenue receipts, it
is called-
(a) Budget deficit;
(b) Revenue deficit;
(c) Fiscal deficit;
(d) Monetized deficit.

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59. The excess of overall expenditure over the sum of revenue receipts, and recoveries of
loans is called-
(a) Budget deficit;
(b) Revenue deficit;
(c) Fiscal deficit;
(d) Monetized deficit.

Revenue Deficit = Revenue Expenditure - Revenue Receipts

60. When interest payment is deducted from fiscal deficit, it is called-

(a) Budget deficit;
(b) Revenue deficit;
(c) Fiscal deficit;
(d) Primary deficit.

Primary Deficit = Fiscal Deficit - Net interest liabilities

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