Budget 2023: Taking notes from the middle-class budget issues, Finance Minister Nirmala Sitharaman said that she is aware of the problems. However, it should be remembered that the government has not imposed any new taxes on citizens.

On February 1, Sitharaman will present the Union Budget for 2023-24 in the Lok Sabha. The government will likely raise the income tax limit and provide relief to middle-class taxpayers, among other things. This Budget is significant because it is the current government’s final full budget before the general elections in mid-2024.

Speech of Nirmala Sitaraman on Budget 2023

“I, too, am from the middle class, so I understand the pressures that come with it. I identify as middle-class, so I understand,” the minister made the remarks while speaking at a function, hosted by Panchjanya magazine, an RSS-affiliated weekly.

Simultaneously, the minister emphasized that the central government administration has not imposed any new taxes on the middle class. She also stated that income up to Rs 5 lakh is exempt from income tax.

“I understand their difficulties. The government has done a lot for them and will continue to do so, Sitharaman stated that the government has increased capital expenditure in each Budget since 2020.

In context to the current financial year, she said that it has been increased by 35% to Rs 7.5 lakh crore because it has a multiplier effect on the economy.

Concerning the banking sector, she stated that the government’s 4R strategy (Recognition, Recapitalization, Resolution, and Reform) has aided in the revitalization of public sector banks (PSBs).

Non-performing assets (NPAs) have decreased as a result, and the health of PSBs has greatly improved, she claims.

To support capital adequacy and prevent default, the government implemented an unprecedented recapitalization program for PSBs totalling Rs 2.11 lakh crore.

PSBs turned the corner in 2020-21, with a combined net profit of Rs 31,820 crore, thanks to massive recovery, NPA reduction, and windfall gains on their bond portfolio.

Despite COVID-19 pressure, the combined profit more than doubled to Rs 66,539 crore in FY22. They had collective losses of Rs 2,07,329 crore for five consecutive years, from 2015-16 to 2019-20.

According to the RBI, banks’ gross NPA ratio has dropped to a seven-year low of 5%. And the banking system remains sound and well-capitalized.

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Steps Of Government

Concerning farmers, Sitharaman stated that the government is committed to doubling their income and has taken numerous steps in that direction.

In terms of trade with Pakistan, she stated that the neighbouring country has never granted India’s Most Favoured Nation (MFN) status. She claims that trade relations with Pakistan have deteriorated since the Pulwama terror attack in 2019.

In terms of freebies, the minister stated that promises must be made while keeping the state’s financial health in mind, and there must be complete transparency.