Presenting the first Budget of 'Amrit Kaal', a run-up to the centenary of Indian independence, the Finance Minister proposed a holistic budget. The Union Budget 2023 addressed the needs of various segments of society.
In particular, it sought to empower and provide financial assistance to senior citizens and women.
The number of seniors in India is slowly increasing with seniors forming approximately 10% of the country’s population in 2021. This number is expected to go to more than 13% by 2031.
Women too formed almost 49% of India’s population as of 2021. Keeping this in mind, seniors and women together form a large part of India’s economic story.
Keep in mind that the increase in the tax-free limit under the new income tax regime will also benefit working women and pensioners alike. The proposed limit has been raised from ₹5 Lakhs to ₹7 Lakhs of annual income. Further, a yearly income of ₹2.5 Lakhs to ₹3 Lakhs will attract no income tax.
Read on to know what is in the store for senior citizens and women as per the Union Budget for the financial year 2023-24.
Union Budget 2023 Announcements for Senior Citizens
The following are the key announcements that the Finance Minister made in her Budget speech, keeping India’s senior citizens in view. Both these measures will help India’s seniors be more financially prepared.
Doubled Limit for the Senior Citizens Savings Scheme
To financially empower senior members of society, the Budget proposed to double the deposit limit for the Senior Citizen Savings Scheme. It has been hiked from ₹15 Lakhs to ₹30 Lakhs.
The SCSS will now allow senior citizens to save more at higher interest rates. It offers an interest rate of 8%, higher than what most banks offer as deposit rates.
Hike in Monthly Investment Scheme (MIS) Limit
The Finance Minister also proposed changes to the maximum limit of deposits in the Postal Monthly Income Scheme (MIS).
The revised limits for the single account have been enhanced from ₹4.5 Lakhs to ₹9 Lakhs. On the other hand, the deposit limit for joint accounts will now be 15 Lakhs, which was previously at ₹9 Lakhs. Now, senior citizens will be able to invest more in this low-risk scheme.
Impact of the Union Budget 2023 on Women
Here's a brief overview of what women stand to gain from the Union Budget for FY 23-24.
Introduction of the Mahila Samman Savings Certificate
To commemorate the diamond jubilee of independence, the Budget proposed a new small savings scheme for women.
The Mahila Samman Savings Certificate will allow a deposit of up to ₹2 Lakhs at the rate of 7.5% per annum. The scheme can be availed in the name of a girl or woman for two years. The scheme can be availed from April 1, 2023.
The scheme will serve as an important investment tool for women that will provide tax benefits under Section 80C of the Income Tax Act.
Economic Push for Women Self-help Groups
Finance Minister Nirmala Sitharaman also underlined the success of the Deendayal Antyodaya Yojana National Rural Livelihood Mission (DDY-NRLI) in empowering rural women. This was done through Self-Help Groups (SHGs), which work to uplift women in underserved communities.
The minister announced that the Centre would nudge 81 SHGs in the country to achieve the next phase of economic empowerment.
These groups will be transformed into large producer collectives or enterprises of thousands of members. Moreover, professional help will be provided with supply chain and operations such as:
- Designing
- Quality control
- Branding and marketing products
Leveraging supporting policies will enable women in such groups to scale up into large markets. This will also help women become self-reliant and uplift their standard of living.
Empowering Women Artisans through PM-VIKAS
The Budget conceptualised a new scheme named Pradhan Mantri Vishwakarma Kaushal Samman (PM-VIKAS) for traditional artisans and craftspeople. The FM stressed that the scheme would help them integrate into the MSME value chain.
The result will be the improvement in both the quality and reach of their products. Women are set to benefit the most from the scheme as they constitute 56.13% of the total artisans engaged in the handicraft industry.
The components of the PM-VIKAS scheme are:
Financial inclusion
Skill enhancement through training
Know-how for digital and green technologies
Branding and marketing
Social security
Rise in Budgetary Allocations to the Women and Child Development Ministry
The budgetary allocation for the Women and Child Development Ministry witnessed a marginal spike for the financial year 2023-24.
The budgetary estimate for the ministry has been pegged at almost ₹25,448 Crores, an uptick from ₹25,172 Crores allocated last year. However, the allocation for nutritional programmes aimed at adolescent girls such as, POSHAN 2.0 and Saksham Anganwadi, remains the same.
While all this spells good news, there is one aspect of the Budget 2023 that may not bode well for women.
Adverse Effect on Women Labourers Due to Budget Cut in MGNREGS
The allocation for the Centre's flagship rural employment scheme, MGNREGS, has been slashed by 33% to ₹60,000 Crores. The budgetary allocation for the scheme in 2022-23 was ₹73,000 Crores.
The participation of rural women in the scheme was 54.54% in the financial year 2021-22. So, the budget cut may have an adverse effect on women's labour participation in rural areas.
To sum up, the two segments of society that stand to benefit the most from Budget announcements are senior citizens and women. However, these measures will have a multiplier effect on India’s overall economic activity.
The focus of the Union Budget 2023 on social sector spending will not only nudge domestic consumption but also improve people's livelihoods. The increased tax limits and spending on pensions are sure to spur subdued demand and economic recovery.
In addition, schemes like PM-VIKAS and the economic empowerment of self-help groups are expected to increase productivity and create job opportunities.
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