foreign [Music] of the economic survey so this session is all about the union budget you already know that honorable Finance Minister nirmala sitaraman has declared or has put a historic budget why historic because you already know that our Prime Minister Modi has been constantly focusing on the next 25 years why because in this next 25 years India is going to enter into its Amrit Khan where India has taken a pledge that we are going to move towards a developed economy so in this context we will try to analyze what is the vision for Amrit Khan in which this budget has been put forth so first let's try to do some Basics what is budget all about first in the Constitution budget as a word is nowhere mentioned in the article 112 it has been mentioned as the annual financial statement it is not budget it has been written as annual financial statement right so what includes or what is there in the budget so first you know that budget basically tells how much the government is getting the money and where the government has to spend the money right so basically there are two broad parts of the budget one is the revenue aspect of it that from where the government is going to get the money and then the second part deals with the expenditure aspect of the budget that where the government is going to spend that money apart from these Revenue expenditure thing the budget also gives you the broad overview of what is the state of Indian economy although in the economic survey the entire thing about Indian economy has already been discussed but the budget also tries to give a brief understanding about where India stands in the global picture right so officially called as annual financial statement and it has been constitutionally mandated to put forward this document under article 112. who prepares it it is prepared by the budget division in the department of economic Affairs in the Ministry of Finance right and this is what the budget deals about the budget deals with the revenue aspect the budget deals with the expenditure aspect and the budget deals that what is the state of Indian economy right so first we will understand the part A so in the part A basically the budget deals with the where the government is going to spend the money and in the part B of the budget the government tells from where it is going to get the money so first of all we will try to understand the expenditure aspect of the budget so before the budget before the government basically dealing about where it is going to spend its money first of all the budget tries to tell what is the vision of this budget you know that everything is a vision and without a vision no one can succeed no one can understand how this person or how the country will be in the future so in that context the budget first of all tries to give a overall Vision that in which context India has prepared this budget and how India looks forward in the future so first you can see that this economic survey has also discussed that despite all the odds despite all the uncertainties uncertainties such as geopolitical uncertainties such as Russia Ukraine war geo-economic uncertainty you know that most of the developed economies are heading towards the Slowdown or heading towards a recession in this context our Indian economy has been highly resilient it has been very much resilient you can see that our economy contracted during the pandemic but just after the pandemic our economy has recovered back whatever it lost during the whatever it lost during the pandemic and now you can see in the FY 23 India is growing in a very strong manner so as survey has also discussed that our economy has underwent all the recovery that whatever was lost during the pandemic now with the government's effort now with the government spending now with the public consumption coming up the economy which has lost everything now everything what we lost has came back secondly you can see that urban employment rate you know that employment was a big issue during the pandemic many people were thrown out of their jobs their salary was not increasing and you might be seeing in the news a lot of people migrated back to their cities or to The Villages but now you can see the urban employment rate is at its four year low so you can see that 7.2 it was 20.9 in September 20 but now it has reached to 7.2 so basically the budget tries to tell that overall the economy is resilient and the growth which contracted during the pandemic now that has been recovered now G20 presidency you already know that India is the president of G20 in this context it is very important to ensure which India has always been a rule taker now India will be a rule maker you know that India after getting independent we were a very small nation we had a lot of internal problems so we were trying to develop our basic fundamentals but just imagine India India Today is the world's third largest economy in terms of purchasing power parity so in this context we can't simply sit or sit on the fence we have to take the decisions we have to set the rules of the game and that's what the budget is all about that budget wants to say that now India will no longer be a rule taker but we will be a rule maker but how India will make a rule how what is the principle that India will follow before taking or before setting the rule so the budget says that we will follow the principle of vasudev gutombakam so vasudev kutumbakam is basically about one Earth one family and one future so in India is on the right track India will be growing but when India will grow it will be ensuring that India does not grow alone rather India takes every country along with it so in this context the budget says that G20 presidency will play a huge role in projecting India as a world power not in terms of materialistic power but India will act as a moral voice then this is what I was talking about you know that last year when India got its 75th year of Independence so till 2047 this whole period is known as amritka so what is the vision of America this budget has categorically put forward in three themes first opportunities for Citizens with focus on youth you know that India is going through a demographic transition where most of the people are in the young age population so in India the current focus is on how to unleash that potential of our growing youth population so in this context the budget puts the first major priority or the first major vision for amritkal as opportunities for Citizens which focus on youth then the budget talks about the second Vision that is the growth and job creation you know that India is entering into a demographic transition or India is already in a demographic transition demographic transition means when our population is moving towards a younger age population and whenever a country moves towards that youngerish population the employment the growth and the market also grows but you know that if that young population is coming into the marketplace but if they are not being provided jobs they are not being provided Employments then that demographic transition which would have yielded as dividend that will be a nightmare for India if we don't generate jobs then the same people who is going to be an asset for India will become a liability for India and that will be a huge challenge for the overall security overall internal stability of India that is why the vision second Vision basically talks about job creation and the third it says that strong and stable macroeconomic environment what do you mean by macroeconomic macro economy is basically about GDP the inflation the Forex reserves so all those fundamentals is very strong for any economy to grow hence the budget basically puts the third Vision as that India will have a very much strong and stable macroeconomic environment right so this is the three Vision which the budget has category equally put at the starting so that if someone tries to understand budget then they have to understand in this particular context so with this General overview of what is the state of economy what is our vision or how we are going to move towards in the future then the budget comes to the real part of the story that the budget Now talks about where the government is going to put its money where the government is spending and in this context the budget tries to basically puts down Rishi basically it's about the seven priorities which the budget has said that in these seven priority areas we will be trying to improve or we will be trying to spend or put our most of the energy right so the first priority you can see that this is so these are the seven priorities you can say now what we will do is we will try to get a brief overview of what are the different different priorities so the first priority is inclusive development you know that when Prime Minister Modi came to power in 2014 he gave a slogan that vishwas so in this context the first priority is inclusive development that if we don't include everyone in our big development you know that India is trying to get move towards a five trillion dollar economy right so that is the size of the Indian economy but what about the shape the shape of Indian economy can only improve if that growth is Equitable if that growth includes everyone otherwise if the economy grows and one section of the population is Left Behind then that growth is meaningless and in that context can never achieve Gandhi's vision of swaraj when Gandhi what swaraj means economic freedom political Freedom social Freedom not for some people but for every people so in this context the first priority discusses about the inclusive development so you can see that in inclusive development the budget basically focuses on providing basic amenities to every people what are the basic abilities water health education so all these things will be provided to every people so you can see that nine crore drinking water connection to the rural houses you know that already the government is running a scheme that is known a jell-driven mission so in jail given Mission basically the government wants to provide a functioning tap water connection to every house so in this context it is said that nine crore drinking water connections will be provided to the ruler house second the budget says 11.7 crore household toilets will be constructed under the Swatch Bharat Mission you know that Prime Minister Modi is very much supportive of cleanliness about these things and that is why major bulk has again been put forward to Swatch Bharat Mission then you know that ujjwala ujwana has been a game changer because you know that most of the ruler area most of the women are dependent upon the taurang or other materials for energy in this context the government has launched the PM ujjwala under which the government has been providing free gas connection to every household so the scope that 9.6 crore extra LPG connections will be given under the ujjubala scheme then you can again you can see that 220 crore covet vaccinations of 102 crore persons you can see that the world has been completely shocked by seeing at what pace the government of India has been able to successfully vaccinate a lot of people right then PM jandhan bank accounts you know that PM jandan bank accounts was a major Flagship scheme by the government to ensure Financial inclusion and you know that in the earlier days whenever a benefit was being transferred to any person the middlemen used to exploit those monies and at the end the money which was to be sent to the beneficiary rather the money was being collected by the middleman but now by John then bank accounts directly the government is able to spare send the money into the beneficiaries account so you know that the latest report said that 2 lakh crore of corruption has been eliminated because of this direct benefit transfer mechanism so in that context it is said that 47.8 crore Pradhan mantri jandhan bank accounts have been added then insurance cover you know that in India most of the people are uninsured so in this context it is saying that Pradhan mantri suraksha bhima yojana and Pradhan mantri jeevan Jyoti bhima yojana so under this the coverage has been significant 45 crore persons are now insured under this and then finally you know that under pm kisan is basically a scheme by the government of India where the government transfers 6000 rupees to every farmers in one year so in that context it said that as of now 2.2 lakh crore has been transferred to 11.4 crore Farmers you know that the 6000 is very instrumental because a farmer is highly the the income of the farmer is not growing as expected and hence in that context even the small help of 6000 helps to alleviate the farmers out of poverty right now agriculture you know that agriculture is one of the very strongest sector or agriculture is the backbone of any economy and hence in this context the budget has focused very much on agriculture so the first very important scheme which government has brought is that digital public infrastructure for agriculture you know that current world is a world of technology and without technology you cannot ensure any meaningful change so hence in this context what the government is trying that how we can use the digital infrastructure digital technology to help the farmers so this is basically the creation of such infrastructure let me give you example one of the scheme which has been launched by the government of India is agree stack what is Agri stack Agri stack is basically a stack you know that a stack or you can consider any set of Records so agree stack is one of the scheme under which the government is trying to prepare a database and in that database every farmer detail will be there for example if I'm a farmer hum which crop I'm cultivating how much land I have how much loans I have taken what is the state of my land so every farmer in India will be in the part of that stack and by that the government can send the benefit in a targeted manner so this is about the digital public infrastructure second is the agricultural accelerated fund what is accelerated fund accelerator fund is basically a fund which boosts the startup which provides the guidance which provides the mentorship and which provides the financial help to the startups so now the government wants to promote aggregate cultural related startups because the government wants to ensure that startups does not remain limited to Services sector but there also should be agricultural based startups and hence in that context a special fund will be created which will try to boost agony-based startups then Global Hub for minutes you know that millets is one of the thing which is highly nutritious it has also ecological benefits millets for example ragi so all those are millets they are also known as core scripts right and you know that India has been facing a huge problem that is of malnutrition that although people are eating but the nutritional requirement of every person is not that up to Mark and in this context the government has been focusing from past two to three years or minutes and that's why the significance of millets is so much that the government is calling mirits at Shri and it is out of respect for minutes that minute is such a nutritious food that everyone should eat and then agriculture credit Target will be increased to 20 lakh crore that means the budget for agriculture will be increased to 20 lakh crore finally Cooperative based Economic Development will be promoted you know that in agriculture there's one very big problem that most of the lands has been fragmented so in general 86 Point farmers are small and marginal that means they have less than one hectare or two hectare of land so in this context the farmers are not able to reap the economics of scale and hence the government is trying to promote Cooperative based farming model so that the farmers can come together and then their bargaining power will increase then you can see this figure so you can see that there's a significant increase in the budget of Agriculture it was initially 158 crore 158 lakh crore and now it has reached to 186 lakh crore so there's a huge increment in terms of Agri cultural budget and similarly India has seen a record footprint production so at one point of time India was import dependent and now India is a major export destination for the entire world then came the second Focus area under the inclusive development is health health is the very important critical sector for any economy or for the social well-being of the people and hence you can see the budget has to the health sector has increased from 1.4 percent of the GDP to 2.1 percent of GDP similarly in that context 157 new nursing colleges will be established you know that during the pandemic the importance of having a robust nursing infrastructure or nursing related paramedical staff was filled and in this context new nursing colleges will be set up similarly sickle cell anemia will be eliminated by 2047 what is sickle cell anemia basically you know our blood is composed of four things RBC WBC platelets and plasma so RBC is a very important component what does RBC do RBC carries oxygen to every part of the body which we call as hemoglobin so rbcs are generally round in shape rbcs are generally circular in shape so when they're in circular in the shape they can flow easily but in this sickles and enemy are the the shape of the RBC that is the red blood cells the shape of those red blood cells turns from circular to sickle shape that means a moon shaped and in that context it is not able to flow easily so in that context it clocks it gets accumulated at one point and because of that the blood flow stops so that is a life-threatening disease and there is no effective treatment also for sickle cell anemia right so now the government is trying to eliminate that disease by 2040. seven you know that maximum as per the government data mostly the sickle cell anemia is found in the tribal population out of 90 tribal children one children is being affected by sickle cell anemia so it's a life-threatening disease so for that the government tries to do screening you know prevention and other things like that and then new program to promote research in Pharmaceuticals you know that world is also going to face in future a very big problem that is of antimicrobial resistance so whatever antibiotics we are consuming to fight against the bacterial infections most of the bacteria have become resistant to those antibiotics most of the bacteria have become resistant to those antibiotics and hence it is very much problematic so we need to develop new antibiotics so that's why the government has said that there will be a new program to promote research in the pharmaceutical sector then education and Skilling is another Focus area under the inclusive development you can see that again our education budget is 2.9 percent of GDP although it is less you know that what is our Target our Target as per the National Education policy 2020 is that India's education budget should be six percent of GDP but approximately it is half of that then revamp teachers training via District institutes education on training you know that under the right to education the the quantity of students who have enrolled in the schooling have increased but the quality of education is still lacking and when you want to improve the quality of education then the only uh thing which you need to improve is the quality of teachers so in that context the government has lately realized that we just don't want the students to enroll but we also want better teachers because if the quality of teachers increases then automatically the children are able to understand much more easily and hence because of that children are more attracted towards education the national Digital Library so what is National Digital Library it will be a library where any children can access to any book right then States will be encouraged to set up physical libraries you know that during the pandemic a lot of children were left behind you know a lot of children were not having that facility to study from the home because they did not have laptops they did not have internet connections so in that context the government tries to incentivize the states to set up physical libraries at the panchayat level then finally Pradhan mantri kaushal vikas yojana 4.0 is launched you know that Pradhan mantri kaushal because yojana 2 and then three and then four now the Pradhan mantri kaushal because yojana is basically a scheme under which the government does the skill training of the youth so what are the skills the skills are basically the digital skills Let It Be AIML robotics drone so all this Technologies as a skill will be provided under Pradhan mantri kaushal vikas yojana now comes the second priority so in the second priority the budget focuses that how we can reach the last mile last mind means that means that development should be reaching to the last people who has been left so in that context the priority number two basically is an attempt that how we can reach to those people who have been completely at the marginalized level who has been at the completely bottom section right so in the priority number two the first focus is on the primitive tribal groups pvtgs right so primitive vulnerable tribal groups is those scheduled tribes which are the most extremely backward so in India approximately you have 700 scheduled rights and out of that 700 schedule tribes approximately 50 or 60 are those tribes which are at the most backward sections and those stripes are known as primitively vulnerable tribal groups so these people generally do not have any education these people do not have any health infrastructure these people do not have any sustainable livelihood opportunities so now the government tries to basically focus on these tribal populations and you know that under this it has been said that a clubwear model residential schools will be promoted so what a clubwear model residential schools these are the schools basically which are designed to cater the education for the tribal people for the tribal people so approximately five lakh tribal children's study under these schools study under these schools so these schools will be promoted the quality of teacher and other infrastructure will be promoted under in this school then finally it says that Bharat Shri that is shared repository inscription to be set up for digitization of ancient inscriptions what are inscriptions inscriptions are basically a piece of Auto or something which is written on a rock and you know that India is a civilizational state India has a rich past so there are many inscriptions which were written in ancient period which were written in medieval period gradually those inscriptions are fading away so how we can store those inscriptions in digital format so that is the attempt under the fourth point that bharatri will be set up for digitization of ancient inscriptions you can see that these are the inscriptions find it also says that in Karnataka micro irrigation micro irrigation means sprinkler irrigation drip irrigation because you know that water efficiency in such irrigations is more than 90 percent and India is facing a huge water scarcity so in that context the government says that we will be focusing on micro education now the third priority which is the very very important priority again it talks about infrastructure and investment so you know that already in earlier time the spending by the government was mostly in the form of subsidies was mostly in the form of freebies but since this government has come to power and in the recent two to three years there has been a qualitative shift in where the government is spending so earlier the government was used to spending on freebies but now the government is focusing on Capital infrastructure Capital infrastructure is basically the creation of Road Railway hospitals you know Transportation infrastructure ports because these have a huge multiplier effect multiplier effect means if you spend one rupee on freebie you don't add any productivity to the economy but if you invest the same one rupee to infrastructure creation then it adds double to the economy so you can just imagine if you create a road and you can spend the same money on the freebies so which is more beneficial obviously the capital infrastructure has is much more beneficial so now you can see that government has increased the capital investment outlay by 33.4 percent to 10 lakh crore so 10 lakh Karu will see is a huge number so this trend has been followed since past two to three years where government is spending more on the capital infrastructure part and then similarly you know that during the pandemic most of the states are generally involved in distributing freebies so government of India brought a scheme that okay I will be giving you loan so government of India said to the states that if you want money I am ready to give you money but there's one condition that you have to invest those money in infrastructure creation and not in giving subsidies so this was a scheme which was brought in the pandemic under which the center gave some amount of money to the states for 50 years for 50 years the center gave some money to the states and that was also interest-free that means state did not have to give any interest but there was only one condition that boss you don't have to give freebies but you have to spend on Capital infrastructure right so that scheme has been continued that scheme has been continued you can see that 50-year interest free loan it's absolutely interest-free but there's only one condition that if you want money take the money but you cannot spend that money on freebies the third highest ever capital outlay for the railway so Railway has got its highest ever budget allocation you know that Railway is the very important critical sector for Indian Mobility so maximum people use Railways and you know that the railway has always underperformed so now by this budget the maximum allocation might unleash a multiplier development in terms of Railway then similarly other Transportation infrastructure projects will be created and similarly there's also creation of urban infrastructure development fund you already know that India is highly being urbanized you know most of the people from the ruler areas are shifting towards the urban areas because there you have jobs there you have education there you have other amenities but as more and more people are coming to Urban cities so Urban cities are not you know are able to cater to that demand and that's why you see always the water from Siever is leaking you have air pollution you don't have the basic infrastructure of be it proper buses you don't have safety for women and other things so in this context a special fund will be created which will try to develop the urban infrastructure in tier 2 and tier three cities like Lucknow Banaras Patna and other cities right that now come the priority four that means unleash the potential unleash the potential and this is all about how the government can ensure that people trust them you know that if in in any country if there's a lack of trust that country cannot progress people should trust people the government should trust people and also the people should trust government so in that context how the we can ensure a governance which is based on trust because if the people trust the government then it is easy for the country to grow at a much more faster pace so in that in that context the first focus is how you are going to make artificial intelligence in India you know that artificial intelligence is what artificial intelligence is nothing it is the replica of human intelligence for example if we study then we get intelligent right similarly if you create a machine based algorithm where you put data and then that algorithm learns from the data and then it makes decision so data is very important for developing that algorithm so so now what happens is that most of our data beat Amazon Facebook or any other technological related companies they take our data to America and there they analyze those data they create a AI based model and then they sell it to India so we are the data generators but we are lacking in developing that algorithm so now the government has said that now we will use our own data and we will create our own artificial intelligence-based algorithms because you know that AI has huge potential you know AI can be used to detect cancer AI can be used to detect whether you will be having a heart attack or not so in that context the government tries to develop some AI based special centers special Center of Excellence which will have good Academia which will have industry linkages so in the top institutes like iits this AI based centers will be created then the second thing is National Data governance policy so that is what I was talking for example in the 20th century the focus was on oil and 21st century what was the data what was the oil now the same oil is the data so data is that much significant in current times and hence the government has a huge amount of data the government of India's huge amount of data of the public so how the government can send those data to the starter so that they can analyze those data and create AI based algorithms so that is why the government has said that now anonymized data will be sent anonymized data will be given to the startups so that they can promote artificial intelligence so anonymize means that all the datas will be mixed together so that someone's identity is not revealed so the data will be taken by 100 people and then it will be mixed so that if any company is given those data so that company cannot understand whose data it is so that is about anonymization of data then msmes are also given some incentives you know that msme is the backbone of Indian economy it contributes one third of the GDP and during the pandemic msme wasn't a huge stress so now msmes has been given some uh you know favor and then similarly settlement scheme and then e-codes e-course you know that dispute resolution is a very big problem in India you just go to the court it's 10-year case pendency right different different cases are being are having pendency for past five to seven years right so in that context the government focuses on launching e-codes then now come the another priority that is green growth you know that India is a developing country the contribution of India in this whole climate catastrophe is although very less but that does not mean that India will simply tell that okay fine I have not contributed to climate change so I will not contribute anything rather it is the opposite India has actively promoted the cost of climate activism and India has been in fact one of those countries which is at the top in terms of implementing the Paris agreement right so in this context the budget tries to put some focus on the green growth also so you can see that 500 ways to wealth plans will be set up for example so Gober will be converted into a wealth similarly PM pranam in this you know that Indian agriculture we always hear that people are using more and more chemicals into agriculture because the soil does not have that nutrient so how we can promote different fertilizers how we can promote organic fertilizers so in that context pm pranam has been launched that how we we can promote the usage of alternative fertilizers and not the chemical based fertilizers which are used now then similarly green credit program green trade program is to bring a behavioral change so in this for example if I'm living a sustainable lifestyle so government will track it and then government will incentivize me so all those company all those people who are having a sustainable lifestyle they will be incentivized under green credit program similarly mishti so mishti is for basically mandruff Plantation for the coastline so in that Mangrove will be uh you know a forest stated under the coastline areas you know that Mangrove is very uh important because Mangrove has a rich source of biodiversity Mangrove is very important to stop Coastal erosions Mangrove also is very important to sequester the carbon so in that context the budget focuses that how we can plant mangroves along the coastline similarly the budget talks about how we can use the wetlands similarly natural farming is being produced what is natural farming so natural farming is a farming which is done on very natural principles for example where you already must be knowing that there is a zero budget natural farming so in under zero budget natural farming we don't use any fertilizers rather we use cow tongue we use cow urine so all those natural farming practices will be incentivized and the coming years the budget says that approximately one crore farmers will be brought under the natural farming then similarly the budget talks about battery energy storage systems here and to promote electric vehicles then the budget also talks about that we will be scrapping the old polluting Vehicles you know that last to last year the government has brought a scrap Edge policy under which the government intends to scrap all those old Vehicles because you know that old Vehicles when it gets older it starts to emit more and more pollution so now the government will scrap all those government vehicles which are quite older let us take those Vehicles which are much more older than 10 years so those Vehicles will be scrapped similarly the priority is six now priority six is about how you can use the power of Youth how you can empower the youth because youth are those section of the society or those people who are going to be the change who are going to bring the change in India so in this context the budget tries to talk about Pradhan mantri kaushal vikas yojana 4.2 under which skills will be empowered to the Indian youth similarly there has been a creation of digital platform under which people will be skilled and then National apprenticeship promotion scheme under which internship opportunities will be provided to the students then tourism as a sector will be very important because you know the tourism was brought under complete shutdown in the pandemic and tourism is one of the sector which contributes lot towards GDP so in that context tourism will be promoted and then Unity malls will be promoted what are the unity malls so Unity Mall will be a mall in every state which will have product right all those traditional products which you cannot find anywhere outside India which are very authentic which are very indigenous in nature so all those goods will be sold in these Unity mods you can see that one district one product geographical identification based products and handicraft products will be sold over there so the next or the last priority is the financial priority and in the financial sector basically you can see the first focus is how to digitize all those financial information so for that purpose there's a special registry which is known as National Financial information registry where all the financial informations will be available to the public right and then similarly there's a credit guarantee for msmes you know that again the full budget focuses on msme's why because msme is one sector which contributes approximately one-third towards Indian GDP and also it is the one of the most important sector that does the maximum employment generation so that is why whenever the MS semi sector grows the whole economic process and hence the budget has quite put more effort towards the msme sector so in this msme we'll provide a collateral free loan and hence for that purpose 9000 crore fund has been infused similarly mahila patras you know that this government has been very much uh focusing on how you can ensure women empowerment so on this line only the government has set up these kind of small savings schemes so in this you know what you can do is that you can go to the bank and you can get a saving accounts open that will be in the name of women and in that account you can deposit up to the 2 lakh for two years and in that account you will be given 7.5 interest rate right so this is again uh you know a very important step in terms of women empowerment and there's similarly some benefits has been given for senior citizens that senior citizen saving scheme under which uh whichever the senior citizens uh give money they are given tax exemption so now that limit has increased from 15 lakh to 30 lakh and then similarly gift that is known as International Financial Service Center this will also be promoted you know that what is ifsc so ifsc for example you already might have heard about special economic zones so special economic zones are created for manufacturing sector and when you create such special economic zone for the services sector or the financial sector that is known as ifsc so for example if you want to invest in a company like apple how can you go and buy by the share of effort in that case you have to go to the US and you have to get yourself registered but now the same company like apple they can get their share listed in such International Financial Services Center so these are the special centers you know which are considered as not the domestic areas because they're given huge relaxations so that the companies outside India they can come and they can give the financial services to Indian people then now comes another important point the budget basically talks about the same thing 50 are interest free loans to the state and the fiscal deficit for the states is kept at 3.5 percent of the Gross State domestic product so this is an average figure that every state will have to you know keep its fiscal deficit close to 3.5 percent and for the center the target is 6.4 percent for this financial year for the next financial it is 5.9 percent and you know that the government is trying to consolidate its fiscal deficit to a level of 4.5 percent by 2025 to 2026 and then it gives some estimate about how much the government is spending the money and how much the government is getting the money so how much the government is getting the money total receipts that is how much the government gets it is approximately 27.2 lakh crore and how much the government spends it is 45 lakh crore you know that this is the mismatch and that is why the government has to borrow the money and that's what you call as fiscal deficit now these are the some charts which the budget also has given so you can see the fiscal deficit so fiscal deficit in F by 2021 was at 9.2 percent of our GDP and then since it has been on declining Trend so this is a very important indicator whenever the fiscal deficit grows beyond a limit it starts to disturb the macroeconomic fundamental and hence the government is trying to consolidate its fiscal deficit to a level of 4.5 percent by 2025 to 2026 similarly the GST you know that that has been a game changer Revolution or Reformation in terms of indirect tax now GST has also become a very stable tax and the amount of collection which you are seeing in GST is approximately 1.5 lakh crore so that is a very good uh you know development in terms of GST and similarly you can see in terms of capital expenditure I have already discussed that government has made a qualitative shift of where it is going to spend so earlier the government was spending on subsidies but now the government is focusing on Capital infrastructure creation and hence you can see the F5 2016 the government was spending 2.5 lakh current on Capital infrastructure and now this number has multiplied by four times it has reached 10 lakh crore right so this has been a constant Trend which has been seen so the government is focusing more and you already know that government has launched many schemes like National infrastructure pipeline PM gati so all those schemes are basically about Capital infrastructure creation and similarly you can see that now the banks you know that at one point of time the banks were in a complete mess but now the situation of banks is on a constant improved and because of that the NPA that is a non-performing Assets in the bank has reached to its low level so in current times the Indian banks are very much strong and because of this we were able to pass by the pandemic by not much difficulty then the budget also gives the figure on the Forex reserves so you can see that India has a good Forex Reserve as of now and hence there's no problem with respect to uh Forex and then similarly our inflation Although our inflation has been more than six percent you know that the target for RBI is to keep the inflation from two to six percent but in India the inflation was above six percent and similarly the WPI was also at a very high level but now by December 2022 the CPI as well as WPI both have reached to its lowest level so that's a good thing which is happening in Indian economy now comes the part B so this is all about part A so part A basically told that where government is going to spend the money now in part we will see from where government is going to get the money so this is the revenue aspect of the government so in the first uh this part B we are going to discuss about the personal income tax so you can see that the rebate level rebate level has been increased from five lakh to seven lakhs so now if any Indian is earning 7 lakh rupee then that person does not need to pay any tax they will pay the tax but those tax will be related back to the taxpayer right so now if you're earning 7 lakhs that means effectively you don't have to pay any tax and once you start to earn more than seven lakh then these slabs are there so for example if one person is earning 9 lakh so if one person is earning 9 lakh then for the first three lakh it has to pay nil and then for the remaining three lakh it has to five percent and he's earning 7 lakhs so now for the one lakh he has to give 10 percent but let us take example that a person is earning six lakh ninety thousand so if a person is earning six lakh ninety thousand then that means he's earning less than seven lakh in that case the person does not have to pay any tax but whenever that income increases from seven percent then he has to pay the tax as per these tax slabs that indirect tax reforms has also been made right indirect tax includes GST custom duty excise duty so all those the part of the indirect tax now one very interesting thing you know that India has again actively moving towards becoming so in this context indirect tax proposals has been made so you can see that how this has been done for example let us take the case of electrical so in electrical the custom duty on electric kitchen chimney has been increased from 7.5 to 15 percent right that means the chimney if you bring of if you get the things imported a finished goods as a finished goods the custom duty will be higher but when you get the raw materials imported then the custom duty will be lower so government is doing what government is trying to promote domestic manufacturing and hence government has raised the custom duty on the finished goods and government has lowered the custom duty on the raw materials so in the entire these reforms the government has been doing the same thing that increase the custom duty on the finished goods to disincentivize those imported goods and then incentivize those people who are getting the raw materials as input because in that case the domestic manufacturing will increase so hence in this entire game of picture the government has been focusing on lowering the custom duty on the raw materials then revenue and expenditure profiling so this is also you know that this is a whole profile which is being created that from where the government gets and where the government spends so let us see so you can see that from where the government gets money so 34 of the money comes from borrowing and liability and then you can see that from GST so if government is getting 100 rupees then 34 rupee is coming from borrowings 17 Rupees is coming from GST 15 Rupees is coming from corporation tax 7 from excise duty and 15 percent from income tax that means one third of what the government is getting the money it is getting because of borrowing it is getting because of borrowing so this is not a good thing right that you are getting one third of the money not by earning but by borrowing the money because you are borrowing so next day you have to pay that so this is the problem then where the rupee is spent again there's a problem 20 that is one-fifth of what we spend we have to spend on payment of the interest that means for the loan which we have already taken so 20 rupees we are spending on the interest payment and then other things like nine percent for centrally sponsored scheme Center sector scheme 17 and other things right but one very important thing is that one third of money we get by borrowing and one-fifth of the money we are spending in the form of Interest payment so this is the problem of taking more and more notes that's why government wants to keep a limit on the fiscal deficit because if you take more and more loan then anyways we are going to pay back in the coming future and because of that the future development will stop if you take more Loan in the present times then this is the last thing which budget gives is that where the government is spending so you can see that Ministry of defense gets the maximum budget allocation around 6 lakh crore and then Ministry of Total Transport and Highway is getting 2.7 Lakers that's a very good thing because again it gives to Capital infrastructure it leads to Capital infrastructure creation we have already discussed that Railway has got the highest ever budget allocation of 2.4 lakh pero so similarly Ministry of Consumer Affairs and poor public distribution 2 lakh crore Ministry of Home Affairs two lakh crore minister of chemical fertilizers 1.78 lakh crore finally the budget concludes in a highly optimistic note the budget says that this is the right time for India to lay a leaf forward if we do not take the right steps now then the future will be problematic and in this context the budget sets out all those priorities so that our vision for amritkal is ensured and in this context Finance Minister says that all those people who have fought for Indian independence all those people who have sacrificed their life for Indian independence they will be proud when they will see what is the outcome of Amrit Khan so as the survey also have discussed the same thing that India will be the voice of the world India will be the leader India will be the major fastest growing economy in the world in the coming one decade so in that context the budget also says that this is the right time when we break all the shackles and unleash the animal spirit in the economy and for that you don't need the contribution from the government only but you need a Jan bhagidari where people like you and me along with the government cooperates together and acts in a United manner so that what development we had lost because of colonialism what development we have lost because of poor developmental story what development we have lost because of misguided economic policies but now we are not going to do any mistake now we are going to work together in a United Manner and ensure that India achieves the right place which it has been denied in all those years so with this I conclude the brief introduction on budget I will come back again to you with a much more detailed analysis not only on budget but also in the economic survey so this is a whole series which is going to come to you it's just right on your way please be patient everything will be covered from the prelims Mains interview perspective and also the Q a will be conducted so that there's no problem for you to understand any of the things because these documents are very very important for your exam perspective so I thank you all for listening please watch this Channel please continue following us we will help you in the best manner which is possible thanks don't forget to like share and subscribe to our Channel and press the Bell icon to never miss an update [Music]