Impact of Union Budget 2023-24 on Daily Spending
Union Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2023-24 in Parliament. This year’s budget, like the previous two years, is a paperless budget that is available to the public via a mobile application on both android and iOS smartphones.
Impact on Goods
Sitharaman proposed reducing the number of basic customs duty rates on goods, other than textiles and agriculture, from 21% to 13%. This resulted in minor changes in the basic customs duties, cesses, and surcharges on items such as toys, bicycles, and automobiles. The items that are expected to get costlier include private jets, helicopters, jewelry, high-end electronic items, and vitamins, among others.
Here’s what got cheaper and dearer in Union Budget 2023-24:
|Electric kitchen chimney||Camera, Lens of Mobile Phones|
|Articles made of gold, platinum||Parts of open cells of TV Panels|
|Silver doors, bars, articles||Denatured ethyl alcohol|
|Copper scrap||Acid grade fluorspar|
|Compounded rubber||Domestic manufacture of shrimp|
|Cigarettes||Seeds used in the manufacture of diamonds|
Impact on Previous Years
In 2022, items such as single or multiple loudspeakers, headphones, and imitation jewelry got costlier, while clothes, mobile phone chargers, and frozen mussels got cheaper. In 2021, electronics items, mobile, leather shoes, and kabuli chana got dearer, while iron & steel, nylon clothes, copper items, and electricity got cheaper. In 2020, items such as cigarettes, footwear, and furniture got costlier, while raw sugar, agro-animal-based products, and soya fiber got cheaper.
Here’s what got dearer and cheaper in 2022:
|Single or multiple loudspeakers||Clothes|
|Headphones and earphones||Mobile phone chargers|
|Imitation Jewellery||Frozen squids|
|Solar cells||Cocoa beans|
|Solar modules||Methyl Alcohol|
|X-ray machines||Cut and polished diamonds|
|Parts of electronic toys||Camera lens for cellular mobile phone|
Here’s what got dearer and cheaper in 2021:
|Electronics item||Iron & Steel|
|Mobile charger||Copper items|
Here’s what got cheaper and dearer in 2020:
|Cigarettes, tobacco products||Raw sugar|
|Footwear||Agro-animal based products|
|Medical equipment||Tuna bait|
|Ceiling fans||Certain alcoholic beverages|
|Tableware/kitchenware made of porcelain or China ceramic, clay iron, steel, copper||Soya fibre, Soya protien|
Impact on Agriculture
A report by Free Press Journal suggests that this year’s budget is expected to come with a significant reduction of $17 billion in subsidies provided for food and fertilizer. Given the impact of rains and floods on crops and higher input costs for agriculture, food inflation may worsen this year.
Impact on Clothing and Housing
The wardrobe or clothes industry seeks a fund for the cost stabilizationization of cotton and removal of 11% import duty on cotton to restore duty-free imports against exports. The outcome of these demands will affect the cost of clothes and apparel for the year. The possible reduction of GST on supplies such as cement and steel will impact the construction cost, leading to low-cost housing for consumers.
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