Budget 2023: New Deposit Scheme for Women with 7.5% Interest, Limits for Senior Citizens Saving Scheme Increased to Rs30 Lakh

IANS 01 February 2023

Economy & Nation

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, Finance Minister (FM) Nirmala Sitharaman said while announcing the Union Budget 2023-24 on Wednesday.

This will offer a deposit facility up to Rs2 lakhs in the name of women or girls for a tenor of two years at fixed interest rate of 7.5% with partial withdrawal option.

For senior citizens, the maximum deposit limit for Senior Citizen Savings Scheme will be enhanced from Rs15 lakhs to Rs30 lakhs.

The maximum deposit limit for monthly income account scheme will be enhanced from Rs4.5 lakh to Rs9 lakh for single account and from Rs9 lakhs to Rs15 lakhs for joint account.

The total capex outlay in the Union Budget for 2023-24 has been enhanced by 33% from Rs7.5 lakh crore to Rs10 lakh crore which takes it to an all-time high of 3% of GDP.

In her address, Ms Sitharaman further announced that capital investment outlay is being increased steeply for the third year in a row by 33% to Rs10 lakh crore, which would be 3.3% of GDP.

This will be almost three times the outlay in 2019-20.

This substantial increase in recent years is central to the government's efforts to enhance growth potential and job creation, crowd in private investments, and provide a cushion against global headwinds.

The direct capital investment by the Centre is complemented by the provision made for creation of capital assets through grants-in-aid to states. The effective capital expenditure of the Centre is budgeted at Rs13.7 lakh crore, which will be 4.5% of GDP.

Suman Chowdhury, executive director & chief analytical officer, Acuite Ratings & Research, said the market was expecting a further commitment to public capital expenditure from the government and it has not disappointed.

The total CAPEX outlay in the Union Budget has been enhanced by 33% from Rs7.5 lakh crore to Rs10.0 lakh crore which takes it to an all-time high of 3% of GDP.

This will not only give a boost to the infrastructure sector but also be positive for employment and growth.

Anand Rathi, founder & chairman, Anand Rathi group, said a 33% increase in capital expenditure to Rs10 lakh crore, the highest ever will go a long way in building roads, ports, and airports—crucial for making India a reliable investment destination.

Investment of Rs2.4 lakh crore in Railways is commendable.

Mr Rathi said that the gross borrowing estimate of 15.43trn (trillion) rupees for next year is lower than the survey estimates of 15.77trn rupees. Hopefully, that should cheer the bond markets.

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