INSUBCONTINENT EXCLUSIVE:
The government presents the budget to highlight its expenditures and receipts in a fiscal.Finance Minister Nirmala Sitharaman will present
the Union Budget 2022-23 on February 1
It's that time of the year when citizens wait with bated breath for the announcements, particularly those concerning income tax
Comprehending the budget as its whole is a challenging task because it contains numerous complex terms that many people are unfamiliar with
So, ahead of Ms Sitharaman's budget presentation, here's a quick rundown of key phrases and frequently asked questions.Union Budget: The
government presents the budget to highlight its expenditures and receipts in a fiscal
The Parliament must approve the budget.Interim budget: A government's interim budget is usually presented in the final year of its term
While it is similar to a full budget, the administration must acquire a vote on account in Parliament to sanction funds from the
Consolidated Funds of India until the elected government approves the entire budget after the polls
As part of the process, Parliament must also approve a vote on account, which gives the government spending authority until the full budget
is approved after the elections.Fiscal consolidation: The goal of this policy is to reduce the government's deficits and debts.Gross
Domestic Product (GDP): It's the worth of all officially recognised products and services produced in a given period
It's used to gauge a country's standard of living.Revenue expenditure: It's also known as income statement expenditure, and refers to
non-capitalised short-term cost-related assets
These are ongoing expenses that the government incurs on a regular basis in order to pay workers and maintain fixed assets.Capital
expenditure: It refers to money spent by the government to acquire, maintain, or improve assets such as property, infrastructure projects,
When the government spends money on big projects, the costs are typically classified as capital expenditure.Aggregate demand: This term
denotes the total amount of goods and services demanded in an economy.Balance of payments: In the foreign exchange market, the gap between
demand and supply for a country's currency refers to the balance of payments.Budget estimates: Funds allocated for various activities and
ministries are set forth while presenting the budget
These figures are referred to as budget estimates
They are the wishes and objectives of the government.Direct tax: It is a tax imposed on an individual's or an organisation's earnings
Direct taxes include income tax, corporation tax, inheritance tax, and so on.Indirect tax: Consumers pay these taxes when they purchase
products and services.Goods and Services Tax (GST): This was put in place on July 1, 2017, in order to bring a number of indirect taxes
It is a tax imposed on the provision of goods and services.Income tax: This includes earnings of an individual from various sources, such as
salaries, investments, and interest.Customs duty: When specific items are imported into or exported out of the country, customs duty is
These costs are passed on to the final consumer.Monetary policy: This refers to the Reserve Bank of India's (RBI) decision to change the
money supply and interest rates, consequently affecting economic activity.Current account deficit: It is a measure of a country's trade in
which the value of imported goods and services exceeds the value of exported goods and services
It's part of the country's overall balance of payments.Revenue deficit: When the government's income or revenue falls short of the
predicted net income, a revenue deficit occurs
This is a situation in which actual revenue or expenditure differs from the budgeted projections.Revenue surplus: This is the opposite of a
Here, the net realised income or revenue generation exceeds the predicted net income
The actual revenue and expenditures are higher than those projected in the budget.Fiscal deficit: The fiscal balance of a country is
determined by the government's revenue versus its expenditure in a financial year
It is calculated in both absolute and percentage terms of the country's GDP.Government borrowing: This is the amount borrowed by the
government to pay for public services and benefits.Disinvestment: This is a way in which the government sells or liquidates an asset
It's a calculated move to ensure that the proceeds from the disinvestment are used elsewhere where they can garner a maximum
return.Inflation: This means a rise in the overall prices of goods and services in an economy over time
Each unit of currency buys fewer products and services when the price rises.
