The Union Budget of India is a yearly rule that has since its start been of interest to the layman. Whether it is curiosity for awaring the tax slab or expectation of a fall in rates of various items, each Budget given till date has been able to provide people something to smile about.
This year in 2018, because of GST impact, other than modifications in the basic custom duties & excise duty on products such as petroleum products, no other alterations in the indirect taxes space will occur.
Well then how does a layman response to the announcements done by the Finance Minister in the Parliament on that day? Here are some hints one must know before going up to the Union Budget:
The Budget document of The Budget speech has 2 parts namely Part A & B. Part A said to be the macroeconomic part of the budget where different schemes are published and allocations are done to many sectors. While Part B encompasses with the Finance Bill, which has taxation proposals like income tax revisions & indirect taxes.
Income-Tax slabs: The tax, an individual pays annually is computed on the ground of his/her gross total income. The tax is summed as per the income tax slabs released by the government year after in the Budget. This is one among the main highlights of the Budget looked forward.
Fiscal policy engages modifying the stages of government spending and tax rates focused at influencing the level of activity in indian economy. These amendments can mainly affect economic activity and as such required to be interacted with a good monetary policy to have healthy economic development.
Capital Budget adds capital receipts & payments, share investments, loans and advances give by the central to state governments and government companies.
Revenue Budget / receipts are parted into tax & non-tax revenue. Tax revenues form taxes such as income tax, excise, customs, corporate tax, service and other duties that the government charges whereas non-tax revenue sources include interest on loans & dividend on investments.
Budget Estimates is the amount of money given in the Budget to any ministry / scheme for the upcoming financial year.
Revised Estimates is a mid-year review of potential expenditure, considering the rest of expenditure, New Services & instrument of Services and more. Revised Estimates are not polled by the Parliament, and therefore by itself do not offer any authority for expenditure. Any extra projections done in the Revised Estimates required to be authenticated for expenditure through the Parliament's approval.