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How to read, understand a budget without knowing its glossary of 2018 union budget of India.Here are the few meaningful words of Budget to beter know what is in store for us.

  • Aggregate Budget is the sum quantity of good and services required in an economy
  • Annual Financial Statement is a document drafted to the Parliament during the budget period annually under Article 112 of the Indian Constitution and it has valued receipts & expenditures of the Indian Government for the upcoming year, having in mind the modified estimates for the last year, also the exact values for the year prior to it.
  • Balance of Payments is a record of the nation’s foreign financial transactions. A BOP tells whether a nation has high imports than exports or vice versa. A BOP deficit is that the country imports extra goods than it exports. When a nation exports lot of goods succeeding it imports, it does for a BOP surplus.
  • Balanced Budget is a budget where govt. revenue balances its expenditure.
  • Capital Expenditure constitutes spendings on land purchase, buildings or machinery. Then, Loans by the Central govt. to state governments and union territories, or other nations’ government or companies
  • Acquisition of valuables means loan repayment that falls under capital expenditure as it decreases liability.
  • Capital Receipts is a receipt gearning to a rise in government’s liability it constitutes.
  • Market loans are the loans raised by the govt. from the public; Loans had from the RBI or other parties via treasury bills; Loans taken from international governments & companies; Recoveries of loans gifted by the government to state governments & Union territories.
  • Consolidated Fund is the one Instituted under Article 266(1) of the Constitution of India is where all the government revenue by direct and indirect taxes, borrowed money & receipts of loans provided by the government come in. All the government expenditure is incurred from here.
  • Contingency Fund is that fund used in time of emergencies when the govt. cannot stand till the Parliament recognizes the levy of it. It is at the authorization of the President and cannot be utilized without having his approval.
  • Corporate Tax is the taxes remitted by corporate firms on their incomes.
  • Custom Duties are taxes imposed on goods of import and export.
  • Direct Taxes are the Taxes levied on resources & incomes of individuals or companies like income tax, corporate tax, and inheritance tax etc.
  • Disposable Income is the Income remaining up on tax deduction, ready to be spent as one’s attires
  • Excise Duties is the Tax on goods manufactured within the nation; a tax on the production or selling of a good
  • Fiscal Deficit is the variance between government’s total spending and total revenue. It mentions the total government borrowings.
  • Fiscal Policy is the government’s spending & taxation policy that influences the macroeconomic conditions such as employment & inflation.
  • Income Tax is the tax levied on individual income from sources such as salaries, interest & investments
  • Indirect Taxes is the Taxes remitted by customers where purchasing goods and services that comprise GST, excise & customs duties.
  • Monetary Policy is the central bank or currency board actions over the size and rate of growth of the currency supply in the naton, that impacts interest rates. These actions comprise buying or selling of government bonds, rectifying interest rates and others.
  • National Debt is the complete outstanding borrowing of the federal government exchequer.
  • Peak rate is the Highest rate of customs duty available on an item
  • Plan Outlay is the section of monetary resources amongst the various fields in the economy and the government ministries.
  • Primary Deficit is the difference between Fiscal deficit and the interest payments.
  • Progressive Tax is a tax that consumes a bigger percentage of higher income individuals than it makes from lower-income individuals.
  • Proportional Tax is a tax is the same rate of the income, irrespective of the income level
  • Regressive Tax is a tax that uses more from low-income profiters than it makes for high-income earners
  • Revenue Budget includes revenue receipts of the government i.e., revenues from tax & other sources, and its expenditure. Revenue receipts are parted into tax & non-tax revenue.
  • Revenue Deficit is the Difference between revenue expenditure & revenue receipt.
  • Revenue Expenditure is the expenditure for usual functioning of the government departments & services; expenditure that does not progress in formation of assets for Government of India
  • Revenue Receipt consists taxes proceeds and other duties levied by the Centre, interest & dividend on investments done by the govt., fees & other receipts for services offered by the government.

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