Union Budget 2024: The Budget Session is planned to begin on July 22 and last until August 12.
The Union Budget for 2024-25, the ‘Viksit Bharat Budget 2024,’ will be presented by Union Finance Minister Nirmala Sitharaman on July 23. This is the first annual budget in the NDA 3.0 regime.
While the commencement of the Budget Session is on July 22, its scheduled close is on August 12, subject to the requirements of Parliament.
This much-awaited event presents financial plans and outlays for the coming fiscal, providing insights into the priorities and strategies of economic growth of the government.
Herein is the list of some major financial terminologies related to the Union Budget:
A – Annual Financial Statement:
Annual Financial Statement Statement which forecasts the government’s receipts and expenditure for the ensuing year. Statements are prepared every year which forms a part of the Budget and outlines the finances under the Consolidated Fund, Contingency Fund, and Public Account as mandated under Article 112 of the Constitution.
B – Budget Estimates:
_bottom line allocations made to various ministries and departments at the time of the Budget speech; a statement of intended expenditure on various items; it is only an estimate and not a commitment.
C – Current Account Deficit:
The deficit incurred when a country spends more on its imports than it earns in exports.
D – Direct Taxes:
Directly levied taxes on individuals and companies, such as income tax and any business corporate tax.
E – Economic Survey:
Presented to Parliament a day before the Union Budget, this annual document comprises an elaborate account of the nation’s economic status, sectoral performance, and progress regarding government schemes or initiatives.
F – Fiscal Deficit:
The difference between total expenditure and the revenue receipts, which signifies the amount of government borrowing.
G – GDP:
It refers to the Gross Domestic Production and is the total value of goods and services produced within the geographical boundaries of a country. It showcases the size and growth of an economy.
H – Health Budget:
Outlay on public health and sanitation programs, medical research, and the related infrastructure creation.
I – Indirect Taxes:
Taxes on goods and services that reach the consumer indirectly in the form of increased prices, thus including Central GST and Excise duty.
J – Job Creation:
Initiatives for generating employment through interest in infrastructure and skill development.
K – Key Sectors:
Target areas of importance such as agro-based industry, education, infrastructure that are under focus leavened with funds.
L – LTCG :
Tax on long-term capital gains from investments – in the nature of shares and real estate held beyond three years.
M – Minimum Alternate Tax :
Assures a minimum corporation tax is paid by companies despite exemptions.
N – Non-Plan Expenditure:
Expenditure accounted for by regular government operations such as salaries and pensions.
O – Outcome Budget:
This statement keeps track of the utilization of funds by Ministries and Departments. It provides a link between the funds proposed to be allocated to the schemes of Ministries/Departments and the objectives desired to be achieved under those schemes
P – Public Account:
The funds from savings schemes such as small savings or provident fund deposits, by which it does not own the moneys.
Q- Quarterly Review of Economy :
India’s GDP and review of its economic performance on a quarterly basis.
R – Revenue Deficit:
Revenue account of receipts and expenditure shows the shortfall of revenue receipts over expenditure indicating the additional revenue requirements.
S – Subsidy:
It refers to the flow of fund/subsidies from the government to sectors or industries due to a potential reason of competitiveness or social objective.
T – Tariff:
Tax on imported goods that changes the dynamics of trade and domestic industries. The imposition of taxes affects the prices of commodities and goods, which in turn affects the demand and supply function.
U – Union Budget:
An Annual Financial Statement presented to Parliament, containing an estimation of the income and expenditure proposals.
V – VAT (Value Added Tax):
Indirect tax is imposed on goods and services at each production stage.
W – Wealth Tax:
A direct tax that is imposed on the net wealth of an individual above ₹30 lakh.
X – X-factors:
Events that could not be predicted at budgeting time that influenced the outcome of the budget and which necessitate adjustments.
Y – Yield:
The return on government investments such as bonds.
Z – Zero-Based Budgeting:
A method ensuring that every cost is justified to optimize resource allocation and minimize waste.
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