7 Important Terms To Understand Before Budget Session 2024

Inflation

The rate at which a nations prices for products, services, and commodities increase is known as inflation. The purchasing power of a customer for a particular set of goods decreases with an increase in inflation in any given year.

Economic Survey

The Economic Survey, which was released during the Budget session, is an important document that gives a summary of the state of the economy for the current fiscal year. It establishes the framework for the forthcoming fiscal years budget presentation.

Direct and Indirect Taxes

Income taxes and corporate taxes are examples of direct taxes that are imposed directly on a taxpayer. In the meantime, taxes that are levied indirectly include excise taxes on services, VAT, and GST.

Finance Bill

The Finance Bill is a tool used by the government to propose policies pertaining to the imposition of additional taxes, changes to the tax code, or preservation of the existing tax system.

Budget Estimate

The estimated amount of money allotted to national ministries, departments, industries, and programmes is referred to as the budget. They delineate the distribution of resources, defining the means and destinations of the allocated monies as well as the anticipated expenses over a given period of time.

Capital Expenditure

The total sums that a nations central government suggests setting aside for the creation, purchase, or depreciation of equipment and assets related to economic development are included in the countrys capital expenditures.

Fiscal Deficit

This idea represents the difference between the total amount of money spent by the government and the amount of money it received in the previous fiscal year. The government uses a variety of tactics, including borrowing money from the Reserve Bank of India, to close this deficit.