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The Union Budget refers to the annual financial statement presented by the Government of India, outlining its estimated revenue and expenditure for the upcoming fiscal year. It is a comprehensive document that reflects the government’s financial plans and priorities for the country’s economic development and welfare initiatives
Important Terminology of Budget
| Budget Terminology | Definition |
|---|---|
| Annual Financial Statement (AFS) | The AFS is the main budget document of the Government of India. It outlines the government’s estimated receipts and expenditures for the upcoming financial year. |
| Appropriation Bill | The Appropriation Bill is a money bill that gives the government the authority to spend the money that has been allocated in the AFS. |
| Bearish Trend | A bearish trend in the market is when prices are falling and investors are expecting them to continue falling. |
| Budgetary Deficit | The budgetary deficit is the difference between the government’s estimated receipts and expenditures. If the government expects to spend more than it receives, there will be a budgetary deficit. |
| Bullish Trend | A bullish trend in the market is when prices are rising and investors are expecting them to continue rising. |
| Capital Account | The capital account is a part of the balance of payments that records transactions involving the purchase or sale of assets, such as land, buildings, and machinery. |
| Capital Budget | The capital budget is a part of the AFS that deals with the government’s capital expenditures, such as infrastructure development and investment in machinery and equipment. |
| Cash Reserve Ratio (CRR) | The CRR is the percentage of deposits that banks are required to keep with the Reserve Bank of India (RBI). The CRR is used to control the money supply in the economy. |
| Central Plan | The Central Plan is a part of the AFS that outlines the government’s planned expenditures for central government schemes. |
| Consolidated Fund | The Consolidated Fund is a fund into which all the revenues of the government are credited and from which all the expenditures of the government are met. |
| Consumer Price Index (CPI) | The CPI is a measure of inflation that tracks the change in the price of a basket of consumer goods and services. |
| Contingency Fund | The Contingency Fund is a fund that is used to meet unforeseen expenditures. |
| Contractionary Policy | A contractionary policy is a monetary policy that is used to slow down the economy. It typically involves raising interest rates or reducing the money supply. |
| Corporation Tax | Corporation tax is a tax that is levied on the profits of companies. |
| Countervailing Duties (CVD) | CVDs are duties that are imposed on imports to offset subsidies that are provided by the exporting country. |
| Credit Rating | A credit rating is an assessment of the creditworthiness of a borrower. Borrowers with higher credit ratings are considered to be less risky and can borrow money at lower interest rates. |
| Customs Duty | Customs duty is a tax that is levied on imports. |
| Deflation | Deflation is a decrease in the general price level of goods and services. |
| Demands For Grants | Demands For Grants are documents that outline the government’s proposed expenditures for various ministries and departments. |
| Depreciation | Depreciation is the reduction in the value of an asset over time. |
| Direct Tax | A direct tax is a tax that is levied directly on individuals or businesses. |
| Education Cess | The education cess is a surcharge that is levied on certain taxes to generate funds for education. |
| Excess Grants | Excess grants are grants that are returned to the Consolidated Fund if they are not fully utilized by the ministries or departments to which they were allocated. |
| Expenditure Budget | The expenditure budget is a part of the AFS that outlines the government’s planned expenditures for the upcoming financial year. |
| External Debt | External debt is the debt that a country owes to foreign creditors. |
| FIIs | FIIs (Foreign Institutional Investors) are foreign investors who invest in the Indian stock market. |
| Finance Bill | The Finance Bill is a money bill that gives effect to the financial proposals of the government. |
| Gross Budgetary Support (GBS) | GBS is a measure of the total amount of financial support that the government provides to a sector. |
| Gross Domestic Product (GDP) | GDP is the total value of all goods and services produced within a country in a given period of time. |
| Human Development Index (HDI) | The HDI is a measure of human development that takes into account factors such as life expectancy, education, and income. |
| Index For Industrial Production (IIP) | The IIP is a measure of the growth of industrial production in a country. |
| Indirect Tax | An indirect tax is a tax that is levied on goods and services, rather than directly on individuals or businesses. |
| Inflation | Inflation is an increase in the general price level of goods and services. |
| Labour Market | The labour market is the market where labour (workers) and employers meet to negotiate wages and working conditions. |
| Large Cap Funds | Large cap funds are mutual funds that invest in the stocks of large companies. |
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