Piyush Goyal has delivered the Interim Budget in Parliament. But wait, what is Interim Budget? Wasn’t just ‘Budget’ was expected in the parliament?
Here is the glossary of 11 important words collected over the Internet for you that you must know the meaning of, before reading or listening to the news of Budget.
Interim Budget: Interim budget is just made for time being which helps to run the government till the full pledged government is formed. During an election year, it is not practical for the ruling Government or for the new Government taking charge after the elections to prepare or debate on the full budget and pass it before the new financial year begins.
Fiscal deficit: A fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings.
Budget Estimates: The approximation of the cost of an activity, job, program or project, prepared for budgeting and planning purposes only.
Revised Estimates: Revised Estimates are the mid-year review of possible expenditure, taking into account the trend of expenditure, New Services and New Instrument of Services etc.
Repo Rate: Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.
Annual Accounts: These are the accounts prepared at the end of a financial year.
GST: The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. In effect, GST provides revenue for the government.
Expenditure: Expenditure is funds used by a business, organization, or corporation to attain new assets, improve existing ones, or reduce liability. In other words, it’s the use of a resource in the operations of a business.
Customs: An expenditure is funds used by a business, organization, or corporation to attain new assets, improve existing ones, or reduce liability. In other words, it’s the use of a resource in the operations of a business.
Budget at a glance: Budget at a glance shows in brief, receipts and disbursements along with broad details of tax revenues and other receipts.
CESS: A cess imposed by the central government is a tax on tax, levied by the government for a specific purpose. Generally, Cess is expected to be levied till the time the government gets enough money for that purpose