Union Budget 2024: The budget will reveal financial plans and allocations for the upcoming fiscal year.
The Union Budget for 2024-2025, themed ‘Viksit Bharat Budget 2024’, will be presented by Finance Minister Nirmala Sitharaman on July 23. It will be the first annual budget under the NDA 3.0. The Budget Session is scheduled to start on July 22 and will continue until August 12, subject to the exigencies of Parliamentary Business.
This highly anticipated event will reveal the financial plans and allocations for the upcoming fiscal year and shed light on the government’s priorities and strategies for economic growth and development.
Here’s a list of some important financial terms associated with the Union Budget:
A – Annual Financial Statement
The Annual Financial Statement estimates the government’s income and expenses for the next financial year. Prepared every year as part of the Budget, it provides a detailed breakdown of government finances for the current and next year, divided into three sections: Consolidated Fund, Contingency Fund and Public Account. This report is mandated by Article 112 of the Constitution.
B – Budget Estimates
Funds allocated to ministries and departments during the Budget speech, indicating planned expenditures. These are projections, not final commitments.
C – Current Account Deficit (CAD)
The difference between a country’s export earnings and import spending, results in a shortfall when imports exceed exports.
D – Direct Taxes
Levies on individuals and businesses, such as income tax and corporate tax, which directly impact their income and profits.
E – Economic Survey
An annual document presented to Parliament, a day before the Union Budget. It provides a detailed overview of the country’s economic status, offering insights into sectoral performance, and the progress of key government schemes and policy initiatives, serving as a guide for the Budget’s allocations.
F – Fiscal Deficit
The difference between total expenditure and revenue receipts indicates the government’s borrowing requirements to finance its activities.
G – GDP (Gross Domestic Product)
The total value of goods and services produced within the country’s borders reflects the economy’s size and growth.
H – Healthcare Budget
Allocation for the healthcare sector, covering expenses for public health programs, medical research and infrastructure development.
I – Indirect Taxes
Levies on goods and services, such as GST and excise duty, which indirectly impact consumers through higher prices.
J – Job Creation
Initiatives aimed at generating employment opportunities through investments in infrastructure, education and skill development.
K – Key Sectors
Priority areas like agriculture, education and infrastructure, receive focused attention and funding.
L – LTCG (Long Term Capital Gains)
A tax on profits from investments held for over three years, such as shares, real estate and bonds. LTCG tax applies to gains from long-term assets, encouraging investors to hold onto investments for an extended period.
M – Minimum Alternate Tax (MAT)
A tax ensuring companies pay a minimum corporate tax, despite exemptions and subsidies.
N – Non-Plan Expenditure
Spending on regular government operations, such as salaries, pensions and maintenance.
O – Outcome Budget
A report tracking the utilisation of funds by ministries and departments, providing a progress update on key government schemes and making sure funds are used for their intended purposes.
P – Public Account
A repository for funds collected under various savings schemes, as per Article 266 of the Indian Constitution. These funds, which include small savings and provident fund deposits, are held in trust and do not belong to the government, ensuring their eventual return to the depositors.
Q – Quarterly Review of the Economy
A periodic assessment of India’s GDP, providing insights into the country’s economic performance and progress every quarter (every three months).
R – Revenue Deficit
Difference between revenue receipts and revenue expenditure, indicating the government’s need for additional revenue.
S – Subsidy
Financial assistance is provided to certain sectors or industries, helping them stay competitive or achieve social objectives.
T – Tariff
Tax on imported goods, influencing trade and domestic industries.
U – Union Budget
The government’s annual financial statement, presented to Parliament, as per Article 112 of the Constitution, outlines income and expenditure plans.
V – VAT (Value Added Tax)
A type of indirect tax levied on the value added to goods and services at each stage of production.
W – Wealth Tax
A direct tax levied on an individual’s net wealth above Rs 30 lakh, at the rate of 1 per cent, as of March 31st each year.
X – X-Factors
Unforeseen events that can impact budget outcomes, such as natural disasters, economic shocks or public health crises, require adjustments to budget estimates.
Y – Yield
The return on investment (ROI) generated by government investments, such as bonds. Higher yield means more profit, and lower yield means less profit.
Z – Zero-Based Budgeting
Budgeting approach where all expenses must be justified, ensuring optimal resource allocation and minimising waste.