Union Budget 2024: 7 key terms to understand budget
Finance Minister Nirmala Sitharaman will present the interim Union Budget 2024 on February 1.
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Here are some key financial terms you must know to understand the Union Budget 2024.
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Interim Budget
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An Interim Budget is a temporary financial budget proposed by the government in the Parliament when the incumbent government has less time to present the complete budget. This usually happens when the elections are approaching.
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Economic Survey
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The Economic Survey is a flagship document presented during the Budget session that summarises the economic performance of the ongoing financial year.
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Fiscal deficit
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Fiscal deficit is the difference between the total expenditure of the government and revenue of the previous financial year. This gap is bridged through a borrowed amount from the Reserve Bank of India (RBI), among other measures.
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Inflation
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Inflation is the rate of increase in the prices of goods, services and commodities in the country. The higher the inflation, the weaker is the purchasing power of a consumer.
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Direct and Indirect taxes
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Direct taxes such as income tax or corporate tax are taxes levied directly from a taxpayer. Indirect taxes such as Goods and Services Tax (GST), Value Added Tax (VAT) and excise duties on a service are taxes levied indirectly from consumers.
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Finance Bill
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The government tables the Finance Bill in the Parliament as a document to introduce the policy of levying new taxes, making alterations in the tax structure or continuing the existing tax structure.
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Budget Estimates
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Budget Estimates refer to the estimated funds allocated to the centre's spending in the financial year. It determines funds allotted for various occupations, activities and ministries.