New Delhi: The Budget Session of the Indian Parliament will begin on January 31. Union Finance Minister Nirmala Sitharaman will present the Union Budget in the Lok Sabha on February 1, 2023.
Several people are not fully aware of the terms that are related to the Budget. Here are some terms that are related to the financial statement of the country.
Budget: A government budget is an annual financial statement of the estimated receipts and expenditure of the government over the fiscal year.
Revenue Budget: The Revenue Budget consists of the revenue receipts of the government (tax and non-tax revenues) and the expenditure met from these revenues. It depicts the approximate amount required for the growth, development, and infrastructure of the country.
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Capital Budget: It consists of capital receipts and payments. The main items of capital receipts are loans raised by government from public which are called Market Loans, borrowings by government from Reserve Bank and other parties through sale of Treasury bills, loans received from foreign governments and bodies and recoveries of loans granted by Central Government to State and Union Territory governments and other parties.
Fiscal Deficit: Fiscal Deficit is the difference between the Union government’s total expenditure and its total revenues excluding money generated from borrowings is known as fiscal deficit. It indicates the borrowing requirement of the government during the budget year, where the non-debt capital receipts + recovery of loans + disinvestment proceeds of the government.
Revenue Deficit: it is the difference between Revenue Expenditure and Revenue Receipt, denoting the shortcoming or ‘deficit’ of government’s current receipts over current expenditure.
Surplus Budget: The condition when the incomes or receipts overreach the expenditure or outlay.
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