The budget is presented in the Parliament every year in the country. But some such words are used in it, which makes it difficult for common people to understand. Lok Sabha elections are going to be held in the country this year in 2024. Before this, Finance Minister Nirmala Sitharaman will present the interim budget on 1 February. So let us understand the meaning of some words used in the budget.
Gross Domestic Product
GDP (Gross Domestic Product) GDP is called ‘Gross Domestic Product’. It is the total market value of all goods and services produced in a country within a period of one year. A one-year period is generally used to measure a country’s GDP.
Fiscal deficit
If the government spends more than its earnings. That is, the difference between less revenue and more expenditure is called fiscal deficit.
If we talk about the total income of the people in India at present, then the total income of the people in the financial year 2023 is around Rs 22.04 lakh crore, whereas if we talk about the total expenditure, it is Rs 39.4 lakh crore. In such a situation, the difference between revenue and expenditure is called fiscal deficit or fiscal deficit.
direct tax
Direct tax is imposed on your earnings. In which the person or company pays tax directly to the Income Tax Department. These taxes include income tax, real property tax, personal property tax, which the taxpayer pays directly to the government. After paying this, tax, TDS and other cases have to be refunded.
indirect tax
Indirect taxes are imposed on the production of goods and services and are not imposed directly on an individual’s income. Indirectly taken by the citizens. Examples of indirect taxes include sales tax, entertainment tax, excise duty, etc.
Treasury policy
This helps the Government of India to decide how much money should be spent on economic activities and how much of it should be allocated to the government treasury. That is, the policy related to public revenue and public expenditure used to control economic activities in an economy and achieve predetermined objectives.
Capital expenditure
In this, the government spends money to buy assets like infrastructure etc. So that the economy continues to get support. That is, capital expenditure is incurred to acquire or improve long-term assets such as property, plant and equipment.
revenue loss
The difference between revenue expenditure and revenue receipts is called revenue deficit. It shows the shortfall in the current revenue of the government compared to its current expenditure. Revenue deficit occurs when the amount of money the government earns from taxes and other sources is less than the amount spent on the country.