Union Budget Expectations 2024: 7 Key terms to understand before Budget session

2 Jan 2024 , 12:38 PM

Finance Minister Nirmala Sitharaman is set to present the interim Union Budget 2024 on February 1, preceding the upcoming financial year. This marks the final Union Budget by the Modi government before the general elections.

With the interim Union Budget 2024 just around the corner, here are essential financial terms you should familiarize yourself with:

Inflation

Inflation is the rate at which the prices of goods, services, and commodities in a country rise. The greater the inflation rate in any given year, the lower a consumer’s purchasing power for a defined set of items.

Economic Survey

The Economic Survey, unveiled during the Budget session, serves as a pivotal document providing an overview of the current fiscal year’s economic performance. It lays the groundwork for the presentation of the budget for the upcoming financial year.

Direct and Indirect Taxes

Direct taxes are those that are levied directly on a taxpayer, such as income taxes or corporation taxes. Meanwhile, indirect taxes, such as GST, VAT, and excise levies on services, are levied indirectly.

Finance Bill

The Finance Bill serves as a document for the government to introduce policies related to imposing new taxes, modifying the tax structure, or maintaining the current tax framework.

Budget Estimate

Budget Estimates refer to the anticipated funds assigned to ministries, departments, sectors, and schemes within the country. They outline the allocation of resources, specifying how and where the funds will be utilized and detailing the expected costs during a specific timeframe.

Capital Expenditure (CapeX)

A country’s capital expenditure includes the total amounts that the central government proposes to allocate for the development, acquisition, or depreciation of machinery and assets linked with economic development.

Fiscal Deficit

This concept denotes the variance between the government’s total expenditure and the revenue receipts from the preceding fiscal year. To bridge this gap, the government resorts to measures such as borrowing funds from the Reserve Bank of India, among other strategies.

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