The full-year budget for the financial year 2019-20 will be presented by Finance Minister Nirmala Sitharaman on July 5. After the Lok Sabha election 2019, It will be the first budget of the Prime Minister Narendra Modi-led National Democratic Alliance (NDA) government after it got re-elected in May. Budget is the annual financial statement of Government of India that contains details such as revenue, expenditure, growth projections and its fiscal position.
Here's the list of important terms you should know
It is the most comprehensive report of the Government's finances in which revenues from all sources and outlays for all activities are consolidated. The Budget also contains estimates of the Government's accounts for the next fiscal year called Budgeted Estimates.
Budget documents are a set of documents presented in Parliament as a part of Budget, which includes-- Budget Speech, Annual Financial Statement, Demands for Grants (DG), Macro-Economic Framework and Fiscal Policy Strategy Statements, Expenditure Budget, Receipts Budget, and Expenditure Profile.
Fiscal Deficit is the difference between total revenue and total expenditure of the government. It is an indication of the total borrowings needed by the government. While calculating the total revenue, borrowings are not included. To meet the shortfall, the government borrows money from the public.
The budget speech is the speech which is delivered by the finance minister in Parliament while presenting Budget.
It is the total amount of money allocated in the Budget to any ministry or scheme for any financial year.
Direct and Indirect taxes
Direct taxes are the one that falls directly on individuals and corporations. For example, income tax, corporate tax, etc.
Indirect taxes are imposed on goods and services. They are paid by consumers when they buy goods and services. These include excise duty, customs duty, GST, etc.
It consists of capital receipts and payments. Capital Budget includes investments in shares, loans and advances granted by the central Government to State Governments, Government companies, corporations, and other parties.
It is the bill produced immediately after the presentation of the Union Budget detailing the Imposition, abolition, alteration or regulation of taxes proposed in the Budget.
From the fiscal year 2006-07, every Ministry presents a preliminary outcome budget to the ministry of finance, which is responsible for compiling them. The outcome budget is a progress card on what various ministries and departments have done with the outlays in the previous annual budget. It measures the development outcomes of all government programs and whether the money has been spent for the purpose it was sanctioned including the outcome of the fund usage.
It consists of revenue receipts of the government and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the government levies. The non-tax revenue sources include interest on loans, dividends from investments.
Contingency Fund of India
A fund placed at the disposal of the President to enable him/her to make advances to the executive/Government to meet urgent unforeseen expenditure.
Vote on account
It is a grant made in advance by the parliament, in respect of the estimated expenditure for a part of the new financial year, pending the completion of procedure relating to the voting on the Demand for Grants and the passing of the Appropriation Act.
ALSO READ| Budget 2019-20: All you need to know