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Union Budget 2019: Must know terminologies

Modi government is set to come out with its final Union Budget before the Lok Sabha polls later this year. But before the Union Budget is presented on February 1, the Ministry of Finance has issued a series “Know Your Budget” to clear the confusion around financial terms which leave many baffled. Here are some key terminologies of the Union Budget:

India TV Business Desk Reported by: India TV Business Desk New Delhi Updated on: January 25, 2019 16:25 IST
Union Budget is the most comprehensive report of the
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Union Budget 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. 

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Vote on account: The Vote on Account is a grant made in advance by the parliament, in respect of the estimated expenditure for a part of new financial year, pending the completion of procedure relating to the voting on the Demand for Grants and the passing of the Appropriation Act.

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Outcome 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.

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Revenue Budget: Revenue Budget 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 on investments.

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Capital Budget: The capital budget consists of capital receipts and payments. It includes investments in shares, loans and advances granted by the central government to state governments, government companies, corporations and other parties.

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Direct and Indirect Taxes: Tax structure in India is divided mainly into Direct and Indirect Taxes. Direct taxes are the one that fall 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 etc.

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Goods and Services Tax: The constitution defines 'Goods and Services Tax' as any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption. 

 

'Goods' means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be servered before supply or under a contract of supply. 

 

'Services' means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consderation is charged. 

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Custom Duty: These are levies charged when goods are imported into, or exported from, the country, and they are paid by the importer or exporter. Usually, these are also passed on to the consumer. 

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