Budget is around the corner and in this article let us get to know meaning of some of the important words used in the budget. In this article, we have compiled from alphabet A to M.
A
Aggregate Economic Data: It explains total expenditures and total production of goods and services related to the entire economy.
Annual Financial Statement (AFS): Under Article 112 of the Constitution, the government requires to present a statement of estimated receipts and expenditure in respect of every financial year in the Parliament.
Appropriation Bill: A document empowers the government to withdraw funds from the Consolidated Fund for meeting its yearly expenses.
B
Balanced Budget: Budgets in which revenues are equal to expenditures are referred to as "balanced budget". It means there is neither a budget deficit nor a budget surplus.
Budget at a Glance: A document shows in brief, receipts and disbursements along with broad details of tax revenues and other receipts.
Budget Cycle: It consists of the major events or stages in making decisions about the budget, implementing, and assessing those decisions. The budget cycle usually has four stages: budget formulation, enactment, execution, and auditing and assessment.
Budgetary Deficit: It is the difference between all receipts and expenses in both revenue and capital account of the government. It means the government has spent more money that it earned in a financial year.
Balance of Payments: The term is used to denote the difference in total value between payments into and out of a country over a period.
C
Central Plan Outlay: It is the division of monetary resources among the different sectors in the economy and the ministries of the government.
Consolidated Budget: Or "unified budget", is the presentation of the budget in which revenues from all sources and spending for all activities are included.
D
Debt: Government debt is the outstanding amount that the government owes to private lenders at any given point in time.
Demands for Grants (DG): It is a kind of form that is submitted in pursuance of Article 113 of the Constitution.
Disinvestment: Disinvestment is the action of government selling or liquidating an asset or subsidiary.
E
Expenditure: The term refers to government spending (or outlays) made to fulfil a government obligation, generally by issuing a check or disbursing cash.
Expenditure Budget: It shows the revenue and capital disbursements of various ministries and departments and presents the estimates in respect of each under 'Plan' and 'Non-Plan'.
Expenditure Profile: Once the budget is approved, by allocating costs to the activities in a schedule, a profile of expenditure is produced.
Extra-governmental: Or "extra-budgetary", term refers to government transactions that are not included in the annual budget.
F
Finance Bill: It is presented at the time of presentation of the AFS in fulfilment of the requirement of Article 110 (1)(a) of the Constitution.
Fiscal Policy Strategy Statement: It outlines government's strategic priorities relating to taxation, expenditure, lending and investments, administered pricing, borrowings and guarantees.
Finance Bill: The proposals of the government for levy of new taxes, modification of the existing tax structure or continuance of the existing tax structure beyond the period approved by Parliament are submitted through the Finance Bill.
Fiscal Deficit: This is the gap between the government's total spending and the sum of its revenue receipts and non-debt capital receipts.
Fiscal Envelope: It refers to the aggregate level of expenditures and revenues (and the resulting deficit or surplus) in the budget.
Fiscal Policy: Government actions with respect to aggregate levels of revenue and spending. Fiscal policy is implemented through the budget and is the primary means by which the government can influence the economy.
Fiscal Year: The government’s 12-month accounting period frequently does not coincide with the calendar year. The fiscal year is named after the calendar year in which it ends.
G
Gross Domestic Product: This is the total value of final goods and services produced in a country during a calendar year. Economic growth is measured by the change in GDP from year to year.
H
Household Income: This is money received by people that may or may not be earned from productive activities and, after adjusting for taxes, is saved or spent on consumption of goods and services.
I
Income Tax: It refers to the tax that is levied directly on personal income.
Inflation: It is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.
J
Joint Account: It means that a bank account held in the names of two or more people.
L
Liquid asset: It is an asset that can be converted easily into cash.
M
Macro-Economic: This term refers to the part of economics that studies the economy as a whole and particularly topics such as gross production, unemployment, inflation, and business cycles.
Macro-Economic Framework Statement: It comprises an assessment of the overall growth prospects of the economy with specific underlying assumptions.
Medium Term Fiscal Policy Statement (MTFP): It is a statement that is presented in the Parliament under Section 3(2) of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003.
Medium Term Expenditure Framework Statement: This document sets forth a three-year rolling target for the expenditure indicators with specification of underlying assumptions and risks involved.
Memorandum Explaining the Provisions in the Finance Bill: It deals with information to facilitate understanding of the taxation proposals in the Finance Bill.
Micro-Economic: The term is related to the part of economics that studies topics such as individual markets, prices, industries, demand, and supply.
Reference: indiatvnews.com