Budget 2023: From Fiscal Deficit to Public Account and More; Complex Terminologies and Their Meanings Explained
Non-Tax Revenue includes income earned by the government from sources which is other than taxes. These include interests on loans, international aid, sale of assets and revenue from donations etc.
Mumbai, January 30: Finance minister Nirmala Sitharaman is all set to present the Union Budget for the fiscal year 2023-2024. The budget will be presented on Wednesday, February 1 in the parliament. The Union Budget 2023 is likely to be the last budget of the Narendra Modi-led government before the Lok Sabha Elections next year.
With less than two days to go, the Central government is expected to introduce several new schemes in the parliament which could be aimed at providing relief to middle-class households and also give a boost to the economy. As the Narendra Modi government prepares to present the Union Budget 2023, we take a look at some of the complex terminologies related to budget and understand their meaning. Budget 2023: Know Date, Time and Where To Watch Live Streaming of Finance Minister Nirmala Sitharaman's Budgetary Speech.
Fiscal Deficit: Fiscal deficit refers to the difference between the total revenue and total expenditure made by the government for the said financial year. While the income includes all types of revenues earned by the government in the particular year, it excludes revenue earned from loans.
Example: If the government's expenditure is Rs 200 and income is Rs 150 then the fiscal deficit will be Rs 50.
Capital Expenditure: In simple term, capital expenditure also known as CapEx refers to the different types of expenditure or spends that the government makes in order to increase its assets in the fiscal year. From purchasing equipment, machinery, land, and plant to building roads and infrastructure and acquiring new technology are come under the purview of Capital expenditure. Capital expenditure are investments by government that expected to become sources of income for the government in the long run.
Revenue Expenditure: If capital expenditure is investments made by the government then revenue expenditure is completely opposite of it. Revenue expenditure as the term says refers to the expenses made by the government and includes employees salaries, payments of interests, subsidies for the needy and any other day-to-day expenses that is incurred by the government. Budget 2023: From 10-Year Tax Holiday to Less Holding Period of ESOP Shares, Indian Startups Share Their Expectations.
Gross Domestic Product: Also called as GDP, Gross Domestic Product is the indicator used by the government to measure the health of its economy. In its truest sense, the GDP reflects the value of goods and services produced by the country during a specific time period. Economic activities such as buying milk and other products to the government purchasing flights and other equipment's all are examples of GDP.
Non-Tax Revenue: Non-Tax Revenue includes income earned by the government from sources which is other than taxes. These include interests on loans, international aid, sale of assets and revenue from donations etc.
Public Account: Public account as the term states refers to the money of common people deposited with the government. The best example of a public account is provident fund and small savings collection among others. It must be noted that the government can use money from public account in order to meet its expenses.
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Direct and Indirect Taxes: True to its name, direct taxes include taxes levied by the government on income of individuals and corporations. These include income tax, corporate tax, etc. On the other hand, Indirect taxes are those taxes which consumers pay when they buy any goods or services. Example: Milk products, excise duty, electronics goods, customs duty among others.
Consolidated Fund: The consolidated fund is the single account of the government where money from all sources including taxes, interests, loans, grants is accumulated. The consolidated fund is used by the government to earmark all expenditures made during the budget.
(The above story first appeared on LatestLY on Jan 30, 2023 09:38 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).