Union Finance Minister Nirmala Sitharaman is presenting the Interim Union Budget 2024 in the Parliament on February 1 and this will be her sixth budget. And it is likely that you may come across some complicated financial terms but we have got you covered.
Here is your go-to guide to complex budget jargon ahead of the Interim Budget 2024 presented by the finance minister:
Interim Budget
Interim Budget is the government budget presented during the transition period. The Union finance ministry ususally presents its budget on February 1. However, since the Lok Sabha polls are on the horizon, the upcoming budget will be an interim one and a full budget will be presented in June or July by the new government after the elections.
Vote-on-account
Vote-on-account is the grant made by the Parliament in advance in order to meet the estimate of expenditures for a part of the upcoming fiscal year until the next budget. The interim budget 2024 will seek a grant for the next five months until the next full Union budget is presented following the Lok Sabha polls.
Direct tax
Direct taxes are imposed directly on an individual or a corportation
Indirect tax
Indirect taxes include GST, excise duty, customs duty etc that are collected indirectly by taxpayers while paying for goods and services
Corporate tax
Corporate tax is a direct tax paid by companies.
Minimum Alternative Tax
Minimum Alternative Tax (MAT) is a minimum tax that a company has to pay, even if it comes under zero tax limits.
Fiscal deficit
Total additional borrowings made by the government every year when the expenditure exceeds the generated revenue.
Revenue deficit
Revenue deficit is the difference between revenue expenditure and revenue receipt.
Primary deficit
Primary deficit is the difference between the fiscal deficit and the previous financial year's interest payments.
Budget estimates
Budget estimates are money allocated for ministries, schemes and projects in the new fiscal year.
Revised estimates
Revised estimates are mid-year reviews of possible expenditure based on actual trends. But no voting is required in Parliament.
Outcome budget
Outcome budget is a progress report on the use of outlays by ministries from the previous budget.
Excess grants
When the total expenditure under a grant exceeds the provision allowed
Tax revenue
Tax revenue is the primary source of income.
Non-tax revenue
Additional sources of revenue for the government other than taxes.
