The Union Budget 2024, to be presented on February 1st, is the final budget before the 2024 Lok Sabha elections. This complex document outlines the government’s financial plans for the upcoming year. But don’t worry, we’re here to help you navigate the jargon with this handy glossary!
Budget Basics
- Budget: An annual financial statement detailing the government’s projected revenues and expenditures for the fiscal year (April 1st – March 31st).
- Economic Survey: A document analyzing the state of the economy, paving the way for the budget.
- Vote on Account: Temporary funding granted by Parliament before the budget is finalized.
Key Economic Indicators
- Gross Domestic Product (GDP): The total value of all goods and services produced in the economy.
- Capital Expenditure (Capex): Government spending on infrastructure and assets to boost economic growth.
Budget Documents
- Budget Estimate: Estimated funds allocated to different ministries.
- Finance Bill: Proposes changes to the tax system and introduces new taxes.
Financial Concepts
- Fiscal Deficit: The gap between the government’s income and expenditure, typically covered by borrowing.
- Direct Taxes: Paid directly by individuals and corporations (e.g., income tax).
- Indirect Taxes: Paid by consumers on goods and services (e.g., GST).
Potential Budget Focus
- Home Loans and Affordable Housing: Deductions for home loans to promote affordable housing.
- TDS on Cryptocurrency: Potential reduction in Tax Deducted at Source (TDS) rate for cryptocurrency transactions.
Corporate Finance
- Corporate Tax: Taxes levied on company profits.
- Minimum Alternative Tax (MAT): A minimum tax payable by companies even if they incur losses.
- Disinvestment: Sale of shares in public sector undertakings by the government.