During the budget, the Finance Minister uses some words whose meaning is not known to everyone. In such a situation, if you do not know the meaning of these budget terms then the announcements will go over your head and you will not understand anything. So let us tell you the meaning of the words used during the budget.
Now only a few hours are left for the budget to be presented. Finance Minister Nirmala Sitharaman will present the country's budget on 1 February. Nirmala Sitharaman has already said that this time the budget will be quite different from the budget presented earlier. This time the budget is not being published on paper but is being presented online. At the same time, during the budget, the Finance Minister uses some words whose meaning is not known to everyone.
In such a situation, if you do not know the meaning of these budget terms then the announcements will go over your head and you will not understand anything. So let us explain to you the meaning of the terms related to the budget. So that no announcement goes above your head and you can take advantage of it.
What is budget?
Providing complete information about how much the government will earn in a financial year and where and how much it will spend is called budget. During the announcement of the budget, the government also announces many schemes, because the government also spends money in running the schemes. At the same time, all kinds of reliefs including taxes are also announced in the budget, because this is also like the expenditure of the government.
Inflation
The word inflation is used repeatedly during the budget. Inflation means inflation rate. It is expressed in percentage. Increasing inflation simply means that the value of the currency is falling, which reduces the purchasing power. Decrease in purchasing power means that demand decreases.
fiscal policy
This is the blueprint of how the government will spend and what the tax system will be. The government prepares fiscal policy and the Reserve Bank prepares monetary policy. Under this policy, the government takes decisions regarding inflation rate, unemployment rate and monetary policy. It is considered very important for economic health.
Fiscal deficit
Understand in simple language, this is the difference between the government's expenditure and earnings. If the expenses exceed the earnings of the government then it is called fiscal deficit. Fiscal surplus i.e. fiscal profit
If the government's earnings exceed its expenses, it is called fiscal surplus. However, such a situation does not arise, rather the challenge before the government is always how to keep its fiscal deficit low.
Revenue deficit
The government sets the earning target every year. If the earnings are less than expected then it is called revenue deficit. Revenue deficit means that the government spent more rapidly during the financial year. In other words, the government did not earn at least the minimum required expenditure. The decision of disinvestment i.e. privatization depends to a great extent on the revenue deficit.
primary deficit
Primary deficit is formed by subtracting interest payments on earlier loans from fiscal deficit. Fiscal deficit includes loans taken by the government and interest paid on old loans. Interest paid on old loans is not included in primary deficit. A major part of the fiscal deficit in India is the interest paid on old loans.
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