Finance Minister Nirmala Sitharaman is going to present the budget on 1 February i.e. the coming Tuesday. Due to being the Union Budget, the whole country is watching this budget. During the budget, you will get to hear some words about which you need to know. Let us tell you about some such words …
Off budget burrowing: You must have heard the term off budget burrowing during budget. Actually, it is related to fiscal deficit. A fiscal or fiscal deficit is a gap between government spending and earnings. If the revenue received by the government is low in a year and the expenditure is high, then this situation is termed as fiscal or fiscal deficit. The government tries to keep the fiscal deficit low. One way to reduce financial losses is off-budget burrowing.
Let us tell you that off budget borrowing is a type of loan which the central government does not do directly. Rather, some other public institution, that is, by the public institution at the behest of the government, works to take this loan. The purpose of this type of loan is to help meet the government’s expenditure. The liability or liability of such loans is not formally with the Central Government. This is the reason why this type of loan is not included in the fiscal deficit of the country. This helps the government to reduce the fiscal deficit of the country.
Also Read: Fixed Deposits: Where to make fixed deposits, SBI or Post Office, who is paying the most interest?
Direct Taxes: Let us tell you about Direct Taxes. Actually, this tax is levied by the government on the income and source of any person and institutions through income tax, corporate tax, capital gains tax and inheritance tax.
Indirect tax: In case of Indirect taxes, it is levied on excise duty, customs duty, etc. on the goods and services produced, products exported and exported.
Budget deficit: Talking about budgetary deficit, this situation arises when the expenditure of the government exceeds the revenue.
Fiscal deficit: The difference between the total expenditure of the government and the sum of revenue receipts and non-debt receipts has been termed as Fiscal deficit.
Income Tax: The tax levied on the income of any person and income from other sources is called income tax.
Corporate tax: In the case of corporate tax, the government does the work of imposing it on corporate institutions or firms, through which the government’s treasury fills. It has been abolished since the introduction of GST.
Excise Duty: You will also have to tell about excise duties. The tax on all products made within the border of the country has been termed as excise tax. Let us tell you that the work of excise duty has also been included in GST.
Customs duties : Talking about customs duties, it is imposed on those goods, which are imported in the country or exported outside the country.
CENVAT: If you have heard the word CENVAT, then you probably know that it is the central value added tax, which is the work done by the government on the manufacturer. It was introduced in the year 2000-2001.
Balance Budget: A Balanced budget is a budget when the current receipts are equal to current expenses.
Balance of payment: When it comes to the balance of payments, it is said to be according to the financial transactions between the country and the rest of the world. It is also called balance of payments.
Bond: A bond is a certificate of debt that a government or corporation undertakes to issue. Money is raised from this.
Disinvestment: Disinvestment is the government’s bid to sell its stake in a public institution. In doing so, the government carries out the process of raising revenue.
GDP: GDP is the total sum of total goods and services produced within a country’s boundary in a financial year.
