Budget 2019: Here Are Some Of The Important Terms You Should Know

Union Budget is the most comprehensive report of the government's finances in which revenues from all sources and outlays for all activities are consolidated. The interim budget is scheduled to be presented on February 1, 2019, by the government in the Parliament. Interim budget contains key details such as where money comes from and where it is spent, as well as projections of growth and fiscal position. Ahead of the presentation of Union Budget in Parliament, the Ministry of Finance has used social media platforms to explain some of the key terms related to the key event. 

Here are some of the important Budget terms explained by the ministry:

Excess Grants: If the total expenditure under a grant exceeds the provision allowed through its orginal grant and supplementary grant, then, the excess requires regularization by obtaining the excess grant from the Parliament under Article 115 of the Constitution of India. It will have to go through the whole process as in the case of annual budget i.e. through presentation of Demands for Grants and passing of Appropriation Bills.

Finance Bill: The bill produced immediately after the presentation of the Union Budget detailing the imposition, abolition, alteration or regulation of taxes proposed in the Budget.

Inflation: A sustained increase in the general level is known as inflation. The inflation rate is the percentage rate of change in the price level.

Capital Budget: The capital budget consists of capital receipts and payments. It includes investments in shares, loans and advances granted by the central government to state governments, government companies, corporations and other parties.

Vote on account: The Vote on Account is a grant made in advance by the parliament, in respect of the estimated expenditure for a part of new financial year, pending the completion of procedure relating to the voting on the Demand for Grants and the passing of the Appropriation Act.

Direct and Indirect Taxes: Direct taxes are the one that fall directly on individuals and corporations.  For example, income tax, corporate tax etc. Indirect taxes are imposed on goods and services. They are paid by consumers when they buy goods and services. These include excise duty, customs duty etc.

Revenue Budget: Revenue Budget consists of revenue receipts of the government and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the government levies. The non-tax revenue sources include interest on loans, dividends on investments.

Budget estimates: The amount of money allocated in the Budget to any ministry or scheme for any financial year.

Outcome Budget: From the fiscal year 2006-07, every Ministry presents a preliminary outcome budget to the ministry of finance, which is responsible for compiling them. The outcome budget is a progress card on what various Ministries and Departments have done with the outlays in the previous annual budget. It measures the development outcomes of all government programs and whether the money has been spent for the purpose it was sanctioned including the outcome of the fund usage.