Indian Union Budget 2021-22: Union Finance Minister Nirmala Sitharaman will present the budget for the financial year 2021-22 on 1 February. This will be the third budget of the second term of the Modi government. This budget has become very important due to Corona epidemic and subsequent economic crisis. In the budget, announcements and provisions to strengthen the economy will be made along with the expenditure incurred by the government in the next financial year.
To understand the budget, it is necessary to know some of its words. Many such words are used in the budget, which are not in our general information. Before knowing these words, let us know what the budget is. The details of central government accounts are budget. It is an approximate presentation of financial facts and figures, including estimated receipts and spending plans for the year. It also details the actual performance performed during the previous year.
Some important words related to the budget
A financial year is a year that is the basis for accounting in financial matters. It is also called the period used by governments for accounting and budgeting purposes. It is also used for financial reporting by businesses and other organizations.
The budget is presented after the Economic Survey documents are presented in Parliament. It is prepared by the Ministry of Finance presented its perspective on the state of the economy.
Fiscal policy is a commonly used term in the context of the budget. It is an estimate of government spending and taxation. It can be used by the government to implement and control various tools such as employment growth, handling inflation and managing monetary reserves.
Fiscal or fiscal deficit
When the revenue received by the government is low and expenses are high, then this situation is called a fiscal or financial deficit. Some fiscal deficits are not considered bad for a developing economy. Like if the deficit is in the range of 4 percent of the GDP of a country. If the difference between total revenue receipts and total expenditure is positive, it is called a fiscal surplus.
Due to various economic factors, there is a general increase in the price of goods and services. Due to this, the purchasing power of the currency decreases over a period of time. It is expressed as a percentage.
Direct tax (direct tax)
Income tax, corporate tax, capital gains tax and inheritance tax on the income and source of any person and institutions are covered under direct tax.
Indirect tax (indirect tax)
Indirect tax is levied on excise duty, customs duty and service tax on goods manufactured and exported. Indirect taxes have been absorbed into GST.
current account deficit
It refers to the business landscape of the country. If exports are high and more money goes out of the country through imports then the situation is favorable and it is known as current account surplus. But if the money going out of the country through imports is more than the money coming out of exports, then it is called current account deficit.
The tax on all the products made within the border of the country is called excise duty. Excise duty has also been included in GST.
The customs duty is levied on those goods which are imported into the country or exported outside the country.