Budget Update: If you know the meaning of big words related to the budget, then it will be easy to understand the profit and loss..

Finance Minister Nirmala Sitharaman will present the budget for 2024-25 on July 23. There are many such things and words mentioned in the budget, which we usually hear, there is also a feeling of understanding, but we do not know about its definition and interpretation. Let us try to understand the meaning of such words used in the budget in simple and easy language?

What is Budget? (What is Budget)
The meaning of budget is difficult to understand even for an educated person. The word budget is derived from the French word Bougette. It means a small bag. In the French language, this word is derived from the Latin word 'Bulga'. It means 'leather bag'. In ancient times, big businessmen used to keep all their monetary documents in a bag. Similarly, gradually the use of this word became associated with the accounting done to raise resources. In this way, the year-round economic accounts of the governments got the name 'budget'. The practice of presenting the income-expenditure account of the country by the government started in Britain. When the Finance Minister of Britain came to present the income-expenditure account in the Parliament, he would bring the related documents in a red leather bag. That bag was called 'budget' in French, which became 'budget' when translated into English. Now let us know the meaning of the words used in the budget.

Fiscal deficit
The difference between the total income and expenditure of the government is called 'fiscal deficit' in economic terminology. This gives information about how much loan the government will need to run its operations. Borrowing is not included in calculating the total revenue. That is, the difference between the expenditure and income of the government is called financial deficit or budgetary deficit.

Current Account Deficit
When the import of goods, services, and transfers of a country exceeds its export, then a situation of current account deficit arises. That is, when goods and services made in India are exported abroad, payment is received for it. On the other hand, when any goods or services are imported, its price has to be paid. In this way, the difference between the payment received in the country and the price paid to foreign countries is called the current account deficit.

Government Revenue and Expenditure

Government revenue is the income of the government from all its sources. On the contrary, the items on which the government spends are called government expenditure. This is an important part of the financial policy of the government.

Budget Estimation

The Finance Minister, while presenting the budget proposal in the Parliament, presents the account of the income through various types of taxes and duties and the expenditure on schemes and other types of expenditure, which is generally called budget estimation.

Finance Bill

While presenting the general budget through this bill, the Finance Minister proposes new taxes etc. with the idea of ​​increasing government income. Along with this, any kind of amendment in the existing tax system is proposed in the Finance Bill. It is implemented only after getting the approval of the Parliament.

Revenue Surplus
If the revenue receipts are more than the revenue expenditure, then this difference will be in the category of revenue surplus.

Appropriation Bill
The direct meaning of the Appropriation Bill is that despite all kinds of measures, the government's earnings are insufficient to meet the government expenses and the government needs money from the Consolidated Fund to meet the expenses of this item. In a way, the Finance Minister seeks permission from the Parliament to withdraw money from the Consolidated Fund through this bill.

Capital Budgeting
While presenting the budget, the Finance Minister presents the details of government income, which also includes capital income. That is, the loan taken by the government from the Reserve Bank and foreign banks, the income from the sale of treasury challans, as well as the money received from the recovery of loans given to the states in the past, are also part of this capital budget.

Revised Estimate
This is a detail of the difference between the forecast of expenses in the budget and the actual expenses.

Capital Expenditure or Capex
The payment that the government has to make to buy any kind of asset comes under this category. The loan and advance amount sanctioned by the central government to the states, union territories, and public sector undertakings is also known as capital expenditure.

Capital Receipts
The loan received from the Reserve Bank or other agencies, the income from the sale of treasury challans, as well as the recovery of previous loans given to the states, union territories and the money received from selling its stake in public sector undertakings also come under this category.

Demand for Grants
The estimated account of the expenditure of the money demanded from the Consolidated Fund is the demand for grants.

Plan Expenses or Plan Expenditure
Apart from assistance to the states and union territories, all types of expenditure on the schemes of the Central Government are included in it.

Non-Plan Expenditure
It includes payment of interest, defence, subsidy, postal deficit, police, pension, economic services, loans given to public enterprises and loans given to states, union territories and foreign governments.

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