New Delhi: The presentation of the Union Budget is one of the most-watched events in the country every year. And every year, the Finance Minister’s speech contains a generous dose of jargons that send the common man ‘Googling’.
News18 has decoded some of these terms for you here:
Tax slabs show the income brackets and the rate at which each of these slabs will be taxed. These slabs are used to calculate the Income Tax payable by an individual, company or Hindu Undivided Family.
Fiscal deficit is the difference between total revenue and total expenditure of the government. The gross fiscal deficit (GFD) is the excess of total expenditure.
Gross Domestic Product (GDP)
GDP is a monetary measure that refers to the market value of all final goods and services produced in a period (quarterly or yearly) in the country. It is commonly used as an indicator of economic performance.
Current Account Deficit
Current Account Deficit is a trade measure that refers to a situation where a country’s imports of goods and services exceed its exports. Ideally, the export bill should be higher than the import bill.
Fiscal consolidation refers to the policies and parameters undertaken by the government to keep good fiscal health by reducing the deficits and accumulating debt stock.
Indirect taxes are taxes on goods and services that are typically levied on one entity, but paid by another. The Goods and Services Tax (GST) is a classic example.
Direct taxes are those paid by the person or entity they are levied on, like the Income Tax.
Capital Gains Tax
Capital gains tax is levied on the capital gains that follow after the sale of an asset.
Fiscal policy is the set of decisions the government takes via revenue collection and spending to influence the economy of the country.
A fiscal year is a one-year period that an entity, individual or the government uses for preparing financial statements.