Union Budget 2021 Simplified
With a solid economic start in 2021, India’s massive economy is about to take on a new direction. On Feb 1, 2021 with the announcement of the budget, companies, state governments, the common man and investors will have their eyes set on what’s coming next.
As the new budget is released this year, don’t let the opportunity of understanding it with experts pass by you. Come join us as we sit to decode #BudgetKaMatlab - check out our YouTube videos and podcasts for a budget primer, and don’t forget to come back here for our expert analysis of #Budget2021!
BUDGET TWEETS
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FAQ's - #BudgetKaMatlab
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What is a fiscal deflict?
This is the gap between the government's total spending and the sum of its revenue receipts and non-debt capital receipts. It represents the total amount of borrowed funds required by the government to completely meet its expenditure.
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What is the Union Budget?
The Union Budget is the annual report of India as a country. It contains the government of India's revenue and expenditure for the end of a particular fiscal year, which runs from April 1 to March 31. The Union Budget is the most extensive account of the government's finances, in which revenues from all sources and expenses of all activities undertaken are aggregated. It comprises the revenue budget and the capital budget. It also contains estimates for the next fiscal year.
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Direct tax
Direct tax is levied on individuals and corporations for incomes generated by them. For example, income tax, corporate tax.
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Disinvestment
The sale of government's shares in public sector undertaking is called disinvestment.
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What is a capital budget?
The capital budget is different from the revenue budget as its components are of a long-term nature. The capital budget consists of capital receipts and payments.
Capital receipts are government loans raised from the public, government borrowings from the Reserve Bank and treasury bills, loans received from foreign bodies and governments, divestment of equity holding in public sector enterprises, securities against small savings, state provident funds, and special deposits.
Capital payments are capital expenditure on acquisition of assets like land, buildings, machinery, and equipment. Investments in shares, loans and advances granted by the central government to state and union territory governments, government companies, corporations and other parties. -
Union Budget
A comprehensive report of the government's financial statements, containing all expenditures and revenues -- actual numbers for the year going by (revised estimates) and forecast numbers for the year ahead (budgeted estimates).
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Customs duty
It is a levy imposed on imports into, and exports out of a country, and are paid by the importer and exporter, respectively.
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What is fiscal policy?
Fiscal policy is a change in government spending or taxing designed to influence economic activity. These changes are designed to control the level of aggregate demand in the economy. Governments usually bring about changes in taxation, volume of spending, and size of the budget deficit or surplus to affect public expenditure.
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Fiscal deficit
When the government's receipts fall short of its expenditures, it borrows money to bridge the gap. The excess of total expenditure over (non-borrowed) receipts is called fiscal deficit.
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Indirect tax
Indirect tax is imposed on goods and services. For example, GST.
