Finance Minister Nirmala Sitharaman will present the Union Budget 2023 today at 11 am in look sabha. While this is the fifth budget of the Finance Minister, it will be the last full budget of the second term of the current government. The general to special eyes are kept on the budget because it affects the earnings and expenditure in the entire financial year and there are also announcements related to many important schemes. Now the budget is so important, so it becomes necessary to understand it completely, so to understand it, one should know the meaning of the terms used in it. Let’s have a look-
In simple language, the budget 2023 estimate reflects the wishes and ambitions of the government. In the budget estimate, the amount to be allocated for different ministries, including many works, is decided. These numbers are called budget estimates.
For example, if the government sets aside Rs 1,000 crore for the defense sector, then the budget estimate for the defense sector in that financial year will be Rs 1,000 crore.
Revised Estimates
Now let’s talk about the revised estimate. Estimates of possible expenditures in the financial year are reviewed mid-year. During this, the trends of government expenditure, and new services are assessed, after which a revised estimate is prepared.
Repo Rate
The repo rate is the rate at which the central bank of a country lends money to commercial banks in case of a shortage of money. With the increase in the repo rate, the personal loan, and home loans that citizens get from common banks also become expensive. The repo rate is used to control inflation.
Consolidated Fund
The money received by the Government of India from income tax, customs duty, central excise, and non-tax revenue is called Consolidated Fund. Any money raised or acquired by the government through treasury bills, foreign governments, or international institutions is always deposited in this fund.
Similarly, whatever money the Government of India spends, it is done from this fund.
Finance Bill
A finance bill is related to the finances of the country. It is about taxes, government expenditure, government borrowing, and revenue, and since the Union Budget deals with these things, it is passed as a financial bill.
Direct and Indirect Taxes
Every person earning money in India has to pay taxes according to their income slab. There are two types of taxes imposed in India: Direct and Indirect tax.
Direct tax is paid by the taxpayer to the government. This tax is levied directly on the income of the person. On the other hand, Indirect tax is the tax that is imposed on the use of goods and services. It is not levied directly on the income of an individual.
Customs duty
Custom duty, in simple words, is the tax that is imposed on the import and export of goods. The government uses this tax to increase its revenue, protect domestic industries from cheap foreign goods, and to control the movement of goods.
Blue Sheet
A blue sheet is a kind of secret document. It contains the necessary documents and figures related to the budget which are on a blue-colored sheet. This is called Blue Sheet. This secret document is also called the backbone of the entire budget process.
Zero Budget
In a zero budget, the expenses incurred in the last financial year and the remaining balance are not carried forward. For example- if the government has allocated crores of rupees under a scheme and only a part of it has been spent, then in this situation the remaining money is not allocated again. This is called Zero Budget.
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