Budget 2019: Layman's guide to know budgetary glossaries

Etv Bharat brings to you some simple to critical jargons used in the Budget.

Hyderabad:Finance Minister Nirmala Sitharaman will present the Budget on July 5. Etv Bharat brings to you some simple to critical jargons used in the Budget:

Budget: It is a financial plan listing expenditure and income expected during some given future period, usually one year. A budget may be prepared by an individual, a family, a company, or a government. It is mentioned under Article 112 of the constitution as the Annual Financial Statement.

Interim Budget: It is usually presented by the government in its final year of tenure. It is similar to the General Budget but is applicable only until the new government takes charge and present the General Budget.

Vote on Account: it is a grant made in advance by Parliament for expenditure for a part of the next financial year, pending the completion of procedure relating to the voting on the Demand for Grants and the passing of the Appropriation Act.

GDP:It is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health.

GST :It stands for Goods and Services Tax. It is an indirect tax applied to the cost of goods and services sold for domestic consumption. It is paid by consumers and provides revenue for the government.

Fiscal Deficit: When the government's non borrowed receipts fall short of its entire expenditure, It has to borrow money from the public to meet the shortfall. The excess of total expenditure over total non borrowed receipts is called the fiscal deficit.

Revenue Deficit: The difference between revenue expenditure and revenue receipt is known as revenue deficit. It shows the shortfall of the government's current receipts over current expenditure.

Primary Deficit: It is the fiscal deficit minus interest payments. It tells how much of the Government's borrowings are going towards meeting expenses other than interest payments.

Finance Bill: The bill produced immediately after the presentation of the General Budget detailing the imposition, abolition, alteration or regulation of taxes proposed in the budget.

Direct Tax: It is a tax, the ultimate burden of which falls on the person on whom it is levied. To make it simple to understand, these taxes cannot be shifted from the original payer to someone else.

Indirect Tax: It is contrasted with direct tax. Indirect tax can be readily shifted to ultimate consumers of the commodity or service taxed.

Custom Duty: It is a tax on the export and import of goods levied by a national government and payable to it when the goods cross the customs boundaries of the nation. Hence, it is also called border tax.

Balance Sheet: It is a statement of liabilities and assets of a business entity at a point of time. It reflects the policies, size and soundness of the operations of the business. The liabilities indicate the source of its fund while the assets show the nature of its investment.

Capital:It refers to all those man-made machines and appliances which are used for further production of goods and services rather than being consumed for their own sake.

Capital Budget: It consists of capital receipts and payments.

Outcome Budget: It is a progress card on what various ministries and departments have done with the outlays in the previous annual budget. It measures the development outcomes of all government programs and whether the money has been spent for the purpose it was sanctioned including the outcome of the fund usage.

Revenue Budget: It is the budget which consists of revenue receipts of the government and its expenditure.

Monetary policy: This comprises actions taken by the central bank (i.e. RBI) to regulate the level of money or liquidity in the economy, or change the interest rates.

Fiscal Policy: It is the government actions with respect to aggregate levels of revenue and spending. Fiscal policy is implemented through the budget and is the primary means by which the government can influence the economy.

Excess Grants: If the total expenditure under a Grant exceeds the provision allowed through its original Grant and Supplementary Grant, then, the excess requires regularization by obtaining the Excess Grant from the Parliament under Article 115 of the Constitution of India.

Inflation:A sustained increase in the general price level. The inflation rate is the percentage rate of change in the price level.

Budget Estimates: Amount of money allocated in the Budget to any ministry or scheme for the coming financial year.

Revised Estimates: These are the mid-year review of possible expenditure, taking into account the rest of expenditure, New Services and New instrument of Services etc.

Re-appropriations: It allows the Government to re-appropriate provisions from one sub-head to another within the same grant.

Cut Motions: Motions for reduction to various demands for grants are made in the form of Cut Motions seeking to reduce the sums sought by Government on grounds of economy or difference of opinion on matters of policy or just in order to voice a grievance.

Guillotine: Parliament, unfortunately, has very limited time for scrutinising the expenditure demands of all the Ministers. So, once the prescribed period for the discussion on Demands for Grants is over, the speaker of Lok Sabha puts all the outstanding Demands for Grants, whether discussed or not, to the vote of the house. This process is popularly known as Guillotine.