India Budget 2022: 15 Budget And Finance Terms You Need To Know
Finance Minister Nirmala Sitharaman will present the Budget 2022 on February 1. In India, the Union Budget is presented each year on February 1, showing how the government plans to compute taxes and spending in the upcoming financial year. Several important announcements are made during the Budget presentation every year.
In its latest economic research, Bank of Baroda said that the Union Budget for 2022-23 will focus on boosting growth, achiev...Read More
Finance Minister Nirmala Sitharaman will present the Budget 2022 on February 1. In India, the Union Budget is presented each year on February 1, showing how the government plans to compute taxes and spending in the upcoming financial year. Several important announcements are made during the Budget presentation every year.
In its latest economic research, Bank of Baroda said that the Union Budget for 2022-23 will focus on boosting growth, achieving fiscal consolidation and driving consumption. Changes in tax concessions are also expected. Before the Budget 2022 is announced, here are some important budget and finance terms that you must be aware of.
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1. Macro-economics
A branch of economics that focuses on the aggregate changes in an economy. It includes the study of factors such as inflation, GDP, unemployment, and National Income and looks at economy 'as a whole'.?
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2. Microeconomics
Microeconomics is the study of individual behaviour that affects the allocation of resources. It includes studying the choices that people make, the factors influencing their choices, and the way people's decisions affect the goods markets.??
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3. Fiscal Year
Also known as the financial year, it is a time period set by the government for budget and accounting purposes. In India, the fiscal year starts on April 1 and ends on March 31 of the next year.??
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4. Gross Domestic Product
The Gross Domestic Product (GDP) is the collective market value of all finished goods produced within a country's geographical boundaries in a specific period of time. The GDP indicates a country's economic health.?
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5. Corporate Tax
A form of direct tax payable by a company or corporate on its profits. It is calculated as per the net revenue or income of a company which is the amount left after necessary deductions.?
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6. Household Income
As the name suggests, the household income is the combined income of all members sharing a place of residence. It includes various components such as salary, wages, retirement income etc.?
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7. Revenue Deficit
Revenue Deficit is a situation where the government's revenue expenditure is more than its revenue r... Read More
Revenue Deficit is a situation where the government's revenue expenditure is more than its revenue receipts, implying that a government is unable to meet its everyday expenses. The revenue expenditures are short-term expenses acquired in the day to day workings of the government. Revenue receipts is the income from taxes and other duties levied by the government.
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8. Direct Tax
The taxes that are directly applicable on the income of a company or individual. It includes components like income tax, corporate tax, and so on.?
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9. Union Budget
A plan prepared by the government outlining its taxation and spending in the upcoming financial year. The Finance Minister presents the Union Budget each year.??
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10. Interim Budget
When the government isn't able to present a full budget before the end of a financial year, it needs a parliamentary approval to incur expenses till the time a new budget is passed. In this situation, an interim budget is presented. The interim budget is in effect for a temporary period.?
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