Budget 2019: What is GST, Fiscal Deficit, Primary Deficit to Revenue Deficit and more, all you want to know in brief
As ceremonial beginning of printing of Union Budget 2019 commenced today with Halwa Ceremony in North Block, where both the MoS (Finance) jointly launched the ceremony and shared the sweet dish with the Ministry officials. With the Budget 2019 process thereby set in motion, we highlight some critical details related to a few significant terms like 'GST', 'Fiscal Deficit', 'Revenue Deficit', ‘Primary 'Deficit', 'Capital Expenditure', Direct & Indirect Taxes etc, used in the annual financial statement. Finance Minister Arun Jaitley will present the (interim) Budget 2019 in the Lok Sabha on February 1, 2019.
Budget 2019: What is Revenue Deficit?
Union Ministry of Finance through its Twitter handle explained these terms through slides. It informed about Revenue deficit as "Generally Fiscal Deficit takes place due to either Revenue Deficit or a major hike in Capital Expenditure. But what is a ‘Revenue Deficit’?" Image source: Twitter/MoF
Budget 2019: What is Primary Deficit?
Describing the term ‘Primary Deficit’, MoF stated, "‘Primary Deficit’ is a part of Fiscal deficit. Let us see how ‘Primary Deficit’ is defined." Image source: Twitter/MoF
Budget 2019: What is Fiscal Deficit?
About ‘Fiscal deficit’, the ministry said, "We all come across the term ‘Fiscal deficit’ very frequently. But what is meant by ‘Fiscal Deficit’?" Image source: Twitter/MoF
Budget 2019: What are Direct & Indirect Taxes?
Talking about the country's tax structure, the MoF tweeted, "Tax structure in India is divided mainly into Direct & Indirect Taxes. In the last 4 years, the present Government has undertaken multiple Tax Policy & Process Simplification Reforms to have greater predictability, transparency, fairness & automation among others."
Image source: Twitter/MoF
Budget 2019: What is Goods & Services Tax (GST)?
It also explained the much-discussed GST as, "Goods & Services Tax (GST) has paved the way to a harmonized system of Indirect Taxes bringing uniformity in the taxation system in India. GST has also helped to ease the complex multiple Indirect Tax regime. Today we will be familiarizing with GST & associated terms:"
Image source: Twitter/MoF
Budget 2019: What is Customs Duty?
The Ministry further explained, "We have already seen what are Direct and Indirect Taxes and Goods & Services Tax (GST). Another tax that is levied on Import and Export of Goods is the ‘Customs Duty’. Do you know what the ‘Customs Duty’ is?" Image source: Twitter/MoF
Budget 2019: What is Monetary Policy?
Talking about the Monetary Policy, the MoF tweeted, "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.” Image source: Twitter/MoF
Budget 2019: What is Fiscal Policy?
MoF defined Fiscal Policy and tweeted, “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.” Image source: Twitter/MoF
Budget 2019: What is Inflation?
While explaining Inflation, MoF tweeted “A sustained increase in the general price level. The inflation rate is the percentage rate of change in the price level.” Image source: Twitter/MoF
Budget 2019: What is Finance Bill?
About Finance Bill, the Finance Ministry said, “ The Bill produced immediately after the presentation of the Union Budget detailing the Imposition, abolition, alteration or regulation of taxes proposed in the Budget.” Image source: Twitter/MoF
Budget 2019: What is Excess Grants?
Explaining Excess Grants, the ministry said, “If the total expenditure under a Grant exceeds the provision allowed through its original Grant and Supplementary Grant, then, the excess requires regularisation by obtaining the Excess Grant from the Parliament under Article 115 of the Constitution of India. It will have to go through the whole process as in the case of the Annual Budget, i.e. through presentation of Demands for Grants and passing of Appropriation Bills.” Image source: Twitter/MoF