Budget 2024: Terms that you come across during Budget speech but might not know their meaning; know here

Budget 2024: Union Budget is one event that impact every Indian in some way or other. Taxpayers, businesspersons, homemakers, poor or riches, everyone has some expectation from the budget.

But budget terminology is not common at some times.

At times, when you hear India's finance minister delivering their budget speech, you may come across many words, which are not used in everyday business.

These words are unique and a large section of budget followers is not familiar with them.

In this write-up, we will ease your problem by tell the meaning of tough words in simple terms. 

Financial Year

Though it doesn't sound unfamiliar, many of us have heard them in school, colleges or outside of them, the most basic thing about a financial year in India that common folks need to know is that it starts from April 1, unlike the new year that begins on January 1.

The financial year that will start on April 1 this year will end on March 31.

It is through the financial year that the business cycles of the Indian government and most of the public and private companies in India run.

Revenue Deficit

The word revenue deficit is used a lot in the budget.

When the government's income is less than the estimated, it is called revenue deficit.

In case of revenue deficit, the government runs short of money, hence it is forced to take loan(s).

Contingency Fund

As we need an emergency fund to deal with sudden situations, the government also needs one.

Contingency fund is a fund which is prepared to deal with emergency situations.

To withdraw money from this, the finance doesn't need to take the approval of the Parliament.

Fiscal Policy

You may hear this word a lot of times when Finance Minister Nirmala Sitharaman presents the Interim Budget on February 1, 2024, Thursday.

The word means adopting special measures for financial management.

To control inflation and create employment opportunities, the government controls excess expenditure or cuts taxes.

The purpose of fiscal policy is to put more money in the hands of consumers.

When consumers have more money in their hands, they spend more.

This makes the wheel of economy run faster.

Revenue Expenditure

The expenditure required by the government to run the country is called revenue expenditure.

The revenue is used in disbursing the salaries of employees, paying electricity, water bills of ministries and departments, granting subsidies to people and state governments, and is also spend on stationery, computers, etc.

Capital Expenditure

This is the expenditure from which the government earns.

The government spends this money to create assets like buying land, building a school, college or any other building, constructing a road, hospital, etc.

These avenues, in return, help the government earn money in the short or the long term.

Blue Sheet

There is a blue coloured secret sheet of important documents related to the budget and important data related to it. It is called the backbone of the budget process. It is kept quite secret.