Annual Financial Statement: As per Article 112 of the Constitution, the government is required to present a statement of estimated receipts and expenditures in respect of every financial year (from April 1 to March 31), to the Parliament. This statement is called the annual financial statement.
Fiscal Deficit: It occurs when the government’s total expenditures exceed the revenue that it generates, excluding the money from borrowings. Fiscal means Money. Deficit means Shortage. So, Fiscal Deficit can also be called Money Shortage. (Image: Shutterstock)
Budget Estimates: Amount of money allocated in the Budget to a ministry or scheme for the coming financial year. (Image: Shutterstock)
Revised Estimates: Mid-year estimates based on six months’ actual trends that take into account likely expenditure and receipts for the balance six months. (Image: Shutterstock)
Repo rate: The rate of interest paid to the RBI by commercial banks for short-term loans it lends against government securities. ‘Repo’ means repurchase of securities. (Image: Shutterstock)
Consolidated fund: Consolidated Fund of India includes revenues received and expenses incurred by the government in a financial year, except exceptional expenses like disaster management. All government expenditure is made from this fund except exceptional expenditure. The government cannot access it without approval from the Parliament.
Finance Bill: Finance Bill is a form of proposal the central government proposes to the Parliament for approval to introduce or amend taxes or the current tax structure (or continue with the same). It can only be presented in Lok Sabha. (Image: Shutterstock)
Direct and Indirect Taxes: Direct taxes are the taxes which are directly levied on the income of individuals and corporates — for example, income tax, corporate tax, etc. Indirect Taxes are taxes which are levied on the goods and services supplied – for example, GST, Customs Duty, etc. The final consumer pays it at the time of sale.
Customs duty: Customs Duty is imposed on the export and import of goods from or into the country. It is also a type of Indirect tax and is passed on to the final consumer of the goods. (Image: Shutterstock)
Revenue Deficit: A revenue deficit occurs when the government’s revenue expenditure exceeds its revenue receipts. This means that the government’s income is not sufficient to meet its day-to-day functioning.
