The Budget Session of Parliament is going to begin on 31 January and is expected to conclude on 6 April, with a break in between. President Droupadi Murmu is going to address the joint sitting of Lok Sabha and Rajya Sabha in the Central Hall of Parliament to start the session. Nirmala Sitharaman, Union Finance Minister, will present the Budget 2023 on 1 February and its live streaming will begin at 11 AM. The Budget session will have 27 sittings spread over 66 days with the usual recess, as told by the Union Minister of Parliamentary Affairs, Pralhad Joshi.
Understanding the nation’s budget is important for every citizen. For that, you need to know some key terms linked to the Budget:
Here are some important terms you should know ahead of Budget 2023:
Fiscal Deficit
Fiscal deficit refers to the difference between the total revenue and total expenditure of the government. It indicates the total borrowings required by the government.
Annual Financial Statement
Under Article 112 of the Constitution, the government needs to present a statement of estimated receipts and expenditures in respect of each financial year to the Parliament. This statement is known as the annual financial statement and is the main budget document.
Finance Bill
As defined under Article 110 of the Constitution, a Finance Bill is a Money Bill. It is a type of proposal by the central government to the Parliament for approving the introduction of taxes as well as the amendment or continuance of the current tax structure beyond the earlier approved timeframe. A Finance Bill can only be presented in Lok Sabha.
Consolidated Fund
Revenues received and expenses incurred by the government in a fiscal year are included in the Consolidated Fund. It should be noted that it doesn’t include exceptional expenses like disaster management. The government cannot have access to the Consolidated Fund without the Parliament’s approval.
Direct and Indirect Tax
Direct taxes are referred to the taxes which are levied directly on the income of corporations and individuals, such as income tax and corporate tax. On the other hand, taxes, where the impact and incidence do not fall on the same entity, are called indirect taxes. Some examples of indirect taxes are Customs Duty and Goods and Services Tax (GST).
Revenue Deficit
When the revenue expenditure of the government exceeds the revenue receipts, a revenue deficit occurs. This implies that the government’s income is not enough for meeting its day-to-day functioning.
Customs Duty
The tax imposed on the imports and exports of goods is called the customs duty. The rates of customs duties are either specific or on an ad valorem basis, that is, it is in accordance with the value of goods.
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