- Date : 22/01/2023
- Read: 3 mins
India's Finance Minister, Nirmala Sitharaman, will announce the Union Budget 2023 on February 1 in Parliament. Here are some terms you will find her speaking on!
You must know a few key Budget terms before the Union Budget 2023-2024. Let's dive in!
Public Account
The money the government holds in trust is kept in this account. It was created under Article 266. Government receipts like small savings collections, provident funds, etc., are used for expenditure on primary education, road development, etc. The Public Account holds these funds, and the funds the government doesn't own, which must be paid back, do not require Parliament's approval.
Also Read: Key highlights of Union Budget 2022
Contingency Fund
The contingency fund is for the government's unforeseen expenditures. Parliament approval is required before using it. It should be an ex post facto approval, and the amount equivalent is taken from the Consolidated Fund to get back the Contingency Fund. The currently authorized corpus stands at Rs. 30,000 crores.
Consolidated Fund of India
Government accounts disbursements and receipts are kept under the Public Account, Contingency Fund, and Consolidated Fund of India. The Annual Financial Statement identifies the expenditure on the revenue account from expenditure from other accounts. The Capital and Revenue sections make the Union Budget. CFI (Consolidated Fund of India) comprises all the loans received, receipts or loan recoveries, and revenues. CFI incurs government expenditure, and Parliament authorization is required to draw any amount.
Gross Domestic Product (GDP)
A nation's GDP is the monetary value of the final goods and services that are produced in a given period. The period is generally a quarter or even a year. It includes no-market productions as well, apart from for-sale items. No-market items include government health services, education, defense, etc. However, it does not have unpaid work like black market activities or voluntary work. GDP also considers the wear and tear of machinery, buildings, and other capital stock.
Also Read: Key highlights of Union Budget 2020
Gross National Product (GNP)
GNP is the resident output of a country. It is calculated by adding the GDP with the net income from residents' foreign investments.
Finance Bill
The Finance Bill and the Annual Financial Statement are presented together. It details the alteration, remission, abolition, regulation, or imposition of taxes proposed in a Union Budget. It also has other Budget provisions which can be classified as Money Bills. The Constitution (Article 110) makes Finance Bill a Money Bill.
Annual Financial Statement
It is tabled under Article 112 in the Parliament. It shows the estimated expenditure and receipts of the Indian government during a financial year, the net of recoveries and refunds, and other revised estimates of the preceding year.
The terms mentioned above are commonly found in the Budget, which you will find in Budget 2023. We hope you learned about the Budget and its terms with this!
You must know a few key Budget terms before the Union Budget 2023-2024. Let's dive in!
Public Account
The money the government holds in trust is kept in this account. It was created under Article 266. Government receipts like small savings collections, provident funds, etc., are used for expenditure on primary education, road development, etc. The Public Account holds these funds, and the funds the government doesn't own, which must be paid back, do not require Parliament's approval.
Also Read: Key highlights of Union Budget 2022
Contingency Fund
The contingency fund is for the government's unforeseen expenditures. Parliament approval is required before using it. It should be an ex post facto approval, and the amount equivalent is taken from the Consolidated Fund to get back the Contingency Fund. The currently authorized corpus stands at Rs. 30,000 crores.
Consolidated Fund of India
Government accounts disbursements and receipts are kept under the Public Account, Contingency Fund, and Consolidated Fund of India. The Annual Financial Statement identifies the expenditure on the revenue account from expenditure from other accounts. The Capital and Revenue sections make the Union Budget. CFI (Consolidated Fund of India) comprises all the loans received, receipts or loan recoveries, and revenues. CFI incurs government expenditure, and Parliament authorization is required to draw any amount.
Gross Domestic Product (GDP)
A nation's GDP is the monetary value of the final goods and services that are produced in a given period. The period is generally a quarter or even a year. It includes no-market productions as well, apart from for-sale items. No-market items include government health services, education, defense, etc. However, it does not have unpaid work like black market activities or voluntary work. GDP also considers the wear and tear of machinery, buildings, and other capital stock.
Also Read: Key highlights of Union Budget 2020
Gross National Product (GNP)
GNP is the resident output of a country. It is calculated by adding the GDP with the net income from residents' foreign investments.
Finance Bill
The Finance Bill and the Annual Financial Statement are presented together. It details the alteration, remission, abolition, regulation, or imposition of taxes proposed in a Union Budget. It also has other Budget provisions which can be classified as Money Bills. The Constitution (Article 110) makes Finance Bill a Money Bill.
Annual Financial Statement
It is tabled under Article 112 in the Parliament. It shows the estimated expenditure and receipts of the Indian government during a financial year, the net of recoveries and refunds, and other revised estimates of the preceding year.
The terms mentioned above are commonly found in the Budget, which you will find in Budget 2023. We hope you learned about the Budget and its terms with this!
