Union Budget 2019-20: Terms You Need To Know For Better Understanding Of Govt Budget

The Union Budget for 2019-20 after the 17th Lok Sabha elections will be presented next Friday on July 5, 2019 by Nirmala Sitharaman. Here are a few terms which you must know to have a better understanding of Budget.

Finance Bill:

This entails all details of whether the existing tax structure will be continued for the period beyond what has been approved by the parliament or new tax levies will be levied and this is submitted before the Parliament via this bill.

Budget deficit:

It is the difference between all receipts and expense in case of both the government's revenue and capital account. And includes or is the sum of both the capital account deficit and revenue account deficit.

Revenue deficit:

In case of revenue account, the excess of disbursements made in comparison to receipts is what is referred as revenue deficit. Ideally, this figure should be zero.

Annual financial statement:

For each of the financial year, an estimated receipt and expenditure statement has to be presented before the parliament. The white 10-page document entails 3 parts consolidated fund, contingency fund and public account.

Consolidated fund:

It is the money borrowed, loan receipts as well as revenue raised by the government of India. All government expenditure has to be made from this fund except that for exceptional items which are to be financed from public account or contingency fund. Also, money from this fund cannot be withdrawn without the prior approval of the parliament.

Contingency fund:

This is for unforeseen expenses and the fund of Rs. 500 is at the disposal of the President. Also, for meeting out certain expenditure from the fund, a parliamentary approval is required and the amount withdrawn from the fund has to be returned back from the consolidated fund.

Plan expenditure:

This is the support lent out to the central plan and the assistance for state and union territory plans. And is like all other budget heads divided into capital and revenue components.

Subvention:

The government grants money as in support or aid and all of the loss such as when providing loans at cheaper rate to priority sectors including agriculture etc. is made good through the process of subvention.
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