12-03-2011

UNION BUDGET GLOSSARY

Here is an attempt by us to help us understand budget jargons. Following are the list
of words:-
Accountability:
Accountability is the degree to which it is ensured that an organisation’s money is
collected and disbursed properly and that an auditable record is keBest regards,pt of
all transaction

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Appropriation Bill:Appropriation
This bill enables withdrawal of money from the consolidated fund to pay off
expenses. These are the instruments that parliaments clears after the demand for
grants has been approved by the Lok Sabha.

Budget Estimate: Accountability

They are the estimate of fiscal deficit and the revenues deficits for the year. The
term is associated with the estimate of Center’s spending during the financial year ant
the income received as proceeds for tax revenues.
● Fiscal Deficit:
Fiscal deficit occurs when the government non-borrowed receipts fall short of its
expenditure, it has borrowed money from the public to meet the shortfall. The excess
of total expenditure over total non-borrowed receipts is called fiscal deficit.
● Duties:
Custom duties are levied on goods when they are either brought or exported from
the country.
● Contingence Fund:
The government has made this fund to help its tide over difficult situations. The
fund is at the disposal of the President to meet urgent expenditure, pending approval
from parliament.
● Direct Tax:
Taxes imposed directly on the customers like the income tax and the corporate
tax.
● Disinvestment:
Dilution of the government’s stake in Public Sector Undertaking is known as
disinvestment.
● Excise Duties:
These are duties imposed on goods manufactured within the country.
● Gross Domestic Product:
Cumulative market value of the goods and services manufactured within the
country in the financial year.
● Gross National Product:
Cumulative market value of the ready goods and services manufactured within the
country in a given financial year plus income earned by the locals from investment
made abroad, minus the income earned by foreigners in local market.
● Indirect Taxes:
Tares levied on goods manufactured, imported or exported such as excise duties
and custom duties.
●Subsides:

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Financial aid provided by government to individuals or a group of individual to be

competitive.