Incidentally, there are some phrases in the budget, the meaning of which helps to understand the budget. The meaning of some such ‘terms’ is explained below.
Fiscal year refers to a year’s income-expenditure record by the government. That is, it is calculated on the basis of all the economic activities in a year.
Not only government but all organizations prepare their balance sheets on a financial year basis. Also prepare income statement. But this financial year does not start at the same time all over the world. It starts at different times. But all calculations are done for a period of one year, irrespective of when it starts.
A financial year in India is from 1st April to 31st March.
Inflation refers to the rise in prices of goods over time. Because money loses its value over time.
For example, what can be bought for Rs 2000 today, will not be possible to buy for Rs 2000 or equivalent in a decade. You have to spend more money for that. A 10% inflation rate means that what was worth Rs 100 a year ago, has reduced to Rs 90 a year later. That is, the purchasing power of money has decreased.
The economic growth of a country depends on the amount of money flowing into the economic infrastructure of that country. And the Reserve Bank of India follows various approaches to maintain stability in the supply of cash in the market.
Disinvestment or decentralization of investment—
When the government sells its share or ownership in a state-owned enterprise, it is called decentralization of investment.
The amount that the government invests in infrastructure and production sectors for long-term goals is called capital expenditure. Investments in buildings, machinery, education, health sector are considered as capital expenditure.
Customs Duties or import – export dutyLock
This duty is levied on the export or import of goods into the country. It is a type of indirect tax. Through this taxation, the government secures its own revenue, controls over import and export of goods and protects domestic production from economic losses due to externalities.
Excise duty is a type of indirect tax that is collected from consumers through a retailer or intermediary and then paid to the government.
Several indirect taxes, including excise duty, are now included in GST.
The government provides financial assistance in various ways to increase the international market of domestic products. For example, exports are encouraged in multiple ways including low interest rates on loans, tax breaks, subsidies.