The Union Budget for the fiscal year 2025-26 will be presented by Finance Minister Nirmala Sitharaman on February 1, 2025, at 11 am in the Lok Sabha
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The Union Budget for the fiscal year 2025-26 will be presented by Finance Minister Nirmala Sitharaman on February 1, 2025, at 11 am in the Lok Sabha. This annual exercise highlights the government’s financial roadmap, detailing projected expenditures and revenues for the year ahead.
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Marking her eighth budget presentation, including six annual and two interim budgets, the Union Budget 2025 holds critical significance as it represents the second complete budget under the Modi government’s third term. It is expected to address pressing economic concerns and set the stage for India’s financial priorities.
The budget is divided into two parts:
- Revenue Budget: Covers the government's estimated receipts and expenditure on routine operations like salaries and subsidies.
- Capital Budget: Includes receipts and expenditures on long-term investments such as infrastructure and defence.
Key Terms to know before the budget presentation:
1. Annual Financial Statement (AF): The blueprint of the government’s receipts and expenditures for the financial year.
2. Budget Estimate: The projected allocation of funds to ministries, sectors, and schemes.
3. Capital Expenditure (Capex): Expenditure on long-term assets like infrastructure and equipment.
4. Capital Receipts: Funds earned through borrowing, asset sales, or equity investments.
5. Cess: Additional tax for specific initiatives like education or healthcare.
6. Consolidated Fund: The government’s main account for revenues and expenditures, excluding the contingency fund.
7. Contingency Fund: Emergency reserve managed by the President of India, requiring parliamentary approval for withdrawals.
8. Customs Duty: Tax levied on imported and exported goods.
9. Direct Tax: Taxes like income tax and corporate tax paid directly to the government.
10. Divestment: Sale of government stakes in public sector enterprises.
11. Economic Survey: Annual report assessing the previous year’s economic performance and setting the stage for the budget.
12. Finance Bill: Proposal to introduce or amend tax policies.
13. Fiscal Deficit: The gap between total expenditure and revenue, financed through borrowing.
14. Fiscal Policy: Government’s strategy involving taxation and spending to influence the economy.
15. Goods and Services Tax (GST): Indirect tax on goods and services paid by consumers but remitted by businesses.
16. Gross Domestic Product (GDP): The total market value of goods and services produced within a country during a specific period.
17. Indirect Taxes: Taxes on goods and services, such as GST and customs duty.
18. Inflation: The rate of increase in prices, reducing purchasing power.
19. New Tax Regime: Introduced in 2022, offering lower tax rates with simplified structures, becoming the default system in 2023-24.
20. Monetary Policy: RBI’s measures to control liquidity and achieve sustainable economic growth.
21. Old Tax Regime: The previous system with fewer tax slabs but higher rates and more exemptions.
22. Public Account: Used to manage government receipts like provident funds and small savings.
23. Rebate: Tax liability reduction aimed at easing financial burdens.
24. Revenue Deficit: When revenue expenditure exceeds revenue receipts.
25. Revenue Expenditure: Operational costs like salaries, subsidies, and interest payments.
26. Revenue Receipt: Income from taxes, fines, and services provided.
27. Tax Collected at Source (TCS): Tax collected by sellers at the time of sale and deposited with authorities.
28. Tax Deduction: Reductions in taxable income through specific investments.
29. Tax Surcharge: Additional tax on higher-income taxpayers.
30. Vote on Account: The government obtains permission from the Parliament for a sufficient sum to carry on daily functions until the required legislation is passed.
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