25 Major Points About The Union Budget Of 2025

25 Technical Terms Of Budget 2025

One should know the meaning of 25 technical terms for understanding the particulars of the budget. Those 25 terms are:

1. Annual Financial Statement (AF)

AF represents the receipts and expenditures of the government during the financial year.

2. Budget Estimate

A budget estimate is the estimated amount of funds that will be allotted to various ministries, departments, and sectors for carrying out various functions.

3. Capital Expenditure (capex)

Capital Expenditure aka capex is the total amount of money used by the center for purchasing assets and other developmental projects.

4. Capital Receipts

The funds that the government receives through loans, selling assets, or equity investments are called Capital Receipts.

5. Cess

The additional tax that is added to income tax for funding various sectors like health or education is called cess. It is applied to the total tax liability including surcharge.

6. Consolidated Fund

The total amount of revenue raised by the government through market borrowings, loan receipts, etc is called the Consolidated Fund.

7. Contingency Fund

The government keeps some amount separate for unpredictable situations and that fund is called the Contingency Fund. If some portion of the money is used from the Contingency fund with the prior approval of the parliament, the money is deposited back from the Consolidated fund.

8. Direct Taxes

Direct taxes are simply taxes imposed directly on taxpayers such as income tax or corporate tax.

9. Divestment

When the government sells its assets, it is called divestment.

10. Economic Survey

During the Union Budget, the Economic Survey is also presented which summarises the nation’s expected economic performance in the upcoming year.

11. Financial Bill

A Financial Bill is a document that comprises the policy of levying new taxes or introducing changes in the tax structure.

12. Fiscal Deficit

The difference between the total expenses of the government with the total revenue is the Fiscal deficit. The difference is compensated by borrowing funds from the Reserve Bank of India (RBI) along with other such measures. It is calculated as a percentage of the GDP.

13. Fiscal Policy

A document through which taxes are estimated along with the expenses of the government is called the Fiscal Policy. It helps in determining the nation’s economic position.

14. Indirect Taxes

Taxes that are levied on taxpayers through GST, VAT, customs, or excise duties are nothing but Indirect taxes.

15. Inflation

When the price of goods and services starts to increase at a rapid pace, it is known as Inflation. Increasing inflation weakens the purchasing power of the citizens.

16. New Tax Regime

The New Tax Regime was introduced in the year 2022 which comprised 7 tax slabs with concessional rates. It automatically became the default regime for the nation.

17. Old Tax Regime

The Old Tax Regime consisted of 4 tax slabs with the highest tax rate of 30% for those who had incomes above Rs. 10 lakh.

18. Public Account

An account used for transactions wherein the govt merely plays the role of a banker is called a Public Account. Any amount of money received by or on behalf of central or state governments is credited to a Public account.

19. Rebate

A reduction in the total income tax to boost economic activity and give a little relief to the taxpayers is termed a Rebate.

20. Revenue Deficit

When the total revenue expenditure exceeds the total revenue receipts, this phenomenon is known as the Revenue Deficit.

21. Revenue Expenditure

Revenue Expenditure is nothing but an estimated amount that the government expects to spend on salaries, allowances, subsidies, etc to keep working efficiently. It also includes interest accumulated on debts taken by the government.

22. Revenue Receipt

The amount of money the government earns through imposing taxes or fines or through selling goods or services is considered a Revenue Receipt.

23. Tax Collected at Source (TCS)

Tax Collected at Source (TCS) is tax imposed and collected by a seller when someone purchases their goods and services.

24. Tax Deduction

Tax Deduction lowers the total payable amount of the tax and is applied to several things like investments in PPF, NSC, FDs, etc.

25. Tax surcharge

Taxpayers who earn more than 50 lakh p.a. are required to pay a tax surcharge. It is an extra tax applied to the existing tax rate.