Interim Budget: Know About The Key Terms To Understand Union Budget

Outlook Money

What is an Interim Budget?

An interim Budget allows for essential spending until a new budget is drawn up after elections,  if a new government is forming as elections approach.

Union Budget

Anatomy of Budget

The Union Budget is an annual exercise that estimates the central government's revenue and expenses for the upcoming financial year.

Budget

Financial Indicators of Interim Budget: Fiscal Deficit

A fiscal deficit is the extent to which the government spends more money than it brings in, excluding money borrowed from markets. It is measured as a percentage of the GDP and represents the gap between government spending and receipts.

GDP

Primary Deficit

When the government spends more than what it earns from taxes and other sources, excluding interest payments on debt, it creates a primary deficit.

Primary Deficit

Revenue Deficit

A revenue deficit is the extent to which the government spends over its regular income.

Revenue

Capital Expenditure

Capital expenditure is the money the government spends on creating, and acquiring, long-lasting assets, infrastructure, or investments that can bring in revenue.

Capital Expenditure

Government Funds

There are three government funds which include, Consolidated Fund, Contingency Fund and Public Account.

Compiled by Syed Muskan

Funds

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