Finance Minister Nirmala Sitharaman will present the "General Budget" of Modi government for the financial year 2020-21. The financial year if counted from 01 April to 31 March of the next year. All taxes are applicable during the period.
The Budget will be introduced in Lok Sabha today at 11:00 am. Farmers, youth, middle class all have high hopes from this budget.
Also, questions related to Budget are always asked in various competitive exams including UPSC and others. Students preparing for competitive exams must go through the details provided here to enhance their general awareness and some basic terminology related to the Budget.
The Budget is always introduced in the Parliament only after the President's signature on the Budget. After the signature, the cabinet meeting will be held for the formal approval of the Budget.
Just like last year, the Union Finance Minister Nirmala Sithraman is presenting the budget in a ‘Red Cover’, the briefcase of the budget has converted into ‘Bahi-Khata’.
Earlier in July 2019, the Chief Economic Adviser Krishnamurthy Subramanian had given a statement that ‘Bahi-Khata’ symbolises the departure of slavery from our western thought. This is the very first time that red cover is being used to carry the budget documents.
The budget includes a report card on the income and expenses that have been made last year and the proposed expenses likely to be made in the next few months until the new government takes over. Once the approval passed from the parliament the funds for these expenses are then debited to the Consolidated Fund of India.
To understand the budget, you just need to learn the basic terms and their meanings. Have a look below.
- If the government sells its stake in a public sector company in the private sector, then it is called disinvestment. This stake is sold by the government through shares. These stakes can be sold to either an individual or a private company.
- When the central government lacks money, it issues bonds to absorb money from the market. This is a kind of debt, which is paid by the government within a set time after the payment is received. Bonds are also called credit certificates.
- Whatever financial transaction takes place among the Central Government, State Governments and the governments present in other countries of the world, it is called 'balance of payment' in the budget language.
- Balance budget occurs when both expenditure and earnings of the government are equal.
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