Why the human angle is so important in Budgets
The budget is not just about finances; it is a reflection of a country's priorities. Investing in education, health, and women's empowerment is crucial for economic growth. With the right allocations, India can boost literacy, healthcare, and female labor force participation to drive sustainable development.
What does the govt spend on? The politics and economy of expenditure
The budget will include both capital and revenue expenditures, impacting the economy and potentially favoring certain regions or social groups. Capital expenditure is crucial for economic growth, while welfare schemes can support consumption and boost sectors. However, the government may need to rein in capital expenditure due to the pandemic's impact on the fiscal deficit.
How Union budget is different from your household budget
Budget 2024: Understand the crucial differences between a country's Union budget and a household budget. While a household has known income, the government's future income is an estimate. Explore how these distinctions impact fiscal management and decision-making in our comprehensive coverage.
What goes into the making of the Union budget? Here's a step-by-step breakdown
The budget-making process begins at the finance ministry, specifically within the Budget Division of the Department of Economic Affairs. A core Budget group, including the finance minister, finance secretary, revenue secretary, expenditure secretary, and the chief economic advisor, initiates the detailed work required to prepare the budget.
What is the budget gap? How does the government fill it?
Interim Budget 2024: The fiscal deficit, also known as the budget gap, is the result of government spending exceeding its earnings. This leads to government debt, which has implications for interest rates and bond yields. Excessive market borrowing by the government can crowd out private players. High fiscal deficits can lower sovereign credit ratings and pose an existential crisis for the economy.
What do the big numbers in the Budget actually mean?
Budget 2024: The most important numbers in the Union budget are the budget size, capital expenditure, fiscal deficit, nominal GDP growth, and net tax collection. The budget size represents the government's fiscal support and spending. Capital expenditure drives investment-led growth.
Where does government get all the money it needs?
The Union budget defines the government's income, which primarily consists of revenue and capital receipts. Revenue receipts include taxes such as direct taxes (personal income tax, corporate tax) and indirect taxes (GST, excise duties, customs duties), while capital receipts include disinvestment proceeds and borrowings. Non-tax revenue receipts come from sources like profit from PSUs, interest on loans, fines and penalties, foreign aid, and fees on government services. The government uses tax revenue to increase spending and reduce fiscal deficit.
What exactly are the govt's priorities in a budget?
Budget Explainer: The budget reflects the government's priorities, economic growth, human development, and technological progress. It allocates money to different ministries and departments, indicating the government's commitment to various sectors. Capital expenditure promotes economic growth, while subsidies and freebies focus on political objectives and stimulating consumption.
All the budget jargon simplified just for you
The budget is a financial statement that uses specialised language that the general public might not fully understand. It may be challenging to grasp or assess the budget if you are unfamiliar with these words. The essential terms for comprehending the budget are listed below.
How to get past the long Budget speeches and get to the point
The budget is an accounting exercise that projects revenues and expenditures while also serving as a platform for political statements, commentary on the government's economic achievements, and the announcement of new policies and regulations. However, the budget speech often includes announcements without fiscal backing and schemes with insufficient allocation. It is important to separate the rhetoric from the actual budget numbers.
Confused about the calculations? This is how the budget math works
Budget 2024: Finance Minister Nirmala Sitharaman will present an interim budget on February 1. The interim budget will provide projections for the coming financial year, including calculations on income, spending, and borrowings. The budget-making process is based on assumptions, with the nominal GDP being a crucial factor.
Your complete guide to what each budget document holds
The Union budget consists of more than a dozen documents. The budget is structured to present it with clarity and in a detailed manner, following the law. Mandatory documents include the Annual Financial Statement, Finance Bill, and Fiscal Policy Statements. The budget begins with the finance minister's speech summarizing the economy, projections, policy focus, and allocations.
