Here is your cheat sheet to the budget jargon:

Union Budget: Union Budget is a comprehensive account of the finances. It

lays down a consolidated report of revenue from all sources and outlays for
schemes and projects. The budget also carries Budgeted Estimates which are
the estimates of the Central government s accounts for the upcoming fiscal.
Direct and Indirect Taxes: Direct taxes impose direct liability on
individuals and corporations like income tax, corporate tax et al. Indirect
taxes like GST, excise duty, customs duty etc are paid on purchases of goods
and services and are collected indirectly by the government.
Customs Duty: This is a levy charged on the price of goods that cross India s
international borders. It is paid first by either the importer or the exporter.
This levy is also usually passed down to the customers via the supply chain.
Corporate Tax: Corporate tax is the tax imposed on the income of
corporations or firms and it is a direct tax.
Minimum Alternative Tax (MAT): MAT is the minimum tax liability of a
company even it lies under zero tax limit.
Goods and Services Tax: GST is an indirect tax applicable on supply of
goods or services or both. The exceptions items like essential foods,
petroleum etc. Goods here mean any movable property barring money and
securities. Though it includes actionable claim growing crops, grass and
things attached to or forming part of the land which are agreed to be severed
before supply or under a contract of supply.
Services mean anything other than goods, money and securities. It includes
activities involving the use of money, conversion of money by any mode,
form, currency, and denomination for which a separate consideration is
levied.

Fiscal Deficit: When the entire expenditure of the government is more than
the total non-borrowed receipts, it has to meet the gap. The money to meet
the gap is usually borrowed from the Reserve Bank of India or from the
capital market by issuing instruments like bonds and treasury bills. The
portion of the expenditure in excess of the non-borrowed receipts is the fiscal
deficit. The fiscal deficit rate is the percentage measure of the excess.
Primary Deficit: Primary deficit is fiscal deficit minus interest payments.
Primary deficit gives a picture into how much of the borrowings by the
government are being utilised to meet expenses other than interest payments.
Revenue Deficit: When there is a shortfall in the current receipts of the
government against the current expenditure, the shortfall is called revenue
deficit. It is calculated as the difference between revenue expenditure and
revenue receipt.
Fiscal Policy: It is the policy formulated to outline government actions
considering the aggregate revenue and expenditure. It is the primary tool to
influence the country s economy and the implementation of fiscal policy is
done via the budget.
Monetary Policy: Monetary policy is formulated by the Reserve Bank of
India and it governs aspects like liquidity in the economy, benchmark rates
like repo rate, reverse repo rate, steps to control inflation etc.
Inflation: Inflation is described as sustained hike in prices. Inflation rate is
the percentage rate of hike in prices.
Capital Budget: Capital Budget lists down the capital receipts and payments.
Capital budget includes government s investments in shares, loans and
advances given to states, PSUs, corporations etc.
Revenue Budget: It is comprised of revenue receipts and expenses. Revenue
receipts are listed in two categories tax and non-tax revenue. Tax revenue is
receipts from taxes like income tax, corporate tax, indirect taxes, duties and
government levies etc. Non-tax revenue includes dividends and interest
accrued from loans.
Finance Bill: After the Finance Minister presents the Union Budget, the
Finance Bill is tabled immediately before the House. It proposes detailed
changes, impositions, alterations or abolition to taxes, duties and levies. The
bill brings into immediate effect the financial proposals by the government
for the coming fiscal. It may also include provisions that give effect to
additional financial proposals. The Finance Bill also recommends
amendments to several acts like Income Tax Act 1961, Customs Act 1962
and more.
Vote on Account: Vote on Account is the grant that the parliament makes in
advance to meet the expenditure estimated for a part of the coming financial
year. The grant is made after clearing all the procedures for voting on
demand for grants as well as the passage of the Appropriations Act.
Excess Grants: If the expenditure exceeds the original grant and
supplementary grants, the excess needs to be regularised after obtaining the
excess grant from Parliament. As is the case in the Annual Budget, it will
then have to go via presentation of demand for grants and then passage of the
Appropriation Bills.
Budget Estimates: Budget estimates are the allocations for ministries,
schemes and projects for the upcoming financial year.
Revised Estimates: Revised estimates are simply mid-year reviews of
possible expenditure. It also accounts for the rest of expenditure, new
services and its instruments. No voting is held in Parliament for revised
estimates. The parliament, though, authorises any supplementary projections
in the revised estimates by parliament s approval or a re-appropriation order.
Re-appropriations: As the name suggests, government uses re-
appropriations to re-appropriate sums under one subhead to another in the
same grant. It is sanctioned by competent authorities during the financial year
for which the grant or appropriation concerned. These re-appropriations are
reviewed by the Comptroller and Auditor General of India which makes
comments for corrective action.
Outcome Budget: The Outcome Budget is a progress report on the use of
outlays by ministries from the previous annual budget. It is an effective
measure to check outcomes of development schemes and also allows whether
the ministries actually spent the sanctioned money for the purposes it was
meant for.
Cut Motions: A motion to reduce demands for grants is brought in the form
of Cut Motion. It seeks slashing the sum demanded on various grounds like
economic factors, difference of opinion over policy or some grievances.
Contingency Fund of India: It is a fund that is kept at the disposal of the
President of India. It enables the President to provide advances to the
government to meet any unforeseen urgent or critical expenditure.
Public Account: Public Account is used for fund flows where the Union
government acts as a banker. These include small savings, provident funds
etc. Public Account is subsequently returned to the depositors and does not
belong to the government in any way. The parliament is not required for
approving the expenditure from Public Account.
Consolidated Fund of India: Consolidated Fund of India is one into which
all revenues, borrowings and receipts from loans advanced by the
government flow. The expenditure of the government is met from the
Consolidated Fund of India except for those expenses which are met via
contingency fund of public account. Money cannot be appropriated from this
fund except in certain conditions in accordance with the law.
Disinvestment: Disinvestment is sale of assets of public sector undertakings.
The government has at its disposal shares of PSUs as earning assets. When
these earning assets are sold, they are converted into cash. Hence, the term
disinvestment.
Treasury bills (T-bills): Treasury bills are bonds which have a maturity of
less than a year. They are issued for meeting short-term mismatches in
receipts and expenditure.