Budget 2024: Key terms to understand before Sitharaman’s speech

Every year during the Union budget, all ministries, departments, sectors and schemes are allocated funds. These estimated funds allocated determine how and where the money will be used, and what costs will be incurred during a given period. These estimated funds are called budget estimates.

Economic Survey summarizes the performance of the economy in the ongoing financial year and sets the stage for the budget of the upcoming financial year to be presented.

Inflation is the rate of increase in the prices of goods, services and commodities in the country. It indicates the purchasing power of a consumer for a defined set of goods.

Direct taxes are the taxes that are levied directly from a taxpayer, such as income tax or corporate tax. Meanwhile, indirect taxes are the taxes levied indirectly on goods and services, such as GST, VAT and excise duties on a service.

The Finance Bill outlines the government's financial plans and is introduced in the Parliament each year to implement the budget proposals. It presents the government's fiscal policies and allocations for the upcoming financial year.

The capital expenditure of a country is the total amount of money that the Centre allocates to the development, acquisition or degradation of machinery. It also includes the expenditure incurred on acquiring fixed assets like land and investment by the government that gives profits or dividends in future.

A fiscal deficit is a shortcoming in the income of a government as compared to its spending. It is the difference between the total income of the government and the total expenditure incurred by it.