Union Budget 2025 Trivia: 15 Key Terms You Should Know

Union Budget 2025 Trivia: 15 Key Terms You Should Know

By Rajni Pandey | January 27, 2025

Budget Estimates (BE)

The estimated funds allocated to a ministry, used to plan expenditures and assess financial needs during the fiscal year.

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Capital Expenditure (Capex)

Funds used by the government for long-term investments to boost economic growth, like infrastructure development.

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Cess

An additional charge on taxes to fund specific causes such as healthcare, education, or disaster relief.

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Direct Tax

Taxes directly imposed on individuals and companies, including income tax and corporate tax.

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Disinvestment

The process where the government sells its stake in public sector enterprises to raise funds.

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Economic Survey

An annual report that reviews the nation’s economic performance and sets the stage for the upcoming budget.

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Fiscal Deficit

The gap between the government’s total spending and revenue collection in the previous financial year.

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Fiscal Policy

Government strategies to regulate taxation and spending to maintain economic stability and growth.

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Indirect Taxes

Taxes levied on goods and services, such as GST, VAT, and customs duty, passed on to consumers.

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Inflation

A rise in the prices of goods and services, leading to a decline in purchasing power.

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New Tax Regime

A simplified tax structure with seven slabs, offering lower tax rates but no deductions.

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Old Tax Regime

The traditional tax format with four slabs, allowing deductions and exemptions for taxpayers.

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Rebate

A reduction in income tax liability, lowering the tax burden on individuals.

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Tax Collected at Source (TCS)

A tax collected by sellers from buyers at the point of sale for certain goods or services.

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Tax Deduction

A discount that reduces the taxable income of individuals or businesses, lowering the final tax payable.

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