Budget 2023-24: The budget is going to be presented on February 1, through this terminology you can easily understand your work
New Delhi: Union Finance Minister Nirmala Sitharaman is going to present the budget on 1 February. This is going to be the last full budget of the second term of the Modi government. Due to this, many important announcements can be made in the budget. In such a situation, it is important for you to understand the budget. In our article, we have brought some important terms related to the budget, which will help you in this.
Gross Domestic Product
Gross domestic product (GDP) is the monetary value of goods and services consumed by consumers within the geographic boundaries of a country in a fiscal year. It also includes defence, education, health services provided by the government.
nominal gdp and real gdp
During the budget presentation, you will sometimes hear terms like nominal GDP and real GDP. Goods and services produced in a financial year are also calculated at market prices, the value you get is called nominal GDP. This includes both inflation and recession. On the other hand, in real GDP, the goods and services produced in a financial year are calculated on the basis of the base year and the value derived from it is called real GDP.
Gross National Product (GNP) is the value of goods and services produced by a country’s residents. It is equal to the gross domestic product plus the total income from foreign investments of the country’s residents.
revenue and capital budget
The Union Budget consists of the Revenue and Capital Budgets. The revenue budget does not change the assets and liabilities of the government, while the capital budget does. Capital receipts and capital payments (expenditure) make up the capital budget, while revenue receipts and finance expenditure make up the revenue budget.
When revenue expenditure exceeds receipts, we call it revenue deficit.
gross financial loss
The difference between the government’s total expenditure and its total non-borrowing receipts is called the gross fiscal deficit, also commonly referred to as the fiscal deficit.