July 4, 2019, The Liberacy:- Budget scheduled on 5th of July 2019, will give a broad understanding of what is going to be the path India will be walking and what it has aimed for. But before the budget is kept on the floor, understand the terms and sectors every financial budget of India deals with and understand the basics of a financial budget.
This year’s finance budget will be presented by the Finance Minister of India, Smt. Nirmala Sitharaman, the very first Female Finance Minister of India. There are number of budgets included in a financial budget, and every sector has its own importance and gives out the behavioral change in the society.
- Capital Budget.
Capital budget deals with the money investment and purchasing by Central Government while confronting with shares, loans, and money granted by to States. It also includes capital circulation in the Government Companies, Corporations or any other sector that Government deals in.
- Revenue Budget.
– Revenue Budget part covers the revenue receipt of the Government and its expenditure.
– Tax revenue part covers the revenue from Income Tax, Corporate Tax, Customs, Services and others.
– The non-tax revenue consists of detailed information about other sources such as interest on loans, dividends, and investment.
- Consolidated Funds.
It defines all the revenue and fund brought in by the government and also the money loaned on the government and the receipt of the loan provided by the government.
- Contingency Fund.
It is the fund put forth in front of the President for the urgent distribution to the government, so that it can meet its urgent requirements and cope up with the circulation of expenditure, paying and buying.
- Budget Estimate.
This is the fund allocated to the Ministry or a Scheme in order to complete its demand and coordinate with the plans for the future. It basically provides a fund for one financial year.
- Minimum Alternative Tax (MAT).
It is the minimum fund that a company or organizations are designated to pay, even if that company or organization is under Zero tax limit.
- Repo Rate.
Repo Rate is the rate of interest paid to the Reserve Bank of India (RBI) by the Banks for the loan lending by it, over a period of time. It has been suggested to have Repo Rate flowing according to the loan interest given by the Bank.
Repo means repurchase of the securities that in simple terms means, a bank takes money from the RBI to overcome the shortfall of funds and Repo Rate is the interest given by the Bank to RBI on that fund.
- Finance Bill.
Finance Bill is presented just after the Union budget and it outlines all the adoption, abolition and modification of the taxes proposed.