Business Jargon Buster: Budget edition 

An A-Z of budgetary terms, explained in layman’s language.

A:

Allocation:Amount of money set aside for specific programs or sectors.

Add WION as a Preferred Source

Ayushman Bharat Yojana (ABY):Government health insurance scheme for low-income households.

Agriculture credit target:Annual target for loans provided to farmers by banks.

B:

Balanced Budget Act (BBA):Legislation setting fiscal deficit targets for the government.

Banking sector:Financial institutions accepting deposits and providing loans.

Bharat Net (BNET):Government scheme to provide broadband connectivity to villages.

C:

Capital expenditure (capex):Government spending on infrastructure and assets.

Central Plan Expenditure:A part of the budget that is allocated to specific economic and social development programs.

D:

Direct benefits transfer (DBT):A schemeto transfer subsidies directly to beneficiaries' bank accounts.

Direct taxes:Taxes levied directly on individuals and businesses, like income tax or corporate tax.

Deficit:The gap between government income and expenditure.

Developed Economy vs Developing Economy:A developed economy usually belongs to a developed country that's doing well economically and has good stability. In contrast, developing economies, previously called lesser-developed economies, face challenges like poor infrastructure, slower growth, an uneven economy, and very low personal incomes.

E:

Excise duty:Tax levied on goods produced domestically.

Economic Survey:Annual report published by the Ministry of Finance before the Budget presentation.

Expenditure Budget:Document detailing the government's planned spending for the year.

F:

Fiscal deficit:Difference between total government spending and total non-borrowed revenue.

Food Security Act (FSA):Law guaranteeing subsidized food grains to millions of people.

Finance Act:Legislation passed by Parliament to implement the Budget proposals.

G:

Goods and Services Tax (GST):Indirect tax applied to most goods and services in India.

Grants:Financial assistance provided by the government to individuals, institutions, or states.

Green Climate Fund (GCF):International fund to support developing countries in climate action.

H:

Human Development Index (HDI):Measure of a country's progress in health, education, and living standards.

Housing for All:Urban and rural housing schemes for low-income groups.

I:

Indirect taxes:Taxes levied on goods and services at various stages of production and distribution, like GST.

Interest rates:Rates charged by banks for loans or paid on investments.

J:

Jan Dhan Yojana:Financial inclusion scheme providing bank accounts to all households.

Job creation:Number of new jobs created in the economy during a specific period.

K:

Kisan Credit Card (KCC):Government scheme providing credit to farmers at subsidized interest rates.

Krishi Vikas Yojana (KVK):Scheme to provide agricultural extension services to farmers.

L:

Local Area Development (LAD) funds:Funds allocated to MPs for development projects in their constituencies.

MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act):Scheme guaranteeing 100 days of work per year to rural adults.

M:

Manufacturing sector:Industry involved in the production of goods.

Monetary policy:Government policies influencing the money supply and interest rates.

Micro, Small and Medium Enterprises (MSMEs):Sector comprising small businesses contributing to the economy.

N:

Net Domestic Product (NDP):Value of all final goods and services produced within a country's borders in a given year.

Non-tax revenue:Government income from sources other than taxes, like dividends or fees.

O:

Off-budget financing:Government financial activities not included in the official budget.

Open Government Platform (OGP):Initiative promoting transparency and citizen participation in government.

P:

Plan versus non-plan expenditure:Categorisation of spending based on whether it contributes to development plans.

Public debt:Total amount of money owed by the government to creditors.

Q:

Quasi-expenditure:Expenses not directly reflected in the budget but incurred through government guarantees or loans.

R:

Revenue deficit: The differencebetween the government's non-tax revenue and its non-debt expenditure.

Revenue Expenditure vs Capital Expenditure:Revenue expenditure refers to expenditure that occursregularly, like routine expenses for running government departments and providing services. On the other hand, Capital expenditure is not regular; it isused for the purchase ofassets or for giving loans and advances.

S:

Sarva Shiksha Abhiyan (SSA):Government scheme for achieving universal elementary education.

Samagra Shiksha:Scheme for holistic development of school education.

Subsidies:Financial assistance provided by the government to producers or consumers to reduce the price of goods or services.

Sustainable Development Goals (SDGs):Global goals for environmental,economic,and social development.

T:

Tax incentives:Special tax benefits offered by the government to encourage certain activities.

Tariff:Tax levied on imported goods.

Transparency:Openness and accountability in government policies and spending.

U:

Union Budget:Annual statement of the government's finances including income,expenditure,and deficit.

Urban development:Government programs aimed at improving infrastructure and services in cities.

V:

Value Added Tax (VAT):Indirect tax levied on the added value of goods and services at each stage of production and distribution (predecessor to GST).

Village Health and Sanitation Scheme (VHSN):Program to improve public health and sanitation in rural areas.

W:

Women empowerment:Government initiatives to improve women's social and economic status.

X:

X-Factor:Unforeseen events or changes that might impact the budget projections.

Y:

Youth development:Government programs aimed at developing the skills and opportunities for young people.

Z:

Zero-based budgeting:Approach where each expense needs to be justified from scratch,rather than simply rolling over previous allocations.