Budget

Budget 2020 of the second term of the Narendra Modi government will be presented on Saturday. It is also called the General Budget or Union Budget. But, the common man must understand what happens in this budget and what happens in it. All kinds of information are given in the ‘Budget at a Glance Document’. This document details the income and expenses of the government. This is called an annual financial statement. It affects every section of the country.

The budget is divided into two parts.

The general budget is in two parts. Revenue Budget and Capital Budget. The revenue budget is 90 per cent tax. There is a direct and indirect tax, interest, dividend, service related fees. At the same time, the capital budget includes the expenses of government departments, interest on loans and subsidies.

Difference between capital gains and expenses

Capital Receipts and Capital Expenditure are both different. In the capital acquisition, loans taken from the public, loans raised from the RBI, help from foreign government and loan recovery. Whereas capital expenditure includes the expenditure or investment on purchase of assets and loans given to the state governments.

What is financial loss?

Fiscal Deficit is the difference between capital gain and capital expenditure. The percentage is known as the financial deficit divided by GDP. It is also mentioned in the Economic Survey.

What is Fiscal deficit ?

The difference in the total income and expenditure of the government is called fiscal deficit. This shows how much borrowing will be required by the government to run the business. Fiscal deficit is usually caused by a decrease in revenue or an increase in capital expenditure. Capital expenditure is on long-term assets such as factories, construction of buildings and other development works. The fiscal deficit is usually compensated by borrowing from the central bank (Reserve Bank) or by raising funds from the capital market through short and long-term bonds