Sunday, July 7, 2013

BANK EXAMINATIONS - BUDGET GLOSSARY





Revenue Budget: 
Consists of revenue receipts (tax and non-tax) of the Govt. and the expenditure met from these revenues. 

Tax Revenue: 
Comprise proceeds of taxes and other duties levied by the Union Govt. 

Revenue expenditure: 
Expenditure for the normal running of the Govt. departments and various services, interest payments on loans incurred by the Govt., subsidies etc. Such expenditure does not lead to creation of assets. 

Capital budget: 
Consists of capital receipts and payment including transactions in the Public account. 

Capital 
receipts: Receipt such as loans raised by the Govt. called market loans, borrowing from RBI and other parties through sale of treasury bills. Loans received from foreign bodies and govt. and recoveries of loans granted by the Union Govt. to State and UTs governments. 

Capital payments: 
Consist of capital expenditure on acquisition of assets like land, buildings, machinery, equipment, as also investments in shares etc. and loans and advances granted by Union Govt. to State and UT governments, Govt. companies etc. 

Demand for Grants: 
A form in which the estimates of expenditure included in the annual financial statement and required to be voted in the Lok Sabha are submitted. Generally one demand for grant is presented in respect of each Ministry or Deptt. 

Finance Bill : 
Govt. proposals for levy of new taxes, modification of existing tax structure or continuance of the existing tax structure beyond the period approved by the Parliament. 

Performance budget: 
Budget to ministry in terms of functions, programs and activities that gives appraisal reports separately in respect of major central sector projects estimated to cost Rs.100 cr or more 

Appropriation bill: 
After the demands for grants are voted by Lok Sabha, Parliament's approval to the withdrawals from the Consolidated fund of India of the amounts so voted and amount to meet the expenditure charged on the Consolidated Fund, is sought through the Appropriation bill. 

Fiscal deficit: 
Difference between revenue receipts plus non-debt capital receipts on one side and total expenditure including loans, net of repayments on the other side. 

Primary deficit: 
Fiscal deficit minus interest 

Capital gains tax: 
Tax on the surplus obtained from sale of an asset for more than what was originally paid for it. Revenue deficit : Revenue expenditure minus revenue receipt. 

Countervailing duty: 
Tax levied on an imported product which raises the price of the product in the domestic market as a means to counteracting unfair trade practices by other countries 

Direct tax : 
Tax levied by the Govt. on the income and wealth received by households and businesses. Double taxation: Taxation of income and profits, first in the country in which they arise and then when these incomes and profits are repatriated to the income earner's home country 

Fiscal policy: 
An instrument of demand management which seeks to influence the level of economic activity in an economy through control of taxation and govt. expenditure 

Indirect Tax: 
A tax levied on goods and services Monetary policy: Tool of macroeconomic policy which involves the regulation of money supply, credit and interest rate in order to control the level of spending in the economy 

National debt: 
Money owed by the Central Govt. to domestic and foreign lenders Public debt: National debt and other misc. debt for which the Govt. is ultimately responsible including accumulated debt of nationalized industries and local authorities 

Tax avoidance: 
Efforts to avoid paying tax by legal means Tax evasion: Efforts to evade payment of tax by illegal means 


Ad valorem Tax: 
An indirect tax expressed as a proportion of the price of a commodity Value added tax: A general tax applied at each point of exchange of goods and services from primary production to final consumption. It is levied on difference between the sale price of output and cost of input.

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