Budget 2022: Learn the meaning of various technical terms in the budget

Budget 2022

Understand the meaning of important terms like Budget Estimates, Revised Estimates, Additional Grants, Outcome Budget, Central Plan Outlay in very simple language. These words will help you to understand the budget speech.

Budget 2022


Budget 2022: Many technical and financial terms are used in the speech by the finance minister while announcing the budget. Which most people do not understand. Nothing is understood in the budget without understanding this term in simple language. These technical and financial terms are called jargon. Since these terms are complex, today we are going to tell you the meaning of important terms like budget estimates, revised estimates, additional grants, outcome budgets, central plan outlets in very simple language. Which will make it easier for you to understand the budget speech.


Financial year

A financial year is a year that is the basis of accounting in financial matters. It is also known as the period used by the government for budget purposes. It is also used for financial reporting by businesses and other organizations.

Budget Estimate

Budget estimates reflect the government's spending estimates for the fiscal year and the revenue that will be generated through taxes to run the country. Such estimates also include one year's fiscal deficit and revenue deficit. It also includes expenditure on various sectors, infrastructure, and nation-building. That is how much revenue and expenditure the government has to spend to run the country is called a budget estimate.

Revised Estimates

The estimated revenue that the government will receive during the remaining period of the financial year or at the end of that financial year and the estimated amount of expenditure incurred for it is known as a revised estimate. The matter is taken up in the first half of the financial year i.e. based on the first six-monthly trends. Therefore, the revised estimates differ from the targets set in the budget estimates.

Excess Grants

When the amount passed in the budget for a ministry, department, scheme or project falls short, a proposal is sent to Parliament to allocate an additional amount. This is called an additional grant. When this amount is approved by Parliament, the department, scheme or project gets extra funding.

Outcome of Budget

Each ministry has to give an output budget to the finance ministry before the budget. It is a progress report card of ministries and departments, showing how much progress they have made in last year's budget announcements. This report shows how much work has been done on which scheme and how much has been spent on the amount allocated for it. Under the budget outlook, the amount allocated to the ministry or department for the financial year is determined for the purpose of examining the implementation of the physical targets that can be assessed.

Central Plan Outlay

The amount allocated by the Central Government to a Ministry, Region, or Department is called Central Plan Outlet. That is, the cost is the amount allocated to the various sectors, ministries, and departments of the economy for the theme or project.

Re-appropriations

Appropriation means that funds are set aside for a specific purpose. This means that the funds set aside for grants to various Ministries and Government Departments are called Appropriation. On the other hand, when funds are transferred from one department to another, they are called Re-appropriations.

Government Aid (Subvention)

Subvention is a grant-in-aid given by the government to an organization or sector. For example, the government may ask a financial institution to lend to a sector at a rate lower than the market rate. For example, asking farmers to lend at a lower interest rate than the market rate is called government assistance or prevention.

CENVAT

CENVAT is a central value-added tax levied on producers. It was introduced in the year 2000-2001.

Economic Survey

The budget is presented after the Economic Survey documents are presented in Parliament. This is prepared by the Ministry of Finance while presenting its vision on the state of the economy.



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