Budget 2024: 12 Financial Buzzwords Used In Budgeting That You Should Know

The eagerly awaited Budget for 2024-25 will be tabled on Tuesday by Union Finance Minister Nirmala Sitharaman.

There's great anticipation nationwide for a Budget that supports economic growth and meets the expectations of both lower-income families and the middle class.

Let's take a look at some key buzzwords in the Budget that you should know- explained in simple language.

Budget Deficit: When the government spends more money than it collects in revenue.

Capital Expenditure: Money spent on buying or maintaining things that will be used for a long time, like buildings or equipment.

Debt-to-GDP Ratio: A way to measure how much a country owes compared to how much it produces.

Deficit Financing: Borrowing money to cover a budget deficit.

Direct Taxes: Taxes paid directly to the government, like income tax.

Indirect Taxes: Taxes added to the price of goods and services, like sales tax.

Fiscal Deficit: Another term for budget deficit, when the government spends more than it earns.

Non-tax Revenue: Money the government earns from sources other than taxes, like fees or fines.

Public Debt: Money owed by the government to its creditors.

Subsidies: Money given by the government to help businesses or people with the cost of goods or services.

Surplus: When the government collects more money than it spends in a year.

Sovereign Debt: Money owed by a government to other countries or international organisations.