New Delhi. Finance Minister Nirmala Sitharaman is going to present the budget for 2024-25 in the Lok Sabha on 23 July. Nirmala Sitharaman will present her 7th and the first budget of the third term of the Modi government in the Lok Sabha. Today we are going to tell you about the origin of the word budget as well as the special words used in it. So first of all let us tell you where did the word budget come from? The word budget comes from the French language ‘Bouge’ Bougette. It means a small bag. In Latin it is called Bulga i.e. leather bag. In olden times, businessmen used to keep all the documents in a leather bag, that is why now governments around the world call their accounts budget.
Direct and indirect taxes
The tax levied directly on the citizens is called direct tax. It is levied on the annual income of the citizens. Income tax, corporate tax and wealth tax come under direct tax. Whereas, service tax, excise, custom duty, GST etc. levied on services come under the category of indirect tax.
Fiscal deficit
The Finance Minister gives information about the fiscal deficit to the Parliament in his budget speech. Fiscal deficit means the difference between income and expenditure. Fiscal deficit shows how much the government is earning and how much it is spending. If there is a big difference in this, then it is not considered good for the country’s economy. It is believed that the Modi government can keep the fiscal deficit at 6.3 to 6.5 of GDP i.e. gross domestic product in the financial year 2024-25.
Current account deficit
When a country exports less services, goods etc. and imports more, then there is a current account deficit. That is, the difference between the amount received from the goods exported from India and the amount lost from imports is called current account deficit. This shows whether the country is focusing on exports or imports during the tenure of the current government.
Financial year means financial year
The income and expenditure of the government in a period of one year is called the financial year. In India, a new financial year begins every year from 1 April. This financial year ends on 31 March of the next year. The accounting that the government makes regarding income and expenditure during this period is called the budget.
