Budget 2018 is coming up and the entire country’s is curious to know what’s in store for them. But the budget has it’s own lingo and words like fiscal deficit, monetary policy or revenue expenses definitely need some explanation. So here are 9 image de-jargoning budget terms :
#1. Union Budget: The finance minister announces our budget and this year it will be announced on 1st Feb 2018.
#2. Fiscal Deficit: Some amount of fiscal deficit is good for any country according to economic experts. But if this target is breached then the country can be in trouble. This year due to G.S.T. implementation the government didn’t receive enough tax money to meet it’s expenses. And we might have missed our fiscal deficit target! Now they’ve got to figure a plan to fix this mess.
#3. Populist Budget: This is the first budget post G.S.T. and the last budget before the government heads into elections in 2019. That’s why everyone’s hoping this budget will be in favor of the masses so the government can win back people’s votes.
#4. Capital Gains: Currently there is no tax on LTCG on shares but STCG are taxed at 15%. But after budget 2018 people are expecting the government to either start taxing LTCG or increase the holding period from 1 year to 2 or 3 years. This would bring in a lot of tax revenue to the government as people invest a lot in the stock market.
#5. Direct and Indirect Taxes: Last year G.S.T. restructured our indirect taxes, hopefully this year direct taxes will be changed to make the rates more rationale. This would encourage more people to file their taxes.
#6. Fiscal Policy: In order to fix the fiscal deficit the government frames the fiscal policy.
#7. Monetary Policy: In order to manage inflation the RBI frames the monetary policy.
#8. Capital Budget:
#9. Revenue Budget:
Want us to de-jargon any other budget related terms? Comment below and we add them to the list.