Free Demo Classes
Register here for Free Demo Classes
Source: Safalta.comCandidates can learn about 15 terms typically found in news connected to the Indian economy in addition to these significant economic terms seen in the Budget. If you are preparing for competitive exams and are looking for expert guidance, you can check out our daily FREE Current Affairs. Also, download our app- 'Exam Taiyari App' and boost your preparation. FREE GK EBook- Download Now.
Table of content
- Important Economic terms related to Union Budget
- About Union Budget
- Important Economic Terms and Their Meanings in Relation to the Union Budget
- 15 terms relevant to Indian economics
- Important questions related to Union Budget
- What is the significance of the federal budget?
- What is Deficit in Revenue ?
- What are the different parts of the government's budget?
- What is Direct tax ?
- What is the government budget's primary goal?
- What is Capital Revenue and Expenditure ?
Union Budget 2019-20 emphasised on the points given :
- It focus on Agriculture and Rural economy.
- GDP growth pegged at 7.6 percent.
- It focus on cutting plan expenditure to control fiscal deficity is not a good sign.
- It emphasis on rural economy is a positive step, as history has shown us that it was a rural economy that insulated India from the recession of 2009.
Lok Sabha vs Rajya Sabha
|Vedas vs Upanishads|
|Interesting Facts About Republic Day Parade|
|Annual Financial Statement||It includes the Indian government's receipts and expenditures. The Consolidated Fund of India, the Contingency Fund of India, and the Public Accounts are all covered. (Learn more about the many sorts of funding available in India here.)|
|Revenue – Receipt & Expenditure||
|Capital – Receipt & Expenditure||
|Gross Domestic Product (GDP)||Monetary value of all finished goods and services made within a country during a specific period|
|Important Economic Terms Seen in News (Important for IAS Exam)|
|Statutory Liquid Ratio (SLR)||Reserve requirement that commercial banks are required to maintain in the form of cash, gold reserves, Reserve Bank of India- approved securities before providing credit to the customers|
|Cash Reserve Ratio (CRR)||Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is set according to the guidelines of the central bank of a country|
|Marginal Cost of Fund based Lending Rate (MCLR)||Marginal Cost of Funds based Lending Rate (MCLR) is the minimum lending rate below which a bank is not permitted to lend|
|Repo Rate (RR)||Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds.|
|Reverse Repo Rate (RRR)||Reverse Repo rate is the rate at which the Reserve Bank of India borrows funds from the commercial banks in the country|
|Wholesale Price Index (WPI)||An index that measures and tracks the changes in the price of goods in the stages before the retail level – that is, goods that are sold in bulk and traded between entities or businesses instead of consumers.|
|Consumer Price Index (CPI)||Measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.|
|Foreign Institutional Investor||An investor or investment fund registered in a country outside of the one in which it is investing|
|Manufacturing Activity||Manufacturing, processing, testing, packaging, storing and other activities undertaken or required to be undertaken by CRL or its suppliers in order to manufacture and supply Client with the Drug Product|
|Foreign Direct Investment||An investment in the form of a controlling ownership in a business in one country by an entity based in another country|
|Monetary Policy||Policy adopted by the monetary authority of a country that controls either the interest rate payable on very short-term borrowing or the money supply, often targeting inflation or the interest rate to ensure price stability and general trust in the currency|
|Base Effect||Distortion in a monthly inflation figure that results from abnormally high or low levels of inflation in the year-ago month|
|Liquidity Adjustment Facility (LAF)||A tool used in monetary policy, primarily by the Reserve Bank of India (RBI), that allows banks to borrow money through repurchase agreements (repos) or for banks to make loans to the RBI through reverse repo agreements.|
|Marginal Standing Facility (MSF)||The penal rate at which banks can borrow money from the central bank over and above what is available to them through the LAF window.|
|Index of Industrial Production (IIP)||Index for India which details out the growth of various sectors in an economy such as mineral mining, electricity and manufacturing.|
A. One of the fundamental goals of budgeting is to keep the government's earnings and spending under control. Budgets are a crucial aspect of keeping a government's finances under control, as well as a means of accomplishing the financial reporting goal of accountability.
The Revenue Account, which contains Revenue Receipts (Tax and Non-Tax Revenue) and Revenue Expenditure, is the first part of the government budget (Plan Revenue Expenditure and Non- Plan Revenue Expenditure).
Capital revenue is the amount received by the government from sale of assets. The government prepares a revenue budget with respect to funds, giving details of revenue receipts and revenue expenditure; and a capital budget, which gives the capital receipts and capital expenditure.