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Budget FAQs

What is four balance sheet problem?

The roots of India's Four balance sheet challenge can be traced back to the Twin balance sheet problem. Subramanian discussed...

What constitutes Public Debt?

Public debt is the total liabilities of the central government contracted against the Consolidated Fund of India. It excludes...

What is deficit financing?

For developing countries like India, higher economic growth is a priority. A higher economic growth requires finances. With t...

What is Dividend Distribution Tax & how will its abolition impact the economy?

A dividend is a sum of money given by a company to its shareholders out of the profits earned. Dividend distribution tax is t...

What is government borrowing? How it impacts fiscal deficit?

In the current fiscal, the government has decided to stay with the borrowing programme as announced in the Budget 2019. This ...

What is bank recapitalisation and how is it done?

Bank recapitalisation, means infusing more capital in state-run banks so that they meet the capital adequacy norms. The gover...

What is strategic sale? How is it different from disinvestment?

It looks highly unlikely that the disinvestment target will be met in the current fiscal. The next Budget for 2020-21, to be ...

What is tax-to-GDP ratio & where does India fare on this indicator?

A low tax-to-GDP ratio poses significant challenges for the government to spend money on creating necessary infrastructure in...

What is fiscal glide path?

As calls get shriller for the government to loosen its purse strings and ignore its fiscal glide path at a time when slowing ...

What are expenditure and revenue budgets?

To revive the sagging demand without allowing fiscal deficit to go off-track would be a tough nut to crack when the growth is...

What is stagflation & is India anywhere close to it?

What is stagflation & is India anywhere close to it?

If stalling growth wasn't worrying enough, the government is faced with rising inflation that reached 5.54 per cent in Novemb...

Budget 2020: What is growth recession & why should the government worry about it?

Budget 2020: What is growth recession & why should the government worry about it?

Growth recession is a situation in which growth slows down for a few quarters but does not turn negative. Growth recession is...

Budget 2020: Types of deficits & how they are calculated

Budget 2020: Types of deficits & how they are calculated

A revenue deficit indicates that the government doesn't have sufficient revenue for the normal functioning of the government ...

What is a Budget plan?

What is a Budget plan?

Generally, a government Budget entails the government’s estimate of expenditures and receipts for the ensuing fiscal year wh...

What are the three types of government budgets?

What are the three types of government budgets?

Depending on the feasibility of these estimates, Budgets are of three types -- balanced budget, surplus budget and deficit bu...

What are the five steps of Budget formation?

What are the five steps of Budget formation?

The initial processes involved in the Budget-making begin in August-September, around six months prior to the presentation of...

Why is it important for the government to have a budget?

Why is it important for the government to have a budget?

When it comes to budgeting, identifying areas of weakness helps the govt to allocate resources in a useful and sustainable ma...

What is a vote on account?

What is a vote on account?

An outgoing government presents only an interim Budget or seeks a vote on account. It leaves it to the next government to pre...

How is the budget prepared and what will happen this year?

How is the budget prepared and what will happen this year?

The budget takes several months to be prepared. Different parts of the government work collectively to shape the document. ...

What is fiscal policy?

What is fiscal policy?

It can be either expansionary or contractionary. Along with RBI's policy that influences a nation's money supply, it is used ...

Difference between a Full Budget and a Vote on Account

Difference between a Full Budget and a Vote on Account

In an election year, the outgoing government doesn't tinker with taxes or announce new schemes & sops as these are left at th...

What is an Interim Budget?

What is an Interim Budget?

The Budget which is likely to be presented on February 1 will be an Interim Budget and not a Full Budget.

What is a Populist Budget?

What is a Populist Budget?

A populist Budget typically spends on schemes that are just handouts to please people and don't have any enduring positive im...

Why is FRBM Act important in Budget?

Why is FRBM Act important in Budget?

The Fiscal Responsibility and Budget Management (FRBM) Act was enacted in 2003 which set targets for the government to reduce...

How much will GST impact Budget math?

How much will GST impact Budget math?

Low GST collections would mean low revenue and that can either hit government spending in the Budget or upset the government'...

Why is everyone talking about DDT?

Why is everyone talking about DDT?

According to experts, the new system of taxation will encourage companies to announce higher dividends.

Do you know what subvention means?

Do you know what subvention means?

Subvention literally means grant of money by the government. The government offers subvention mostly on home, crop and educat...

What will happen to Income Tax in this Budget?

What will happen to Income Tax in this Budget?

People have come to believe that it is the duty of the government to keep slashing income-tax rates.

Will Modi govt go ahead and cut corporate tax?

Will Modi govt go ahead and cut corporate tax?

Since private investment has been down for long, adversely impacting job creation, a cut in corporate tax can buoy the corpor...

Confused about standard deduction? Here's help

Confused about standard deduction? Here's help

Standard deduction allows for a flat deduction from salary income, to make up for some of the expenses which an employee woul...

Why is fiscal deficit such a big problem?

Why is fiscal deficit such a big problem?

There is a school of thought that says public spending is more important than meeting the fiscal deficit target.

How does income & expenditure affect Budget math?

How does income & expenditure affect Budget math?

If you find the huge cascade of figures in the Budget daunting, we break it all down to the most basic math for you.

Why is everyone worried about LTCG?

Why is everyone worried about LTCG?

Since it's the Budget before the next elections, the government might think the LTCG tax will be good optics as it would be s...

Why is the Centre in a quandary over spending?

Why is the Centre in a quandary over spending?

There is a growing feeling that the government should not cut spending to meet its fiscal deficit target.

What is divestment?

What is divestment?

For disinvestment, the government either sells stakes in public-sector units or lists them on the stock exchange.

Will there be relief in Budget under Section 80C?

Will there be relief in Budget under Section 80C?

It allows taxpayers to reduce their taxable income by making investments and some expenses and thus save on taxes they pay....

How does correction come into play in Budget?

How does correction come into play in Budget?

Following the Budget, the trend has been largely positive with seven out of the last 10 Union Budgets, including interim ones...

Where can I find a cheat sheet for Budget?

Where can I find a cheat sheet for Budget?

Right in the Budget documents. The whole Budget is uploaded on indiabudget.nic.in by the government after the finance ministe...

What does the Economic Survey say about Budget?

What does the Economic Survey say about Budget?

The flagship document of the finance ministry, the Economic Survey provides detailed statistical data covering all aspects of...

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