Before the general elections, Finance Minister Nirmala Sitharaman will present the Interim Budget 2024 on February 1, 2024. Budget will address inflation, fiscal imbalance, capital investment, revenue, and bad loans.
Before the general elections, Finance Minister Nirmala Sitharaman will present the Interim Budget 2024 on February 1, 2024. The budget should address inflation, fiscal imbalance, capital spending, tax collections, bad loans, and more.
The government must present the Union Budget, or annual financial statement (AFS), to show its spending and income under Article 112 of the Constitution. Parliament must approve government budget forecasts for the following fiscal year. The Economic Survey, presented before the Union Budget, covers the Indian economy’s past year and forecast.
Inflation
As a percentage, inflation shows how fast commodities and services rise. Inflation devalues the currency and purchasing power.
Divestment
Capex is government expenditures on physical asset acquisition, maintenance, and upgrades, whereas disposal sells assets. The GST Council oversees the non-budgetary GST. Imported and exported products are taxed by customs.
Fiscal policy
Taxation and spending estimates affect aggregate demand, employment, inflation, and growth.
Budget shortfall
The optimal fiscal deficit is 4% of GDP, when government expenditure exceeds receipts, excluding foreign borrowings.
Revenue shortfall
If government net income is lower than predicted, it has a revenue deficit. Government debt servicing, defense, and interest spending are affected by stakeholder talks.
Capital spending
The government spends capex to buy, maintain, or enhance property, launch infrastructure projects, and buy new equipment. Long-term government capital expenditures comprise asset construction, development, and infrastructure. Government-funded huge projects are called capital expenditures.
Customs Duty
Imported and exported items pay customs duty. These costs are passed to customers. GST does not apply to customs duty, so the government can adjust its budget.
Customs tax is a key budget issue, and many sectors await changes.
GST
GST changes are not revealed during budget speeches, unlike customs duty. GST Council adjusts slabs and structures.
Conclusion
Before the general elections, Finance Minister Nirmala Sitharaman will present the Interim Budget 2024 on February 1, 2024. Budget will address inflation, fiscal imbalance, capital investment, revenue, and bad loans. Parliament must adopt the Union Budget, or annual financial statement (AFS), which covers the government’s finances for the year. The Economic Survey describes the Indian economy and its outlook since the preceding fiscal year. Taxation and expenditure estimates affect demand, employment, inflation, and growth. Fiscal deficits occur when government spending exceeds collections, while revenue deficits occur when net income falls short. Capital expenditure pays for government asset construction, whereas customs duty taxes imports and exports.
