10 Terms To Know Ahead Of Budget 2026
By: NDTVNewsDesk
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Finance Minister Nirmala Sitharaman will present the the Union Budget 2026 today. Here's a look at the 10 economic concepts that you need to know ahead of the Budget.
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Inflation: It refers to a sustained rise in the overall prices of goods and services in the economy. When inflation increases, the purchasing power of money declines.
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Direct Tax: It is imposed directly on individuals or entities and cannot be shifted to another party. Income tax and corporate tax are examples.
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Indirect taxes are levied on goods and services but are ultimately borne by consumers. Examples include excise duty and customs duty.
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Fiscal Policy: It includes government decisions on taxation and public spending aimed at managing economic growth, employment, and stability.
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Monetary Policy: It is managed by the Reserve Bank of India (RBI) and focuses on controlling money supply and interest rates to regulate inflation and support economic growth.
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Revenue Expenditure: It is spending that does not result in asset creation or future income. Salaries, pensions, subsidies, and administrative costs fall under this category.
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Goods and Services Tax (GST): It was introduced to streamline India's indirect tax system by replacing multiple central and state levies with a unified tax structure.
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Gross Domestic Product (GDP): It represents the total value of all goods and services produced within a country during a specific period and is a key indicator of economic health.
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Fiscal Deficit: It occurs when the government's total spending exceeds its revenue, excluding borrowings. It indicates the extent to which the government relies on borrowing.
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Revenue Deficit: It is the gap between revenue expenditure and revenue receipts. It reflects how much the government's routine expenses exceed its regular income.
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