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LIVE | Budget 2023 Income Tax Slab & More: Will govt give relief to middle class, announce new trains in Rail Budget?

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Budget 2023: No tax on income up to Rs 3 lakh, 5% tax on Rs 3-6 lakh; highest tax rate of 30% on income above Rs 15 lakh
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Budget Faqs

What is Union Budget?

The Article 112 of the Constitution requires the government to present an account an annual account of estimated receipts and expenditure for a particular financial year. It is an annual financial statement of the government’s accounts presented by the Finance Minister for the upcoming financial or fiscal year that lasts from April 1 to March 31.

What is Interim Budget?

An Interim Budget also an estimated account of government’s receipts and expenses for the upcoming fiscal year but one that is temporary as the government is expected to undergo transition on account of forthcoming Lok Sabha or general elections. A new inumbent then presents a full budget after the elections.

What is Budget Deficit or Fiscal Deficit?

Fiscal Deficit is the difference between receipts and expenses in both revenue and capital accounts of the government. In other words, this deficit occurs when when a government’s expenditure exceeds its revenues in a particular fiscal year. It is expressed both in absolute terms and as a percentage of a country’s Gross Domestic Product (GDP).

What are 3 types of budget?

Balanced Budget: In order for a Budget to be balanced, the estimated expenditure must be equal to the expected income in a particular financial year. According to many classical economists, this type of budget is based on the idea that the government’s expenditure should not exceed its revenue. Most economists believe that while it is simple to balance the estimated expenditure and expected revenues when it comes to actual implementation, this balance is tough to achieve. Note that a balanced budget does not guarantee financial stability at times of economic depression or deflation as there is no room. The biggest advantage of this type of budget is that it curbs wasteful expenditure. However, one of the drawbacks is that it can hamper the process of economic growth and limit the scope of the government’s welfare activities at the same time.

Surplus Budget: A budget is said to be a surplus budget if the expected income is more than the estimated expenditure in a financial year. This type of Budget signifies that the government’s earnings from taxes are more than the money the government spent on public welfare. As per experts, at times of inflation, this type of budget can be implemented to order to cut down aggregate demand. However, in situations when there are deflation, slowdown and recession, a surplus budget will never be the appropriate option for a government. Also, a surplus indicates that the government has extra money which means that these funds can be allocated to pay dues, which slashes the interest payable and helps the economy in the long-run.

Deficit Budget: A deficit budget is when the estimated expenditure higher compared to the expected revenue in a particular financial year. The implication of such a Budget is that the government’s revenue is less than its expenditure. According to analysts, a deficit budget suits developing economies, such as India and at times of recession, in particular, this type of Budget helps generate extra demand and spur the rate of economic growth.

How is Union Budget prepared?

The Budget Division under Finance Ministry’s Department of Economic Affairs (DEA) is the nodal body responsible for producing the budget.

The budget-preparing exercise begins in August-September—6 months prior to the Budget Session of Parliament—with the issuance a Budget Circular, signalling the ministries to prepare revised estimates for the past year and Budget Estimates for the upcoming fiscal year. Estimates are received and evaluated and consultations are held between ministries and the DEA. The approved statements are sent to the Finance Ministry. The Finance Ministry then ratifies the same and allocates funds as per the statements presented.

The Ministry also holds pre-Budget meetings with various stakeholders such as banks, farmers, economists and trade unions and a call is taken on their proposals in consultation with the prime minister.

A traditional halwa ceremony is held a few days before the Budget Session of Parliament to mark the occasion of beginning of printing of budget documents.

What is function of budget?

The Union Budget is divided into two parts: Capital Budget and Revenue Budget that are collectively statement of government’s revenue and expenditure estimates. The budget strives for adequate allocation of resources for development of various sectors of the economy, reduce poverty levels, income inequality, increase employment and manage tax infrastructure.

What is Union Budget 2023-24 date & time?

The Union Budget is presented on the first day of February by the Finance Minister in Parliament. In 2023, FM Nirmala Sitharaman is expected to present the budget on February 1 at 11 am.

What are income sources of the government?

The government revenues or income is based on various forms of direct and indirect taxes such as Goods & Services Tax (GST), corporate taxes, non-tax revenues, customs duty, tax deducted at source, property tax, real estate tax etc. Other revenue sources include interests, dividends from public sector companies etc.

What is GDP?

GDP is the final value of finished goods and services produced within the geographical and tax jurisdiction of a country during a specified year. It is an important indicator of the economy.

What time is the budget speech?

The Union Budget will be presented by Finance Minister Nirmala Sitharaman on February 1, 2023, and the Budget speech is likely to start at 11 am.

Who presented the first budget of independent India?

The first Budget of Independent India was presented on November 26, 1947 by the then finance minister R K Shanmukham Chetty.

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