Here are ten top terms to understand the impact on the economy.
Disinvestment: The process of selling the stake of central government in the companies that it controls and has small holding is disinvestment. This amount is then applied for meeting the normal expenditure of running government or for giving additional capital to bank. In 2013-2014 government put an estimate of 30,000 crore on the amount raised from disinvestment.
Subsidies: The total amount spent by the government to provide the goods and services to the country is less than the market rates. In the year 2013-2014, it was estimated that the amount spent would be Rs. 1.9 lakh crore.
Tax Revenue: The amount that the government raises through levying taxes is the tax revenue. In 2013-2014.taxes like Income tax , corporation tax, excise duty, customs duty and service tax would be estimated RS. 7.7 lakh crore.
Plan Expenditure: It included the total expenditure that is incurred by the government in consultations with the planning commission for projects and in the area related to the achievement of goals set up in 5 year plans. In 2013-2014, it was estimated RS. 5.2 lakh crore.
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Non Plan Expenditure: The total amount spent on day to day running of the country like pension, salaries, administrative costs, defense expenses, and subsidies is non plan expenditure. In 2013-2014, it was estimated Rs. 9.7 lakh crore. It is based upon what the priorities of the government are.
Debt Servicing: This shows the total amount spent in managing the debt of the country. It means the total of capital repaid during the year along with the interest payments on the loans. In 2013-2014, it was estimated Rs. 4.44 lakh crore.
Revenue deficit: This is difference between revenue expenditure of the government and the revenue receipts that are earned during the year. In 2013-2014, it was estimated RS. 3.5 lakh crore or 3.4 percent of GDP.
Fiscal Deficit: This shows the amounts that government will have to borrow to fund its shortfall. This is the difference between the total expenditure of the government in a year and recoveries of loans. In 2013-2014, it was estimated Rs. 5.13 lakh crore or 5.1 percent of GDP.
Primary Deficit: It shows the amount of the deficit that arises on the account of the activities other than the interest payments. This amount arrives when the fiscal deficit is reduced by the interest payments for the year. In 2013-2014, it was estimated at Rs. 1.93 lakh crore or 1.9 percent of GDP.
Deductions: It is amount that is included as reduction from the total taxable income of the taxpayer. The final tax is calculated on the taxable income after considering the deductions which helps to reduce the taxable income.
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