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Here are some key terms before you head towards 

FM Jaitley's speech:

Direct and Indirect Taxes: Direct taxes are the one that fall directly on individuals and corporations. For example, income tax, corporate tax, etc., Indirect taxes are imposed on goods and services. They are paid by consumers when they buy goods and services. 

These include excise duty, customs duty, etc. Excise duty is an indirect tax levied on 
goods manufactured in India and meant for home consumption.  Customs duties are levies charged when goods are imported into, or exported from the country and they are paid by the importer or exporter. 

Usually, these are also passed on to the consumer. Corporate Tax is the tax paid by corporations or firms on the incomes they earn. Minimum Alternate Tax is a minimum tax that a company must pay, even if it is under zero tax limits. 

Fiscal Deficit: When the government's non-borrowed receipts fall short of its entire expenditure, it has to borrow money from the public to meet the shortfall. The excess of total expenditure over total non-borrowed receipts is called the fiscal deficit.

Revenue Deficit: The difference between revenue expenditure and revenue receipt is known as revenue deficit. It shows the shortfall of government's current receipts over current expenditure.

Primary Deficit: The fiscal deficit minus interest payments. It tells how much of the Government's borrowings are going towards meeting expenses other than interest payments. 

Inflation: A sustained increase in the general price level. The inflation rate in the percentage rate of change in the price level.

Capital Budget: This consists of capital receipts and payments. It includes investments in shares, loans and advances granted by the Central Government to State Governments, Government companies, corporations and other parties.

Revenue Budget: It consists of revenue receipts of the Government and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes likes income tax, corporate tax, excise, customs, service and other duties that the Government levies. The non-tax revenue sources include interest on loans, dividend on investments.

Revised Estimates: Revised Estimates are mid-year review of possible expenditure, taking into account the trend of expenditure, new services and new instrument of services, etc. Revised Estimates are not voted by the Parliament and hence by itself do not provide any authority for expenditure. 

(Courtesy: Zeebiz.com)


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