13 Key Terms to Know Before Budget 2024

Direct Taxes

Taxes like income or corporate tax paid directly to the govt. by individuals or businesses are called direct taxes. It is a "pay  at the source" kind of tax.

Indirect taxes are levied on goods and services, borne by consumers but collected by businesses, impacting the final price.

Indirect Taxes

Revenue Deficit

A revenue deficit occurs when government spending exceeds its income from taxes & other income sources.

Fiscal Deficit

A fiscal deficit is the difference between the government's annual earnings & spending.

GDP is the value of all goods and services produced within a country during a period.

Gross Domestic Product (GDP)

Fiscal Policy

Fiscal policy encompasses the government's use of taxation, borrowing and expenditure to influence economic conditions, like inflation, economic growth, employment, etc.

The monetary policy mentions  the measures the RBI takes to control the money circulation in the economy to maintain liquidity levels and promote growth.

Monetary Policy

Budget Estimate

A budget estimate shows the projected allocation of funds to ministries, departments, and schemes. It provides info on how money will be spent and expenses incurred.

Capital Expenditure (Capex)

A country's capex includes the govt's allocation of funds for the acquisition, advancement, and depreciation of assets related with the country's growth.

Interim Budget

An interim budget is presented by a government going through a transition period or is in its last year in office before the general elections held every 5 years.

Union Budget

A union budget is a detailed financial plan covering every aspect of the govt. spending, revenue generation, & policy reforms for an entire fiscal year.

Tax Slab Rates

Tax slab rates are applied to assessees of different income ranges as per the following: Individuals < 60 years. Individuals aged between 60 to 80 years. Individuals > 80 years. HUFs and Companies.


An assessee is any individual or company obligated to pay taxes to the govt. based on their earnings or losses within an assessment year.