Question

What is Budget Session 2018? Describe briefly....

Answer 1



Government, Opposition discuss issues, legislations to be taken up in Budget session

By PTI | Jan 28, 2018, 06.01 PM IST

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While the government wants to push the bill on instant triple talaq pending in the Rajya Sabha along with the one which seeks to grant constitutional status to the OBC Commission.

NEW DELHI: Ahead of the Budget session of Parliament beginning tomorrow, representatives of the government and the opposition met here today to discuss the issues and proposed legislations which would come up.

While the government wants to push the bill on instant triple talaq pending in the Rajya Sabha along with the one which seeks to grant constitutional status to the OBC Commission, the opposition plans to counter the government on issues such as rising incidents of rapes, alleged "attack" on constitutional institutions and the plight of traders.

"We want to raise these issues as they are important. The government should adopt a cooperative attitude and allow the opposition to raise these issues," Congress leader Pramod Tiwari said ahead of the meeting.

While Home Minister Rajnath Singh and Finance Minister Arun Jaitley are representing the government at the meeting, the opposition is being represented by Mallikarjun Kharge (Congress) Mulayam Singh Yadav (SP), D Raja (CPI), Kanimozhi (DMK), Derek O'Brien and Sudip Bandhopadhyay (TMC) and Tariq Anwar (NCP).

Prime Minister Narendra Modi and some other opposition leaders are likely to join the meeting shortly.

Answer 2

This Union budget is extremely crucial as it will not only have an impact on the 2019 Lok Sabha elections but also determine the economic growth of the nation in a post-GST era. However, since the GST rates are decided by a GST Council, headed by Union Finance Minister and comprising of representatives of all states, the Budget for 2018-19 may not have any significant tax proposals concerning excise and service tax duties, although the announcements on direct tax slabs will, as always, be crucial for the common man.

Before the Budget Session in the parliament, the Ministry of Finance has released a glossary explaining the business/economic terms one must know to understand the budget. Here is a list, check out:

1. Union Budget

Union Budget is the most comprehensive report of the Government’s fnances in which revenues from all sources and outlays for all activities are consolidated. The Budget also contains estimates of the Government’s accounts for the next fiscal year called Budgeted Estimates.

2. 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.

3. GST

The constitution defnes “Goods and Services Tax” means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption. “Goods” means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply. “Services” means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged .

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4. Customs Duty

These 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.

5. Fiscal Deficit

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

6. 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.

7. Primary Deficit

The primary deficit is the fiscal deficit minus interest payments. It tells how much of the Government’s borrowings are going towards meeting expenses other than interest payments.

8. Fiscal policy

It is the government actions with respect to aggregate levels of revenue and spending. Fiscal policy is implemented though the budget and is the primary means by which the government can influence the economy.

9. Monetary Policy

This comprises actions taken by the central bank (i.e. RBI) to regulate the level of money or liquidity in the economy, or change the interest rates.

10. Inflation

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

11. Capital Budget

The Capital Budget 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.

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12. Revenue Budget

The revenue budget consists of revenue receipts of the Government and it expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like 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.

13. Finance Bill

The Bill produced immediately after the presentation of the Union Budget detailing the Imposition, abolition, alteration or regulation of taxes proposed in the Budget.

14. Vote on Account

The Vote on Account is a grant made in advance by the parliament, in respect of the estimated expenditure for a part of new financial year, pending the completion of procedure relating to the voting on the Demand for Grants and the passing of the Appropriation Act.