We have presented you with two simple budget glossaries till now. This is the final lap. Make yourself comfortable with the understanding of financial words and phrases linked to the budgetary exercise to help you manoeuvre your way through the maze that is the Budget. Continuation of the glossary of Part II we give you some of more finance related technical terms for better understanding of the Union budget which will be released by the Finance Minister Pranab Mukherjee on February 28.
Indirect Taxes: Taxes imposed on goods manufactured, imported or exported such as Excise Duties and Custom Duties.
MODVAT: It stands for Modified Value Added Tax and is a way of giving some relief to the final manufacturers of goods on Excise Duties borne by their suppliers.
Monetized Deficit: Measures the level of support the RBI provides to the Centre's borrowing program.
M1, also called narrow money, includes currency with public (notes and coins in circulation less cash in hand with banks), deposit money with public, and 'other' deposits with RBI.
M3, also called broad money, includes M1 plus time deposits with banks. Time deposits exclude inter-bank deposits.
Medium term loan: It is granted for 1-3 years. Long-term loans are for more than 3 years.
Merchandise Account: The part of balance-of-payments accounts referring to visible trade, or merchandise imports and exports.
Non-Plan Expenditure: Consists of Revenue and Capital Expenditure on interest payments, Defense Expenditure, subsidies, postal deficit, police, pensions, economic services, loans to public sector enterprises and loans as well as grants to State governments, Union territories and foreign governments.
Net bank credit to government includes total net credit to Central and State governments by RBI and commercial banks. Credit to government by commercial banks indicates investments by banks in government securities.
Net foreign exchange assets with banks include net foreign exchange with RBI and commercial banks.
Foreign exchange assets of commercial banks include net foreign currency balances with authorised foreign exchange dealers.
Net non-monetary liabilities of the banking sector indicate net non-monetary liabilities, other than time deposit liabilities of commercial banks, and net non-monetary liabilities of RBI. These include capital and reserves, branch adjustments, and bills payables; the liabilities are net of investments in fixed assets, and branch adjustments.
'Other' deposits held with RBI are deposits other than balances held in IMF Account No.1, RBI employee provident and superannuation funds, and CDS deposits. The balances under these accounts are excluded, as they are non-monetary liabilities of RBI.
Peak Rate: It is the highest rate of Custom Duty applicable on an item.
Performance Budget: It is a compilation of programs and activities of different ministries and departments.
Public Account: It is an account where money received through transactions not relating to consolidated fund is kept.
Plan Expenditure: Consists of both Revenue Expenditure and Capital Expenditure of the Center on the Central Plan, Central Assistance to States and Union Territories.
Primary Deficit: Fiscal Deficit minus Interest payments.
Per Capita Real GDP: A country's real GDP per member of the population. This may be calculated using the total population, adults only, or 'adult' equivalents', giving children of various ages weighs equal to a fraction of an adult. Per capita real GDP is lower than per capita income in a country with net external assets which yield an income, and greater than per capita income in a country with a lot of inward investment, so that net property income payments have to be made abroad.
We hope that the upcoming budgets are a boon for everyone and have something good in store for everyone.
Let’s hope that 28th of this month is a day to rejoice!
Source: http://www.rediff.com/business
Indirect Taxes: Taxes imposed on goods manufactured, imported or exported such as Excise Duties and Custom Duties.
MODVAT: It stands for Modified Value Added Tax and is a way of giving some relief to the final manufacturers of goods on Excise Duties borne by their suppliers.
Monetized Deficit: Measures the level of support the RBI provides to the Centre's borrowing program.
M1, also called narrow money, includes currency with public (notes and coins in circulation less cash in hand with banks), deposit money with public, and 'other' deposits with RBI.
M3, also called broad money, includes M1 plus time deposits with banks. Time deposits exclude inter-bank deposits.
Medium term loan: It is granted for 1-3 years. Long-term loans are for more than 3 years.
Merchandise Account: The part of balance-of-payments accounts referring to visible trade, or merchandise imports and exports.
Non-Plan Expenditure: Consists of Revenue and Capital Expenditure on interest payments, Defense Expenditure, subsidies, postal deficit, police, pensions, economic services, loans to public sector enterprises and loans as well as grants to State governments, Union territories and foreign governments.
Net bank credit to government includes total net credit to Central and State governments by RBI and commercial banks. Credit to government by commercial banks indicates investments by banks in government securities.
Net foreign exchange assets with banks include net foreign exchange with RBI and commercial banks.
Foreign exchange assets of commercial banks include net foreign currency balances with authorised foreign exchange dealers.
Net non-monetary liabilities of the banking sector indicate net non-monetary liabilities, other than time deposit liabilities of commercial banks, and net non-monetary liabilities of RBI. These include capital and reserves, branch adjustments, and bills payables; the liabilities are net of investments in fixed assets, and branch adjustments.
'Other' deposits held with RBI are deposits other than balances held in IMF Account No.1, RBI employee provident and superannuation funds, and CDS deposits. The balances under these accounts are excluded, as they are non-monetary liabilities of RBI.
Peak Rate: It is the highest rate of Custom Duty applicable on an item.
Performance Budget: It is a compilation of programs and activities of different ministries and departments.
Public Account: It is an account where money received through transactions not relating to consolidated fund is kept.
Plan Expenditure: Consists of both Revenue Expenditure and Capital Expenditure of the Center on the Central Plan, Central Assistance to States and Union Territories.
Primary Deficit: Fiscal Deficit minus Interest payments.
Per Capita Real GDP: A country's real GDP per member of the population. This may be calculated using the total population, adults only, or 'adult' equivalents', giving children of various ages weighs equal to a fraction of an adult. Per capita real GDP is lower than per capita income in a country with net external assets which yield an income, and greater than per capita income in a country with a lot of inward investment, so that net property income payments have to be made abroad.
We hope that the upcoming budgets are a boon for everyone and have something good in store for everyone.
Let’s hope that 28th of this month is a day to rejoice!
Source: http://www.rediff.com/business
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