The Union Budget, also known as the Annual Financial Statement, is an important document that outlines the government’s financial plans and policies for the upcoming financial year. The budget, presented by the finance minister in Parliament, includes proposals for government spending and revenue collection, as well as changes in tax laws and policies.
One of the major aspects of the Union Budget is the allocation of funds to various sectors such as agriculture, education, infrastructure and defence. The budget also includes proposals for tax changes, which could have a significant impact on individuals and businesses. For example, changes in corporate tax rates can affect the profitability of companies, while changes in personal income tax rates can affect the disposable income of individuals.
Another important aspect of the Union Budget is the fiscal deficit target. It is the difference between the total revenue and total expenditure of the government. A low fiscal deficit is considered a positive sign as it indicates that the government is able to manage its finances effectively. The government aims to keep the fiscal deficit within a certain range, as a high fiscal deficit can lead to inflation and a weakened currency.
The Union Budget also includes the annual Economic Survey, which provides a broad overview of the country’s economic performance in the previous year and highlights the government’s economic priorities for the coming year. The survey gives an insight into the current economic scenario of the country and helps in understanding the future economic policies of the government.
Overall, the Indian Union Budget is a comprehensive document that plays a significant role in shaping the country’s economic policies and directions. It is closely watched by businesses, investors and economists, as it has the potential to influence the economic growth and development of a country.
frequently Asked question:
1. When is the Union Budget of India presented?
The Indian Union Budget is presented every year on the last working day of February.
2. How does the Union Budget affect businesses and individuals?
The Union Budget can have a significant impact on businesses and individuals, as it includes proposals for tax changes and allocation of funds for various sectors. Changes in tax laws can affect the profitability and operations of businesses, while changes in government spending can affect the availability of goods and services for individuals.