Union Budget 2025: 30 key details and terms explained

The Union Budget for the fiscal year 202526 will be presented by Finance Minister Nirmala Sitharaman on February 1 2025 at 11 am in the Lok Sabha This annual exercise highlights the governmentrsquos financial roadmap detailing projected expenditures and revenues for the year aheadMarking her eighth budget presentation including six annual and two interim budgets the Union Budget 2025 holds critical significance as it represents the second complete budget under the Modi governmentrsquos third term It is expected to address pressing economic concerns and set the stage for Indiarsquos financial prioritiesThe budget is divided into two parts Revenue Budget Covers the governments estimated receipts and expenditure on routine operations like salaries and subsidies Capital Budget Includes receipts and expenditures on longterm investments such as infrastructure and defenceKey Terms to know before the budget presentation1 Annual Financial Statement AF The blueprint of the governmentrsquos receipts and expenditures for the financial year2 Budget Estimate The projected allocation of funds to ministries sectors and schemes3 Capital Expenditure Capex Expenditure on longterm assets like infrastructure and equipment4 Capital Receipts Funds earned through borrowing asset sales or equity investments5 Cess Additional tax for specific initiatives like education or healthcare6 Consolidated Fund The governmentrsquos main account for revenues and expenditures excluding the contingency fund7 Contingency Fund Emergency reserve managed by the President of India requiring parliamentary approval for withdrawals8 Customs Duty Tax levied on imported and exported goods9 Direct Tax Taxes like income tax and corporate tax paid directly to the government10 Divestment Sale of government stakes in public sector enterprises11 Economic Survey Annual report assessing the previous yearrsquos economic performance and setting the stage for the budget12 Finance Bill Proposal to introduce or amend tax policies13 Fiscal Deficit The gap between total expenditure and revenue financed through borrowing14 Fiscal Policy Governmentrsquos strategy involving taxation and spending to influence the economy15 Goods and Services Tax GST Indirect tax on goods and services paid by consumers but remitted by businesses16 Gross Domestic Product GDP The total market value of goods and services produced within a country during a specific period17 Indirect Taxes Taxes on goods and services such as GST and customs duty18 Inflation The rate of increase in prices reducing purchasing power19 New Tax Regime Introduced in 2022 offering lower tax rates with simplified structures becoming the default system in 20232420 Monetary Policy RBIrsquos measures to control liquidity and achieve sustainable economic growth21 Old Tax Regime The previous system with fewer tax slabs but higher rates and more exemptions22 Public Account Used to manage government receipts like provident funds and small savings23 Rebate Tax liability reduction aimed at easing financial burdens24 Revenue Deficit When revenue expenditure exceeds revenue receipts25 Revenue Expenditure Operational costs like salaries subsidies and interest payments26 Revenue Receipt Income from taxes fines and services provided27 Tax Collected at Source TCS Tax collected by sellers at the time of sale and deposited with authorities28 Tax Deduction Reductions in taxable income through specific investments29 Tax Surcharge Additional tax on higherincome taxpayers30 Vote on Account The government obtains permission from the Parliament for a sufficient sum to carry on daily functions until the required legislation is passed