Image via WikipediaCapital and revenue budgets – Expenditure that doesn’t create an asset such as subsidies or interest payments, is classified as revenue expenditure. Conversely, spending to create an asset such as land or buildings, and loans given by the Centre in states is capital spending. Such expenditure is balanced against receipts which comprise tax collections, interest and dividend on union government investments and others on the revenue side and loans raised by the centre on the capital side.
Charged appropriation – Money set aside to meet routine expenditure such as salaries for government servants, where parliamentarians do not vote in favour or against.
Consolidated fund of India – All of the central government’s revenues from activities such as tax collection and borrowings are placed in this fund. All the money pulled out this fund for spending can be traced to appropriation, which means the parliament has oversight on withdrawals from this fund.
Demand for grants – It is the amount of expenditure to be incurred and the demand of each ministry is placed in the parliament for debate.
Fiscal Deficit – The excess of expenditure over revenue, which is met through borrowing.
Gross Domestic Product – The added value output of all productive sectors in an economy as measured by the Central Statistical Organisation (CSO)
Outcome budget – A practice started by former finance minister P. Chidambaram in 2005 to improve the accountability of fund utilization by the various arms of the government. This budget attempts to give a detailed account of the performance of all major programmes outlined in the main budget and implemented by all the union ministries.
Plan and non-plan expenditure plan spending – Plan spending the annual funds allocated by the Union government for development schemes outlined in the ongoing five-year plan, while the expenditure incurred on maintenance of the projects already created is accounted for under non plan spending. Both these spendings have capital and revenue components.
Primary deficit – It is fiscal deficits less interest payments. It can be interpreted as the excess of non-interest expenditure of the government over its receipts and is a measure of the quality of the government’s finances.
Revenue deficit – This measures the gap between the government’s current income through taxes and other revenues, and its spending for the same period.
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