New Delhi | Jagran Business Desk: Finance Minister Nirmala Sitharaman is all set to present the Union Budget 2021 today with a high hope to revive the economy. The Union Budget 2021 is one of the highly anticipated budget as everyone is holding high hopes as the people are looking forward to the new schemes that might revive the pandemic hit economy.

As the final day is here and Finance Minister Nirmala Sitharaman is set to table the final Budget presentation today, so right before that, for a better understanding of the Budget document and terminologies, we have compiled a list of some glossaries that you need to know to decipher the Budget Speech.

ALSO READ: LIVE Union Budget 2021-22: Will Nirmala Sitharaman go beyond 'bahi-khata' today? COVID-hit India hopes

1. Gross Domestic Product (GDP)

This is the sum of all the final goods and services produced in an economy during a period of time. This term is used most commonly as it is the unit of measuring Economic growth in a country. The economic growth in the country is measured by the change in GDP from year to year.

2. Fiscal Deficit

When the government's total expenditure exceeds the revenue incurred in a year is known as a Fiscal Deficit.

3. Primary Deficit

This is the difference that is incurred between the current year’s fiscal deficit and interest payment on previous borrowings. The lower the primary deficit it indicates progress towards fiscal health.

4. Cess

Cess is commonly known as a "tax on a tax". It is generally levied when the state or central government additionally tries to raise funds for specific purposes. It can be charged on both direct and indirect taxes.

5. Minimum Alternative Tax (MAT)

This is the minimum tax that the company needs to pay to the government, even if it comes under the zero tax limits, it is known as MAT.

6. Repo Rate

This is the rate at which the Reserve Bank of India (RBI) lends money to banks or the interest they pay to RBI is called Repo Rate.

7. Budget Estimates

This is the amount of money that is allocated to any ministry or the schemes for the coming financial year is known as Budget Estimates.

8. Capital Expenditure

Capital expenditure is the funds that are used for the development, buying, or acquiring fixed assets that may incur gains, in the long run, is known as Capital Expenditure.

9. Revenue Expenditure

This is the expenditure that does not result in any creation of fixed assets, examples like subsidies and interest payments come under the Revenue expenditure.

10. Annual Financial Statement (AFS)

Every year, the government needs to present the estimated receipts and expenditure in respect of every financial year - April 1 to March 31, in respect of every financial year in the Parliament. This comes under Article 112 of the Constitution.

Posted By: Deeksha Sharma