When the government presents the budget, it uses many financial terms. These financial terms can be easily understood before understanding the budget.
Actually, the general public also focuses on the budget. Everyone wants to know what important decisions the government is going to take in the upcoming financial year.
Let us tell you that due to the Lok Sabha elections this year, an interim budget will be presented. In this article, let us know about some financial terms in simple language.
Zero Budget
The word zero-budget is often used while presenting the budget. This word is used for the agricultural world. This would mean that instead of harmful chemicals, natural fertilizers can be used for farming.
The government insists on this. Actually, it helps in promoting organic farming along with reducing the expenses for farming.
Exchange Rate
India faces many challenges to boost its economy. One of these is export. India needs double the help to increase or maintain its export levels. Apart from this, exchanging foreign currency is also a challenge.
Exchange rate means when you pay for something in another currency. For example, India buys crude oil in US dollars and not in rupees. In such a situation he has to pay more expenses.
Wealth Creation
India is facing many challenges for the development of the country. One of these is wealth creation. The reason for this is that many people have money but if the personal salary is very low i.e. the labor cost is low.
The term wealth creation is used in the budget. In this the government tells how much the labor costs are and how much money has been created by the government. In simple language, how much money has the government earned?
Financial Overview
Whenever a new tax regime or change in the tax system is introduced, the documents used are called Financial Overview. It is used to present policies.
Disinvestment
Shares are often sold by the government to the public sector. When this share is sold to get cash, this earning asset is converted into cash. This entire process is called Disinvestment.
