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Services sector leads growth.
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The Union Budget is the annual financial statement of the Indian government presented by the Finance Minister on February 1 every year in Parliament. It contains the government revenue and expenditure plans for the upcoming financial year (April to March). The Budget is a crucial topic for UPSC, SSC, and Banking exams.
Key components of Union Budget: Revenue Budget (tax and non-tax revenue), Capital Budget (capital receipts and expenditure), Fiscal Deficit (government borrowings), Revenue Deficit, and Primary Deficit. Important terms like GDP growth, inflation targets, and sectoral allocations are frequently asked in competitive exams.
Fiscal Deficit is the difference between the government total expenditure and total revenue excluding borrowings. It indicates how much the government needs to borrow. A high fiscal deficit can lead to inflation and economic instability. India Fiscal Responsibility and Budget Management (FRBM) Act sets targets for managing fiscal deficit.
Recent Union Budgets have focused on: Infrastructure development (roads, railways, ports), Digital India initiatives, Pradhan Mantri Awas Yojana (housing), Agricultural reforms and MSP hikes, Tax reforms (GST, income tax slabs), Production-Linked Incentive (PLI) schemes, and Green energy investments.
GST (Goods and Services Tax) is a unified indirect tax system introduced in India on July 1, 2017. It replaced multiple taxes like VAT, Service Tax, and Excise Duty. GST has four tax slabs: 5%, 12%, 18%, and 28%. It has simplified tax compliance and increased government revenue. GST questions are frequently asked in SSC CGL and Banking exams.
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