In simple terms, Budget is the blueprint of the income and expenses to be done by someone in a defined period of time. When that Budget is announced by the government it is termed as the annual budget for the country.
In India, we have a tradition of announcing the Budget on the 1st of February every year and this year is no exception. Finance Minister Nirmala Sitharaman announced the Annual Budget for FY 2022-23.
This was one of the shortest budgets in history with a major emphasis on Infrastructure, Cryptocurrency, Digital Assets, Real Estate and Telecom.
The government announced a deficit budget and this is not a new phenomenon. A deficit budget actually helps in the growth of the country.
A budget in which Expenses is greater than Income is called a deficit budget. This year as well Government has announced the deficit budget with a set rate of 6.4%.
In order to run the country, the government needs funds and there are several ways to collect it. Government owns several entities, collects taxes etc to run the nation.
In this year's budget government major income sources are:
As the government has announced a deficit budget that means the expenses are planned to be much more than the income.
Let's have a look at the major expenses to be incurred by the government for the year:
Various other things are brought into focus as it happens every year. The most important things to focus on are:
Overall the budget has received a good reaction so far. The stock market also saw a boom since the budget was announced. This budget is also being termed as a futuristic budget. Let's see where it goes.