Nirmala Sitharaman, India’s first full-time female Finance Minister, will present the first budget of Narendra Modi-led government's second term on July 5.
Taking up the crucial Finance Ministry portfolio, Sitharaman has a big task at hand. In her new role, the former defence minister needs to address issues such as economic slowdown, unemployment rate which is at a 45-year high, severe agrarian crisis, NPAs marring the banking sector.
While all eyes will be on Budget 2019, it is imperative for people to know the key terms associated with the annual exercise.
Here’s a lowdown on some of the important terms to help understand and decode the Budget.
What is the Capital Budget?
The capital budget comprises of capital receipts and capital payment. Capital receipts include the money a government gets through treasury bills, markets loans, loans received from a foreign government, disinvestment receipts or debt paid by Union Territories, state governments and other parties.
Meanwhile, capital payments consist of capital expenditure on acquisition of assets like land, buildings, machinery, equipment, as also investments in shares, etc., and loans and advances granted by the central government to state and Union Territories, government companies and corporations, among others.
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