A vote on account allows the government to secure Parliament's approval for essential spending in the initial months, ensuring smooth operations before the full budget is finalized.
2. Direct Taxes and Indirect Taxes
Direct taxes (income, corporate, capital gains) target individuals and businesses based on earnings. Indirect taxes (GST, customs duties) affect consumers through taxes on goods and services.
3. Corporate Taxes
Corporate taxes are levied on business profits, and the applied rates can influence corporate behavior and economic growth. Adjustments to corporate tax rates are crucial for businesses and the overall economy.
4. Fiscal Deficit
Fiscal deficit denotes the gap between the government’s total expenditures and total revenues, excluding borrowings. A lower fiscal deficit is generally seen as positive for economic health.
5. Capital Expenditure
Capital expenditure denotes government spending on long-term assets (e.g., infrastructure, machinery, technology), signaling a commitment to enhance the country's productive capacity.
Subsidies are government-provided financial assistance to specific sectors or individuals, promoting targeted economic activities, like agricultural or essential goods subsidies.
7. Goods and Services Tax Compensation Cess
The GST Compensation Cess is a tax levied to compensate states for revenue loss from GST implementation, providing insights into states' financial health.