Budget glossary: What do all the big words mean?
Ahead of the Budget on February 1, we simplify some commonly used terms by the finance minister in her speech and documents
By Samidha Jain
Last Updated: Jan 29, 2026, 14:13 IST1 min
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Union Budget
The most comprehensive report of the finances of the government in which revenues from all sources and expenses from all activities are put together. It also includes government’s estimates for the next fiscal year called Budgeted Estimates.
Direct and Indirect Taxes
Direct taxes fall directly on individuals and corporations. Example: Income tax
Indirect taxes are imposed on goods and services, to be paid by consumers when they buy them.
Example: GST
Fiscal Deficit
The difference of the government's total expenditure over total non-borrowed receipts.
Revenue Deficit
The difference between revenue expenditure and revenue receipts.
Fiscal Policy
It is the government’s action or plan to aggregate levels of revenue and expenses. Through this, the government influences the economy.
Monetary Policy
The plan decided by the central bank (Reserve Bank of India) to regulate the level of money in the economy.
Inflation
A sustained increase in the general price level. The percentage rate of this change is called Inflation rate.
Capital Budget
The account of capital receipts and payments by the government which includes investments and advances granted by the central government to state governments, government corporations or other parties.
Revenue Budget
The account of revenue receipts and expenditure by the government which includes tax revenue and non-tax revenue.
Finance Bill
The bill produced immediately after the presentation of the Union Budget detailing the imposition, abolition, alteration or regulation of taxes proposed in the budget.
Disinvestment
The sale of shares of public sector undertakings by the government.
Contingency Fund of India
A fund placed at the disposal of the president of India to enable him/her to meet urgent, unforeseen expenditure for the country.
First Published: Jan 29, 2026, 14:17
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