Union Budget 2025: Fiscal Deficit, Capital Expenditure, GDP, and More Such Terms Simplified

Union Budget 2025: India is set to get its new financial budget for the year 2025 on 1 February under the rule of the Modi 3.0 government. Indian finance minister, Nirmala Sitharaman, often finds herself under the scrutiny of the people for her budget speeches, and tax imposition. Her terminologies however are financial jargon not many of us know. So here are some of the budget terms that are simplified for you. 

Budget terminologies simplified

Fiscal Deficit: It is the amount of money the government needs to borrow to cover its expenses. A fiscal deficit is the difference between the total revenue and total expenditure of the government. 

Revenue Deficit: It is the difference between the government’s daily income and the daily expenses. 

Capital Expenditure: It is the expense used in purchasing long-term physical or fixed assets used in government operations. 

GDP: Gross domestic product or GDP is the total value of all goods and services produced by the country in a year. 

Tune into the full video to learn more about such financial terms to help you understand the Union Budget 2025 better. 

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