Budget 2019: All You Need to Know About GDP and Other Key Terms

Video Editor: Sandeep Suman & Mohammad Ibrahim

Come 5 July and the first Union Budget under the Modi 2.0 government will be presented by Finance Minister Nirmala Sitharaman.

In the build-up to the big day, The Quint will keep you abreast of all the concepts and technical terms that will help you understand the jargon in the Budget speech.

Here are some of the terms that will keep you updated on the Budget day.

GDP: Gross Domestic Product (GDP) is a broad measurement of a nation’s overall economic activity. GDP is the monetary value of all the finished goods and services produced within a country's borders over a specific time period.

Fiscal Deficit: A fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings. Deficit differs from debt, which is an accumulation of yearly deficits.

Revenue Deficit: A revenue deficit occurs when realized net income is less than the projected net income. This happens when the actual amount of revenue and/or the actual amount of expenditures do not correspond with budgeted revenue and expenditures.

Budget Estimate: All projected income & expenditure are decided through a process called Budget estimate. This means that the finance minister tells us how much the government can spend depending on how much revenue the government expects to collect.

Revised Estimate: Revised estimate is the difference between the previous Budget Estimates and the actual expenditure and revenue, which is usually presented in the following Budget.