New Delhi: Union Finance Minister Nirmala Sitharaman on February 1 will present the Union Budget 2026 in the Parliament. With just days to go before the Union Budget, expectations among middle-class and salaried taxpayers are running high. Many economic terms will dominate headlines and debates.
With this Nirmala Sitharaman will become the first finance minister of the country to present the general budget nine consecutive times.
This year’s Budget comes amid global tensions and a steep 50 per cent tariff imposed by the US on Indian exports.
Here is a list of the key budget terms:
What does inflation mean?
Inflation refers to a rise in prices of goods and services in an economy. It can be defined as when inflation goes up, money buys fewer things. The inflation rate shows how fast prices are increasing over a period of time.
What is fiscal policy?
Fiscal policy is how the government uses taxes and spending to influence the economy. Decisions on welfare schemes, infrastructure projects, and tax rates are all part of fiscal policy and are announced through the Budget.
What is monetary policy?
Monetary policy is controlled by the Reserve Bank of India (RBI). It involves managing interest rates and money supply to control inflation and support economic growth.
What is the capital budget?
The capital budget deals with long-term finances. It includes money the government spends on building assets like roads and railways, as well as money it borrows or recovers through loans.
What are capital receipts?
Capital receipts are funds that either create a liability or reduce government assets. These include loans taken by the government, money raised through treasury bills, foreign borrowings, and loan repayments from states and Union Territories.
What is capital expenditure?
Capital expenditure, or capex, is money spent on creating or upgrading assets. This includes spending on infrastructure, machinery, buildings, and long-term investments that help economic growth.
What is the Revenue Budget?
The Revenue Budget focuses on the government’s day-to-day income and expenses. It includes money earned through taxes and other sources, and spending on routine needs.
