Capital Budget: The word, capital, is long-term in nature. The Capital Budget keeps track of the government's capital receipts and payments. This accounts for market loans, borrowings from the Reserve Bank and other institutions through the sale of Treasury Bills, loans acquired from foreign governments and recoveries of loans granted by the Central government to state governments and Union Territories. Expenses incurred on acquisition of assets are termed capital payments.

Countervailing Duties: This is levied on imports that may lead to price rise in the domestic market. It is imposed with the intention of discouraging unfair trading practices by other countries.

Consolidated Fund: This is one big reservoir where the government pools all its funds together. The fund includes all government revenues, loans raised and recoveries of loans granted. As we all know, no government can function effectively without a proper flow of funds.

Contingency Fund: It is more or less similar to that extra little bit of savings that all mothers set aside in case of an emergency. Likewise, the government has created this fund to help it tide over difficult situations. The fund is at the disposal of the President to meet unforeseen and urgent expenditure, pending approval from Parliament. The amount that is withdrawn from the fund is recouped.

Capital Expenditure: These expenses are usually long-term in nature and are utilised for acquiring assets like land, building, machinery, equipment, investment in share, etc. Also, loans and advances approved by the Central government to states and union territories, public sector undertakings and other parties fall under this head.

Capital Receipt: A major part of government receipts are in the form of loans raised from the general public, also called market loans. The list also includes other sources such as government borrowings from the Reserve Bank and other parties, sale of Treasury Bills, loans received from foreign governments and organisations and recovery of loans granted by the Centre to states and Union Territories and other parties. Proceeds from divesting the government's stake in public sector undertakings also forms part of the list. It is seen that the government itself is divided on this issue; it is very evident from the way it has gone around handling recent situations.

Central Plan: This consists of the government’s budgetary support to the Plan and the internal and extra budgetary resources raised by public enterprises.

Demand For Grants: A statement of estimate of expenditure from the Consolidated Fund, it is required to be voted by the Lok Sabha. Usually, one Demand For Grants is presented in respect of each ministry or department.

Finance Bill: A proposal made by the government for levying new taxes, modifying or continuing with the existing tax structure beyond the period approved by Parliament. The Finance Bill is submitted to Parliament along with the Budget.

Fiscal Deficit: The mother of all deficits. It includes the budgetary deficit plus borrowings and other liabilities, such as small loans, Provident Fund, etc. It is the difference between the revenue receipts plus certain non-debt capital receipts and the total expenditure, including loans (net of repayments). The term indicates the total borrowing requirements of the government from all sources.

Monetised Deficit: It measures the level of support that the Reserve Bank extends to the government’s borrowing programme.

Non-Plan Expenditure: It Includes both revenue and capital expenditure on interest payment, the entire defence expenditure (both revenue and capital expenditure), subsidies, postal deficit, police, pensions, economic services, loans to public enterprises and loans as well as grants to states, Union Territories and foreign governments.

Primary Deficit: It is the difference between fiscal deficit and interest payments.

Performance Budget: At times, it is referred to as another under-performance Budget. Officially, the Performance Budget is a compilation of programmes and activities of different ministries and departments.

Plan Expenditure: It forms a major chunk of the Central government’s total expenditure. It includes both revenue and capital expenditures of the government on the Central Plan, Central assistance to states and Union Territories' plans.

Public Account: Funds received from transaction not pertaining to the Consolidated Fund are termed as Public Account. The difference between the Consolidated Fund and the Public Fund is that the former is part of the government’s own resources and the latter is in respect of which the government acts as a banker. Transactions relating to Provident Funds, small savings collections, other deposits, etc. form part of the Public Account. Parliamentary authorisation for payments from the Public Account is not required.

Revenue Budget: This is one of the many heads that comprise of the Budget. To put it in a staid manner, a gist of revenue expenditure that is set off against revenue receipts (tax and non-tax). Revenue expenditure is expenses incurred on the normal running of government departments and other services such as interest charges on debt incurred by the government, subsidies, etc. Grants to state governments and other parties also form part of revenue expenditure, it may also include expenses for purchasing assets.

Revenue Deficit: To put it simply, the difference between revenue expenditure and revenue receipts is called Revenue Deficit. The revenue deficit can literally compel governments to scurry for cover.

Revenue Surplus: This is just the opposite of the previous term, which is when the government is left with a positive balance. The term has very much been wiped out from budgeting parlance.

Revenue Expenditure: It is allocated to the normal running of government departments and numerous other services like servicing interest charges on debt incurred by the government. To put it simply, expenses not associated with the creation of assets is treated as revenue expenditure. Funds allocated to states and other parties are treated as revenue expenditure even if the funds may not be specifically utilised for the creation of assets.

Revenue Receipt: Duties levied by the Centre, interest and dividends on investments made by the government, fees and other receipts for services rendered form part of the list.

Value Added Tax (VAT): This is the share the government extracts from corporates for adding value to its products or services. The tax is calculated on the difference between the value of the output over the value of the inputs that is used to produce it. This is precisely the reason why companies are not very forthcoming with a lot of details.