Short Description: A glossary breaking down key terms from the Union Budget 2026-27, explaining complex concepts like fiscal deficit, capex, and GST in simple language.
Read Time: 4 minutes 30 seconds
Main Article
Navigating India’s Union Budget 2026-27 can feel like decoding an alien language for many. This year’s budget, set to be presented on a historic first Sunday in February, arrives amid global trade tensions. To cut through the jargon, this A-to-Z guide explains the essential terms that articulate the government’s economic strategy.
Central to any budget is the fiscal deficit, which is the gap between the government’s total spending and its non-borrowed income. To bridge this gap, the government relies on borrowings by issuing bonds. The budget also details capital expenditure (capex), which refers to spending on long-term physical assets like roads, railways, and ports. This infrastructure investment is crucial for stimulating economic growth and creating jobs. On the revenue side, the Goods and Services Tax (GST), India’s unified indirect tax system, plays a major role in funding the government’s plans, alongside direct taxes like income tax.
Other critical terms include Public Sector Undertakings (PSUs), which are government-owned companies. The budget often outlines plans for their disinvestment, or sale of government stake, to raise revenue. Furthermore, the document outlines various subsidies, which are government payments to reduce the cost of essentials like fuel and food for consumers and farmers. These allocations directly impact household budgets and inflation. Understanding these components allows stakeholders to gauge the budget’s priorities—whether it focuses on fiscal consolidation, infrastructure push, or social welfare—and its ripple effects on the broader economy.
Short Summary: The Union Budget 2026-27 uses specific financial terminology to outline India’s economic roadmap. Key concepts like fiscal deficit, capital expenditure, GST, PSU disinvestment, and subsidies define how the government plans to tax, spend, and borrow. Grasping these terms is essential to understanding the budget’s impact on growth, investment, and public welfare.
