Notes and Study material for Exams
When a government spends more than it collects in taxes, it borrows from the private sector to finance the budget deficit. The accumulation of past borrowing is the government debt. A tax cut stimulates consumer spending and reduces national saving. The reduction in saving raises the interest rate, which crowds out Investment. As per Solow’s … Read more
State of the economy:- According to 14th Planning Commision, During the last two plan periods, Chhattisgarh had achieved a Growth rate comparable to national level. For the first two years of Twelfth plan, its growth rate had been better than that of all India. Primary Sector provides sustenance to nearly 80 per cent of the … Read more
In the Year 2014, Chhattisgarh ranked as the best performing state in most of the key fiscal parameters, according to a Reserve Bank of India (RBI) study. According to the study, Chhattisgarh has done reasonably well in spending its Money in developmental sector, one of the key parameters to judge States overall performance. As per … Read more
Chhattisgarh Chief Minister Raman Singh presented a Rs. 73,996 crore budget for the year 2016-17 in the State Assembly. This is hoped that the GDP of the State would remain at 7.6 per cent in the coming year. Special focus and attention was given to agriculture sector in the budget. Government have provided Rs.540 … Read more
Andhra pradesh budget 2019-20 Economic outlook of Andhra pradesh GDP The Growth rate of Andhra Pradesh’s GDP (at current prices) has marginally decreased from 15.4% in 2016-17 to 15.3% in 2018-19. Fiscal Deficit In 2019-20, Andhra Pradesh’s fiscal deficit is estimated to be Rs 35,261 crore, which is 3.3% of the GDP. The estimate is … Read more
BUDGETARY REFORMS Government bodies raise Money by imposing taxes on citizens and then use those funds to pursue various programs such as Education, defence,
Utilization of public fund Intergovernmental transfers from the centre to the states takes place through three channels: statutory and other transfers mandated by the Finance Commission, formula-based transfers for State Plan Schemes through the Planning Commission, and other discretionary transfers by the Planning Commission/ various central Ministries. The entire tax sharing is a … Read more
Fiscal Responsibility and Budget Management Act The FRBM Act 2003 in its amended form was passed by the government to bring fiscal discipline and to implement a prudent Fiscal Policy. High Fiscal Deficit was the one major macroeconomic problem faced by Indian economy around 2000. It was argued that high deficits lead to … Read more
Control over Public Expenditure In a parliamentary Democracy, the political executive is responsible to the Parliament. The control exercised by the Parliament over the executive is its control on financial expenditure. Parliamentary Control The Parliament is the custodian of public Money, and what better way to keep an eye on the authorities spending … Read more
Fiscal Responsibility and Budget Management Act The FRBM Act 2003 in its amended form was passed by the government to bring fiscal discipline and to implement a prudent Fiscal Policy. High Fiscal Deficit was the one major macroeconomic problem faced by Indian economy around 2000. It was argued that high deficits lead to Inflation, reduces … Read more