Notes and Study material for Exams
The State Finance Commissions are required to recommend financial support from the state and principles for determination of taxes, tolls and fees that could be assigned to or appropriated by the local bodies ARTICLE 243I of the Indian Constitution prescribes that the Governor of a State shall, as soon as may be within one year … 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
The following are subtopics of GDP deflator: Definition Formula Calculation Uses Limitations Examples Related topics The GDP deflator is a measure of the level of prices of all final goods and services produced in an economy in a given year compared to a base year. It is calculated by dividing the nominal GDP by the … 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
Monetary Policy TOOL: There are several direct and indirect instruments that are used for implementing monetary policy. Repo rate: The (fixed) interest rate at which the Reserve Bank provides overnight liquidity to banks against the collateral of government and other approved securities under the Liquidity Adjustment facility (LAF). Reverse Repo Rate: The (fixed) … Read more
, Andhra Pradesh is a state in the southern region of India. It is the seventh-largest state by area and the tenth-largest by Population. The state has a long history of agriculture, and it is still a major contributor to the economy. However, in recent years, the state has seen a significant Growth in the … Read more
Recomendations of the 14th Finance Commission ARTICLE 280 of the Constitution of India requires the Constitution of a Finance Commission every five years, or earlier. For the period from 1st April, 2015 to 31st March, 2020, the 14th Finance Commission (FFC) was constituted by the orders of President on 2nd January, 2013 and submitted its … 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,
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
The Twelfth Finance Commission was appointed under the chairmanship of C. Rangarajan on November 1, 2002 to make recommendations regarding the distribution between the Union and the States of net proceeds of shareable taxes, the principles which should govern the grants- in-aid of the revenues of States from the Consolidated Fund of India and … Read more