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
IMPACT OF NEW ECONOMIC POLICY India’s post-independence development strategy showed all the signs of stagnation, but the economy started showing the sign of recovery in the early nineties when the government adopted the new economic model known as INFRASTRUCTURE, into a modern developed economy. New Economic Policy 1991 India opened up the economy in the … Read more
Tax Expenditures: Hidden Subsidies in Plain Sight Tax expenditures, often referred to as “tax breaks” or “tax loopholes,” are provisions in the tax code that reduce tax liability for specific individuals, businesses, or industries. They deviate from the standard tax system by offering preferential treatment, effectively providing a subsidy through the tax system. While seemingly … Read more
Fiscal Policy is that part of Government policy which is concerned with raising revenues through Taxation and other means along with deciding on the level and pattern of expenditure it operates through budget. However, generally the expenditure exceeds the revenue income of the Government. In order to meet this situation, the Government imposes new taxes … Read more
The Indian constitution provides for a federal framework with powers (legislative ,executive and financial) divided between the center and the states. However, there is no division of judicial power as the constitution has established an Integrated Judicial System to enforce both the central laws as well as state law. The Indian federation is not the … Read more
Navigating the Labyrinth: A Comprehensive Guide to Financial Bills Financial bills are the lifeblood of any economy, shaping the landscape of investment, spending, and economic growth. From regulating financial institutions to managing public debt, these bills play a crucial role in shaping the financial well-being of individuals, businesses, and nations. This comprehensive guide delves into … Read more
Basic Features of Indian economy [su_posts template=”templates/list-loop.php” posts_per_page=”100″ tax_term=”1322″ tax_operator=”0″ order=”desc”] (I) NATIONAL INCOME ; Elementary concepts of national Income and methods of its calculation e-g,GDP, GNP, NDP, NNP, CSDP. NSDP, DDP at constant and current prices, at Factor Cost etc; (II) Inflation : Concept control of inflation : monetary, fiscal and direct measures. (III)Demographic … Read more
Current Account deficit and Unfavorable Balance of Payment Current Account Deficit The current account deficit is a measurement of a country’s trade where the value of the goods and Services it imports exceeds the value of the products it exports. The current account includes net income, such as interest and dividends, and transfers, such as … Read more
[su_heading size=”21″]Budgetary Deficit[/su_heading] Budgetary Deficit is the difference between all receipts and expenditure of the government, both revenue and capital. This difference is met by the net addition of the Treasury Bills issued by the RBI and drawing down of cash balances kept with the RBI. The budgetary deficit was called Deficit Financing by the government … Read more
PUBLIC FINANCE Public finance is the study of the role of the government in the economy. It is the branch of economics which assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones. It includes the study of … Read more