Economy

Information and Communication Technologies (ICTs) play a key role in development & Economic growth of Rural India. Political, Cultural, Socio-economic Developmental & Behavioral decisions today rests on the ability to access, gather, analyze and utilize Information and Knowledge. ICT is the conduits that transmit information and knowledge to individual to widen their choices for Economic … Read more

The Reserve Bank of India (RBI) appointment a Committee on Comprehensive Financial Services  for Small Businesses and Low-Income Households under the Chairmanship of Shri Nachiket Mor,  member on the Central Board of Directors, RBI in the month of Sep 2013. Its prime object was to frame a clear and detailed vision for financial inclusion and … Read more

. The main objective of the committee was to recommend what needs to be done to revise and  strengthen the current monetary policy framework with a view to making it transparent and  predictable with a focus on inflation management. The group submitted its report in January, 2014 and inter-alia, made the following recommendations with regard … Read more

Today, employment share of three sectors of economy is roughly – industry (17%), agriculture (57%) and  services (26%). Unemployment is mainly of two types – disguised unemployment and open unemployment. Disguised  unemployment is also called under-employment. It is a situation in which a person is not contributing  fully to his potential for example, a task … Read more

. In order to boost the MSME sector, several schemes are operational. Some of the major initiatives taken for the development of this sector are : Many financing bodies like IDBI and SIDBI provide concessional loans. Credit Guarantee Fund was established in 2000 to ensure supply of credit without  Credit Linked Capital Subsidy and Credit … Read more

Revenue Expenditure Broadly the expenditure which does not result in creation of assets for Government of India is treated as revenue expenditure. An expenditure that neither creates assets nor  reduces a liability is categorized as revenue expenditure. Revenue expenditure is for the normal running of Government departments and various services, interest payments on debt, subsidies, … Read more

. Capital Account Convertibility is a feature of a nation’s financial  regime that centers on the ability to conduct transactions of local financial assets (money, stocks, bonds,  real estate, FDI, FII, account receivable, inventory etc) into foreign financial assets freely and at market  determined exchange rates. In layman’s terms, full capital account convertibility allows local … Read more

(A)National investment fund The cabinet Committee on Economic Affairs (CCEA) on 27th January,  2005 had approved the constitution of a National Investment Fund (NIF). The Purpose of the fund was to  receive disinvestment proceeds of central public sector enterprises and to invest the same to generate  earnings without depleting the corpus. The earnings of the … Read more

Tax Avoidance is an area of concern across the world.  The rules are framed in different  countries to minimize such avoidance of tax.  Such rules in simple terms are known as ‘General Anti  Avoidance Rules’ or GAAR. Thus, GAAR is a set of general rules enacted so as to check the tax avoidance.  It empowers … Read more

(A) Performance budget Unlike the traditional line item budget, a performance budget reflects the  goal/objectives of the organization and spells out performance targets. These targets are sought to be achieved through a strategy(s). A Performance Budget gives an indication of how the funds spent are expected to give outputs and ultimately the outcomes. However, performance … Read more