Economy

Definition of Poverty Poverty is a social phenomenon wherein a section of society is unable to fulfill even its basic necessities of life. The UN Human Rights Council has defined poverty as “A human condition characterized by the sustained or chronic deprivation of the resources, capabilities, choices, security and power necessary for the enjoyment of […]

The 15th Finance Commission (FC-XV) was constituted on 27th November, 2017, by the President of India under the Article 280 of the constitution. It primarily had to make recommendations to the Government of India about the principles determining the distribution of the net proceeds of the central taxes between the union and the states. Apart

Inflation can be described as the general rise in the price of goods and services in an economy over time. Unchecked inflation can ruin the whole economy. There are many examples from African and South American economies which got shattered by the high inflation rates. India experienced its highest inflation rate of 34.68 per cent

Introduction of FRBM Act The Fiscal Responsibility and Budget Management Act, which was initiated in 2003 but has been tweaked several times since then, lays down the red lines for all types of government deficits including fiscal deficit. Fiscal deficit is considered the most important marker of a government’s financial health. A government that abides

Economic reforms In India Popularly, economic reforms denote the process in which a government prescribes declining role for the state and expanding role for the private sector in an economy. Since independence, India followed the mixed economy framework by combining the advantages of the capitalist economic system with those of the socialist economic system. Over

Indian Financial Market We know that, money always flows from surplus sector to deficit sector. That means persons having excess of money lend it to those who need money to fulfill their requirement. Similarly, in business sectors the surplus money flows from the investors or lenders to the businessmen for the purpose of production or

Definition of Deficit The gap between the receipts and expenditure is called deficit. The Government Deficit is the amount of money in the budget set by which the government spending surpasses the revenue earned by the government. This deficit presents a picture of the financial health of the economy. To minimise the deficit or the

Definition of Budgeting Budgeting is the process of estimating the availability of resources and then allocating them to various activities according to a pre-determined priority. Types of Budgeting 1. Performance Budgeting A Performance Budget gives an indication of how the funds spent are expected to give outputs and ultimately the outcomes. A performance budget reflects

different financial sector regulators in India In India, the financial sector is regulated with the help of independent regulators, associated with the field of insurance, banking, commodity market, and capital market and also the field of pension funds. Reserve Bank of India (RBI): financial sector regulator The Reserve Bank of India is the apex monetary