General Studies

Introduction of Bonds A bond is a debt instrument in which an investor loans money to an entity (typically corporate or government) which borrows the funds for a defined period of time at a variable or fixed interest rate. Bonds are used by companies, municipalities, states and sovereign governments to raise money to finance a […]

Why in News ? The Reserve Bank has notified the inclusion of retail and wholesale trade under the micro, small and medium enterprises (MSME) category. This will help retail and wholesale trade benefit from priority sector lending under RBI guidelines. The revised guidelines will benefit 2.5 crore retail and wholesale traders. The move would also allow them

Introduction of Viability Gap Funding The main constraint in India’s infrastructure sector is the lack of source for finance. More than the overall difficulty of securing funds, some projects may not be financially viable though they are economically justified and necessary. This is the nature of several infrastructural projects which are long term and development

Deficit Financing Deficit financing is the budgetary situation where expenditure is higher than the revenue. It is a practice adopted for financing the excess expenditure with outside resources. In this process, the government knows well in advance that its total expenditures are going to turn out to be more than its total receipts and enacts/follows

Introduction of Public Debt Public debt or borrowings are money raised on the security of consolidated fund of India and repayable out of it. In layman terms, public debt is the total amount borrowed by the government of a country. But, Why government borrow? Budgetary deficits must be financed by either taxation or borrowing or printing