What is a Union Budget?
[This article explains the meaning of Receipt budget, Non-debt receipt, capital budget, capital expenditure, department of expenditure, etc.] A Union budget is the annual spending plan of the Government based on the estimated income and expense of a nation for the next financial year. The objective of the Government Budget is a blueprint for stimulating…
Read article
National Income and GDP Concept
National income is the total monetary value of all goods and services produced by a country and income from abroad during a given period usually for one year. It is valued in terms of money. National income comprises GDP, GNP, NNP, PI, DI, and PCI. GDP (Gross Domestic Product) is the value of the goods…
Read article
How did Monetary Policy in India Respond to the Global Financial Crisis?
In 2008-09, the financial stresses peaked following the failure of the US financial firm Lehman Brothers in September 2008. This triggered a panic in financial markets globally. The world has witnessed one of the worst economic and financial crises during 2008-09 since the great depression of 1929. India too faced a financial crisis beside the…
Read article
The FRBM Act: FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT ACT, 2003
The Fiscal Responsibility and Budget Management Act, of 2003, was enacted by the Indian government to institutionalise financial discipline, reduce India’s fiscal deficit, improve macroeconomic management and the overall management of public funds by moving towards a balanced budget, and strengthen fiscal prudence. The Act’s long-term objective is for India to achieve fiscal stability and…
Read article
Explained: Tools of monetary policy
The tools of monetary policy refer to the tools used by the Central Bank (RBI in India) to meet the set objectives of price stability and growth of the economy. The tools used by the Central Bank for the above purposes are; Cash Reserve Ratio (CRR), Statutory Liquidity Reserve (SLR) Directed credit and administered interest…
Characteristics of a Business Cycle and Phases of a Business Cycle
The Gross Domestic Product (GDP), which is the total value of goods and services produced in a country, keeps fluctuating over time due to expansion and contraction in economic activity. This experience of expansion and contraction in an economy from time to time is known as the business cycle. A business cycle is completed when…
Read article