Economy

Tax Revenue: Union Excise Duties: They are, presently, by far the leading source of revenue for the Central Government and are levied on commo­dities produced within the country, but exclu­ding those commodities on which State excise is levied (viz., liquors and narcotic drugs). The most important commodities from the revenue point of view are sugar, … Read more

Recapitalisation plan is a mechanism to deal with the problems of NPA in the financial institutions. It is one of the four R’s to address the issue of NPA’s.  In Oct,17 Centre has announced a 2.11 lakh crore recapitalisation plan for the public sector banks over the next two years. The recapitalisation plan is a … Read more

Zero-Based Budgeting – ZBB This is a method of budgeting in which all expenses must be justified for each financial  year. The process of this budgeting starts from a “zero base,” on every financial year. Every  function within the ministry or department is analyzed for its needs and costs. Budget  allocations are then made according … Read more

A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely principal and interest payments and the likelihood of default. An agency may rate the creditworthiness of issuers of debt obligations, of debt instruments, and in some … Read more

Causes of Yes Bank crisis: Loan spree In the last five years, Yes Bank went on a loaning spree. Its total advances rose by 334% between FY14 and FY19, the highest rise among comparable banks in the period. Bad loans multiply Many borrowers started defaulting. The bank’s Gross NPA% (loans overdue for >90 days) zoomed … Read more

:  To provide an assured income support to the small and marginal farmers, Government is launching a historic programme namely “Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)”. Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs 6,000 per year. This income … Read more

IPO is an abbreviation of Initial Public Offer. FPO is an abbreviation of a Follow-On Public Offer. Key Difference: IPO vs. FPO IPO is the first public issue of the shares of a private company that is going public whereas FPO is the second or subsequent public issue of the shares of an already listed … Read more

It is restructured name of multi sectoral development Programme. It is under Ministry of Minority affairs. The restructured programme would provide better socio economic infrastructure facilities to the minority communities particularly in the field of education, health & skill development as compared to the present situation, which would further lead to lessening of the gap … Read more

  MONETARY POLICY TOOL:   There are several direct and indirect instruments that are used for implementing monetary policy. Repo Rate: The (fixed) interest rate at which the Reserve Bank provides overnight liquidity to banks against the collateral of government and other approved securities under the liquidity adjustment facility (LAF). Reverse Repo Rate: The (fixed) … Read more

Subsidies are a major component of expenditure they are a form of transfer payment given by government to the People. Subsidies can be classified as food, petroleum and agriculture subsidies. Why rationalisation: Government expenditure power is limited and they cannot go beyond a point further the fiscal deficit should be solely utilised for the purpose … Read more