Daily current affair 12 October 2015

Habitat III

• Habitat III is United Nation UN conference on housing and sustainable Urban Development 
• which will be held in Quito Ecuador in October 2016

• inclusiveness 
• efficiency 
• sustainability and 
• empowering the local government 

• urban Mission on smart cities 
• Amrut 
• HRIDAY, 
• Swach Bharat and
• Pradhan Mantri Awas Yojana

• eliminating poverty 
• skill development 

• universalization basic services including affordable housing and insurance 
• a sustainable Habitat through energy efficient building and transport

India voiced its concern for reforms in World Bank and IMF

The reforms in bretton wood institutes should reflect the share of developing countries in the Global economy. significant increase in capital of multilateral lending agency to meet the financial need of developing countries Breton wood Institute should play mazor role by financing and implementing the plans to achieve the sustainable development goals

Different types of deficits

Revenue deficit is excess of total revenue expenditure of the government over its total revenue receipts. It is related to only revenue expenditure and revenue receipts of the government. Alternatively, the shortfall of total revenue receipts compared to total revenue expenditure is defined as revenue deficit.

Revenue deficit signifies that government’s own earning is insufficient to meet normal functioning of government departments and provision of services. Revenue deficit results in borrowing. Simply put, when government spends more than what it collects by way of revenue, it incurs revenue deficit. Mind, revenue deficit includes only such transactions which affect current income and expenditure of the government. Put in symbols:

Revenue deficit = Total Revenue expenditure – Total Revenue receipts

Fiscal deficit is defined as excess of total budget expenditure over total budget receipts excluding borrowings during a fiscal year. In simple words, it is amount of borrowing the government has to resort to meet its expenses. A large deficit means a large amount of borrowing. Fiscal deficit is a measure of how much the government needs to borrow from the market to meet its expenditure when its resources are inadequate.

In the form of an equation:

Fiscal deficit = Total expenditure – Total receipts excluding borrowings = Borrowing

Primary deficit is defined as fiscal deficit of current year minus interest payments on previous borrowings. In other words whereas fiscal deficit indicates borrowing requirement inclusive of interest payment, primary deficit indicates borrowing requirement exclusive of interest payment (i.e., amount of loan).