Economy

Keynesian economics was developed by the British economist John Maynard Keynes during the 1930s in an attempt to understand the Great Depression. Keynesian Economics focuses on using active government policy to manage aggregate demand in order to address or prevent economic recessions. Thus it focuses on demand-side solutions to recessionary periods. Lowering interest rates is … Read more DMPQ- What is the basic Premise of Keynesian economics?

The government does not perform any business so it cannot earn money to spend. Hence,  the government has to raise the money from the economy to enable it to spend that  money in terms of requirements and national priorities. The government raises money  primarily through ‘taxes’ and the spending known as ‘public expenditure’. A policy … Read more DMPQ- What are the main objectives of Fiscal policy in India ?

The fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding borrowing. Current account deficit is when country’s export of goods, services and transfers are lesser than its imports of goods, services and transfers.   Impacts of Fiscal deficit: If unchecked it will lead to crowding out effect, manipulation of … Read more DMPQ: Why twin deficit is a concern for any economy? Outline the methods adopted by Government of India to deal with twin deficit.

The industrial sector has performed poorly in the reform period because of decreasing demand of industrial products due to various reasons’ such as cheaper imports, inadequate investment, infrastructure etc. India is a founder member of WTO and in facilitating globalisation of Indian Economy, India like other developing countries is compelled to open up its economy … Read more DMPQ: India’s growth story has bypassed the industrial sector. what  are the reasons for low performance of industrial sector in India post liberalisation.

FRBM act was brought to bring fiscal discipline in the Indian fiscal milieu. But the objectives of FRBM have been shifted for various reasons in the past due to global reasons as well as the domestic reasons. Hence FRBM panel was set up to review the act. The recommendation are explained hereunder which are nonbinding … Read more DMPQ: Fiscal solidarity is key to foundation of a strong economy. N k singh committee was set up to head a fiscal responsibility and budget management panel? Discuss the features of the act. ( Economic reforms)

InVITS:  An Infrastructure Investment Trust (InvITs) is like a mutual fund, which enables direct investment of small amounts of money from possible individual/institutional investors in infrastructure to earn a small portion of the income as return. InvITs work like mutual funds or real estate investment trusts (REITs) in features. InvITs can be treated as the … Read more DMPQ- Write a short note on InvITS

Tax expenditure is the revenue foregone as a result of exemptions and concessions. Tax expenditure was introduced for the first time in 2006-07 union budget.  Tax expenditure is justified on following grounds: Act as an incentive for priority sector like infrastructure. It promotes balance regional growth It neutralise the disadvantage on account of location It … Read more What do you understand by Tax expenditure? Comment on its relevance? ( Economy)

RBI thus has certain quantitative and qualitative tools through which it manages  liquidity and they are as follows: Cash Reserve Ratio (CRR) Every bank has to retain a certain percentage of its  demands and time liabilities in cash with the RBI which can be raised by the RBI to  drain out excess liquidity or reduced … Read more DMPQ- Discuss the various quantitative and qualitative measures implemented by RBI to manage liquidity in market.

Highlights of the Bill This Bill amends the principal Act passed in 2013. The Bill enables the government to exempt five categories of projects from the requirements of: (i) social impact assessment, (ii) restrictions on acquisition of multi-cropped land, and (iii) consent for private projects and public private partnerships (PPPs) projects. The five categories of … Read more DMPQ- Highlight the key features of The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Second Amendment) Bill, 2015

The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China and South Africa). The Bank supports public or private projects through loans, guarantees, equity participation and other financial instruments. It is headquartered in Shanghai, China. The first regional … Read more DMPQ:What is New Development Bank and explain its mandate? (International organisation)