Annual Financial Statement Annual Financial Statement (AFS), the document as provided under Article 112, shows estimated receipts and expenditure of the Government of India for next financial year (say, 2017-18) in relation to estimates for the previous financial year (ie 2016-17) as also expenditure for the year before last financial year (i.e., 2015-16). The receipts … Read moreBudget Documents in detail, (Important)
The term ‘Budget’ is not mentioned in Indian Constitution. But the related term mentioned is ‘Annual Financial Statement’. In this article, I will explain the basics of Indian Budget and Government Budgeting process for beginners. What are the constitutional requirements which make Budget necessary? Article 265: provides that ‘no tax shall be levied or collected … Read moreGovernment Budgeting: Indian Budget – Important for WBCS (Exe)
Will the government’s move to demonetise Rs 500 and Rs 1,000 currency notes improve the balance sheet of Reserve Bank of India (RBI)? To understand this scenario, you must learn the interplay of currency, reserve money and money supply. What is currency in circulation? It is the total value of currency (coins and paper currency) … Read moreCurrency in Circulation vs Reserve Money vs Money Supply
You might have seen news headlines like “Indian rupee falling” or “Rupee falls to Rs.65 against US dollar”. Have you ever wondered why rupee is falling? Who fixes the value of Indian rupee as Rs.65 per 1 US dollar? Let’s us discuss in this post a few confusing but evergreen concepts in economics related to … Read moreRupee Devaluation or Depreciation: How does it affect Export and Import?
What is REPO rate? REPO denotes Re Purchase Option – the rate by which RBI gives loans to other banks. In other words, it is the rate at which banks buy back the securities they keep with the RBI at a later period. Bank gives loan to the public at a higher rate, often 1% … Read moreREPO and CRR Rate – What Should You Understand for WBCS Exam?
Inflation is defined as a situation where there is sustained, unchecked increase in the general price level and a fall in the purchasing power of money. Thus, inflation is a condition of price rise. The reason for price rise can be classified under two main heads : (1) Increase in demand (2) Reduced supply.Inflation explained … Read moreInflation : Definition, WPI, CPI, Measurement and Causes
A clear understanding of Indian Economy can help you in more than one way. As almost every problem has an economic angle, knowledge on the performance of various sectors of Indian Economy gives you always an opportunity to see things in a wider perspective. Having posted many articles on the economics, covering topics like basic concepts, inflation, fiscal … Read moreIndian Economy Overview: Primary, Secondary and Tertiary Sectors
Basic Concepts of Economics Economics seems tough nut to most of the WBCS (Exe) aspirants. If I throw terms like GDP, NDP, NNP, REPO, Reverse REPO, SLR, CLR, CRAR etc towards a non commerce background student than economics will become nightmare for him. But believe me if you understand the basic terms and meanings than … Read moreBasic Concepts of Economics (Important for WBCS Exam)