Economy

DMPQ-Discuss the role of e-governance in India’s rural development.

Information and Communication Technologies (ICTs) play a key role in development & Economic growth of Rural India. Political, Cultural, Socio-economic Developmental & Behavioral decisions today rests on the ability to access, gather, analyze and utilize Information and Knowledge. ICT is the conduits that transmit information and knowledge to individual to widen their choices for Economic and social empowerment. In near future people will be carrying a handheld computer connected to the Web to get the information about the World at their fingertips. Government of India is having an ambitious objective of transforming the citizen-government interaction at all levels to by ... Read more

DMPQ- . Evaluate the recommendations of nachiketa committee for financial inclusion.

The Reserve Bank of India (RBI) appointment a Committee on Comprehensive Financial Services  for Small Businesses and Low-Income Households under the Chairmanship of Shri Nachiket Mor,  member on the Central Board of Directors, RBI in the month of Sep 2013. Its prime object was to frame a clear and detailed vision for financial inclusion and financial  deepening in India and designing principles for achievement of financial inclusion and financial  deepening across the country and also development of comprehensive framework to monitor  the progress of financial inclusion. Some of the key recommendations of the CCFS include: Universal Electronic Bank Account for ... Read more

DMPQ- . Discuss the recommendations given by Urjit patel committee for monetary policy framework.

. The main objective of the committee was to recommend what needs to be done to revise and  strengthen the current monetary policy framework with a view to making it transparent and  predictable with a focus on inflation management. The group submitted its report in January, 2014 and inter-alia, made the following recommendations with regard to managing inflation in  the country: CPI (combined) should be used as the nominal anchor for a flexible inflation targeting (FIT) framework (instead of current WPI based framework). The choice of CPI as nominal  anchor was mainly on account of the fact that the CPI ... Read more

DMPQ- Explain the reasons why India’s growth is called ‘growth without employment.’

Today, employment share of three sectors of economy is roughly – industry (17%), agriculture (57%) and  services (26%). Unemployment is mainly of two types – disguised unemployment and open unemployment. Disguised  unemployment is also called under-employment. It is a situation in which a person is not contributing  fully to his potential for example, a task which could have been done by 2 people, is done by 3. It  happens when a field is over-crowded and everyone gets something out of it instead of getting full of it.  Agriculture sector in India is marked by such unemployment. Factors behind unemployment and ... Read more

DMPQ- Discuss the initiatives taken by government taken to boost the MSME sector.

. In order to boost the MSME sector, several schemes are operational. Some of the major initiatives taken for the development of this sector are : Many financing bodies like IDBI and SIDBI provide concessional loans. Credit Guarantee Fund was established in 2000 to ensure supply of credit without  Credit Linked Capital Subsidy and Credit Guarantee Scheme are  other schemes for provision of capital and funding. To enable greater access to finance by Small and Medium Enterprises (SME), two SME exchanges launched in Mumbai recently. Cluster Approach – MSE-Cluster Development Program has been launched. For skill development, entrepreneur skill development ... Read more

DMPQ- Write a short essay on followings: (A) Revenue Expenditure (B) Rolling plan (C) Round Tripping

Revenue Expenditure Broadly the expenditure which does not result in creation of assets for Government of India is treated as revenue expenditure. An expenditure that neither creates assets nor  reduces a liability is categorized as revenue expenditure. Revenue expenditure is for the normal running of Government departments and various services, interest payments on debt, subsidies, etc. All grants given to State Governments/Union Territories and other parties are also treated as revenue expenditure  even though some of the grants may be used for creation of assets. It is recurring in nature and incurred  regularly. Rolling plan  Fifth FYP was launched and ... Read more

DMPQ- Explain the concept of capital account convertibility. Compare the advantages and disadvantages of full capital account convertibility.

. Capital Account Convertibility is a feature of a nation’s financial  regime that centers on the ability to conduct transactions of local financial assets (money, stocks, bonds,  real estate, FDI, FII, account receivable, inventory etc) into foreign financial assets freely and at market  determined exchange rates. In layman’s terms, full capital account convertibility allows local currency to  be exchange for foreign currency without any restriction on the amount. Capital account convertibility is  considered to be one of the major features of a developed economy. Advantages of capital account convertibility It helps attract foreign investment. It offers foreign investors a lot ... Read more

DMPQ- Write a short note on followings: (A) National investment fund (B) Non-tariff trade barriers (C)Participatory notes or P-notes

(A)National investment fund The cabinet Committee on Economic Affairs (CCEA) on 27th January,  2005 had approved the constitution of a National Investment Fund (NIF). The Purpose of the fund was to  receive disinvestment proceeds of central public sector enterprises and to invest the same to generate  earnings without depleting the corpus. The earnings of the Fund were to be used for selected Central social welfare Schemes. This fund was kept outside the consolidated fund of India. (B)Non-tariff trade barriers Non-tariff barriers to trade (NTBs) are trade barriers that restrict  imports but are not in the usual form of a tariff. ... Read more

DMPQ- Explain why India introduced GAAR (General anti avoidance rules). Also mention the recommendations given by Parthasarathi Shome committee for GAAR.

Tax Avoidance is an area of concern across the world.  The rules are framed in different  countries to minimize such avoidance of tax.  Such rules in simple terms are known as ‘General Anti  Avoidance Rules’ or GAAR. Thus, GAAR is a set of general rules enacted so as to check the tax avoidance.  It empowers the Revenue Authorities in a country to deny the tax benefits of transactions or  arrangements which do not have any commercial substance or consideration other than achieving the  tax benefit. GAAR is likely to put a curb on use of Tax Havens and Round Tripping. ... Read more

DMPQ- . Write a short note on followings: (A) Performance budget (B) Revenue deficit (C) Quantitative Easing

(A) Performance budget Unlike the traditional line item budget, a performance budget reflects the  goal/objectives of the organization and spells out performance targets. These targets are sought to be achieved through a strategy(s). A Performance Budget gives an indication of how the funds spent are expected to give outputs and ultimately the outcomes. However, performance budgeting has a  limitation – It is not easy to arrive at standard unit costs especially in social programmes which require a  multi-pronged approach. Revenue deficit Revenue deficit is the gap between the consumption expenditure (revenue  expenditure) of the Government (Union or the State Governments) ... Read more