CHAPTER I INTRODUCTION
|
|
- Shona Malone
- 5 years ago
- Views:
Transcription
1 CHAPTER I INTRODUCTION The study of public finance is concerned with the revenue expenditure process of a government. In India, since Independence, there has been a sustained and significant expansion in the budgetary operations of the government at the Centre and in those of the different States, reflecting the increasing involvement of the governments in diverse, regulatory, welfare and investment activities. 1 In general, public finance deals with the collective wants of the people and satisfaction of these wants. Collective wants are satisfied by social goods. Social goods have some characteristics. No individual can be excluded from utilising the benefit of social goods the so called exclusion principle does not apply to social goods. Examples of such benefits are health, public education, defence, power, transportation and similar things. The basic principle behind public finance is providing maximum social advantage or maximum social welfare. The principle includes two aspects: (i) Public expenditure should be incurred in such a way that the marginal utility from all is equal, and (ii) public expenditure should be incurred at the point where the 1 Madras Institute of Development Studies, Tamil Nadu Economy Performance and Issues, Oxford and IBH Publishing Co., Pvt. Ltd., New Delhi, 1988, p. 301.
2 2 marginal social benefit derived from the last rupee spent is equal to the marginal sacrifice of the last rupee collected by taxation. 2 The government revenue and expenditure programmes have some influence upon the level of national income. The net effect is likely to be expansionary. This recognition has led to the realization of the possibility of making deliberate adjustment in revenue and expenditure to forward the aims of economic policy under which the government uses its expenditure and revenue programme to produce desirable effects and avoid undesirable effects on national income, production, distribution and employment. Fiscal policy may be defined as the policy of the government to achieve and maintain the objective of stability, full employment and growth. The fiscal agents are taxes, government spending and public debt. In other words, fiscal policy operates through both taxation and expenditure programmes of the government. Obviously fiscal policy is fundamentally concerned with the aggregate effects of public expenditure, taxation on income, output and employment. 3 2 S.K. Singh, Public Finance in Developed and Developing Countries, Sultan Chand Companies, New Delhi, 1991, pp K.P.M. Sundaram and K. Andley, Public Finance, Theory and Practice, S. Chand & Company Ltd., New Delhi, 2001, p. 266.
3 3 In developed countries, the taxation policy is used to achieve a three fold objective of resource allocation, income redistribution and economic stabilisation. The principal objective of taxation policy in a developing country is to augment adequate revenues for sustaining and toning up the capital formation of the country. This has been particularly the case in India. Since the inception of economic planning, the taxation policy has been geared to mobilise resources to finance the increasing revenue requirements of the successive five year plans. 4 Tax Revenue It is the most important source of revenue and different writers have placed it under different classes and have called it with different names. Prof. Adam Smith speaks of the source as Revenue from the People. Contemporary writers speak of it as that taking of the revenue from the society by the power of sovereign, Prof. Adams calls it derivative revenue. Taxes are the dues that the citizens of a nation pay for the privileges of membership in an organized society. Taxation is the process of securing funds compulsorily from the public to meet government expenditure without any direct tax payer and the public authority. By taxation, internal resources are canalized from the 4 M.Q. Dalvi and M.M. Ansari, Measuring Fiscal Performance of the Central and the State Governments in India: A Study in Resource Mobilisation, Indian Economic Journal, Vol. 33, No. 4, 1985, p. 106.
4 4 private and uneconomic avenues of expenditure into more productive channels of the economy. 5 The science and art of creating the tax structure involves choice of tax bases, determination of tax rates and other elements of tax structure such as exemptions and deductions to make the tax structure serve the objectives of the government. A good tax system must bring in adequate revenue, reduce the inequalities, mitigate the economic fluctuations, impose minimal restraints on the development and trade and involve minimum waste and inconvenience for both the tax payers and the government. The most common method of financing government activities is by taking resort to the fruitful device of taxation. In every country, the largest part of the public revenue is raised through taxation. Taxes may be imposed on person s wealth, they may be direct or indirect and they may be of different rates and nature. According to Dalton, A tax is a compulsory contribution imposed by a public authority irrespective of the exact amount of service rendered to the tax payer in return and not imposed as a penalty for any legal offence. 6 5 Raja J. Chelliah, Trends in Taxation in Developing Countries, International Monetary Fund Staff Papers, Vol. 18, July 1991, p M.C. Vaish and H.S. Agarwal, Public Finance, Somaiya Publishers Pvt. Ltd., New Delhi, 1985, p. 171.
5 5 In a developing country like India, taxation for economic development should aim at fully mobilizing the available resources. Tax collections represent collective savings of the economy. Where private savings are inadequate, it becomes necessary to rely more and more on collective savings. But care has to be taken to ensure that increased taxation does not affect the incentive of capital accumulation and business investment. 7 In the Indian fiscal system the Centre enjoys more powers in levying taxes than the States. It has many elastic sources of revenue. It has a wide national tax base. The important Central taxes are income tax, corporate tax, wealth tax, customs duties and excise duties. Role of Taxation in India Taxation can be a powerful engine of forced savings in India. Taxation may be used to achieve the following objectives: (i) To curtail consumption and, thus transfer resources from consumption to investment; (ii) (iii) To increase the incentives to save and invest; To transfer the resources from the hands of public to the hands of the government in order to make public investment possible; 7 James Cult and Jakation, Economic Development in India, Allied Publishers Pvt. Ltd., Calcutta, 1999, p. 338.
6 6 (iv) (v) To modify the pattern of investment into socially desirable manner; To reduce economic inequalities; and to make equitable distribution of incomes and wealth in the society; (vi) To mobilize economic surplus; and to increase national output and income. Public Expenditure and Economic Life Public expenditure has been increasingly done in recent times with the aim of influencing the economic life of a nation. The total amount of governmental expenditure, and the amounts spent on various heads and in various localities influence production. In fact, the government can bring about desired changes in these spheres through public expenditure. It must be remembered that the public expenditure policy of a government is only one part of its total economic policy and the other step is taxation. The total effects of the activities of the government can only be seen when all these aspects are considered together. In particular, the economic effects of expenditure cannot be fully judged unless we know how the money has been obtained from various types of taxes, loans or by the issue of paper money. It may be convenient, however, for the purpose of this study to treat them separately, though we must remember that they are closely inter-related and must always try to co-ordinate their results whenever possible.
7 7 Role of Public Expenditure in India The underdeveloped and the developing countries like India suffer from many deficiencies. The economy in them operates at less than full employment. Hence there are idle productive resources and manpower. Productivity is low not only because of poor allocation of resources but also because of low efficiency of labour due to poor education and poor health. Due to this, people earn less and consume less. Savings and investments are naturally inadequate and hence economic growth suffers. Development is largely lop-sided. Inequality of income and wealth is wide and the regional disparity is vast. All these contribute to widespread poverty and poor standard of living. Under such an economy, public expenditure has a larger role to play in the underdeveloped countries than in advanced economy. Public expenditure in India is broadly categorized as revenue and capital expenditure. However, the important heads of revenue expenditure are defence, interest payments and subsidies. The components of capital expenditure, are loans and advances and capital outlay. Public expenditure plays a vital role in the economy to provide public goods of high positive externalities. The expenditure policies have repercussions in terms of their effect, on the level and the composition of aggregate demand in the economy,
8 8 the taxation of the household and corporate sectors and on the growth of the real income. Public expenditure also affects the distribution of income between various social groups in the form of transfer payments and provision for social services. The market economy does not take care of providing goods characterized by non-rivalry and non-exclusion, but the non-availability of these goods leads to bottlenecks in the supply of factors of production, both human and capital. Public expenditure caters to 40 per cent of total demand for core and basic industries in India. So it acts as a significant factor from both demand and supply side of the economy. The objectives of fiscal policy are stabilisation of economic activity, efficient allocation of resources, equitable distribution of income and promotion of economic growth. Public expenditure is one of the most important fiscal tools to achieve these macro economic objectives. Increasing public expenditure, productivity can yield large returns in terms of budgetary savings, increased positive externalities and efficiency. After liberalization, when fiscal consolidations are of utmost importance in fiscal policy, expenditure cuts need to emphasise the protection of key public investment programmes. In particular those aimed at growth as well as social expenditure targeted at the poor budgetary support to public sector undertakings
9 9 (PSUs) which are not cost effective and supporting large employees, facilitate the emergence of unproductive expenditures but their removal may be far from easy for political reasons. It is, therefore, much more difficult politically to reduce over employment in the public sector than to reduce spending on text books or hospital supplies. In India, institutions promoting good governance and well-informed public may help to put-forth appropriate public expenditure priorities. This can be achieved by fostering public participation in the assessment of alternative goals and the exploration of cost-effective strategies. It can also help to maintain accountability of the government. Under the Indian fiscal system, the budget of the Indian Government is a statement of its estimated receipts and expenditure for a given period of time and is called Annual Financial Statement. The receipts and payments are divided into three parts, namely, i) Consolidated Fund of India, ii) iii) Contingency Fund of India, and Public Account Fund of India. All tax and non-tax receipts, recoveries of outstanding loans granted by it and fresh borrowings which belong to the Government of India go to the Consolidated
10 10 Fund. Similarly, the Contingency Fund is an imprest placed at the disposal of the President to meet urgent and unforseen expenditure, pending authorisation from the Parliament. In the same way, there are several transactions which enter into government accounts in respect of which the government acts more as a banker. All receipts and payments of this type belong to the Public Account Fund. The study of central finance in the Indian fiscal system assumes importance on various grounds. Firstly, it enables to forecast the ability of the Central Government to raise additional resources through taxation. Secondly, it helps to assess the relation between tax efforts of various Central Government taxes. Thirdly, it may explain the pattern of expenditure of the Central Government on revenue and capital heads. In the above background, the present study aims at analysing the fiscal performance of the Central Government in terms of taxation and expenditure. The fiscal performance of a Central Government refers to the resource mobilisation effort of the Central Government and the collective result of an overall financial prudence of economy of expenditure consistent with efficiency. 8 The government efforts on resource mobilisation and the commitment of the government to the peoples development are reflected in the anlaysis of the tax structure and expenditure pattern. 8 H.L. Bhatia, Tax Devolutions in a Framework of Federal Resource Transfers! The Indian Case, The Indian Economic Journal, Vol. 26, No. 1, July-September, 1978, p. 98.
11 11 So this study tries to analyse the trends and responsiveness of tax system, and the expenditure pattern of the Central Government. This research work addresses also the following vital issues relating to the fiscal performance of the Central Government: (i) Is there any evidence to suggest that the tax system of Central Government has been moving towards progressivity (or becoming less regressive) in the course of economic development? (ii) What is the causal link between the government revenue share in income (T/Y) and economic development (as measured by (Y/N)? An increase in (Y/N) leads to an increase in (T/Y). But what about the impact of an increase in (T/Y) on economic growth? Does it promote or depress economic growth? 1.1. Choice of the Study The study of public finance is acquiring an important place in the modern economic analysis. The functions and responsibilities are changing day by day. The days of Lassiz-faire have gone. In those days, the primary aim of the centre was to raise funds, so as to meet the financial requirements for the maintenance of law and order. It becomes necessary to identify new sources of new taxes. There are many studies on the principles and the manner of distribution of resources between the
12 12 Union and the States, but there are only very limited studies on the intrinsic financial structure of the Central Government and also their position and performance. The present study is an extension in this area of research with an analysis of responsiveness of taxation and expenditure in terms of elasticity and buoyancy coefficients using regression analysis, growth pattern and the determinants of taxes and expenditures during the study period Objectives The major objective of the present work is to analyse the fiscal performance of Central Government in terms of responsiveness of the tax system, its tax efforts and pattern of public expenditure during a period of 20 years, from to The specific objectives of the study are the following. a. To study the trend, pattern and growth performance of various taxes of the Union Government during the period from to , b. To anlayse the responsiveness of the tax system in terms of buoyancy and elasticity coefficients and to study whether the tax system in India has been moving towards progressivity (or becoming less regressive) in the course of economic development, c. To examine the nature of tax efforts undertaken by the Central Government,
13 13 d. To study the growth trends and determinants of various items of Central Government expenditure and determinants of public expenditure, and e. To test the increasing Central Government expenditure by Wagner s Law Hypotheses of the Study While the general hypothesis of improvement in the fiscal performance of the Central Government has been formulated, the following specific hypotheses have been made and tested using relevant statistical tools in this study. 1. There has been a growing trend in the amounts of taxes and expenditure incurred by the Central Government during the period covered by the study. 2. The tax system of the Central Government has been buoyant and elastic due to the discretionary changes made in different individual items of taxes. 3. The fiscal performance of the Central Government in terms of tax effort during the period covered in this study has been improving. 4. The tax system in India is progressive. 5. Wagner s Law of increasing government expenditure operates in India.
14 Limitations of the Study The findings emerging from this study are subject to the following limitations. 1. This study covers only a period of 20 years (from to ). The conclusions arrived at in this study are applicable to this period only. 2. This study is intended to analyse the fiscal performance of the Central Government of India only. No attempt has been taken to make any comparative study with the fiscal performance of other countries. 3. This study covers only some limited aspects of fiscal performances relating to taxation and expenditure. Other aspects such as Centre- State financial relations, non-tax revenue, debt, fiscal deficit, primary deficit, income from public sector undertakings, States overdraft have not been covered by this study. 4. This study, by and large, utilises the time series data on Central Finances, published by the Reserve Bank of India Bulletin for various years. The conclusions arrived at in this study are subject to the veracity and limitations of those data. 5. The statistical tools of regression analysis have been employed for the study for elasticity calculations. The limitations of regression analysis are to be kept in mind while interpreting the conclusions of this study.
15 15 6. The tax and expenditure functions are estimated and analysed by the application of single equation regression technique. Consequently, problems connected with simultaneous equation bias are not dealt with. 7. In this study, the time series data of taxes, and expenditure of the Central Government have been analysed to find the linear trend and compound growth rates only. Various advanced econometric tools of forecasting models of time series analysis have not been attempted in this study. 8. The progressivity of tax system in India has been studied only at the aggregate level, not at the level of individual taxes considering the requirements of enormous data Layout of the Thesis The present thesis has been organised in seven chapters. The first chapter is an introductory one dealing with the importance of fiscal performance of the Central Government, the problem focus, choice of the topic, objectives, hypotheses, limitations and layout of the thesis and a brief profile of the Central Government. The second chapter delineates the fiscal economy of Central Government finance in terms of its revenue and expenditure, both on revenue and capital accounts.
16 16 The third chapter gives an account of a review of related studies and methodology adopted in the present research work. The fourth chapter is concerned with the growth performance of tax system, and it analyses, the responsiveness of the tax system in terms of elasticity and buoyancy coefficients. It also includes a study of progressivity of tax system in India. An analysis of tax effort of the Central Government using six different approaches has been carried out in chapter five. The sixth chapter analyses the trend, the determinants and the responsiveness of expenditure to GDP, both on revenue and capital accounts of the Central Government. It also deals with the testing of Wagner s Law of Public Expenditure. The concluding chapter summarises the findings and salient conclusions emerging from this study.
Public expenditure is the expenditure incurred by public authorities-central,
1.1 Introduction Public expenditure is the expenditure incurred by public authorities-central, state and local governments either for the satisfaction of collective needs of the citizens or for promotion
More informationDr. Kavita Srivastava. ITS, Ghaziabad
Fiscal Policy Dr. Kavita Srivastava Deptt. Of Management ITS, Ghaziabad Meaning & Definition Fisc means State Treasury. Fiscal Policy refers to the policy concerning the use of state treasury or the government
More informationAN APPRAISAL OF CORPORATE TAX IN INDIA: A SELF ASSESSMENT
Volume 5, Issue 1 (January, 2016) Online ISSN-2320-0073 Published by: Abhinav Publication Abhinav International Monthly Refereed Journal of Research in AN APPRAISAL OF CORPORATE TAX IN INDIA: A SELF ASSESSMENT
More informationPUBLIC FINANCE MODULE 1 BUDGET
PUBLIC FINANCE MODULE 1 BUDGET 22/01/2017 According to Article 112 of the Indian Constitution, the Union Budget of a year, also referred to as the annual financial statement, is a statement of the estimated
More informationPublic Financial Management and its Impact on the Development of Iraq. Dr. Jasim Al-Ali
Public Financial Management and its Impact on the Development of Iraq Dr. Jasim Al-Ali Introduction 1. Oil sector tend to be relatively deficient in the spread effects associated with production and consumption
More informationCan you explain your answer?
Public Expenditure Multiple Choice 1 Fiscal policy involves changes in both a) the budget balance and the balance of payments b) interest rates and the supply of credit c) the money supply and the exchange
More informationCHAPTER IV INTER STATE COMPARISON OF TOTAL REVENUE. and its components namely, tax revenue and non-tax revenue. We also
CHAPTER IV INTER STATE COMPARISON OF TOTAL REVENUE This chapter deals with the inter state comparison of total revenue and its components namely, tax revenue and non-tax revenue. We also examine the growth
More informationIncidence of Taxation
Incidence of Taxation Taxes are not always borne by the people who pay them in the first instance. They are often shifted to other people. Tax incidence means the final placing of a tax. Incidence is on
More informationAQA Economics A-level
AQA Economics A-level Macroeconomics Topic 5: Fiscal and Supply Side Policies 5.1 Fiscal policy Notes Fiscal policy involves the manipulation of government spending, taxation and the budget balance. It
More informationInflation in the Indian Economy
D. M. Moni Assistant Professor in Economics, N.M.Christian College, Marthandam- 629 165, Tamil Nadu, India E-mail: monileomoni@gmail.com (Received on 15 March 2014 and accepted on 15 June 2014) Asian Journal
More informationFUNCTIONS AND STRUCTURE OF THE PLANNING COMMISSION ( IN BRIEF )
FUNCTIONS AND STRUCTURE OF THE PLANNING COMMISSION ( IN BRIEF ) Planning Commission was set up in March, 1950. A copy of the Resolution of Government of India has been given in Unit I of this document.
More informationSTUDENTSFOCUS.COM BA ECONOMIC ANALYSIS FOR BUSINESS
STUDENTSFOCUS.COM DEPARTMENT OF MANAGEMENT STUDIES BA 7103 -ECONOMIC ANALYSIS FOR BUSINESS Meaning of economics. UNIT 1 Economics deals with a wide range of human activities to satisfy human wants. It
More informationUNIT 11 PERFORMANCE BUDGETING
UNIT 11 PERFORMANCE BUDGETING Structure Objectives Introduction Performance Budgeting : Concept and Objectives Steps in Performance Budgeting Performance Budgeting System in India Performance Budgeting
More informationPublic Debt Classification of Public Debt (a) Internal and External: (b) Productive and Unproductive: (c) Short-term and Long-term:
Public Debt Public debt refers to borrowing by a government from within the country or from abroad, from private individuals or association of individuals or from banking and NBFIs. Classification of Public
More informationLESSON 19 NATIONAL INCOME - 1 Circular Flow and Measurement of National Income. Learning outcomes
LESSON 19 NATIONAL INCOME - 1 Circular Flow and Measurement of National Income Learning outcomes After studying this unit, you should be able to: Understand national income Importance of national income
More informationChapter 5. and the Economy
Chapter 5 In a mixed economy, apart from the private sector, there is the government which plays a very important role. In this chapter, we shall not deal with the myriad ways in which it influences economic
More informationSTRUCTURE AND FUNCTIONING OF SELF HELP GROUPS IN PUNJAB
Indian J. Agric. Res., 41 (3) : 157-163, 2007 STRUCTURE AND FUNCTIONING OF SELF HELP GROUPS IN PUNJAB V. Randhawa and Sukhdeep Kaur Mann Department of Extension Education, Punjab Agricultural University,
More informationChapter VIII. Summary, Findings, Suggestions and Conclusion of the study
Chapter VIII Summary, Findings, Suggestions and Conclusion of the study 328 CHAPTER VIII SUMMARY, FINDINGS, SUGGESTIONS AND CONCLUSION OF THE STUDY FDI consists of investments not merely financial but
More informationChapter 5 Governmen and the Economy
Chapter 5 Governmen Governmentt Budget In a mixed economy, apart from the private sector, there is the government which plays a very important role. In this chapter, we shall not deal with the myriad ways
More informationThe Effects of Public Debt on Economic Growth and Gross Investment in India: An Empirical Evidence
Volume 8, Issue 1, July 2015 The Effects of Public Debt on Economic Growth and Gross Investment in India: An Empirical Evidence Amanpreet Kaur Research Scholar, Punjab School of Economics, GNDU, Amritsar,
More informationTotal No. of Questions : 7] [Total No. of Printed Pages : 2 [3885]-101
Total No. of Questions : 7] [Total No. of Printed Pages : 2 [3885]-101 P. G. D. F. S. (Semester - I) Examination - 2010 FINANCIAL AND COST ACCOUNTING (2008 Pattern) Time : 3 Hours] [Max. Marks : 70 (1)
More informationTaxation principles of GST and experience of present law as relevant to GST
Taxation principles of GST and experience of present law as relevant to GST Outline of discussion General Taxation principles Indian indirect Tax system Road to GST Introduction of GST Benefits of GST
More information4 C SCAA DT
ANN-4C ALLIED ECONOMICS FOR BA HISTORY 2007-08 Page 1 of 10 ANNEX. NO. 4 C SCAA DT. 29-2-2008 BHARATHIAR UNIVERSITY, COIMBATORE RESTRUCTURED SYLLABUS FOR B.A., HISTORY (FOR THE STUDENTS ADMITTED FROM THE
More informationPublicFinance DECO404
PublicFinance DECO404 PUBLIC FINANCE Copyright 2014 Laxmi Publications (P) Ltd. All rights reserved Produced & Printed by LAXMI PUBLICATIONS (P) LTD. 113, Golden House, Daryaganj, New Delhi-110002 for
More informationUTTAR PRADESH BUDGET MANUAL CHAPTER I
UTTAR PRADESH BUDGET MANUAL CHAPTER I INTRODUCTORY This Manual contains rules framed by the Finance Department for the guidance of estimating officers and departments of the Secretariat in regard to the
More informationEFFECT OF PUBLIC EXPENDITURES ON INCOME DISTRIBUTION WITH SPECIAL REFERENCE TO VENEZUELA
EFFECT OF PUBLIC EXPENDITURES ON INCOME DISTRIBUTION WITH SPECIAL REFERENCE TO VENEZUELA BY L. URDANETA DE FERRAN Banco Central de Venezuela Taxes as well as government expenditures tend to transform income
More informationPaper 16: Financial Markets and Institutions. Module 3: Financial system and economic development. Module 3: Financial system and economic development
Subject Paper No and Title Module No and Title Module Tag Module 3: Financial system and economic development COM_P16_M3 TABLE OF CONTENTS 1. Learning Outcomes 2. Introduction 3. Meaning of the term Financial
More informationII. FISCAL SITUATION
II. FISCAL SITUATION Combined Government Finances: 2006-07 With the resumption of fiscal consolidation process at the Centre in terms of the Fiscal Responsibility and Budget Management (FRBM) Rules, 2004
More informationIndian Taxation System for Banking & SSC - GK Notes in PDF
Indian Taxation System for Banking & SSC - GK Notes in PDF Appearing for Government Exams? If yes then you must be aware that the General Knowledge Section is an integral part of all the govt. exams. If
More informationHIGHER SCHOOL CERTIFICATE EXAMINATION ECONOMICS 2/3 UNIT (COMMON) Time allowed Three hours (Plus 5 minutes reading time)
HIGHER SCHOOL CERTIFICATE EXAMINATION 2000 ECONOMICS 2/3 UNIT (COMMON) Time allowed Three hours (Plus 5 minutes reading time) DIRECTIONS TO CANDIDATES Board-approved calculators may be used. You may ask
More informationWorking Capital Management of Auto Component Industry
Journal of Advances and Scholarly Researches in Allied Education Vol. 13, Issue No. 1, April-2017, ISSN 2230-7540 Working Capital Management of Auto Component Industry Abstract The Indian auto-components
More informationSUMMARY AND CONCLUSIONS
5 SUMMARY AND CONCLUSIONS The present study has analysed the financing choice and determinants of investment of the private corporate manufacturing sector in India in the context of financial liberalization.
More informationMacro-Economic Policies and the Performance of Nigerian Financial Institutions
International Journal of Management Science 207; 4(5): 66-7 http://www.aascit.org/journal/ijms ISSN: 2375-3757 Macro-Economic Policies and the Performance of Nigerian Financial Institutions Olatunji Eniola
More informationPublic Expenditure. Attainment of maximum social advantage requires that:
Public Expenditure Causes of Increase in Public Expenditure 1. Increase in backward area and population 2. Growth of state functions 3. Higher price-level and rising cost of public services 4. Increase
More informationAN ANALYSIS OF FINANCIAL PERFORMANCE OF POWER SECTOR IN TAMILNADU Dr. AB Angappapillai* 1, P Kandasamy 2. Tamilnadu, India. Tamilnadu, India.
ISSN: 2249-7196 IJMRR/July 2017/ Volume 7/Issue 7/Article No-4/781-792 Dr. AB Angappapillai et. al., / International Journal of Management Research & Review AN ANALYSIS OF FINANCIAL PERFORMANCE OF POWER
More informationMODULE 1: INTRODUCTION TO TAXATION
MODULE 1: INTRODUCTION TO TAXATION LUBINDA NAMILUKO MBA, BAcc, ACCA, CIA, CISA, AZICA Module 1: Introduction to Taxation 1 What is Taxation Tax is a Compulsory monetary contribution to the state's revenue,
More informationFiscal Policy What is Fiscal Policy? Classical View vs. Keynesian View: 1. Classical View: Keynesian View:
Fiscal Policy What is Fiscal Policy? Fiscal policy is the process of shaping government taxation and government spending so as to achieve certain objectives. According to Prof. Samuelson, by a positive
More informationECONOMICS B.A. part 1 M.M.100 Paper I MICRO ECONOMICS Unit I 1.Consumer s Behaviour : The Neo Classical Marginal Utility approach and a study of
ECONOMICS B.A. part 1 M.M.100 Paper I MICRO ECONOMICS 1.Consumer s Behaviour : The Neo Classical Marginal Utility approach and a study of consumer s equilibrium and derivation of law of demand. The Indifference
More informationOCR Economics AS-level
OCR Economics AS-level Macroeconomics Topic 3: Application of Policy Instruments 3.1 Fiscal policy Notes The government budget: The government budget is comprised of tax revenues and government expenditure.
More informationSTUDY TOUR TO SLOVENIA FOR OFFICIALS FROM THE MoF OF UZBEKISTAN. Slaven Mićković Ljubljana, October 2011
STUDY TOUR TO SLOVENIA FOR OFFICIALS FROM THE MoF OF UZBEKISTAN Slaven Mićković Ljubljana, October 2011 3. PART: FORECASTING GOVERNMENT SECTOR AS A PART OF MTBF About forecasting The only thing we know
More informationIssue Paper: Linking revenue to expenditure
Issue Paper: Linking revenue to expenditure Introduction Mobilising domestic resources through taxation is crucial in helping developing countries to finance their development, relieve poverty, reduce
More informationBudget Analysis Haryana Budget
Budget Analysis Haryana Budget 2012-13 The Minister of Finance, Harmonhinder Singh Chattha, presented the General Budget 2012 to the State Assembly on the 5th of March, 2012. In his address, he commented
More informationMUTUAL FUNDS AN AVENUE TO INVESTORS
MUTUAL FUNDS AN AVENUE TO INVESTORS. M.Sudha Madhavi I/C Principal & Associate Professor Saanvi P.G. College for Women Hyderabad-500058 Email : smakella@gmail.com ABSTRACT Mutual funds have become one
More informationFINANCING OF WORKING CAPITAL IN SELECT CEMENT COMPANIES- A POLICY PERSPECTIVE
FINANCING OF WORKING CAPITAL IN SELECT CEMENT COMPANIES- A POLICY PERSPECTIVE Dr. K. Bhagyalakshmi 1, Dr. P. Krishnama Chary 2 1 Lecturer, Dept. of Commerce and Business Management, University College
More informationICSE Board Class X - Economics Board Paper 2018 Solution
ICSE Board Class X - Economics SECTION A Answer 1 a) The division of labour is an advantage to the producer because it increases the efficiency of labour. This leads to an increase in the quantity of output
More informationKEY TO BUDGET DOCUMENTS BUDGET
KEY TO BUDGET DOCUMENTS BUDGET 2019-2020 1. The list of Budget documents presented to the Parliament, besides the Finance Minister's Budget Speech, is given below: A. Annual Financial Statement (AFS) B.
More informationTRENDS OF NON PERFORMING ASSETS IN REGIONAL RURAL BANKS IN INDIA
www.eprawisdom.com e-issn : 2347-9671, p- ISSN : 2349-0187 EPRA International Journal of Economic and Business Review Vol - 4, Issue- 7, July 2016 Inno Space (SJIF) Impact Factor : 5.509(Morocco) ISI Impact
More informationChapter 1: Introduction
Chapter 1: Introduction 1.1 Introduction 1.2 Need for the Study 1.3 Objectives of the Study 1.4 Chapter Scheme 1.5 Hypothesis 1.6 Research Methodology 1.7 Limitations of the Study 1.8 Definitions 1.1 Introduction
More informationStudy on Measurement and Management of Cash Flow Efficiency of Tata Steel Limited (Standalone Company)
Study on Measurement and Management of Cash Flow Efficiency of Tata Steel Limited (Standalone Company) R. Sathish Kumar, Department of Commerce, MIET Arts & Science College, Gundur, Tamil Nadu Abstract
More informationTRENDS IN SOCIAL SECTOR EXPENDITURE - AN INTER STATE COMPARISON
TRENDS IN SOCIAL SECTOR EXPENDITURE - AN INTER STATE COMPARISON Mercy W.J Social sector public outlay and social development An inter state comparison Thesis. Department of Economics, Dr. John Matthai
More informationChapter 6 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Chapter 6 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 6.1. Summary Poverty, inequality and unemployment are realities within the South African economy, and policy intervention is called for. One policy intervention
More informationTax Incentives and Growth of Paper Industry in India
1 Tax Incentives and Growth of Paper Industry in India Punam Sachdeva, Research Scholar, Singhania University, and Associate Professor, Department of Commerce, Kalindi College, University of Delhi. Dr.
More informationThe role of regional, national and EU budgets in the Economic and Monetary Union
SPEECH/06/620 Embargo: 16h00 Joaquín Almunia European Commissioner for Economic and Monetary Policy The role of regional, national and EU budgets in the Economic and Monetary Union 5 th Thematic Dialogue
More informationChapter 5 The Government : Functions and Scope
Chapter 5 The Government : Functions and Scope In a mixed economy, apart from the private sector, there is the government which plays a very important role. In this chapter, we shall not deal with the
More informationJournal of Internet Banking and Commerce
Journal of Internet Banking and Commerce An open access Internet journal (http://www.icommercecentral.com) Journal of Internet Banking and Commerce, August 2017, vol. 22, no. 2 DETERMINING (IDENTIFYING)
More informationSummary o. f findings, Conclusion and suggestions
Summary o. f findings, Conclusion and suggestions CHAPTER-IX SUMMARY OF FINDINGS, CONCLUSION AND SUGGESTIONS In this chapter, an attempt is made to highlight the major inferences with a view of provide
More informationDependence of States on Central Transfers: State-wise Analysis
Dependence of States on Central : State-wise Analysis C. Bhujanga Rao and D. K. Srivastava Working Paper No. 2014-137 May 2014 National Institute of Public Finance and Policy New Delhi http://www.nipfp.org.in
More informationCHAPTER III THEORETICAL FRAMEWORK OF PUBLIC EXPENDITURE
necessitated. Therefore, the present study is a and improvements in some other with extended period of study. follow-up work in some aspects CHAPTER III THEORETICAL FRAMEWORK OF PUBLIC EXPENDITURE This
More informationKDF3A INDIRECT TAXATION UNIT I -V
KDF3A INDIRECT TAXATION UNIT I -V Unit I : Syllabus Taxation Objectives of Taxation Canon of taxation Classification of Tax Difference between Direct & Indirect Tax. KDF3A-INDIRECT TAXATION 2 OVER VIEW
More informationSyllabus for BA/BSC (General)
Syllabus for BA/BSC (General) Paper IA: Microeconomics I 1 Economics and Microeconomics 8 1.1 What is economics? Branches of Economics. What is microeconomics? 1.2 Economic agents and their activities
More informationCorporate Social Responsibility (Sec 135) Part-1
Corporate Social Responsibility (Sec 135) Part-1 1. Legislative Background The notes on clauses to the Companies Bill, 2011 read as follows: Clause 135. This new clause seeks to provide that every company
More informationDATABASE AND RESEARCH METHODOLOGY
CHAPTER III DATABASE AND RESEARCH METHODOLOGY The nature of the present study Direct Tax Reforms in India: A Comparative Study of Pre and Post-liberalization periods is such that it requires secondary
More informationFiscal deficit, private sector investment and crowding out in India
The Empirical Econometrics and Quantitative Economics Letters ISSN 2286 7147 EEQEL all rights reserved Volume 4, Number 4 (December 2015): pp. 88-94 Fiscal deficit, private sector investment and crowding
More information4 D SCAA DT
ANN-4D ALLIED ECONOMICS FOR BA DEFENCE STUDIES 2007-08 Page 1 of 5 ANNEX. NO. 4 D SCAA DT. 29-2-2008 BHARATHIAR UNIVERSITY, COIMBATORE B.A., DEFENCE & STRATEGIC STUDIES (FOR THE STUDENTS ADMITTED FROM
More informationClass B.Com. V Sem. SYLLABUS. Subject Public Finance
SYLLABUS Class B.Com. V Sem. Unit-I Unit-II Unit-III Unit-IV Subject Public Finance Public finance: Meaning, nature, scope and importance, difference between private and public finance. Principle of maximum
More informationA Study on Cost of Capital
International Journal of Empirical Finance Vol. 4, No. 1, 2015, 1-11 A Study on Cost of Capital Ravi Thirumalaisamy 1 Abstract Cost of capital which is used as a financial standard plays a crucial role
More informationChapter - Chapter 02
Chapter - 02 Planning in India The need for planned, coordinated economic development under government guidance was recognized all along the freedom movement. In the 1930s, as the freedom struggle intensified,
More informationTHE TAXATION SYSTEM IN ZAMBIA
A report for the Jesuit Centre for Theological Reflection THE TAXATION SYSTEM IN ZAMBIA Executive Summary Final Report January 2011 This study was prepared by Messrs Alfred Mwila, David Manley, Patrick
More informationPRINCIPLES OF PUBLIC FINANCE
WHAT IS THE MEANING OF FINANCE? PRINCIPLES OF PUBLIC FINANCE In General Finance is the management of money and other valuables which can easily be converted into cash According to experts Finance is a
More informationModified Syllabus for B.A. ( ) B.A. Economics Semester Scheme (Revised Syllabus )
Modified Syllabus for B.A. (2010-11) B.A. Economics Semester Scheme (Revised Syllabus 2010-1 1) Paper Paper No. Teaching Semester Title of the paper No code Hours per week 1 Core-1 I Principles of Micro
More informationB.A. SOCIAL SCIENCE - ECONOMICS. Semester - I. Title of The Paper - MICRO ECONOMICS
B.A. SOCIAL SCIENCE - ECONOMICS Semester - I Title of The Paper - MICRO ECONOMICS Unit-I Definition, Evolution, Scope & Nature of Economics, Methods of Economic Analysis Inductive & Deductive Methods.
More informationTopic# 3: General Theory of Taxation. Romanian tax system General theory of taxation PROF. ANDREEA STOIAN, PHD LECTURE 5
Topic# 3: General Theory of Taxation. Romanian tax system General theory of taxation PROF. ANDREEA STOIAN, PHD LECTURE 5 Content General theory of taxation Taxes Principles of taxation Tax base and tax
More informationThe federal structure in India is a three-tiered constitutionally demarcated system that allocates
Inno Space (SJIF) Impact Factor : 5.509(Morocco) Vol - 4, Issue- 2, February 2016 ISI Impact Factor : 1.259 (Dubai, UAE) HORIZONTAL FISCAL IMBALANCES: ISSUES AND MEASUREMENT WITH SPECIAL REFERENCE TO URBAN
More informationACCOUNTING STANDARDS BOARD
ACCOUNTING STANDARDS BOARD THE CONCEPTUAL FRAMEWORK FOR GENERAL PURPOSE FINANCIAL REPORTING Issued by the Accounting Standards Board Acknowledgement The Conceptual Framework for General Purpose Financial
More informationGST and the States: Sharing Tax Administration
GST and the States: Sharing Tax Administration A SARVAR ALLAM Vol. 51, Issue No. 31, 30 Jul, 2016 A Sarvar Allam (sarvaralam@yahoo.co.in) is Additional Commissioner of Commercial Taxes in Government of
More informationDeficit Financing. Two Aspects of Deficit Financing Deficit financing as an income generating expenditure has two aspects:
Deficit Financing Deficit financing is practised whenever government expenditure exceeds government receipts from the public such as taxes, fees, and borrowings from the public. Such an excess of government
More informationAnalysis of Financial Strength of select firms from Indian Textiles Industry using Altman s Z Score Analysis
Analysis of Financial Strength of select firms from Indian Textiles Industry using Altman s Z Score Analysis By Gururaj Barki [a] & Dr. Sadanand Halageri [b] Abstract Measuring the financial health of
More informationECONOMICS-2015 (Annual) CLASS-XII
ECONOMICS-2015 (Annual) CLASS-XII Q.1. Define indifference curve. 1 Ans. An indifferent curve is the locus of point particularly by consumption of goods which yield the same utility to the consumer, so
More informationOCR Economics A-level
OCR Economics A-level Macroeconomics Topic 3: Application of Policy Instruments 3.1 Fiscal policy Notes The government budget: The government budget is comprised of tax revenues and government expenditure.
More informationInternational Journal of Advance Research in Computer Science and Management Studies
Volume 2, Issue 11, November 2014 ISSN: 2321 7782 (Online) International Journal of Advance Research in Computer Science and Management Studies Research Article / Survey Paper / Case Study Available online
More informationEconomics of the Budget Deficit
Supporting Teachers: Inspiring Students Economics Revision Focus: 2004 AS & A2 Economics tutor2u (www.tutor2u.net) is the leading free online resource for Economics, Business Studies, ICT and Politics.
More informationIM Syllabus ( ): Economics IM SYLLABUS ( ) ECONOMICS IM 08 SYLLABUS
IM SYLLABUS (2011-2014) ECONOMICS IM 08 SYLLABUS 1 Economics IM 08 Syllabus (Available in September) Paper I: Written exam (3 hrs) Aim As a general guideline, the emphasis in the teaching and examination
More informationECON 1102: MACROECONOMICS 1 Chapter 1: Measuring Macroeconomic Performance, Output and Prices
ECON 1102: MACROECONOMICS 1 Chapter 1: Measuring Macroeconomic Performance, Output and Prices 1.1 Measuring Macroeconomic Performance 1. Rising Living Standards Economic growth is the tendency for output
More informationManagerial Accounting Prof. Dr. Varadraj Bapat Department of School of Management Indian Institute of Technology, Bombay
Managerial Accounting Prof. Dr. Varadraj Bapat Department of School of Management Indian Institute of Technology, Bombay Lecture - 29 Budget and Budgetary Control Dear students, we have completed 13 modules.
More informationCHAPTER III CONCEPTUAL FRAME WORK
CHAPTER III CONCEPTUAL FRAME WORK This chapter is intended primarily to provide a conceptual frame work of the study. Moreover, the important terms and concepts used in the thesis have also been explained
More informationDeterminants of Expenditure on Health in Pakistan
The Pakistan Development Review 34 : 4 Part III (Winter 1995) pp. 959 970 Determinants of Expenditure on Health in Pakistan REHANA SIDDIQUI, USMAN AFRIDI, and RASHIDA HAQ An important component of human
More informationSession 5 Evidence-based trade policy formulation: impact assessment of trade liberalization and FTA
Session 5 Evidence-based trade policy formulation: impact assessment of trade liberalization and FTA Dr Alexey Kravchenko Trade, Investment and Innovation Division United Nations ESCAP kravchenkoa@un.org
More informationDeterminants of Tax Efficiency Perceptions by Domestic Taxpayers in Kenya: The Case of Nairobi
International Journal of Economics, Finance and Management Sciences 2015; 3(5): 541-545 Published online October 29, 2015 (http://www.sciencepublishinggroup.com/j/ijefm) doi: 10.11648/j.ijefm.20150305.25
More informationImpact of New Economic Policy on India s Foreign Trade
Impact of New Economic Policy on India s Foreign Trade SACHIN N. MEHTA Assistant Professor, D. R. Patel and R. B. Patel Commerce College, Bharthan (Vesu), Surat Gujarat (India) Abstract: This study examines
More informationDeterminant of Tax Buoyancy: Empirical Evidence from Developing Countries
Determinant of Tax Buoyancy: Empirical Evidence from Developing Countries Qazi Masood Ahmed Associate Professor, Institute of Business Administration, Karachi E-mail: qmasood@iba.edu.pk Tel: 009221 111677677
More informationBudget Analysis Rajasthan Budget
Budget Analysis Rajasthan Budget 2012-13 13 Chief Minister Ashok Gehlot presented the General Budget 2012-13 to the State Assembly on 26 th of March, 2012. In his address, he commented on the fiscal performance
More informationChapter 3 Trends and Composition of Central Government Finances in India
Chapter 3 Trends and Composition of Central Government Finances in India R.A. Musgrave, a twentieth century economist, in his treatise The Theory of Public Finance published in 1959, defined major roles
More informationIJEMR February Vol 5 Issue 2 - Online - ISSN Print - ISSN
Financial Performance of Select Cement Industrial Units in Tamil Nadu *Dr. R. Angamuthu *Assistant Professor, Commerce Wing, DDE, Annamalai University, Annamalai Nagar 608 002 Abstract In this paper examine
More informationThe Impact of Globalisation on Systems of Social Security
The Impact of Globalisation on Systems of Social Security prepared for the 9 th NISPAcee Annual Conference: Government, Market and the Civic Sector: The Search for a Productive Partnership (Working group
More informationIndian Economy Model Test Questions 5 in English With Answer
Indian Economy Model Test Questions 5 in English With Answer 1. Primary market deals with a. raw material b. agricultural produce c. long term securities d. short term securities 2. Registration of partnership
More informationUNIT IX: GOVERNMENT BUDGET AND THE ECONOMY GOVERNMENT BUDGET A FLOW CHART
UNIT IX: GOVERNMENT BUDGET AND THE ECONOMY KEY CONCEPTS: Meaning of the Budget Objectives of the Budget Components of the Budget Budget Receipts Budget Expenditure Balanced, Surplus and Deficit Budgets
More informationCIE Economics A-level
CIE Economics A-level Topic 3: Government Microeconomic Intervention b) Equity and policies towards income and wealth redistribution Notes In the absence of government intervention, the market mechanism
More information101: MICRO ECONOMIC ANALYSIS
101: MICRO ECONOMIC ANALYSIS Unit I: Consumer Behaviour: Theory of consumer Behaviour, Theory of Demand, Recent Development of Demand Theory, Producer Behaviour: Theory of Production, Theory of Cost, Production
More informationAn overview of the South African macroeconomic. environment
An overview of the South African macroeconomic environment 1 Study instruction Study Study guide: study unit 1 Study unit outcomes Once you have worked through this study unit, you should be able to give
More informationArticle published in the Quarterly Review 2014:2, pp
Estimating the Cyclically Adjusted Budget Balance Article published in the Quarterly Review 2014:2, pp. 59-66 BOX 6: ESTIMATING THE CYCLICALLY ADJUSTED BUDGET BALANCE 1 In the wake of the financial crisis,
More information