Unemployment refers to the condition of a person who is willing to engage in paid employment, but unable to find any paid employment. Definitions: The unemployment rate is the proportion of the labour force that is not currently employed but could be. The labour force participation rate (LFPR) isthe percentage of a country’s working-age population…
Poverty can be alleviated through two types of approaches: Growth-oriented approach – With growth, income level rises which pulls people out of poverty. Poverty Alleviation programmes. Employment generation programs Food Security programs Direct Benefit Transfer Growth-oriented approach Since the 1990s it has become clear that there is a strong link between economic growth and poverty…
Poverty is an economic condition in which people lack enough financial resources to live a decent standard of life. This is essentially linked to the quality of life which in itself is linked to the deprivation of necessary goods and services which are necessary to maintain a good quality of life. Therefore, income, that enables…
Economies of the world are open in three ways: Consumers/firms have the opportunity to choose b/w domestic & foreign goods. Due to international trade. Investors have opportunities to choose b/w domestic & foreign assets. Constitutes financial market linkages. Factor market linkage: Firms choose where to locate production & workers to work. Labour market linkages have…
We have already understood that Taxation in India is the main way for the government to gain revenue. In this chapter, we will understand India’s taxation system and ways to make it efficient, in a way that promotes growth. India’s tax-to-GDP ratio The Tax-to-GDP ratio measures a country’s total tax revenue as a percentage of…
Goods & Services Tax (GST) is a Value added tax, that includes both goods and services. In India, it is imposed at four uniform rates. In GST all the old taxes that were levied on most of the products have been subsumed since 2017, simplifying the tax structure.; GST Taxation is performed only at only…
“Lord, give me chastity and continence but not yet ” – St. Augustine. Chastity means the power of self-control. The Economic Survey of 2017 used this phrase to summarise the feelings of every government. They want to control their expenditures by creating rules and legislation, such as the FRBM Act. Despite this, governments are reluctant…
Government deficit refers to the shortfall between a government’s total expenditures and total revenues in a given fiscal year. It indicates higher spending than earnings, requiring borrowing or monetary adjustments. Persistent deficits can lead to inflation, increased debt, and economic instability if not managed effectively. Types of Deficits We can understand the deficit in various…
The government is the highest institution in society, and therefore, the role of government in an economy is immense. Functions of government In any economy, the government performs various functions: Provide public goods: Those goods which the market cannot provide, the government steps in to provide. For example, security, rail network, public parks etc. Distribution…
India’s Payment system consists of several bank-to-bank transfers of payment technologies as well as payments through mobile banking systems. We shall study these systems in this chapter in detail. Payment in Cash Banknotes and coins as a share of GDP in India currently in India is at an all-time high of 14.5%. It is comparable…
