Economy

PDS was establish to procure gain and other cereals from farmers and distribute it through a subsidised scheme to those most vulnerable to hunger. It was started in the late 1960s and was subsequently expanded to rural districts.   The scheme in principal can be faulted but in practice the result have been abysmal. According … Read more

Tier-1 capital:     Tier 1 capital, used to describe the capital adequacy of a bank, is core capital that includes equity capital and disclosed reserves. Tier 1 capital is essentially the most perfect form of a bank’s capital — the money the bank has stored to keep it functioning through all the risky transactions it … Read more

There is about accumulated debt of 1 lakh crore on state electricity boards. The reasons being free power is a political issues and different political parties offer it as dole to influence the voter. This subsidy has done more damage than good. 83% of the Punjab farmers have small or marginal land holdings and they … Read more

Since the beginnings of the last decade as a part of the economic reforms programme, the taxation system in the country has been subjected to consistent and comprehensive programme.  Indian government over the years have introduced tax reforms from time to time.     Direct tax reforms: Reduction and rationalisation of rates- there are only … Read more

a) Tax havens: A tax haven is a country or territory where certain taxes are levied at low rate or not at all. The basic features of tax havens are nil or nominal rates, lack of effective exchange of information, no requirement of substantive local presence.     b) BEPS: Base erosion and profit sharing … Read more

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

Tax incidence:  Tax incidence is the entity on whom tax is imposed. It is the distribution of the overall tax burden between sellers and buyers in an economy.     Tax burden:       It is the total amount of tax paid by a particular group of people, an industry etc especially as compared to what other … Read more

Interest subvention scheme was launched to make available agricultural credit for short term crop loans at an affordable rate to give boost to agriculture productivity and production in the country. The salient features of the scheme are as follows:   It provides concessional of 2% per annum for crop loans to farmers, upto Rs. 3 … Read more

Inverted duty structure is a condition in which final good is taxed lower on its import as compared to the intermediate good used in the making of finished good.  The economic survey has pointed out that Inverted dusty structure has affected our industries a lot.     Major effect of inverted duty structure: Affect domestic … Read more

Out of pocket expenditure on health is one of the reason for perpetual poverty. The major chunk goes in buying medicine. Hence to deal with this issue PMB jan aushadhi yojana was launched to ensure the availability of quality medicine at affordable price for all, particularly the poor and disadvantaged.  The salient features of the … Read more