POST 6:
WHAT IS FISCAL POLICY?

In economics and political science, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are government taxation and expenditure. Changes in the level and composition of taxation and government spending can impact the following variables in the economy:

Aggregate demand and the level of economic activity

The pattern of resource allocation

The distribution of income.

Fiscal policy refers to the use of the government budget to influence economic activity.

Stances of fiscal policy

The three main stances of fiscal policy are:

1. Neutral fiscal policy is usually undertaken when an economy is in equilibrium. Government spending is fully funded by tax revenue and overall the budget outcome has a neutral effect on the level of economic activity.
2. Expansionary fiscal policy involves government spending exceeding tax revenue, and is usually undertaken during recessions.
3. Contractionary fiscal policy occurs when government spending is lower than tax revenue, and is usually undertaken to pay down government debt.

However, these definitions can be misleading because, even with no changes in spending or tax laws at all, cyclic fluctuations of the economy cause cyclic fluctuations of tax revenues and of some types of government spending, altering the deficit situation; these are not considered to be policy changes. Therefore, for purposes of the above definitions, "government spending" and "tax revenue" are normally replaced by "cyclically adjusted government spending" and "cyclically adjusted tax revenue". Thus, for example, a government budget that is balanced over the course of the business cycle is considered to represent a neutral fiscal policy stance.

Methods of funding

Governments spend money on a wide variety of things, from the military and police to services like education and healthcare, as well as transfer payments such as welfare benefits. This expenditure can be funded in a number of different ways:

• Taxation
• Seigniorage, the benefit from printing money
• Borrowing money from the population or from abroad
• Consumption of fiscal reserves
• Sale of fixed assets (e.g., land)

POST 5:
 SOME ABBREVATIONS:

ALM – Asset-Liability Management

APL – Above Poverty Line

BPL – Below Poverty Line

CBDT – Central Board of Direct Taxes

CENVAT – Central Value Added Tax

CIBIL – Credit Information Bureau (India) Ltd.

CRR – Cash Reserve Ratio

CST – Central Sales Tax

ECA – Essential Commodities Act

EFT – Electronic Funds Transfer

EXIM – Export-Import

FCI – Food Corporation of India

FDI – Foreign Direct Investment

GDP – Gross Domestic Produc

GDS – Gross Domestic Saving

GSDP – Gross State Domestic Product

IBA – Indian Banks Association


ICAI – Institute of Chartered Accountants of
India

IFCI – Industrial Finance Corporation of India

IMF – International Monetary Fund

IPO – Initial Public Offer


IRDA – Insurance Regulatory and 

Development Authority

SEBI – Securities and Exchange Board of 

India

TRAI – Telecom Regulatory Authority of India

VAT – Value Added Tax

POST 4:

Current Affairs:
1)A good article on FDI in Economic Times Website.
   The Link
http://economictimes.indiatimes.com/news/economy/policy/fdi-in-retail-why-30-local-rule-is-100-trouble-for-mncs/articleshow/16605481.cms
 

KNOW THE PERSONALITY:

1) VIJAY KELKAR:

 Vijay L. Kelkar (born 15 May 1942) is an Indian economist and academic, who is currently the Chairman of the Forum of Federations, Ottawa & India Development Foundation, New Delhi and Chairman of Janwani a social initiative of the Mahratta Chamber of Commerce,Industries and Agriculture (MCCIA ) in Pune. He was also the Chairman of the Finance Commission until January, 2010. He was earlier Advisor to the  Minister of Finance (2002–2004), and is known for his role in economic reforms in India. Prior to this, he remained Finance Secretary, Government of India 1998-1999, and in 1999 he has been nominated as Executive director of India, Bangladesh,Bhutan and Sri Lanka on the board of the International Monetary Fund (IMF).

 

POST3:

Current affairs as 29 sep 2012: (Source:TOI)

1)     Rupee may hit 50 per US dollar in a few months: Govt

The government on Friday said it expects the rupee to appreciate to around 50 against the dollar over the next three-four months on higher foreign inflows, a development that will help rein in subsidies and also check inflation

2)     Kingfisher Airlines shares tank 5%

Shares of Kingfisher Airlines today plunged 5% after the SBI-led consortium of lenders turned down the company's Rs 200 crore working loan request. 

After opening weak, shares of the company further lost 4.95% to touch the lower circuit limit of Rs 16.12 on the BSE. 

3)     Apple says sorry, suggests rivals’ maps

Apple chief executive Tim Cook apologized on Friday to customers frustrated with glaring errors in its new Maps service, and, in an unusual move for the consumer giant, directed them to rival services instead, such as Google Maps.

Users complained that the new Maps service — based on Dutch navigation equipment and digital map maker TomTom NV's data — contained geographical errors and gaps in information, and that it lacked features that made Google Maps so popular, including public transit directions, comprehensive traffic data or street view pictures.

POST 2
CURRENT AFFAIRS As on 28 sept 2012
1) Arvind Lifestyle Brands, a unit of Arvind, on Thursday said that it has acquired the India business operations of global fashion retailers Debenhams, Next and Nautica from Planet Retail
Arvind Mills BRANDS

• Arrow
• Lee
• Wrangler
• Gant U.S.A.
• Sansabelt
• Izod
• Cherokee
• Mossimo

2) AC TRAIN travel and freight to increase by 3.7 percent by OCT 1 2012.

3)Religare Enterprises is selling 49% stake in its wholly owned mutual fund business to New York Stock Exchange-listed Invesco for 1000 Cr.

September 28
Post1:

GDP

1) Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living GDP per capita is not a measure of personal income (See Standard of living and GDP). Under economic theory, GDP per capita exactly equals the gross domestic income (GDI) per capita (See Gross domestic income).

GDP is related to national accounts, a subject in macroeconomics. GDP is not to be confused with Gross National Product (GNP) which allocates production based on ownership.

2) GDP was first developed by Simon Kuznets for a US Congress report in 1934^] who immediately said not to use it as a measure for welfare (see below under limitations). After the Bretton Woods conference in 1944, GDP became the main tool for measuring the country's economy.

3) GDP = private consumption + gross investment + government spending + (exports −imports)

                           OR

Date: 28 September 2012
Good Evening guys,
I am motivated to start writing blog's again. So i will update u with with current affairs.
Please give me suggestions on what u want to know and Point out mistakes if u find.
Regard's Prashant
Have great weekend