Jay Shree Ram

Some Facts:
(These are approx. figures for 2022-23)

Central Tax to GDP ratio = 11%
Central Direct tax to GDP ratio = 6.1%
Central Indirect tax to GDP ratio = 4.9%

In the overall tax collections by the central government, direct tax collections accounted for 54.62 per cent share in financial year 2022-23, a four-year high. A higher direct taxes-to-indirect taxes ratio is considered progressive as indirect taxation hurts the poor more than direct taxes.[Indirect taxes are regressive]

States Tax to GDP ratio = 5%

(Centre + State) Tax to GDP ratio = (11% + 5%) = 16%

Central Direct Tax Buoyancy = %change in direct taxes / % change in nominal GDP

= 17.8% / 15.1% = 1.18

https://bit.ly/3SdghTR

Source: Indian Express
Read only the highlighted part.

Now Indian companies can list their shares on International Exchanges in the GIFT-IFSC and raise foreign capital (in foreign currency). The international exchanges allowed to list securities (equity/shares) of Indian Companies in GIFT-IFSC are:

(i) India International Exchange
(ii) NSE International Exchange

Earlier Indian companies had to go to international financial markets like London, Singapore etc. to raise cheaper foreign capital.
https://t.me/VivekSingh_Economy/3277

https://bit.ly/3SdghTR

ECO 500 MCQ PDF for 2024 UPSC Exam will be released by 20th Feb.

Source: Indian Express
Just read once.
https://bit.ly/3SdghTR

Budget 2024-25

Today Govt. of India presented Interim Budget 2024-25.

Govt. presented the Finance Bill 2024 but as such no change in direct and indirect taxes has been proposed. So, Finance Bill has been presented to continue the existing rates of income-tax for the financial year 2024-2025 and to provide for certain relief to taxpayers (regarding any tax dues) and to make amendments in certain enactments

Govt. also sought ‘vote on account’ approval of the Parliament through the Appropriation Bill for a part [April, May, June, July 2024] of the financial year 2024-25. So, in this budget, Demand for Grants will not be discussed and voted.

This time Economic Survey 2023-24 was not presented. Even the interim budget which was presented, Govt. basically elaborated its achievements of last 10 years. So, nothing relevant for UPSC aspirants in this budget for the May 2024 Prelims exam. If possible, just listen the Budget speech of the Finance Minister. That's all.

https://bit.ly/3SdghTR

Source: The Hindu
Pradhan Mantri Suryoday Yojana.
The scheme is yet to be launched, so details are not very clear, but you can just have a look at the above article which provides broad features.

https://bit.ly/3SdghTR

My Indian Economy Book (7th edition) has moved in the top in the best sellers list of amazon. Thanks for your love and support.

This 7th edition book (published by S Chand) is for the May 2024 UPSC Exam. Revise it several times and then practise the MCQ PDF which I will be releasing on 20th Feb. Best of Luck
https://bit.ly/3SdghTR

Term of the day: Fiscal Consolidation

It is an effort by the Government to bring down fiscal deficit and debt. This is done by bringing down wasteful expenses and raising revenues.

Post Covid, Govt. started spending a lot through higher fiscal deficit and debt. But in the Interim Budget presented on 1st Feb, it is clear that Govt. is now on the path towards fiscal consolidation.

https://bit.ly/3SdghTR

Question of the Day:

Consider the following statements regarding Price Stabilization Fund (PSF)

1. Govt. provides budgetary support for working capital as well as long term loan
2. The scheme targets intervention in the retail market
3. Sale of 'Bharat Atta' is being done under the PSF scheme

The answer to the above question is (c)

Under Price Stabilization Fund (PSF) Scheme, Govt. provides budgetary support (interest free loan) for working capital and other incidental expenses for procurement and distribution of agri-horticultural commodities. The intervention is expected to regulate price volatility through procurement by State/UT Government and Central agencies/Central PSUs/Cooperative organisations of selected produce, maintenance of buffer stocks and regulated release into the market.

Govt. has launched ‘Bharat Atta’ and ‘Bharat Rice’ ‘Bharat Pulses’ which is available at all physical and mobile outlets of Kendriya Bhandar, National Agricultural Cooperative Marketing Federation of India (NAFED) and National Cooperative Consumers' Federation of India (NCCF) and will be expanded to other retail outlets and e- commerce platforms.

FCI's Open Market Sale Scheme (OMSS) attempts to sale wheat and rice in the wholesale market, the ultimate aim is ofcourse to bring down the prices in the retail market but OMSS intervention is in wholesale market. But Bharat Brand Atta/Rice/Dal is being sold (intervention) in the retail market under PSF scheme.

https://bit.ly/3SdghTR

One of the functions of RBI is "it regulates and supervises banks". So, under its supervisory function RBI has initiated the actions on 'Paytm Payments Bank' (but not on its App).

Section 35A of the Banking Regulation Act 1949 says that "to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the depositors, RBI may from time to time issue such directions at it deems fit and the bank/banking company shall be bound to comply with such directions."

https://bit.ly/3SdghTR

Term of the Day: Goldilocks Economy

A Goldilocks economy describes an ideal state for an economy whereby the economy is not expanding or contracting by too much. A Goldilocks economy has steady economic growth, preventing a recession, but not so much growth that inflation rises by too much. Goldilocks economies may be temporary in nature, as seen by the boom and bust cycles.

https://bit.ly/3SdghTR

Source: RBI

https://bit.ly/3SdghTR

Source: 2024-25 Budget Documents

https://bit.ly/3SdghTR

ECO 500 MCQ PDF will be released on 21st Feb.
https://bit.ly/3SdghTR

Source: Indian Express.

https://bit.ly/3SdghTR