Category: Budget

The important demerits of free international trade are listed below:(i) Free trade works against developing countries. Developing countries export primary products whose income elasticity and demand elasticity is very low. Changes in supply and demand conditions leads to wild fluctuations in prices and revenue of exports of developing countries. This creates adverse impact on the domestic markets of developing countries. Terms of trade moves against LDCs, which leads to transfer of income from developing countries to developed countries. ADVERTISEMENTS: (ii) Entry of multinational companies will wipe out indigenous sector before they can become strong enough to compete.(iii) Free trade will encourage consumerism, thereby distorting the national priorities. Products, which are not at all necessary, will be imported by spending scarce foreign exchange. Image Source: i.ytimg.com(iv) Free trade will encourage specialization…

Some of the important measures of legislative control are as follows: 1. Control of Administrative Policy: Legislation is the most important function of legislature. By laying down rules through legislative enactments, the legislatures limit as well as influence the authority and policies of the government. Image Source: thebluediamondgallery.com 2. Control of Appropriations: ADVERTISEMENTS: The executive is at the mercy of legislature for all aspects of revenue and expenditure. No revenue can be levied nor can any expenditure incurred without the sanction of the legislature. Moreover, the budgetary discussion provides opportunity to the representatives of the people to criticize the government on aspects that are unwarranted.It is the most effective means of legislative control over executive. 3. Audit and Report: In India, the report of CAG (Comptroller and Auditor General) of…

The Third Census of the small-scale sector covering both registered and unregistered manufacturing units was conducted during 2001-02. Other important measures undertaken for development of small-scale sector included:1. The investment limit for SSI sector has been raised from Rs. 1 crore in 2006 to Rs. 5 crore in Micro Small and Medium Enterprises Development Act (MSMED) Act, 2006.2. In Budget 2005-06, the turnover eligibility limit under the general SSI Excise Exemption Scheme has been raised from Rs. 3 crore to Rs. 4 crore. ADVERTISEMENTS: 3. The Integrated Infrastructure Development has been extended in entire country with 50 per cent reservation for rural areas.4. A new Scheme called Market Development Assistance was launched for SSI sector.5. A credit guarantee scheme was launched to provide guarantee for loans up to Rs. 50…

Main elements of the indifference curves analysis of consumer behaviour are given below:Prof. J.R. Hicks developed the ‘indifference curves technique for explain consumer behaviour as an alternative to ‘Utility Analysis’. This technique is based on ordinal measurement of utility.An indifference curve is a locus of points, each representing a different combination of two goods, which yield the same level of satisfaction to the consumer. ADVERTISEMENTS: According to Prof. Left witch, “A single indifference curve shows the different combination of X and Y goods that yield equal satisfaction to the consumer.”Indifference curves slope negatively and are convex to the origin. Higher indifference curves represent higher level of satisfaction.Indifference curve technique is based on preference hypothesis. It assumes that the consumer is rational and consistent in his choice of basket of goods.Rationality…

The technique of indifference curves has assumed special significance because of its application in almost every sphere of economic activity. A few such applications can be mentioned as follows: Applications 1. In the theory of production: The basic aim of a producer is to attain a low cost combination. Indifference curves are useful in the realization of this objective.When we use these curves in the theory of production, they are called iso-product curves. Producer’s equilibrium i.e. low cost combination is obtained at the point where producer’s budget line becomes tangent to one of the iso-product curves on the map. Image Source : st.motortrend.com 2. In the theory of Exchange: Prof. Edge worth used the technique of indifference curves to show the mutual gains from the exchange of two goods between…

With the rapid urbanization and development of big cities and towns, the graph of crimes is also on the increase. This phenomenal rise in offences and crime in cities is a matter of great concern and alarm to all of us. There are robberies, murders, rapes and what not.The frequent and repeated thefts, burglaries, robberies, murders, killings, rapes, shoplifting, pick pocketing, drug- abuse, illegal trafficking, smuggling, theft of vehicles etc., have made the common citizens to have sleepless nights and restless days. They feel very insecure and vulnerable in the presence of anti-social and evil elements. The criminals have been operating in an organised way and sometimes even have nationwide and international connections and links.The political links of the criminals have complicated the matters. Kidnappers, rapists, murderers, smugglers and such…

All work and no play make Jack a dull boy. Ames should form an integral part of our life for its proper development. Sound mind resides in sound body. Physical fitness is a must. For health and physical fitness games and sports are essential. All young men and women in schools, colleges, universities and training institutions should play games.Even business executives and others engaged in serious and very responsible activities should play some game in their spare time. It is necessary for their good health, physical fitness and mental alertness.A proper balance should be maintained between work and games. Work would become burden it there are no games and sports. A fair amount of physical exercises, games and sports should form an essential part of our daily life and routine.…

Modern fiscal policy involves the process of shaping taxation and public expenditure in order to (1) reduce the fluctuations of trade cycle and (2) to contribute towards the maintenance of a growing, high-employment economy free from excessive inflation or deflation.When private investment and consumption spending create an inflationary (or deflationary) gap, it is the task of fiscal and monetary policy to offset the gap in the attempt to preserve price stability and full employment. The objective of fiscal policy is to achieve growth and full employment without inflation.Fiscal weapons refer to taxation and expenditure policies. In this connection, modern economy is blessed with important “built-in stabilizers.” Image Source: i.ytimg.com ADVERTISEMENTS: Without any discretionary action, tax receipts change automatically when income changes, thereby reducing the size of the multiplier and serving…

The new industrial system has taken a share of women’s work out of the home and put it in the factory.At the same time, it has made necessary for women to go to the office, the school or the factory for a wage in order to augment the family budget.Thus the decline of the family an economic unit in production has tended to free women from economic dependence on the husband. Image Source: kundansrivastava.com ADVERTISEMENTS: Employment of women brings about equality and will no doubt advance further under capitalistic or socialist regimes. The openings of careers and ambitions to women have also dislodged marriage from its pivotal place in their interest and life span.Though women are still far from possessing an equal economic status to that of men, the degree…

The General Assembly is the largest of all the organs of the United Nations. This is the great deliberative body of the Organisation which discusses every matter within the scope of the Charter. It consists of all the member-States.Though each member-State may send up to five representatives to participate in its deliberations, yet member-States have only one vote each. ADVERTISEMENTS: Important questions specified in the Charter maintenance of peace and security, the election of members to other organs, the admission, suspension or expulsion of member-States, matters relating to trusteeship, and budgetary questions are decided by two-thirds majority of the members present and voting. All other questions are decided by a simple majority of those voting.The Assembly itself, and voting by simple majority, may add new categories of questions which are…