Professional Documents
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Disequilibrium (Balance of
Payment)
Overall account of BOP is always in equilibrium. This
balance or equilibrium is only in accounting sense
because deficit or surplus is restored with the help of
capital account.
In fact, when we talk of disequilibrium, it refers to
current account of balance of payment. If autonomous
receipts are less than autonomous payments, the balance
of payment is in deficit reflecting disequilibrium in
balance of payment.
There are several factors which cause disequilibrium in
the BOP indicating either surplus or deficit.
Such causes for disequilibrium in BOP are listed
below:
(i) Economic Factors:
(a) Imbalance between exports and imports. (It is the
main cause of disequilibrium in BOR), (b) Large scale
another and are taxed at a single rate in a supply chain till the goods or services
reach the consumer.
private entity calls for viability gap funding. This leads to decrease in Govt.
leverage over them, for effective implementation.
3. Renegotiating contracts - there's no effective mechanism for
renegotiation of projects and presently is done in ad hoc manner.
ex- if a project becomes unviable - there is no mechanism and body where
private party can go to exit the project.
Thus, an independent renegotiation commission(IRC) can help in this.
Further, there is need for greater liquidity in market through REITs,
Infrastructure investment funds apart from pension and insurance funds.
Modification suggested
Both construction and maintenance are combined to one responsibility
for better quality.
Risk management should be assigned to those who can handle it.
Direct collection of user charges should be made accountable by financial
reports.
Attracting pension and insurance funds for long term infrastructure
projects.
Rewards and recognition for efficient work contributed by employees.
Contracts should be made less depended on market driven ideals.
Like a Chinese saying An overcrowded chicken farm produce fewer eggs .
Public private partnership should concentrate on efficient, effective and
accountable contacts and projects than the more number of projects.
and/or distribution of goods and/or services not for the sole purpose of own
consumption.[1]
The economic census provides detailed information on operational and other
characteristics such as number of establishments, number of persons employed,
source of finance, type of ownership etc. These information used for micro level/
decentralized planning and to assess contribution of various sectors of the
economy in the gross domestic product (GDP).
In 1976, Government of India launched a plan scheme called Economic Census
and Surveys. In 1977 Central Statistical Organisation conducted First economic
census in collaboration with the Directorate of Economics & Statistics (DES) in
the States/Union Territories.
1. External causes
Recession in the Market: Sometimes recession hits the whole
industry as a result of which individual units are unable to sell their
products. The availability of credit is also restricted during such times
which jeopardize the production activities of such units. Hence, the
work of these units comes to a standstill.
Decline in Market Demand for the product: A product may reach a
stage of maturity and ultimately a stage of decline. This happens when
new better products invade the market and make the old product
redundant.
Excessive competition in the Market: Excessive competition in the
market will justify the survival of only the fittest firm. The high cost
units over time will become weak and fall sick.
Erratic supply of Inputs: Erratic and insufficient supply of inputs like
raw-materials, power, skilled manpower, finance, credit and transport
at reasonable prices could cause disturbance in the production
schedule and ultimately result in sickness of the firm.
Government Policy: Excessive govt., control and restrictions on
capacity utilisation, location, product mix, product quality, prices,
distribution etc. come in the way of smooth functioning of the firms and
2. Internal Causes
Faulty planning: At the planning stage itself, weak foundations may
be laid, which may ultimately result in downfall of the unit.
Incompetent Entrepreneurs: Many persons starting new business
lack technical knowledge of the product they want to manufacture. It is
the normal case with small scale entrepreneurs. They sometimes
plough into production activity, without bothering to find out the
marketing potential of their product or sometimes they start production
without properly calculating the ultimate cost. Poor maintenance of
plant and machinery, constant technical problems with maintenance of
production volume, quality, time schedule and cost limits may
ultimately spell doom for the firm.
Problems relating to Management: Since Production, marketing,
finance, etc. are in the hands of management, any wrong decision by
them in regard to these fields may ultimately ruin a firm. The
has been found to be the most important cause of sickness for the
firm.
Amber (de-minimis)
Green
Blue (for subsidies that are tied to programs that limit production)
There are three categories of support measures that are not subject to reduction under
the Agreement, and support within specified de-minimis level is allowed.
1.
Measures which have a minimum impact on trade i.e. Green Box criteria
research, pest and disease control, training, extension, and advisory services;
2.
3.
4.
2.
criteria Examples
1.
2.
3.
Direct payments under production limiting programme i.e. Blue Box criteria
These are relevant from the developed countries point of view only.
1.
Green Box
1.
2.
3.
4.
2.
Blue Box
Cover certain direct payments to farmers where the farmers are required to
limit production called blue box measures.
Also covers other support on a small scale (de minimis) when compared
with the total value of the product or products supported (5% or
Privatization vs Disinvestment
Though privatization and disinvestment are terms that are used
interchangeably there is a difference between them with regard to the
ownership. Disinvestment may or may not be an outcome of
privatization. When it comes to defining the term privatization, it
usually involves transforming the ownership of a public sector
FUNCTIONS OF SEBI:
The Securities and Exchange Board of India (SEBI) is the regulator for
the securities market in India. It was established in the year 1988 and
given statutory powers on 12 April 1992 through the SEBI Act, 1992.
We can classify the functions of SEBI in three categories :-
1. Protective functions
2. Developmental functions
3. Regulatory functions.
1. Protective Functions:
As the name suggests, the main focus of this function of SEBI is
to protect the interest of investor and security of their investment
As protective functions SEBI performs following functions:
2. Developmental Functions:
Under developmental categories following functions are
performed by SEBI:
(i) SEBI promotes training of intermediaries of the securities
market.
(ii) SEBI tries to promote activities of stock exchange by
adopting flexible and adoptable approach in following way:
(a) SEBI has permitted internet trading through registered
stock brokers.
(b) SEBI has made underwriting optional to reduce the cost of
issue.
(c) Even initial public offer of primary market is permitted
through stock exchange.
3. Regulatory Functions:
These functions are performed by SEBI to regulate the business
in stock exchange. To regulate the activities of stock exchange
following functions are performed:
(i) SEBI has framed rules and regulations and a code of conduct
Besides suggesting the mechanism to share tax revenues, the Commission also
lays down the principles for giving out grant-in-aid to states and other local
bodies. In the case of 14th Commission, these principles will apply for a five-year
period beginning April 1, 2015.
What kind of work a Finance Commission has to do?
The commission has to take on itself the job of addressing the imbalances that
often arise between the taxation powers and expenditure responsibilities of the
centre and the states, respectively. Primarily, it has to ensure a sense of equality
in public services across the states.
Who is the head of the latest i.e. 14th Finance Commission?
Former Governor of the Reserve Bank of India, Mr. Y.V. Reddy, is the Chairman.
What is the key recommendation of the 14th Finance Commission?
It has recommended an increase in the share of states in the centre's tax revenue
from the current 32 per cent to 42 per cent. This is indeed the single largest
increase ever recommended by a Finance Commission.
5)It has recommended distribution of grants to States for local bodies using 2011
population data with weight of 90 per cent and area with weight of 10 per cent
6)Grants to States are divided into two
7)One, grant to duly constituted gram panchayats
8)Two, grant to duly constituted municipal bodies
9)And, it has divided grants into two parts
10) A basic grant, and a performance one for gram panchayats and municipal
bodies
Occurs when the value of a country's imports of goods and services are greater than the value of
its exports.
help Indian economy in the long run as the structural expenditure will be
reduced.
5.As everyone can purchase goods at market price, there will be healthy
competition between the sellers in the market. The problem of middlemen
diverting subsidized grains to markets will be eliminated.
Negative change:
1.Many rural & tribal areas, dont have banking facility and road
connectivity.
2.Most of the banks appoint Business Correspondents to enrol
beneficiaries in rural areas. They may open more than one account for
each beneficiary for incentive. And there are many complaints that they are
not giving passbooks to the beneficiaries making them unaware of the
scheme. Illiterate beneficiaries are more vulnerable in this case.
3.Direct cash may not be used for intended purpose and can be used in
unhealthy ways. For example, the cash instead of food subsidy may be
spent on drinking and smoking as most of beneficiaries families heads are
men. This will be a disadvantage to women as there is no guarantee that
they will get their share of the cash.
equal voting share despite differences in contribution, and no country will have the power to
veto. While the NDB is to be an alternative to the WB and IMF, the AIIB will operate more in the
area now occupied by the ADB.
Copyrights:protectthespecificcreativeexpressionofanideathroughany
mediumofartistic/creativeexpressioni.e.,paintings,photographs,sculpture,writings,
software,etc.Acopyrightprotectsyourpaintingofahaystack,butitwouldnotprohibit
anotherpainterfromexpressingtheirartistryorviewpointbyalsopaintingahaystack.
Likewise,whileIanFlemingwasabletoreceiveacopyrightonhisparticularexpression
oftheideaofasecretagent(i.e.,adebonairEnglishsecretagent),hecouldnot
preventRichWilkesfromreceivingacopyrightonhisexpressionoftheideaofasecret
agent(i.e.,atattooedbaldextremeathleteturnedreluctantsecretagent).
Trademarks:protectanysymbolthatindicatesthesourceororiginofthegoods
orservicestowhichitisaffixed.Whileatrademarkcanbeextremelyvaluabletoits
owner,theultimatepurposeofatrademarkistoprotectconsumersthatis,thefunction
ofatrademarkistoinformtheconsumerwherethegoodsorservicesoriginate.The
consumer,knowingtheoriginofthegoods,canmakepurchasingdecisionsbasedon
priorknowledge,reputationormarketing.
NITI Aayog
Planning Commission
Financial clout
Full-time
members
Parameter
NITI Aayog
Planning Commission
States' role
State governments are expected to play a more States' role was limited to the National
significant role than they did in the Planning
Development Council and annual interaction
Commission
during Plan meetings
Member secretary
Part-time
members