Source: Click here Finance Ministry’s Monthly Economic Review report has stated that the Indian Economy is witnessing a V-shaped recovery as the decline in the GDP has narrowed to 7.5% in the second quarter of 2020-21 from 23.9% in April-June quarter. Facts: V-shaped recovery: It is characterized by a quick and sustained recovery in measures… Continue reading Indian economy witnessing V-shaped recovery: Finance Ministry report
Source: Click here News: Reserve Bank of India’s(RBI) Monetary Policy Committee(MPC) has announced its bi-monthly monetary policy review for the month of December. Facts: Key Takeaways: Repo Rate: It is the rate at which the RBI lends money to the banks for a short term.It remains unchanged at 4%. Reverse Repo Rate: It is the short term borrowing… Continue reading RBI monetary policy Explained: Why have rates been kept unchanged yet again?
Gender Budgeting is a dissection of the government budget to establish its gender differential impact and to translate gender commitments into budgetary commitments. It looks at the government budget from a gender perspective to assess how it addresses the need for women in the areas like health, education, employment etc. Read Also :upsc mains… Continue reading What is gender budgeting?
Outcome based budget technique has been recommended from the budget 2007- 08. Under this every ministry handling a sector presents a preliminary outcome budget to the Ministry of Finance. It seeks to bring correlation between outlay, output and outcome. Outlay- is the amount that is provided for a given scheme or project in the Budget.… Continue reading What is Outcome based budget?
It is a method of budgeting in which all expenses are justified for each new period. The process of zero-based budgeting starts from a “zero base,” and every function within an organisation is analysed for its needs and costs. In simple terms the every year budget is done like it was done for the first… Continue reading What is Zero based budget
Performance budget is a system of presentation of public expenditure in terms of function, programmes, activities and project are reflecting primarily the government output and its cost. The main thrust of performance Budget is to provide output oriented budget information within a long range perspective so that resources could be allocated more efficiently and effectively.
Legislative budget When budget is prepared by a committee of the legislature on the request of executive, it is known as legislative budget. Executive budget In this system budget is prepared by the executive and after it has been approved by the legislature, responsibility for its execution lies with the executive.
In this type of budget, government plans for years of development and improvement required through budgeting. While the annual budget happens yearly long term budget is planned for few years. For ex – 5 to 10 years of Research and Development Budget, Capital Expenditure Budget, etc. This has few advantages like focus on long term… Continue reading What is long-term budget?
Usually public budgeting happens once in a year because it enables the legislature to exercise a closer control over the activities of the government. This is called Annual budget. This is known as financial year. In India it starts from 1st April and ends on 31st March.
WHAT ARE THE PRINCIPLES OF BUDGET? Periodicity- Appropriation should be authorized for a definite period of time Publicity- All stages of budget executive recommendation, legislative consideration and budget execution should be made public Accuracy- Budget estimates should be as accurate as possible Clarity- The budget should be understandable to every citizen Comprehensiveness- The budget should… Continue reading Principles and Objectives of budget