Tax evasion is indeed a significant issue in India, as it is in many other countries. Tax evasion refers to the illegal or unethical practice of deliberately avoiding paying taxes that an individual or business owes to the government. It undermines the revenue collection efforts...
Incremental Capital Output Ratio (ICOR)ICOR = investment % in GDP/Growth in GDP If investment was 28% and our growth in GDP was 7% then ICOR comes out to be 4. ICOR represents how efficiently capital is being used to produce output but it depends on several...
New Industrial Policy, 1991 The New Industrial Policy, 1991 had the main objective of providing facilities to market forces and to increase efficiency. Larger roles were provided by L – Liberalization (Reduction of government control) P – Privatization (Increasing the role & scope of the private sector) G – Globalisation...
Decision making under uncertainty refers to the process of making choices when the outcomes are uncertain or unknown. Attitudes towards risk can vary among individuals, and different people may exhibit different approaches to decision making under uncertainty. Two common attitudes towards risk are: Risk-averse: Risk-averse individuals...
India and UAE have signed a pact to promote use of local currency (Rupee and UAE Dirham(AED)) for cross border transactions. It will cover all current account transactions and permitted/limited capital account transactions. Correspondent banks are financial institutions that act as an agent on behalf of...
Fiscal policy refers to the use of government spending and taxation to influence the overall state of the economy. It can be broadly categorized into two types: expansionary fiscal policy and contractionary fiscal policy. Let's explore each type in more detail: Expansionary Fiscal Policy: Expansionary fiscal...
technical progress embodied and disembodied Technical progress can be broadly categorized into two types: embodied and disembodied. These terms refer to different aspects of how technological advancements are incorporated and utilized in society. Embodied Technical Progress: Embodied technical progress refers to the tangible incorporation of technology into...
The global MPI is composed of three dimensions (health, education, and living standards) and ten indicators. Each dimension is equally weighted, and each indicator within a dimension is also equally weighted. A person is identified as multidimensionally poor if they are deprived in at least...
Fiscal Reform by States The fifteenth Finance Commission (FC-XV) has assessed the fiscal challenges facing States through a survey of State-level macroeconomic, socioeconomic and fiscal indicators as well as the status of health infrastructure, power sector and local bodies' finances. On this basis, specific reform signposts...
The term "parallel economy" refers to economic activities that occur outside the official channels of the formal economy. These activities are often unregulated and may include informal and illegal transactions. In the context of India, the parallel economy is also commonly referred to as the...