Banking System in India
Economics
WHAT IS INFLATION?
-Inflation is a general and sustained increase in overall price level of goods and services.
-The inflation rate is a key parameter basis which government proposes its monetary and fiscal policy.
WHOLESALE PRICE INDEX VS CONSUMER PRICE INDEX
-WPI is an indicator of price changes in the wholesale market.
-It calculates the price paid by the manufacturers and wholesalers in the market.
-CPI is a price index which represents the average price of a basket of goods over time.
-It calculates the average price paid by the consumer to the shopkeepers.
PLI (Production Linked Incentive)
-introduced in 2020 for 03 sectors.
-Dept for Promotion of Industry & Internal Trade (DPIIT) deals with this.
-today PLI available in 14 manufacturing sectors - mobiles, medical devices, telecom & networking products, automobiles and auto components, pharmaceuticals, drugs, white goods, specialty steel, electronic products, textile products, solar PV modules, advanced chemistry cell battery and drones & drone components.
-subsidising production, boost exports, curb imports,
-allocation 1.97 lakh cr for 14 sectors in 03 years
-till march 733 applications approved in 14 sectors
-expected investment 3.65 lakh cr
-largest disbursal in electronics manufacturing, followed by pharma
-Sectors not picking PLI - solar PV, advanced chemistry cell (ACC) batteries, textile products & specialty steel.
-Specialty steel is a value-added steel, made by processing normal finished steel through coating, plating and heat treatment.
Gold reserves in the world
- United States > Germany > Italy
Diamond reserves in the world
-Russia > Botswana > DR Congo > South Africa
Oil reserves by Country
Venezuela > Saudi Arabia > Canada > Iran
Finance Commission
-Shri N.K. Singh, Chairman of 15th Finance Commission of India
-The Finance Commission is a Constitutionally mandated body that is at the centre of fiscal federalism.
-Set up under Article 280 of the Constitution, its core responsibility is to
;evaluate the state of finances of the Union and State Governments
; recommend the sharing of taxes between them,
;lay down the principles determining the distribution of these taxes among States.
-Its working is characterised by extensive and intensive consultations with all levels of governments, thus strengthening the principle of cooperative federalism.
-Its recommendations are also geared towards improving the quality of public spending and promoting fiscal stability.
-The first Finance Commission was set up in 1951 and there have been fifteen so far.
-Each of them has faced its own unique set of challenges.
-The Fifteenth Finance Commission was constituted on 27 November 2017 against the backdrop of the abolition of Planning Commission (as also of the distinction between Plan and non-Plan expenditure) and the introduction of the goods and services tax (GST), which has fundamentally redefined federal fiscal relations.
-The Terms of Reference of the current Commission have some distinctive features, including recommending monitorable performance criteria for important national flagship programmes and examining the possibility of setting up a permanent non lapsable funding for India’s defence needs.
-The reorganisation of the State of Jammu and Kashmir into two Union Territories – one of Jammu and Kashmir and one of Ladakh – presents a new dynamic.
-On the whole the Finance Commission faces new challenges in the process of the evolution of our federal polity.
-As an important Constitutional entity, the Commission is committed to balancing competing claims and priorities among all three tiers of government in a credible manner.