Economic Growth versus Economic Development

Economic Growth and Economic Development are central to developed as well as developing economies. Classical thinkers such as Adam Smith, Karl Marx examined the problem of economic development as early as 18th century. However, the study of economic growth and ..

Economic inequality in India

Economic inequality is a hindrance to the process of growth and development in India. Even though there is an economic growth in India, it is not able to reduce the growing inequalities of the Indian society. Our development strategies failed ..

What are Sources of Investments?

There are three main sources of investments viz. Internal funding using accumulated profits of a firm; Borrowing either from banks or through the issue of financial assets such as bonds (long term debt) or Commercial Papers (short-term) and Issuing new ..

FRBM Act 2003

In 1980s, India saw a sharp deterioration of the fiscal situation, which ultimately culminated in the balance of payments crisis of 1991. Within a decade of economic liberalisation, the fiscal deficit and debt situation again seemed to head towards unsustainable ..

Constitutional Framework around Fiscal Policy in India

The overarching framework for India’s fiscal policy is provided by the constitution. This framework is made of: Article 246, Article 248 (residuary power of taxation) and Seventh Schedule Article 280 provision for Finance Commission Article 112 and other articles related ..

Objectives and Instruments of Fiscal Policy

The word fiscal comes from a French word Fisc, which means treasure of Government. All the taxation and expenditure decisions of the government comprise the Fiscal Policy. Fiscal Policy is different from monetary policy in the sense that monetary policy ..

Current Challenges to Implementation of GST

Currently, challenges to implementation of GST are as follows: Enactment of Constitution amendment bill needs consensus among ruling and opposition parties because ruling party is in minority in Rajya Sabha. Setting up IT infrastructure and an enabled centralised agency to ..

Implications of GST on Indian Economy

Till now, introduction of Value Added Tax (VAT) at the state level and CENVAT at central level are considered to be largest indirect tax reforms in the country and GST is the next logical step towards making India a unified ..

GST and Concept of Supply of Goods

Under GST, the definition of goods has been replaced with the “supply of goods”. Under the present indirect tax regime in India various central and state levies are triggered by distinct taxes like service tax provision of services, VAT on ..

Implications of GST as a Destination Based Tax

Indirect taxes can be either origin based or destination based. Origin based tax (also known as production tax) is levied where goods or services are produced. Destination based tax (consumption tax) are levied where goods and services are consumed. In ..