FISCAL DEFICIT Subject : Economics Context : India’s fiscal deficit shot up to 135.1% of the Budget target of nearly ₹8 lakh crore for 2020-21, in the 8 months from April to November 2020, as per data released by the Controller General of Accounts. Concept : Fiscal Deficit The government describes fiscal deficit […]
CURRENT ACCOUNT SURPLUS Subject : Economics Context : The current account surplus moderated to $15.5 billion (2.4 per cent of GDP) in the quarter ended September of 2020-21 from $19.2 billion (3.8 per cent of GDP) in the first quarter this fiscal. Concept : The narrowing of the current account surplus in Q2 […]
FOREIGN PORTFOLIO INVESTMENT Subject : Economics Context : Foreign portfolio investment flows in December have crossed $6 billion and could well hit $7 billion before the month is over. Concept : While it’s the abundance of liquidity worldwide that is channelling funds into equities, India seems to be getting more than its fair share as […]
BANK INVESTMENT COMPANY Subject : Economics Context : The government is likely to set in motion the process of establishing a Bank Investment Company (BIC) to hold its stake in public sector banks (PSBs). Concept : BIC was mooted in RBI’s PJ Nayak Committee report in 2014. Recommendations of the Nayak Committee regarding […]
Maintaining 4% Inflation Appropriate For India: RBI Paper Subject : Economics Context: Maintaining 4 percent inflation is appropriate for India as targeting a lower rate could impart deflationary bias to the monetary policy, said a Reserve Bank paper. Concept : Under the current dispensation, the RBI has been mandated by the government to […]
DIVERGENCE IN RURAL-URBAN INFLATION Subject: Economics Context: Rural-urban inflation divergence does not persist in the long run and converges over time, and both exhibit a long-term equilibrium relationship, said an RBI article. Concept: Rural-urban inflation divergence does not persist in the long run and converges over time, and both exhibit a long-term equilibrium […]
ZERO COUPON BONDS: An innovative tool to fund PSBs and keep deficit in check Subject: Economics Context: The government has used financial innovation to recapitalise Punjab & Sind Bank by issuing the lender Rs 5,500-crore worth of non-interest bearing bonds valued at par. Concept: A zero-coupon bond is a debt security that does […]
Commerce ministry has recommended for extension of anti-dumping duty Subject : Economics Context : The commerce ministry has recommended for extension of anti-dumping duty for five years on carbon black used in the rubber and tyre industry from China and Russia, with a view to guard domestic players from cheap imports from these […]
New code for co-ops to kick in from April Subject : Economics Context : All Central co-operative banks and States co-operative banks will follow new set of regulations as prescribed under Banking Regulations Amendment Act with effect from April 1, 2021. Concept : The Finance Ministry has issued a notification stating that from […]
RBI to conduct simultaneous purchase and sale of G-Secs Subject : Economics Context : The Reserve Bank of India on Thursday said it will conduct simultaneous purchase and sale of government securities (G-Secs) under Open Market Operations (OMO) for an aggregate amount of ₹10,000 crores each on December 30. Concept : Open Market Operations Open […]