Types of Government Budget - Balanced and Unbalanced

Different Types of Government Budget - Diagram ↓ A. Balanced Budget ↓
Balanced budget is a situation, in which estimated revenue of the government during the year is equal to its anticipated expenditure.Government's estimated Revenue = Government's proposed Expenditure.For individuals and families, it is always advisable to have a balanced budget.Most of the classical economists advocated

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What is a Budget ? Components of Government Budget

What is a Budget ? Meaning and Concept
Government has several policies to implement in the overall task of performing its functions to meet the objectives of social & economic growth. For implementing these policies, it has to spend huge amount of funds on defence, administration, and development, welfare projects & various other relief operations. It is therefore necessary to find out all

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How To Manage Debt ? India's Public Debt Management

The Solutions To Manage Public Debt In India ↓
The increase in Public debt puts a burden on the citizens of the country. The burden of public debt adversely affect the growth and development of the economy. Therefore there is a need to effectively manage public debt.Image Credits © Zimri Smith.Management of public debt involves; repayment of public debt, controlling the amount of borrowings and

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Public Debt In India - Debt Obligation of the Government

Introduction To The Public Debt In India ↓
During recent years, public debt in India has been growing at an alarming rate. The under developed nature of the economy & institutional credit deficiencies makes the financing of economic development a complicated problem.Image Credits © Frank Tiemann.Hence the government has to play a key role in stimulating the rate of capital formation & in

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Various Methods of Public Debt Redemption - Repayment of Loan

What is Redemption ? Meaning ↓
Redemption means repayment of a loan. Redemption refers to escaping from the burden of public debt.Image Credits © Friends of the Earth International.
Various Methods of Public Debt Redemption ↓
The various methods of public debt redemption are as follows :-
1. Sinking fund method
The Government creates a fund called sinking fund by accumulating a part of the

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Burden of Internal and External Public Debt - Shifting of Burden

Introduction To The Burden of Public Debt ↓
Over the years, the public debt of the India's Central and that of State government has increased considerably during the planning period. The Government borrows funds by way of public debt to meet the various development and non-development expenses.Table below indicates composition of public debt of the Central Govt. of India.Apart from internal debt

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Public Debt - Classification Types of Public Debt Borrowing

What is Public Debt ? Meaning ↓
Public debt or public borrowing is considered to be an important source of income to the government. If revenue collected through taxes & other sources is not adequate to cover government expenditure government may resort to borrowing. Such borrowings become necessary more in times of financial crises & emergencies like war, droughts, etc.Public debt may be raised

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Causes for the Growth of Public Expenditure In India

Introduction - Rise in Government Expenditure ↓
Public expenditure is also referred as Government expenditure. It is incurred by the government to provide public goods & services, and to service debts.The expansion in government activities during the planning period has resulted in a huge rise in the public expenditure.
Growth of the Public Expenditure ↓
Before independence, there was no

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What is Public Expenditure ? Meaning and Classification

What is Public Expenditure ? Meaning, Definition
Public expenditure refers to Government expenditure i.e. Government spending. It is incurred by Central, State and Local governments of a country.Public expenditure can be defined as, "The expenditure incurred by public authorities like central, state and local governments to satisfy the collective social wants of the people is known as public

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Wagner Law of Increasing State Activity - Public Expenditure

Introduction - Public Expenditure is Increasing ↓
Adam Smith wrote in the 'Wealth of Nations' that the government should restrict their activities to;Defence against foreign aggression.
Maintenance of internal peace and order.
Public development work.All other functions besides these were considered beyond the scope of the state & expenditure on them was treated as unjust & wasteful.
But there

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Effects of Public Expenditure On Economy Production Distribution

1. Effects on Production
The effect of public expenditure on production can be examined with reference to its effects on ability & willingness to work, save & invest and on diversion of resources.Image Credits © UK in Brazil.Ability to work, save and invest : Socially desirable public expenditure increases community's productive capacity. Expenditure on education, health, communication,

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E-Banking - Online Banking - Advantages of the Ebanking

What is E-Banking ? Online Banking ↓
E-banking refers to electronic banking. It is like e-business in banking industry. E-banking is also called as "Virtual Banking" or "Online Banking".E-banking is a result of the growing expectations of bank's customers.
Image Credits © Jochem Koole.
E-banking involves information technology based banking. Under this I.T system, the banking services are

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Automated Teller Machine ATM - Advantages of ATM

What is ATM ? Automated Teller Machine ↓
ATMs are electronic machines, which are operated by a customer himself to deposit or to withdraw cash from bank. For using an ATM, a customer has to obtain an ATM card from his bank. The ATM card is a plastic card, which is magnetically coded. It can be easily read by the machine.
Image Credits © lord_h8r.
To operate an ATM card, the customer has to inset

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Crossing of Cheque - Different Types of Check Crossing

What is Crossing of Cheque ?
A cheque is a negotiable instrument. During the process of circulation, a cheque may be lost, stolen or the signature of payee may be done by some other person for endorsing it. Under these circumstances the cheque may go into wrong hands.
Crossing is a popular device for protecting the drawer and payee of a cheque. Both bearer and order cheques can be crossed.

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What are Features of Cheques ? Characteristics of Checks

1. Cheque is an instrument in writing
A cheque must be in writing. It can be written in ink pen, ball point pen, typed or even printed. Oral orders are not considered as cheques.

2. Cheque contains an unconditional order
Every cheque contains an unconditional order issued by the customer to his bank. It does not contains a request for payment. A cheque containing conditional orders is

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What is a Cheque ? Definition - Kinds and Types of Cheques

What is a Cheque ? Meaning ↓
Cheque is an important negotiable instrument which can be transferred by mere hand delivery. Cheque is used to make safe and convenient payment. It is less risky and the danger of loss is minimised.
Image Credits © one take movie
Definition of a Cheque ↓
"Cheque is an instrument in writing containing an unconditional order, addressed to a banker, sign by the person

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What is a Bank ? Introduction, Definition and Features of Bank

What is a Bank ? Introduction ↓
Finance is the life blood of trade, commerce and industry. Now-a-days, banking sector acts as the backbone of modern business. Development of any country mainly depends upon the banking system.The term bank is either derived from old Italian word banca or from a French word banque both mean a Bench or money exchange table. In olden days, European money lenders or

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Different Types of Banks - What are Various Kinds of Banks ?

Type 1. Saving Banks
Saving banks are established to create saving habit among the people. These banks are helpful for salaried people and low income groups. The deposits collected from customers are invested in bonds, securities, etc. At present most of the commercial banks carry the functions of savings banks. Postal department also performs the functions of saving bank.
Image Credits ©

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Recurring Deposit Account In Bank - Meaning and Features

What is Recurring Deposit Account ? Meaning ↓
Recurring deposit account is generally opened for a purpose to be served at a future date. Generally opened to finance pre-planned future purposes like, wedding expenses of daughter, purchase of costly items like land, luxury car, refrigerator or air conditioner, etc.Image Credits © pamelalongRecurring deposit account is opened by those who want to

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What is Current Bank Account ? Its Features and Advantages

Meaning of Current Bank Account ↓
Current bank account is opened by businessmen who have a higher number of regular transactions with the bank. It includes deposits, withdrawals, and contra transactions. It is also known as Demand Deposit Account.Image Credits © stefanrechsteinerCurrent account can be opened in co-operative bank and commercial bank. In current account, amount can be deposited

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Fixed Deposit Account of Bank - Meaning, Features, Advantages

Meaning of Fixed Deposit Account - Bank ↓
The account which is opened for a particular fixed period (time) by depositing particular amount (money) is known as Fixed (Term) Deposit Account.The term 'fixed deposit' means that the deposit is fixed and is repayable only after a specific period is over.
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Under fixed deposit account, money is deposited for a fixed

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Saving Account in Bank - Meaning, Features, Advantages

Meaning of Saving Account in Bank ↓
Commercial banks (like ICICI, HDFC, etc.), co-operative banks (like Saraswat, Cosmos, etc.), public sector banks (like State bank of India, Bank of India, etc.) and postal departments accept deposits by way of opening saving bank account with them.The 'saving account' is generally opened in bank by salaried persons or by the persons who have a fixed regular

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What are the Advantages of Opening Bank Account ?

1. Bank account facilitates a safe custody of money
The bank is the custodian of cash. As and when the account holders needs the money can withdraw the same depending upon the type of account.
Image Credits © Randall Blaum
2. Bank account helps in making payments
The bank account holder can make payment to third parties through the savings and current account. The payment may be regarding

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How to Open Bank Account ? 7 Steps To Open Bank Account

Open Bank Account In 7 Simple Steps - Banking ↓
Today Banks have emerged as important financial institutions. Banks provide a safe environment and helps us manage our financial transactions. To avail professional banking service it is mandatory for every individual to open a bank account. Opening a bank account is not a difficult task. It takes only seven easy steps to open a bank account. This

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Criticism Limitations of Ricardian Comparative Cost Theory

Limitations of Ricardian Comparative Cost theory ↓
For considerable period the theory of comparative costs formulated by David Ricardo was the most acceptable explanation of the international trade. However, Ricardo's theory was subjected to number of criticisms.
Following are the important limitations of Ricardian Comparative Cost Theory.
1. Restrictive Model
Ricardo's Theory is based on only

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Practical Applicability Ricardian Theory of Comparative Cost

Applicability of Ricardian Theory in Real World ↓
Comparative cost theory inspite of all limitations has remained as a basic principle of international trade. Today when the world is moving towards greater liberalisation and globalisation each country specialises in production of goods and services on the basis of comparative cost advantage and enters into international trade.
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Most Memorable Day of My Life I've Ever Enjoyed - Essay Story

Most Memorable Day of My Life
Yesterday evening, I was too bored and annoyed to follow my daily monotonous chores. I felt my body was demanding some spiritual recreation which I kept it deprived for many long days. It urgently needed a serene calmness to get fully energized and feel fresh once again. After thinking of my options, I finally decided to plan and enjoy an evening ride by visiting

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Ricardo's Theory of Comparative Advantage - International Trade

Intro - Classical Theory of International Trade ↓
In 1817, David Ricardo, an English political economist, contributed theory of comparative advantage in his book 'Principles of Political Economy and Taxation'. This theory of comparative advantage, also called comparative cost theory, is regarded as the classical theory of international trade.According to the classical theory of international

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