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Rail Budget

General Budget

Todays Top

1. Survey: C2, 3

2. General B

(MINUSSchemes)

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How prepares Economic Survey?

1. Draft: Dept. of Economic A

2. CSO inputs (Min. of Stat &Prog implementation)

3. Chief Economic Advisor to

4. Finance Secretary + FM

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(A): In Recent years, women participatrate in labour force has declined.

(R): There has been a rapid increase infemale participation in educationboth rural and urban areas

Answer Choices

A. both are true and R is the correct explanation of AB. both are true but R is not the correct explanation oC.A is true but R is falseD.A is false but R is true

1. Skip 2. Attempt 3. Mark

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Assertion (A): In Recent years, womenparticipation rate in labor force has declined.

Reason (R): There has been a rapid increasfemale participation in educationboth in rururban areas

Answer ChoicesA. both are true and R is the correct explanatio

B. both are true but R is not the correct explanAC.A is true but R is falseD.A is false but R is true

Survey ch1, Page5

1. Skip 2. Attempt 3. Mark n Review

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2 3 4

1. Reform

overview2. Financial

repression

3. Productivity

commission

1. Budget 2013

2. AFS Tables

1. Agro

2. Urjit

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5 6 7

1. FSLRC- IFC

2. Financialinclusion

(Nachiket)

3. Insurance,

NBFC

1. EXIM

2. Tradagre

1. BOP Table

2. Fed tapering

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8 9 10

1. Subsidies

2. Nationalmarket

3. PDS reform

1. Mining

2. MSME3. Textile

4. Industrial

corridor

1. Tran

2. Tou3. IT

4. Rea

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11 12 13

1. Energy: CBD, Oil, gas,

renewable2. Ports, highway, railway,

aviation, communication

3. PPP, infra financing (Ch2.)

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11 12 13

1. El Nino, MDG

2. National action plan CC3. Kyoto, warsaw

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11 12 13

1. Human Development index

2. Schemes3. Rural-urban infra (Smart cities, Rurba

4. Weaker sections schemes

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1. Introduction

14. Statistical Appendix

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Chapter 1

State of the Economy

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>9%: 2005, 2006, 2007

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Gross

Domestic

Product

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2012, 100 2013

Nom

GD

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2012

Nom

GD2004, **GDP

deflator

= Real GDP

CSO Data

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Gross

National

Product

M

GNP = GDP + Net Income

from abroad

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GNP NNP (MP)

- Indirect TAXE

+ Subsidies

NNP (FC)

What is Net National Income? (199

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A. NNP at market price

B. NNP at factor costC.Net Domestic Product at ma

price

D.Net Domestic Product at faccost

What is Net National Income? (199

1. Skip 2. Attempt 3. Mark

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GNP NNP (MP)

- Indirect TAXE

+ Subsidies

NNP (FC) = National INCOME

Per capita National Income (2013): 7

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GNP NNP (MP)

+ Current Trans

National

Disposableincome

Background theory / formulas

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Background theory / formulas

NCERT Macro chapter 2

Topic 2.3 till end

Economic Survey ch1, Table 0.1 - GDproduction, inflation, deficit

Population:121 crore (CENSUS 2011

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>9%: 2005, 2006, 2007

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GDP Decline why?

Global slowdownInflation: financial assets APMC, high food inflation

CH1 GDP Decline why?

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Decline higher than emerging econom

PSU dividend, NOT expansion

Ref Box 1.1

Structural constrains

Investment rate 30% GDP => Sub-5%

Investment decline (not high) => GDPdecline (High)

CH1. GDP Decline why?

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Jaitley budget aim

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7-8% Growth in next 3-4 years

Aim:lesser TWIN DEFICIT

Lesser fiscal deficit

Lesser CAD

Jaitley budget aim

Sectoral growth trends (Point: 1 6

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Sectoral growth trends (Point: 1.6

Sector share in GDP (Table 1 2)

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Sector share in GDP (Table 1.2)

Sectoral share in GDP (Table 1.2

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Sectoral share in GDP (Table 1.2

2007

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Which one of the following is the correcsequence in the decreasing order of

contribution of different sectors to GDP?A. Services-Agriculture-Industry

B. Industry-Services-Agriculture

C. Industry-Agriculture-ServicesD. Services-Industry-Agriculture

2007

1. Skip 2. Attempt 3. M

Share of sectors in Employment Box

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Share of sectors in Employment Box

Formula: Aggregate Demand (1.16

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Final consumption

+ investment (I)+ Net export (-impo

o u a gg ega e e a d ( 6

Aggregate Demand

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Aka effective demand

Demand for GDP of a counGrowth rate (AD) decrease

gg g

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Public sector 1%

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Total savings rate (~30 GDP%)

2012

Public sector 1%

Private sector 7%

Household

Physical 15%+ Financial 7%

H

2

Assertion reasoning

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g

(A) Savings rate declined significantrecent years, for Indian Economy

(R) Households tended to save morphysical than financial assets in receyears.

Correct ans:both right, R DOESNOTexplaRef. Ch1, Page14

Public sector 1%

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Total savings rate (~30 GDP%)

2012

Public sector 1%

Private sector 7%

Household

Physical 15%+ Financial 7%

H

2

Assertion reasoning

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(A) Savings rate declined significantrecent years, for Indian Economy

(R) Households tended to save morphysical than financial assets in receyears.

Correct ans:both right, R DOESNOTexplaRef. Ch1, Page14

Assertion reasoning

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(A) In recent years, overallinvestment rate has declined fo

Indian economy(R) private corporate investmenhas declined in recent years.

Correct answer:both right, R explains A.

Ref. Ch1, Page10 sidebox

Ch.1: page 12 onwards

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Gold import, CAD (BoP chapter)

Fiscal deficit, FRBM (public finance

chapter)Inflation (ch. Price Management)

BoP, Fed Tapering (lecture)

overview of other Chapter

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Chapter 2

1.Public finance => Todays

lecture2.inflation => Agriculture + (FI)

Types of Reforms

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Short

term

Stroke of a pen reforms

e.g. POSCO plant.

Mediu

m termVia budget

Long

term

Via legal-regulatory-

Administrative reforms

Can long term reforms affect Short te

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Higher dividend expect: stockmarket boom

Households: less savings, morborrowing

FDI, FII attract

Factor Market Reform

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Land market

Acquisitionland title

computerization

of records

Hire firetrade union

Labour mar

Factor Market Reform: Capital Mark

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FSLRC

Indian Financial code

Regulatory sector reform

Mumbai: international financial

centre like London, NY Singapo

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