Forwarded from VK IAS- prelims (UPSC highlights)
#Economy
✅Budget 2024- How is our money spent?
🅾️High interest payments can:
⚜️Reduce the money available for welfare programs and services.
⚜️Decrease funds for capital expenditures (CapEx), which are crucial for long-term investments in infrastructure and development.
⚜️Affect the country's sovereign credit ratings negatively, making borrowing more expensive.
⚜️Create a cycle of debt where the government ends up borrowing more to pay off existing loans.
📍Relevant concept here : Ricardian equivalence- It is an economic theory suggesting that government borrowing doesn't affect the overall level of demand in the economy because people anticipate higher taxes in the future to pay off the debt, leading to an increase in savings.
⚠️VK IAS subject wise channels - Click here
✅Budget 2024- How is our money spent?
🅾️High interest payments can:
⚜️Reduce the money available for welfare programs and services.
⚜️Decrease funds for capital expenditures (CapEx), which are crucial for long-term investments in infrastructure and development.
⚜️Affect the country's sovereign credit ratings negatively, making borrowing more expensive.
⚜️Create a cycle of debt where the government ends up borrowing more to pay off existing loans.
📍Relevant concept here : Ricardian equivalence- It is an economic theory suggesting that government borrowing doesn't affect the overall level of demand in the economy because people anticipate higher taxes in the future to pay off the debt, leading to an increase in savings.
⚠️VK IAS subject wise channels - Click here
Forwarded from VK IAS by Vikas kanukollu (VK)
✅Gs-3 : Economic growth models- Strategy in Amrit kaal for "Viksit Bharat" aimed at modernizing India by 2047
🅾️Why are the present economic models failing?= Economics of inclusive growth
➡️India did not follow the china model- Why- and its implications?
➡️Present article suggestions : redirect more resources towards agricultural research and development, irrigation, rural roads, and agricultural marketing to support sustainable and inclusive growth.
➡️The current budget allocation for fertilizer subsidies could be optimized and directed towards more strategic initiatives like nutritional security and climate-smart farming practices
⚠️VK IAS subject wise channels - Click here
🎖Please Subscribe : Youtube.com/vikaskanukollu
🅾️Why are the present economic models failing?= Economics of inclusive growth
➡️India did not follow the china model- Why- and its implications?
➡️Present article suggestions : redirect more resources towards agricultural research and development, irrigation, rural roads, and agricultural marketing to support sustainable and inclusive growth.
➡️The current budget allocation for fertilizer subsidies could be optimized and directed towards more strategic initiatives like nutritional security and climate-smart farming practices
⚠️VK IAS subject wise channels - Click here
🎖Please Subscribe : Youtube.com/vikaskanukollu
image_2024-02-07_09-42-04.png
4.8 MB
✅Gs-3 : Economic growth
⚠️GDP formula G= C+I+G+(X-M)
🅾️This article is talking about investment (I) component
➡️Why is Investment important?- Because it is a growth multiplier.
🅾️In this regards, the article is talking about households' contribution- Why households cant invest much?- Click here for a brief explainer- read the analysis
🅾️👆Since households were unable to contribute, government went for a Corporate tax cut to attract investments- Click here to know the impact
🅾️But you can see tremendous growth in stock markets Consider this- Nifty - a metric for growth - went from 8000 odd to almost 22000 recently- almost 3x growth.
🅾️So conclusion= Inequality
🎖Then solution?- We disucssed this
⚜️1. Reduce subsidies- Click here
⚜️2. Read these in the same order( Series of articles by Arun Maira )
🎖@Economyhighlights for more economy related articles at one place
⚠️VK IAS subject wise channels - Click here
🎖Please Subscribe : Youtube.com/vikaskanukollu
⚠️GDP formula G= C+I+G+(X-M)
🅾️This article is talking about investment (I) component
➡️Why is Investment important?- Because it is a growth multiplier.
🅾️In this regards, the article is talking about households' contribution- Why households cant invest much?- Click here for a brief explainer- read the analysis
🅾️👆Since households were unable to contribute, government went for a Corporate tax cut to attract investments- Click here to know the impact
🅾️But you can see tremendous growth in stock markets Consider this- Nifty - a metric for growth - went from 8000 odd to almost 22000 recently- almost 3x growth.
🅾️So conclusion= Inequality
🎖Then solution?- We disucssed this
⚜️1. Reduce subsidies- Click here
⚜️2. Read these in the same order( Series of articles by Arun Maira )
🎖@Economyhighlights for more economy related articles at one place
⚠️VK IAS subject wise channels - Click here
🎖Please Subscribe : Youtube.com/vikaskanukollu
UPSC Economy by VK IAS (Vikas Kanukollu)
https://youtu.be/rQpQUeFZ16I?feature=shared
Request everyone to See the above video and subscribe to the youtube channel to stay connected : click here
Forwarded from VK IAS- prelims (UPSC highlights)
https://x.com/vikaskanukollu/status/1755471817073164758?s=20
Request you guys to retweet in support and subscribe to the youtube channel - Click here
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Forwarded from VK IAS- prelims (UPSC highlights)
#Economy
✅Section 43 B(h) of Income tax act.
🅾️Background : Under the Micro, Small and Medium Enterprises Development (MSMED) Act, payments to MSMEs should be made within 45 days of accepting goods or services if there is a written contract. If no such agreement exists-15 days. Section 43B (h) of the Income Tax Act reinforces this by stipulating that such payments will be allowed as a deduction for the buying company only if made within the timeframe . Otherwise, the amount due would be treated as income - thus taxable.
🅾️Challenge : some buyers, to avoid the stringent conditions of timely payments, might prefer to engage with suppliers not registered under UDYAM, hence not protected by the provisions of the MSMED Act= registered MSMEs at a disadvantage, potentially leading to longer payment cycles or even loss of business as buyers shift to unregistered suppliers to circumvent the regulations.
🎖VK IAS subject wise channels - Click here
⚠️Youtube : Click here and join the VK IAS channel
✅Section 43 B(h) of Income tax act.
🅾️Background : Under the Micro, Small and Medium Enterprises Development (MSMED) Act, payments to MSMEs should be made within 45 days of accepting goods or services if there is a written contract. If no such agreement exists-15 days. Section 43B (h) of the Income Tax Act reinforces this by stipulating that such payments will be allowed as a deduction for the buying company only if made within the timeframe . Otherwise, the amount due would be treated as income - thus taxable.
🅾️Challenge : some buyers, to avoid the stringent conditions of timely payments, might prefer to engage with suppliers not registered under UDYAM, hence not protected by the provisions of the MSMED Act= registered MSMEs at a disadvantage, potentially leading to longer payment cycles or even loss of business as buyers shift to unregistered suppliers to circumvent the regulations.
🎖VK IAS subject wise channels - Click here
⚠️Youtube : Click here and join the VK IAS channel
Forwarded from VK IAS by Vikas kanukollu (VK)
Kaushik merugu - AIR 82 cracked this exam in the very first attempt- what sets him apart is his wisdom.
He picked his battles very wisely- he knew his limitations and played the game to his strengths - his minimalistic approach worked in his favour.
Watch this talk on how his journey shaped up and how VK IAS was instrumental in his journey
MERUGU KAUSHIK AIR - 82 in 1st Attempt UPSC CSE 2023- VK IAS Mentorship
https://youtu.be/73Zso_cm-eA
He picked his battles very wisely- he knew his limitations and played the game to his strengths - his minimalistic approach worked in his favour.
Watch this talk on how his journey shaped up and how VK IAS was instrumental in his journey
MERUGU KAUSHIK
https://youtu.be/73Zso_cm-eA
Forwarded from VK IAS by Vikas kanukollu (VK)
✅Gs-3 : Agriculture- Agri trade
✅GS3- Food processing/Agri cropping patterns
🔰This is an important news for both pre and mains. Why?- Because of our agricultural export policy
🅾️It says that we have to double agricultural exports from the present $30 billion to $60 billion by 2022 and reach $100 billion in the next few years thereafter, with a stable trade policy regime- Click here to read
⚡️VK IAS subject wise channels - Click here
⚠️Youtube : Click here and join the VK IAS channel
✅GS3- Food processing/Agri cropping patterns
🔰This is an important news for both pre and mains. Why?- Because of our agricultural export policy
🅾️It says that we have to double agricultural exports from the present $30 billion to $60 billion by 2022 and reach $100 billion in the next few years thereafter, with a stable trade policy regime- Click here to read
⚡️VK IAS subject wise channels - Click here
⚠️Youtube : Click here and join the VK IAS channel
Forwarded from VK IAS by Vikas kanukollu (VK)
Economic survey - Chapter 1.pdf
2.1 MB
✅Gs-3 : Economic growth/ Inclusive growth
🅾️Q) Examine the evolution of inclusive growth in India over the past decade, emphasizing key initiatives and their impact on socio-economic indicators
🔰Economic survey 2024- Chapter 1
🅾️This is the most important chapter in terms of mains 2024
🎖VK IAS subject wise channels - Click here
⚠️Youtube : Click here and join the VK IAS channel
🅾️Q) Examine the evolution of inclusive growth in India over the past decade, emphasizing key initiatives and their impact on socio-economic indicators
🔰Economic survey 2024- Chapter 1
🅾️This is the most important chapter in terms of mains 2024
🎖VK IAS subject wise channels - Click here
⚠️Youtube : Click here and join the VK IAS channel
✅Gs-3 : Mobilization of resources- Taxation- LTCG- Budget 2024
🅾️Context : Long-term gains on assets like property and investments will now be taxed at a flat rate of 12.5%, without considering inflation adjustments. For example, if you bought a house for ₹10 lakh in 2001 and sold it for ₹75 lakh in 2021, indexation would increase the purchase price to reflect inflation, thus lowering the taxable gain. Now that indexation benefit is removed.
🅾️What is the impact?- The response from the industry has been mixed. O
Removing indexation means investors can't adjust their purchase price for inflation. This results in higher taxable gains when they sell their assets, leading to more tax. Higher taxes might discourage people from making long-term investments, affecting their financial planning and market activityverall sentiment suggests that removing indexation could dampen investment enthusiasm.
🎖VK IAS subject wise channels - Click here
⚠️Youtube : Click here and join the VK IAS channel
🅾️Context : Long-term gains on assets like property and investments will now be taxed at a flat rate of 12.5%, without considering inflation adjustments. For example, if you bought a house for ₹10 lakh in 2001 and sold it for ₹75 lakh in 2021, indexation would increase the purchase price to reflect inflation, thus lowering the taxable gain. Now that indexation benefit is removed.
🅾️What is the impact?- The response from the industry has been mixed. O
Removing indexation means investors can't adjust their purchase price for inflation. This results in higher taxable gains when they sell their assets, leading to more tax. Higher taxes might discourage people from making long-term investments, affecting their financial planning and market activityverall sentiment suggests that removing indexation could dampen investment enthusiasm.
🎖VK IAS subject wise channels - Click here
⚠️Youtube : Click here and join the VK IAS channel
Forwarded from VK IAS by Vikas kanukollu (VK)
✅Gs-3 : Economic Growth
🅾️This is an important topic in prelims phase- Impact of FED rate cuts on Indian economy.
🅾️What can happen?- Lower US interest rates may lead to increased capital flows into emerging markets like India, as investors seek higher returns. This could lead to an appreciation of the Indian Rupee.
🅾️Inflation-As the Rupee strengthens, the cost of imported goods, particularly crude oil, could decrease. Since India imports a significant portion of its oil, this could help in controlling inflation.
🅾️ Indian equities could see a surge as foreign investors might find Indian markets more attractive due to relatively higher returns compared to the US. This could lead to an overall bullish trend in the stock market.
🅾️Lower global interest rates can spur investment in India, boosting economic growth. This is especially crucial for sectors that are interest-sensitive.
🎖VK IAS subject wise channels - Click here
⚠️Youtube : Click here and join the VK IAS channel
🅾️This is an important topic in prelims phase- Impact of FED rate cuts on Indian economy.
🅾️What can happen?- Lower US interest rates may lead to increased capital flows into emerging markets like India, as investors seek higher returns. This could lead to an appreciation of the Indian Rupee.
🅾️Inflation-As the Rupee strengthens, the cost of imported goods, particularly crude oil, could decrease. Since India imports a significant portion of its oil, this could help in controlling inflation.
🅾️ Indian equities could see a surge as foreign investors might find Indian markets more attractive due to relatively higher returns compared to the US. This could lead to an overall bullish trend in the stock market.
🅾️Lower global interest rates can spur investment in India, boosting economic growth. This is especially crucial for sectors that are interest-sensitive.
🎖VK IAS subject wise channels - Click here
⚠️Youtube : Click here and join the VK IAS channel
Forwarded from VK IAS by Vikas kanukollu (VK)
✅Gs-3 : Economic growth
🅾️In light of recent debates on employment figures, analyze the structural issues in the Indian economy that may lead to an overestimation of job creation despite high economic growth rates. How do these structural challenges affect the quality of employment and the sustainability of economic development? Provide suggestions to address these issues.
🔰Ans : Structural Issues Leading to Overestimation of Job Creation
⚜️1. Shifts in Employment Structure:workers moving from urban to rural areas and from formal to informal sectors.
⚜️2. Data Collection and Methodology:relying on Work Participation Rates (WPR)
⚜️3. Sectoral Imbalances- growth has been concentrated in capital-intensive sectors
⚜️4. Quality of Employment: Poor
⚠️Suggestions : Improving the accuracy of employment data+ Promoting Labor-Intensive Sectors+ Investing in Skill Development+Formalization of the Informal Sector
🎖VK IAS subject wise channels - Click here
⚠️Youtube : Click here and join the VK IAS channel
🅾️In light of recent debates on employment figures, analyze the structural issues in the Indian economy that may lead to an overestimation of job creation despite high economic growth rates. How do these structural challenges affect the quality of employment and the sustainability of economic development? Provide suggestions to address these issues.
🔰Ans : Structural Issues Leading to Overestimation of Job Creation
⚜️1. Shifts in Employment Structure:workers moving from urban to rural areas and from formal to informal sectors.
⚜️2. Data Collection and Methodology:relying on Work Participation Rates (WPR)
⚜️3. Sectoral Imbalances- growth has been concentrated in capital-intensive sectors
⚜️4. Quality of Employment: Poor
⚠️Suggestions : Improving the accuracy of employment data+ Promoting Labor-Intensive Sectors+ Investing in Skill Development+Formalization of the Informal Sector
🎖VK IAS subject wise channels - Click here
⚠️Youtube : Click here and join the VK IAS channel
Forwarded from VK IAS- prelims (UPSC highlights)
#GovtPolicy #Economy
✅Pension schemes
⚠️OPS VS NPS vs UPS- Currently, the new scheme is for central government employees, but states can adopt it as well,
@upschighlights - Relevant hashtags for Prelims- Click here
🎖Please Subscribe : Youtube.com/vikaskanukollu
✅Pension schemes
⚠️OPS VS NPS vs UPS- Currently, the new scheme is for central government employees, but states can adopt it as well,
@upschighlights - Relevant hashtags for Prelims- Click here
🎖Please Subscribe : Youtube.com/vikaskanukollu
✅Gs-3 : Budgeting
🅾️In simple words-Vertical Fiscal Imbalance (VFI) = financial mismatch between the revenue-raising powers of the Union and State governments and their expenditure responsibilities.VFI occurs when the ability of the States to meet their spending requirements is largely dependent on financial transfers from the Union-During crises like the COVID-19 pandemic, the problem of VFI becomes more visible
⚜️According to the 15th Finance Commission, States incur 61% of total expenditure but collect only 38% of the total revenue, making them dependent on transfers from the Union government.
🅾️Many States have asked for the tax devolution to be raised to 50%-If a State's own revenue is inadequate to cover its spending needs, this deficit indicates a high VFI.
👉🏻How VFI is calculated and the formulae- that is not so important for UPSC
🎖VK IAS subject wise channels - Click here
⚠️Subscribe to VK IAS's YouTube channel : Click here and join the VK IAS channel
🅾️In simple words-Vertical Fiscal Imbalance (VFI) = financial mismatch between the revenue-raising powers of the Union and State governments and their expenditure responsibilities.VFI occurs when the ability of the States to meet their spending requirements is largely dependent on financial transfers from the Union-During crises like the COVID-19 pandemic, the problem of VFI becomes more visible
⚜️According to the 15th Finance Commission, States incur 61% of total expenditure but collect only 38% of the total revenue, making them dependent on transfers from the Union government.
🅾️Many States have asked for the tax devolution to be raised to 50%-If a State's own revenue is inadequate to cover its spending needs, this deficit indicates a high VFI.
👉🏻How VFI is calculated and the formulae- that is not so important for UPSC
🎖VK IAS subject wise channels - Click here
⚠️Subscribe to VK IAS's YouTube channel : Click here and join the VK IAS channel