Economy

Fiscal Consolidation Definition: Fiscal consolidation refers to policies aimed at reducing government deficits and debt accumulation to ensure long-term economic stability. Objectives: Reduce fiscal deficits. Maintain sustainable public debt levels. Enhance macroeconomic stability. Methods: Reducing Expenditure: Cutting non-essential government spending, … Continue reading →

Fiscal Deficit A fiscal deficit is the difference between the government’s total expenditure and its total revenue (excluding borrowings). It is an indicator of the extent to which the government must borrow to finance its operations and is expressed as … Continue reading →

What is Public Financing? Public finance is the management of a country’s revenue, expenditures, and debt through various Government, quasi-government institutions, policies, and tools. Components of public finance: public expenditure + public revenue + financial scrutiny + fiscal policy + … Continue reading →

Related Terms (Fiscal Policy) Fiscal Deficit: It refers to the difference between a government’s total expenditure and its total revenue (excluding borrowings) during a particular period.  A fiscal deficit indicates the amount of money the government needs to borrow to … Continue reading →

Cyclicality of the Fiscal Policy Definition: Cyclicality of fiscal policy refers to the relationship between the government’s fiscal actions (taxation and public spending) and the overall economic cycle. The economic cycle includes periods of economic expansion (growth) and contraction (recession). Types … Continue reading →

Fiscal Policy Definition: Fiscal policy refers to the government’s use of taxation and spending to influence the economy. It’s a key tool for managing economic growth, controlling inflation, and addressing social and economic inequalities. Objectives of Fiscal Policy To mobilise additional … Continue reading →

Monetary Policy Transmission It refers to the process by which the Central Bank’s actions to control the money supply (such as a change in the Repo Rate) are transmitted to the final objectives of stable inflation and growth. It involves … Continue reading →

Monetary Policy in India The Reserve Bank of India Act of 1934 explicitly mandates the Reserve Bank of India (RBI) with the responsibility of formulating the monetary policy for the country. The Finance Act of 2016 amended the RBI Act … Continue reading →

What is Monetary Policy? It is a macroeconomic policy tool used by the Central Bank to influence the money supply in the economy to achieve certain macroeconomic goals. Objectives: Accelerating the growth of the economy. Maintaining price stability. Generating employment. … Continue reading →

Money Supply The total stock of money in circulation among the public at a particular point in time is called money supply or supply of money. It is to be noted the term ‘public’ refers to households, firms, local authorities, … Continue reading →