Economy

Recently a moratorium was put on withdrawal limit upto 50,000 by RBI circular. This lead to panic among the YES bank consumers which led to fall in the share price. RBi came up with restructuring scheme. SBI will invest in 49% stake and other private investors have also invested in the bank. Even though the … Read more DMPQ- Why there is a reluctance on the part of Indian authorities to let the Yes Bank fail even though it is a Private Bank ?

National gas grid intends to create network of pipeline infrastructure to connect gas sources to major demand centres, develop city gas distribution network and remove regional imbalance in access to natural gas. The objective is to create interconnected network of pipelines to make supply of natural gas to domestic, industrial or commercial premises and CNG … Read more DMPQ- National Gas Grid Project.

Oil prices plummeted to $35/barrel and it saw the biggest fall in single day. The fall in oil prices are due to various reasons which are as follows: Failure of OPEC-plus cooperation. Russia rejected the request of Saudi request to effect more cuts in output given the fall in demand owing to the economic impact … Read more DMPQ- What are the reasons for sudden fall in the crude oil prices ?

Subsidies are a major component of expenditure they are a form of transfer payment given by government to the People. Subsidies can be classified as food, petroleum and agriculture subsidies. Why rationalisation: Government expenditure power is limited and they cannot go beyond a point further the fiscal deficit should be solely utilised for the purpose … Read more DMPQ- Subsidies is a major expenditure component. Indian government has taken several measures to rationalise subsidies and explain the importance of rationalisation of subsidies.

Always keep in mind the following equation for writing answer: Overall GDP= C+I+G+X-M Measure to improve investment: Lowering of corporate tax rate to increase investment. Lowering of the repo rate by 135bpsc. To increase the access to finance. Easier of FDI norms. Most of the FDI is allowed by automatic route and others via government … Read more DMPQ- Owing to low growth rate, the government has taken some steps to improve the investment and consumption climate. Enumerate the steps.

The Finance Minister has announced the biggest consolidation plan of Public sector Banks (PSBs)- merging 10 of them into just 4.  Merger is in line with the recommendation of Narsimhan committee recommendation of creating few banks of big size ( global average). There are no banks in top 50 global banks and the role of … Read more DMPQ- How does merger of banks affect the financial ecosystem. Critically analyse.

Disinvestment means sale or liquidation of assets by the government, usually Central and state public sector enterprises, projects, or other fixed assets.The government undertakes disinvestment to reduce the fiscal burden on the exchequer, or to raise money for meeting specific needs, such as to bridge the revenue shortfall from other regular sources. Indian non debt … Read more DMPQ- Disinvestment as a source of revenue is not a viable and alternative option of increasing revenue. Do you agree with the statement.

The tax-to-GDP ratio is a ratio of a nation’s tax revenue relative to its gross domestic product (GDP), or the market value of goods and services a country produces. Some countries aim to increase the tax-to-GDP ratio to address deficiencies in their budgets. Taxes and GDP are generally related. The higher the GDP, the more … Read more DMPQ- What is the Tax/Gdp ratio? How Indian can improve this ratio. Suggest some ways.

In Indian Constitution, Article 110 deals with Money Bill in India. There are few provisions for a bill to be deemed as a money bill. The provisions that make a bill a money bill in India are given below: The imposition, abolition, remission, alteration or regulation of any tax The regulation of the borrowing of … Read more DMPQ- Define Money bill. How Money bill is exclusive domain of Lok sabha. Explain.

P2P lending is the popular type of crowd funding, whereby an internet platform collects small amounts of funds from individuals in a crowd to finance collectively a larger loan to individuals or businesses. Websites that facilitate peer-to-peer lending have greatly increased its adoption as an alternative method of financing.P2P lending is also known as social … Read more DMPQ-What are the risk associated by peer to peer lending?