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India 15% global population but 2.4% land
Meso-economics - institutional aspects of the economy
GDP - Final goods and services produced within the boundary of country, imputed rental (Not include charitable and voluntary work) GDP at MP - GDP at FC - subsidies + indirect taxesNet GDP = GDP - Depreciation (Depreciation is accounting concept)GDP deflector is price index (Not much use as currently lag is of one year)Foreign aid is remittances from abroad and hence counted in GNP NNP = GNP - Depreciation NI = NNP at factor cost GVA = GDP + Subsidies - Taxes (at basic prices)GVA @ Basic price = GDP @ Factor cost + production tax – production subsidies GDP at market prices = GVA at basic prices + Product taxes- Product subsidiesMarket price = Factor Cost + Indirect Tax – Subsidies National disposable income = NNP at MP + Other current transfer from rest of the world
Primary factors facilitate production but not get transformed by production process
Transfer payment - not linked to any economic transaction (UBI) [Excluded computing GDP]
National statistic commission wants base year to be changed every five year (Now 2011-12)First official estimation of NI by CSO at base price of 1948-49 in 1956
GDP Gap - Difference between potential GDP and actual GDP
Hard landing - If slow down drags economy to recession
New series of GDP data - Ministry of corporate affair's MCA21 data, GDP at market price
Human Development indexCreated in 1990 by Mahbub ul haq Published by UNDP since 1993 (Annual report)2018 : India rank 130 (Medium developed with score 0.638) [Behind Sri Lanka and Maldives] In 2010 Human development report by UNDP come up with inequality adjusted HDI (India 0.468 less than medium development range of 0.550) [MP first state in India to have human development report] Dimensions Index calculation = (Actual - Min)/ (Max-Min) Knowledge index = (EYS + MYS )/2For income use log Adult literacy and GER earlier for knowledge index [in 2/3 & 1/3 proportion]
Take geometric mean
Indicator Max Min
Health (Life expectancy at birth) 85 20
Expected year of schooling
Mean year of schooling
18
15
0
0
PPP (GNI per capita) 75000 100
Human Poverty Index UN Human development report (1997), in 2010 supplanted by Multidimensional poverty index
Societal Poverty Line - combination of the absolute IPL and a poverty line that is relative to the median income level of each country, Value of SPL will never be less than IPL, It is constant in value across countries that are at the same level of median consumption [World Bank]
Global Hunger Index (India 103/119, Welthungerhilfe and Concern Worldwide earlier International food policy research institution)
1. UNDERNOURISHMENT: the share of the population that is undernourished (that is, whose caloric intake is insufficient); [1/3]
2. CHILD WASTING: the share of children under the age of five who are wasted (that is, who have low weight for their height, reflecting acute under nutrition); [1/6]
3. CHILD STUNTING: the share of children under the age of five who are stunted (that is, who have low height for their age, reflecting chronic under nutrition); [1/6]
4. CHILD MORTALITY: the mortality rate of children under the age of five (in part, a reflection of the fatal mix of inadequate nutrition and unhealthy environments [1/3]
Genuine progress index Includes cost of resource depletion, crime, ozone depletion, family breakdown, air water and noise pollution, loss of farmlands and wetlands
Social progress index Published by social progress imperative Based on writings of Sen and Stiglitz India ranks 93/128 nations
Gross national happiness Coined by Bhutan king Jigme Singye Wangchuk in 1972 Published since 2012 in the World Happiness Report of the United Nations Sustainable Development Solutions Network India ranked 133 behind Pak, Bhutan, Nepal, Bangladesh & Sri LankaMP first state to announce happiness department
In Nagoya meet 2010 India declared it will adopt natural resource accounting
Expert group chaired by Partha Das Gupta examined green GDP in 2011
Sarkozy's alternative - Commission of Stieglitz, Sen and Bina Agrawal for measurement of economic performance and social progress
Environmental performance index Yale + Columbia + WEFIndia rank 141/180Protection of human health and protection of ecosystem took into account
Big Mac index - Developed by 'The Economist', to check weather currencies are at their correct level
Recession is negative growth in two successive quarters (Fall in GDP)
LDC criteria reviewed every three years by Committee for development policy of UN ECOSOC
Gender Inequality Index - UNDP HDR
Gender Development Index - UNDP HDR; HDI(female) / HDI (Male)
Human Capital Index (HCI)
1. released by World Bank as part of the World Development Report.2. Survival, as measured by under-5 mortality rates.3. Expected years of Quality-Adjusted School which combines information on the quantity and quality of education4. Health environment using two proxies of (a) adult survival rates and (b) the rate of stunting for children under age 5.5. A child born in India today will be only 44 per cent as productive when she grows up as she could be if she enjoyed complete
education and full health. 6. The HCI in India for females is marginally better than that for males. 7. There has been marked improvement in the HCI components in India over the last five years.
Gender gap index - World economic forum (108)
Multidimensional Poverty Index (MPI) UNDP and OPHI Cut off score of 1/3 and above multidimensional poor (1/5 to 1/3 vulnerable and 1/2 and above severe)The headcount ratio, H, is the proportion of multidimensionally poor people in the population H = q/n (India 27.5%, Only Maldives less than India in SAARC)
Bombay Plan - 1944, important role of state
Mokshgundam Visvesvarayya - 1934, 10 year plan, first attempt, role of government
MN Roy - 1940, peoples plan, focused on employment and wage goods
SN Agarwal - Gandhian plan
Self reliance (Reliance on own sources) vs Self sufficiency (Not possible)
First plan (51 - 56) - Stress on agriculture, KN RAJ
Second plan (56 - 61) - Heavy industries, Neharu Mahalnobis model, big push model, trickle down effect
Third plan (61 - 66) - balanced industry and agriculture
Fourth plan (69 - 74) - Growth with stability [66-69 planned holiday hence annual plan]
Fifth plan (74 - 79) - Growth for social justice, scrapped by Janata government
Rolling plan - adopted in 1962, in 1977 by Janata government [79-80 planned holiday]
Sixth plan (80 - 85) - Poverty and infrastructure
Seventh plan (85-90) - Stress on growth of food grain and employment [90-92 planned holiday]
Eighth plan (92 - 97) - Human development and BOP [Indicative plan first time]
IBIN - 12 th FYP (Faster, Sustainable and more inclusive growth) , On the line of Japan's TQM
CECA & CEPA both has service component
A.112 - Mandate to show expenditure in revenue and in other category
Non plan expenditure - Interest payment, defense, subsidies and pub ad (Non development expenditure)
S, M, T are leakages and I, X, G are injections
Weights are constant in CPI while the differ in GDP deflector according to production. (Imports are included in CPI but not in GDP deflector)
Fiat currency or legal tender do not have intrinsic value
M1 = CU + DD [Narrow]M2 = M1 + Saving deposit with post office [Narrow]M3 = M1 + TD with commercial bank (Aggregate monetary source, broadly used) [Broad]M4 = M3 + Total deposit with post saving bank (Excluding national saving certificates) [Broad]
Currency deposit ratio - Ratio of money held in currency to that of bank deposit
Reserve deposit ratio - Cash reserve ratio + Statutory liquidity ratio
High powered money / Monetary base - Total liability of RBI, notes and coin in circulation + cash in bank vault + deposit held by commercial bank and GOI with RBI
Money multiplier = 1 / reserve requirement
Deficit financing through central bank borrowing done by issuing GSec to RBI
Open market operations affects high powered money
Sterilization is a form of monetary action in which a central bank seeks to limit the effect of inflows and outflows of capital on the money supply (Inflow of foreign currency managed by open market sell of bonds)
Paradox of thrift - individuals try to save more during an economic recession, which essentially leads to a fall in aggregate demand and hence in economic growth.
Fringe benefit taxes and cash withdrawal taxes introduce in 2005-06
Revenue receipt - Tax revenue and non tax revenue (interest receipt, dividend and profit, fees, grant in aid)
Capital receipt - Which creates liabilities (loans) or reduce financial asset (sale of psu)
Revenue Expenditure - Grant given to state, interest payment, governance ( other than the creation of physical or financial assets of central government ) [ non-plan expenditure are interest payments, defense services, subsidies, salaries and pensions (also social sector expenditure like health and education)]
Capital Expenditure - Creation of asset, or reduce liabilities, loan given to state, UT and PSU, repay of loan
Revenue deficit = Revenue expenditure – Revenue receipts
Fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding borrowing Gross fiscal deficit = Total expenditure – (Revenue receipts + Non-debt creating capital receipts) Gross fiscal deficit = Net borrowing at home + Borrowing from RBI + Borrowing from abroad Net fiscal deficit is obtained by deducting domestic lending
Gross primary deficit = Gross fiscal deficit – Net interest liabilities
Budget Deficit / Monetized deficit / Deficit financing - Scrapped in 1997, amount to be printed by RBI, discontinued by FRBM 2003
Deficit flow, debt stock
Ricardian equivalence - High deficit lead people to saves more [Hence demand remains unchanged]
Current Account is the record of trade in goods and services and transfer payments. [Trade in service includes Interest, profits and dividends and Factor Income]
Balance of Trade (BOT) is the difference between the value of exports and value of imports of goods of a country in a given period of time
Net Invisible is the difference between the value of exports and value of imports of invisible of a country in a given period of time. (Service + transfer of payment)
Capital account - Investment (both FPI and FDI) + External borrowings + External assistant
BOP - Current account + Capital account = 0The financial account of the BOP shows net acquisition and disposal of financial assets and liabilities. [Separate entity under BOP]
The decrease (increase) in official reserves is called the overall balance of payments deficit (surplus) [relevant in fixed exchange rate]
Autonomous transaction - Not to bridge gap in BOP eg. To earn profit
Accommodating transactions - Determined by BOP
Effective demand principle - Output determined by demand
Effective revenue deficit - Revenue deficit - grant for creation of capital assets (FRBM act 2012, to be eliminated by March 2018); 14th finance commission recommended to scrap this concept
Sovereign debt crisis - Inability of government to service offshore debt in foreign currency (PIGS)
FRBM Act 2003
1. Prohibit RBI to print money to lend government (Exceptional situation like natural calamities permitted)2. 3% Fiscal deficit target 3. On quarterly basis assessment of trend in receipts and expenditure placed before parliament (both)4. Annually present macro economic framework statement, medium term fiscal policy statement and fiscal policy strategy
statement [Medium term expenditure framework added in 2012] 5. Finance minister shall make statement before both the house in case of breach 6. New Zealand first to pass FRBM 7. Target effective revenue deficit (By amendment of 2012)
Fiscal consolidation, Kelkar committee 2012 - strengthening government finance, share sale, pruning petro subsidies, implementation of GST
Bimal Jalan committee on expenditure management 2014 - reduce food, fertilizer and oil subsidies by making it targeted
NK Sing panel to review FRBM 2014
1. Focus on public debt to GDP target of 60% (40 % center 20% state) by 20232. Creation of three member new fiscal council to prepare multi year fiscal forecast for state and center and provide an
independent assessment of central governments fiscal performance and compliance with respect to new law3. Deviation of fiscal deficit target of 0.5 % with unforeseen events (includes collapse of agriculture and far reaching structural
reforms) [in discussion with fiscal council] 4. If increase in 3%+ above average growth for previous four quarters then reduce fiscal deficit by 0.5% 5. Reform in A.243, Center giving consent to state borrowing
Budget Reforms
1. February 1 (Article 116 - Vote on account)2. Railway budget merged (separate from 1924, William Acworth committee)3. Planned non planned expenditure removed (Rangarajan committee 2012)
External debts
1. loans from foreign countries or institution, NRI deposits, commercial borrowing (Annual report India's external debt published by DEA of MoF)
2. 80% of them are long term in India3. Dollar > INR > SDR > Yen > Euro4. ECB and foreign currency convertible bond are foreign currency dominated 5. In rupee debt foreign exchange rate fluctuation risk on creditor (FII)6. Masala bond - raise money from oversees market in rupees (International finance corporation, 2013) [Dim sum china] [Can only
be issued in country or can only be subscribe by resident of country that is a member of FATF]7. 2016 HDFC first Indian company to issue Masala bond & NTPC first corporate green Masala bond (IFC)
Internal debts - borrowing inside country + RBI printing money
Public debt - Government's external + internal debt (International debt statistics world bank ) Other liabilities (Post office saving deposit, etc) not a part of public debt Union Government does not borrow directly from international capital markets. Is
Money stabilized from market in by market stabilization operation is also shown in government statement of liabilities
Zero based budgeting - Introduced in 1987, funds to high priority scheme by eliminating to low priority or outdated [Cost benefit approach]
Ways and means advances
1. Temporary loan facilities to the center and state governments as a banker to government (No collateral)2. Provided at Repo rate 3. Special ways and means advances for state against government securities (Above WMA overdraft)
Fiscal drag
1. Inflation pushes income in higher tax bracket, act as stabilizer in overheated economy [Bracket creep]2. Government's net fiscal position (equal to its spending less any taxation) does not meet the net savings goals of the private
economy.3. This can result in deflationary pressure attributed to either lack of state spending or to excess taxation.
Fiscal slippage - any deviation in expenditure from the expected government’s expenditure
Fiscal neutrality - net effect of taxation as public spending is neutral
Pump priming - action taken to stimulate an economy, usually during a recessionary period
National small savings fund in public account of India has all the small savings (MoF, outside budgetary approval from parliaments but principal and interest will be from union budget)
Small savings initiated by central government but mobilized by state and deposited and manged by center and given to state as loan (Exempted in 2017)
Twin deficit - Fiscal + current account and former fueling later
The fiscal cliff - a combination of expiring tax cuts and across-the-board government spending cuts
Hawks tend to favor "tight" monetary policy
Bank rate - Rate at which RBI lends long term to commercial banks (Discounts bill of exchange)
Repo - Policy rate (Reverse repo is less than 0.5% of Repo) [Securities over and above SLR]
MSF - Penal rate as SLR limit is breached, (Bank rate is also penal rate hence MSF and Bank rate are same), Only used by all schedule commercial banks, Use of collateral of Gsec including SLR [Overnight facility]
LAF - All client of RBI [Excluding RRB], Money lent at REPO, collateral is government securities (including state) [7-14 days]
SLR - Liquid assest like Gsec, PSU bonds, gold, current account balance with other banks [Governed by Section 24 of RBI act, upper limit of 40% no lower limit]
CRR - only cash form [Section 42 of RBI act, no lower or upper limit]
Incremental CRR - 100% CRR on money deposited during demonetization
CRR has short term and medium term relevance while SLR is long term measure
MSS - Excess liquidity managed by selling market stabilization bonds
Qualitative monetary policy tools - Margin requirement (Lower the requirement higher the borrowing), credit rationing, Moral Suasion
Marginal cost of fund based lending rate (MCLR) - 2016, based on current cost of fund than overall cost of fund, Improvement over base rate, obligation to change MCLR when repo rate is changed [Comprises marginal cost of fund, negative carry on account of CRR, Operating cost, Tenor of premium]
Urjit patel committee, 2015 - CPI, 4% inflation targeting, MPC, fiscal deficit should be 3%
RBI
1. 1935, Hilton young commission, nationalized in 19492. Board of director of RBI - 20 members (1 official from MoF, 10 government nominee with 4 local board representative )3. Section 22 - Sole right to issue notes (distribution of 1 rs note and small coins take by RBI as agent of GOI)4. Agent of central and all state government (debt management of center is obligatory while of state on agreement)5. National clearing house 6. Custodian of foreign reserve 7. RBI act chapter 4 Section 47, profits should be transferred to GOI 8. Accountability year is July June 9. Five components of the RBI‘s capital reserve -Contingency Fund + Asset Development Fund + Currency and Gold
Revaluation Account + Investment Revaluation Account + Foreign Exchange Forward Contracts Valuation Account
Public debt management agency - independent agency to manage public debt (at present market borrowing managed by RBI (PDM cell at RBI Delhi) and external debt by GOI but DEA and RBI monitors and regulate ECB policies and guidelines)
Quantitative easing - Buy financial instruments which in ordinary times not accepted by OMO
Taper tantrum - When QE is taper, money supply decreased and hence global money flow to country
Financial stability development council - Chairperson Finance minister, apex super regulatory body, coordinate with FATF and FSB
FSB - 2009, under aegis of G20, Seat of Secretary (EA), RBI and SEBI in FSB
MPC (Statutory body)
1. 6 member panel headed by governor (3 + 3), appointed by search cum selection committee2. 4 years tenure and not eligible for reappointment3. No Mp or public servant can be appointed4. MPC will meet at least four times a year 5. Governor deciding vote (But MPC decision is binding on RBI)6. Inflation target of 4% +- 2% in terms of headline (unadjusted) CPI (combined)7. Explanation to central government if failed to maintain inflation in consecutive 3 quarters 8. First meeting 2016 9. CRR & SLR is not in ambit of MPC
Negative interest rate - Lender pays borrower
Demonetization - 1946 (ordinance), 1978 (ordinance), 2016 (executive action)
Open inflation - without government subsidies and monetary policies
Suppressed inflation - After applying fiscal and monetary policies
Headline inflation - Unadjusted inflation overall inflation
Core inflation / Underlying inflation - measures long term trend, fuel and food excluded from headline
Deflation - is self reinforcing (Deflationary spiral), NPA problem
WPI - Used by CSO to estimate GDP of few sectors, Published on monthly basis by economic adviser in ministry of commerce and industry, Seasonal fruits and vegetables are handled, Does not include services [Primary articles, Fuel (lowest weight) and Manufactured products (Highest weight of 65%)]Proposed PPI - measures the average change in the prices of goods and services, either as they leave the place of production called Output PPI or as they enter the production process called Input PPI
New all India WPI - DIPP, ministry of commerce and industry, base year 2011, 697 articles, does not include taxes, separate WPI food index (published by CSO)
Consumer price index CPI - DA are based on this index, also known as cost of living index number (prior to 1955), includes services
CPI RL and CPI IW, CPI AL are compiled by ministry of labor; CPI IW is used to determine DA
CPI R, U and combined are measured by ministry of statistics CSO
New CPI Index - Highest weight to food and beverages (includes tobacco, 45.86%)
CP chandrashekhar committee - Service price index
Producer price index - price at which producer sold to wholesaler (BN Goldar committee) [excludes taxes and subsidies]
Consumer food price index - CSO, monthly basis, R, L and combined
FOA food price index is global index
RESIDEX - first official housing price index, quarterly basis, NHB (NHB is fully owned subsidy of RBI, Statutory body established in 1987 to promote private real estate acquisition, Regulates and refinance social housing program)
House price index - RBI
Over the counter trading - directly between parties without supervision of exchange, money market
Notice money - 1 to 14 days (otherwise call money, call money not available for NBFC and RRB) without collateral
Gsec - Both by state and central government (dated securities as well)
T bill
1. Money market instrument2. No treasury bill by state government3. Upto 1 year, minimum 25k and in multiple of 25k4. Issued at discount rate, zero coupon securities and pays no interest5. Auction held on the negotiated dealing system
Cash management bill - Generic character of T bill but maturity less than 91 days
Inter bank term money - beyond 14 days and upto 3 months at inter bank rate
Certificate of deposits - Issued by schedule commercial bank, FI and RRB (Local area bank can not), 15 days to 1 year, 1 lakh minimum (For FI 1 year to 3 years)
Inter corporate deposit market - unsecured loan extended by one corporate to another
Commercial paper - unsecured promissory notes, issued at discount rate by corporate or FI, credit rating required, 7 days to 1 year, denomination of 5 lakh or above
Commercial bill - trade bills accepted by commercial banks
Discount and finance house of India - Setup in 1988 by RBI to develop a secondary market in existing money market instruments
Mumbai inter bank offer rate - Average rate charged for inter bank lending and borrowing
Capital market - maturity 1 year and above
Gilt edge securities - tradable Gsec, both state (state development loan) and center can issue, FII registered with SEBI can also hold
Special securities and saving certificates are not tradable and hence cant be part of SLR
State Development loan (SDL) issued by state government are qualified for SLR as well as LAF
Development finance institution(DFI) had access to soft window of long term operation fund from RBI at concessional rate
Merchant bank / Investment bank - Who manage and underwrite (guarantee to purchase) new public issue
Collective investment scheme - pools funds from investor with corpus of 100 cr or more, governed by SEBI
Alternative investment fund - privately pooled investment vehicle, governed by SEBI
Real estate investment trust - regulated by SEBI, pool money and issue units, compulsory listed on exchange, projects should be registered under RERA, Blackstone group filed India’s first and Asia’s largest prospectus
Mutual funds - Sebi regulated (Open ended and close ended)
Hedge fund - Regulated by SEBI under AIF, complex management with aim to give returns with minimum risk
Venture capital - Who invest in startups that have potential to develop, investors usually get equity, public money
Angel investors - Capital to business in exchange of convertible debt or equity, own money, AIF,
Private equity - lock in period in which not traded publicly, by institutional investor
Hundi - No legal status, informal system
Chit funds - Governed by both state and central laws (Bhishi) [Fraternity Fund word used for chit funds distinguish its working from “Prize Chits" which are banned under a separate legislation]
Qualified institutional placement - MF, FI, FII, venture capital
NBFC - Registered under companies act, do not accept demand deposits
ECB - Can not be used for investment in stock market or speculation in real estate, financial intermediaries can not avail ECB (including NBFC) [Commercial borrowings are the largest component of external debt (80% long term), followed by NRI deposits]
Euro issue - Foreign currency convertible bond, global depository receipts
Credit default swap - just like insurance
FII debt is rupee debt
Take out financing - releasing long-term funds for financing infrastructure projects
5 stock exchanges in country (BSE, NSE, united stock exchange, MCX, India international exchange)
BSE - Asia's first stock exchange and World's 11 th largest, automatic online trading system BOLT, BSE is listed in NSE [Amsterdam stock exchange is worlds oldest established by Dutch East India company]
NSE - Nifty (50)
Sensex - BSE, Traded internationally, 30 blue chip companies
All stock exchanged demutaulised according to government law (ownership and trading rights are different)
SEBI (1988) - Statutory basis in 1992, enhanced power to conduct search and seizure [On recommendations of Narasimhan Committee on Financial Sector Reforms.]
Follow on public offer (FPO) - if company already issued IPO and again go for new issue
Preferred stock - Given dividend even if common share holder not, in case of closure first preference to get money, enhanced voting rights, right to first refusal
Forward - Not tradable, (futures are tradable)
Options - Call (Buying right) and Put (Selling right)
In buyback total equity shrinks (Can not borrow to buyback)
Anchor investment - Institutional investor, can not sell for 30 days, guaranteed allotment before a day IPO opens
FMC merged with SEBI in 2015
FPI - 10% limit after that treated as FDI, NRI and foreign venture capital investor excluded, Not allowed to invest in non listed share, Allowed to invest in Gsec including treasury bills (T-bills), and SDLs (state development loans) [Remember but FDI has no such minimum limit] [Corporate bond minimum maturity 1 year limit]
FPI = FII + QFI + sub accounts
International organisation of securities commission - regulates world's securities and future market, Secretariat at Madrid, India is a member
Indian depository receipt - Like ADR, both private public and listed unlisted can issue
P Note - Who are not registered with SEBI, anonymity, SEBI imposed limit on p note a single FII can issue
Retail investor - value less than 2 lakh
Sharia index - Clean investment for Arab
Indirect taxes contribute to inflation and are relatively anti growth (State + center two third of total tax hence structure is relatively regressive)
Income declaration scheme - 2016, tax amnesty scheme,
Pradhan mantri garib kalyan yojana - 25% of undisclosed income invested and refunded after 4 years without interest
Inverted duty structure - More custom duty on raw material than finished good, FTA may lead to this
Paradise paper - Cayman island and Bermuda
Tobin tax - levied twice once when acquire forex and one when sell forex, Robbin hood tax, India has security transaction tax and commodity transaction tax
Pigovian tax - On transaction that have negative externalities
Transfer pricing - high prices to Indian subsidiaries to shift profit (solution is advance price agreement)
DTAA - led to round tripping through mailbox companies
India Mauritius limitation of benefits (LOB) - Resident clause to avoid round tripping
Place of effective management (POEM) - to target shell companies, Finance act 2015
GAAR - Allows tax officials to deny tax benefits if a deal is found without any commercial purpose other than tax avoidance (Vodafone Hutch deal)
GST
1. Multistage, destination based tax levied on every value addition 2. Burden of tax fall on consumer, exports are not subject to GST 3. At every stage tax in paid and credited when it is shown that value is further added and good is resold4. Center would levy and collect CGST and state will levy and collect SGST 5. Center passed law on CGST state has to pass law on SGST
101 Constitutional amendment
1. Article 246A - center and state parallel power of taxation in goods and services, but in interstate trade only center can levy and collect taxes (IGST)
2. Article 269A - IGST should be divided between center and state by law of parliament on recommendation of GST council 3. Article 279A, GST council - Chairperson FM, union minister of state in charge of revenue or finance, minister in charge of
finance or any other nominated by states (Kerala Cess)4. Compensation to state can not be provided for more than five years 5. Power to make law under article 248 is now subject to article 246A6. Article 249 - RS resolution to make law in national interest will apply to Article 246A7. Article 250 - Parliament right to make law on GST during emergency 8. Article 268 - excise duty on medicinal and toilet preparation will be omitted from the state list and will be subsumed in GST9. Article 268A has been repealed so now service tax is subsumed in GST
10. Article 269 would empower the parliament to make GST related laws for inter-state trade11. Changes in union list - newspapers and on advertisements published therein deleted, Service tax deleted, 12. Changes in state list - entry tax for sale in state deleted, advertisement taxes deleted
National anti profiteering agency - To ensure benefits are passed on to consumer
GSTN - non government, private limited company (46 % state + center remaining non governmental financial institutions [Now 100% with state])
Harmonized system of nomenclature - World custom organisation, 6 digit code for identifying applicable rate of GST on different product as per GST
Minimum alternative tax - tax on book profit (unrealized)
Rajaswa Gyan Sangam - joint conference of CBDT and CBEC
Withholding tax - For interest, professional fees, etc, Same as TDS [Walmart or Vodafone deal]
Presumptive taxation - allows to calculate your tax on an estimated income or profit
Fringe benefit taxes - Earlier collectively charged on employer, abolition in 2009 (Now perks are taxable under IT)
Custom duty is imposed and collected by central government
Tax buoyancy - percentage change in tax revenue with growth of national income
There are only 3 non schedule commercial bank in India
Nationalization of Imperial bank of India as SBI - 1955
Nedungadi bank was first private sector bank in India
21 public sector banks in India [19 nationalized + 1 IDBI + 1 SBI]
SH Khanna committee recommended to tranform DFI into universal banks
Co operative banks are the first government sponsored, government supported and government subsidies financial agencies [Subject to CRR, SLR requirement but lower than commercial banks]
Narsimhan committee (1&2; 1991&1998)
1. Reduction in SLR and CRR2. No more nationalization 3. Statutory status to SEBI4. Rationalization of priority sector lending 5. Deregulate interest rate 6. Asset reconstruction company 7. State owned bank merger in three banks
Standard asset - performing asset
Substandard asset
1. 90 days dues NPA and termed as special mention account2. If loans remain SMA for period less than or equal to 12 months it is substandard asset (15, 25)3. after 12 months doubtful asset (25,100)4. On completion of DA1 for 12 months converted to DA2 (40, 100)5. Once crosses three years it is DA3 and requires 100% provision 6. Stressed assets = NPAs + Restructured loans + Written off assets 7. Asset quality review by RBI in 2016 to expose NPA
Prompt corrective action -
1. Applicable only to commercial banks; restriction put by RBI [For RRB NABARD PCA]2. NPA over 12%, Mandatory restrictions are placed on dividend, branch expansion, directors’ compensation etc. [CAR, RoA (0.25)
and NPA (10) triggering point]3. The discretionary restrictions include curbs on lending
Stress test - Analysis to determine ability of bank to deal with economic crisis
Securitization - process of pooling group of assets such as loan or mortgage and selling securities backed by these assets
SARFAESI act - unprecedented power to banks, FI and ARC to take over management control of loan defaulter or even capture its asset
Instead of selling your NPAs to ARC you can transfer it to bad banks
Banking regulation act 2017 (1949) - Empower RBI to issue direction to bank for initiating recovery proceeding against loan defaulters
Twin balance sheet problem - The balance sheet of both the borrowing companies and lending bank are in danger
Public sector asset rehabilitation agency - buy big bad loan from PSB
S4A - Converting loan into equity
Basel 3
1. Pillar 1 - Minimum capital and liquidity requirement 2. credit risk - Some of the borrower may not repay loan or interest 3. Market risk - fluctuation in value of investment 4. Operational risk - Fraud5. Capital adequacy ratio or Capital to risk assets ratio - (T1 + T2) / Risk weighted asset; RBI mandated 9% [Government debt
is allowed 9% risk weighting hence subtracted from total asset ]6. limit on leverage ratio ( how much capital comes in the form of debt ) [3%]7. Liquidity ratio 8. Pillar 2 - Supervisory review process9. Pillar 3 - Risk disclosure and market discipline
10. Common equity is the amount that all common shareholders have invested in a company. 11. Capital conservation buffer to hold above CAR in the form of common equity (2.5%)
Shadow Banks - Financial intermediaries [led to sub prime crisis]
Universal bank - Commercial bank + Investment bank + Financial services
Hair cut - write-down (reduce value of asset); write off (remove loan from bank balance sheet)
IBC
1. Separation of commercial and judicial aspect 2. Insolvency professional will be registered with insolvency professional agency (like CA insti)3. NCLT for companies and debt recovery tribunal for individuals 4. Insolvency and bankruptcy board - Will regulate IP and IPA 5. Initiation (Financial creditor, operational creditor, employees or company itself) -> Appointment of IP (180 - 270 days) ->
Committee of financial creditors take decision -> Liquidation6. Preferences : Insolvency cost > workers salary (upto 24 months) > secured creditor > unsecure creditor > dues to government >
priority shareholder > equity shareholders
PJ Nayak committee (RBI constituted)
1. All PSB should be incorporated under companies act
2. liberate the banks from grasp of CVC-CAG-RTI (Own vigilance mechanism) 3. Government should transfer its holding to bank investment company 4. Appointment - Bank board bureau -> BIC take over process -> BIC delegate power to directors 5. Either merged or privatize state own bank
Indradhanush
1. Appointment 2. Bank board bureau (3+1 member committee)3. Capitalization 4. De-stressing PSB5. Empowerment6. Framework of accountability 7. Governance reform
Wholesale long term finance bank - Focus on lending to infrastructure sector, small, medium and corporate business
Differentiated Banks (niche banks) - are banks that serve the needs of a certain demographic segment
Small fiance bank - 75% loan to PSL and 50% loan upto 25 Lakh, all SLR, CRR rule applicable
Local area bank - new private local banks with jurisdiction over two or three contiguous districts.
RRB - Central government 50%, State 15% and sponsor bank 35%, LAF not eligible, controlled interest rate; (Vyas committee on autonomy) [75% PSL target while other banks 40%] [Narsimhan working group 1975]
Payment banks - restricted deposit upto 1 lakh, can not issue loan or credit card, Both current and saving account can be operated, 25% branches in rural area, can not form subsidiaries, Has to maintain CRR, 75% SLR [Can set up ATM]
Indian post payment bank - TSR subramaniam committee, 100% government equity, third party financial service, only post offices with required license are allowed to function as post payment banks (but at least one from a district)
MUDRA bank - funding to non corporate small business sector, refinance and regulator institution for MFI
Pradhan mantri mudra yojana - loans upto 10 lakh to non corporate, non farm small and micro enterprises; All banks (including foreign) required to lend [Shishu, Kishor and Tarun]
Recapitalization - injection of capital mainly through equity investment by the government to financially strengthen them
India has current account convertibility but not capital account convertibility[Tarapore committee full convertibility when there is reduction in inflation, NPA and fiscal deficit and reforms in finance sector]
Forex reserve - foreign currency, deposits, securities, gold, IMF reserve position and sdr (Loan not included)REER
1. Weighted average of India‟s bilateral real exchange rates with all the countries in the basket [US, the Eurozone (comprising of 12 countries), UK, Japan, China and Hong Kong SAR. ]
2. Indicator of the competitiveness of a country‟s currency with respect to a basket of currencies 3. RBI too uses wholesale price index (WPI) as a proxy for Indian prices and the consumer price index (CPI) as a proxy for foreign
partner countries while calculating the revised indices (both 6-currency and 36-currency). 4. The weekly wholesale price index (WPI) for all commodities is used as an index of inflation for India in calculating six-currency
REER/NEER indices.
Sovereign wealth fund - fund of foreign currency invested in global asset (India don't have)
China has pegged exchange rate system
Hard currency - currency that is not likely to depreciate suddenly or to fluctuate greatly in value.
Poverty is cognitive tax (Mental burden similar to loosing 13 IQ point)
Human poverty - Lack of essential human capabilities
Income poverty - Lack of sufficient income
Extreme poverty - World bank - less than $1.90 a day (Lower middle income $3,20; upper middle income $5.5; high income countries $21.70)
Absolute poverty - Severe deprivation of basic human needs
Poverty line - Earlier to Tendulkar 2100 calories in urban and 2400 calories in rural area per day
Poverty gap - Difference between mean income of poor and poverty line [Foster Greer Thoorbecke index]
Misery index - Robert Baro, unemployment rate added to inflation rate
Tendulakar poverty line - 4298 INR per month per family for urban and 3364 INR for rural (2009-10); Only counts Expenditure on food, health, education, clothing (only calories)
Rangarajan committee - INR 32 for rural and INR 47 for urban per day (earlier 27 and 33); [2011-12 prices]; food + nonfood items such as education, healthcare, clothing, transport (conveyance), rent. + non-food items that meet nutritional requirements (Calorie +Protein + fat)
Pranab sen committee - Slum
Justice Rohini commission - Sub categorization of OBC
Ahluwalia chenery welfare index - a poverty weighted index of social welfare.
Palma ratio - It is the ratio of the richest 10% of the population's share of gross national income (GNI) divided by the poorest 40%'s share.
Lorenz curve is associated with gini index (1 perfect inequality)
EAG - Under health ministry, to stabilize population, Bihar, Jharrkhand, UP, uttarkhand, RJ, MP, Ch, Odisha
Ajeeveka grameen express yojana - Community based public transport
Departmental undertakings are financed by budget and are subject to executive control, eg Post & railway
Companies act 2013 - Government company is company with 51% government share
Reserved for PSU - Atomic energy, Minerals of atomic energy, Railway Strategic PSU - Arms and ammunition, atomic energy, railway transport
Maharatna > Navaratna > Miniratna
Disinvestment - Sale of share of government to retail public, employees, MF or FII (No management change) Privatization / Strategic sale - Handover of management to strategic buyer Offer for sale (OFS) of shares by Promoters through Stock Exchange mechanism
Discontinued cash flow model - valuing a business today based on stream of future profit
Net worth - Total assets - Total liabilities
Hard infrastructure (physical) and soft infrastructure (institutions)
National critical information infrastructure protection system - CII is infra which can impact national security, economy, public
health or safety
PPP Build Operate Transfer / Build operate own transfer
Variable BOT - Roadways and tolls
Hybrid annuity model - 40% cost paid upfront and 60% cost paid over the life of project as annuities [Toll right NHAI]
Toll operate transfer
Swiss challenged - Discouraged by Kelakar committee report because of nepotism
Plug and play model - Help to reduce NPA
Engineering, Procurement and Construction
Global Findex Report - World bank
Logistic performance index - biannual index by world bank, 2018 India 44 rank
Green bond - Yes bank first Indian entity to raise money through green bond, 2015
Asia's first export processing zone in Kolkata (1965)
UN Monetary and financial conference / Bretton woods conference - IMF and World bank (International bank for reconstruction and development)
IMF
1. UN specialized agency at Washington 2. Any changes in quotas must be approved by an 85 percent majority 3. India is a founding member 4. To foster monetary stability at global level 5. Important role in fight against money laundering and terrorism 6. SDR based on dollar> euro > yuan > yen >pound (not traded in exchange market)7. SDR is neither currency nor claim on IMF but potential claim on freely usable currencies of IMF member8. IMF reviews members quota once in five year 9. Washington consensus (Neo liberalism)
10. Chiang Mai initiative - Multilateral currency pooling of ASEAN + China + Japan + S korea11. BRICS CRA complementary to IMF
World bank group
1. Family of five international organization at Washington (IBRD, IDA, IFC, MIGA, ICSID)2. International Bank for Reconstruction and Development (IBRD) - Commonly known as the world bank. It is the single
largest provider of development loans3. International Development Association (IDA) – assists the poorest countries4. International Finance Corporation (IFC) – supports private enterprise in developing countries.5. Multilateral Investment Guarantee Agency (MIGA) – offers investors insurance against non-commercial risk and help
developing country governments attract foreign investment6. International Centre for the Settlement of Investment Disputes (ICSID) – encourages the flow of foreign investment to
developing countries through arbitration and conciliation facilities 7. World development report 8. Country has to join IMF before joining WB 9. IBRD + IDA = World bank
10. Blend countries - Eligible to borrow from both IDA and IBRD11. India is not a member of ICSID (International center for investment dispute)
G20 - Buenos aires summit, 2018
India is on governing board of OECD development center and is an observer member
GATT - India is a founding member, Geneva Switzerland
WTO
1. Result of Uruguay round, 1995 (Marrakesh agreement)2. Doha round is first round under WTO and yet to complete 3. Afghan joined WTO in 20164. Hong Kong and Taiwan are member but Iran is not 5. One country one vote system 6. WTO is not a part of UN 7. Highest level decision making body is ministerial conference (meet bianually)8. No separate DSB but general council act as DSB 9. 1996 - birth of Singapore issues
10. 2001 - China joined 11. National treatment, MFN and special and differentiated treatment (National security as exception)12. Special Safeguard Mechanism (SSM) is a protection measure allowed for developing countries to take contingency
restrictions against agricultural imports 13. Agreement on agriculture
Green box subsidies - No limit, research funding, food stamps, disaster relief, direct payments to producers which are fully decoupled from production Amber box - Domestic support measures, trade distortion, 5-10 % limit Blue box - direct payment under production limiting program, no limit G33 - 48 developing nation group having issues with agriculture
14. TRIPS allows both process and product patent (Food, pharma and chemical only product patent)15. Parallel import and compulsory licensing act as safeguard against high prices of drugs (Voluntary licensing is done voluntarily by
company)16. Countervailing duties - anti subsidy duties 17. India and Bali package 18. Ministry of finance is nodal body dealing with BIT (Investor can use additional facility rule of ICSID)19. SAFTA - India, Pakistan, Nepal, Sri lanka, Bangladesh, Bhutan, Afghanistan and Maldive 20. G10 - Major food importing countries 21. G90 - Group of LDC 22. Asian Clearing Union - Payment arrangement, HQ at Tehran Iran, Bangaldesh, Bhutan, Iran, India, Maldive, Myanmar, Nepal,
Pakistan, Sri Lanka
capital goods or consumer durables once produced do not wear out or get consumed in a delineated time period
NPCI - Not for profit company, Provides infrastructure to entire banking system (Physical as well as electronic), Initiative of RBI and IBA
Board for regulation and supervision of payment and settlement system - Highest policy making body on payment system, standardization and regulation of payment settlement system [Budget 2017 - Payments Regulatory Board in the Reserve Bank of India ]
Watal committee (2016) recommended constituting a Payment Regulatory Board
Tax expenditure is known as revenue foregone (opportunity cost of giving exemptions)
Priority sector lending - Agri, MSME, Export, Education, Housing, Social infra, Renewable energy, PMJDY, Other
Spread - difference between borrowing rate and lending rate
The PMI -For India, the PMI Data is published by Japanese firm Nikkei but compiled and constructed by Markit Economics [Includes services]
IIP - Classifies industries in manufacturing(77.6%), Mining(14.73%) and electricity sector (7.99%), published by CSO on monthly basis. It is simple weighted arithmetic mean of production relatives by using Laspeyre‘s formula. Annual Survey of Industries - Done annually by CSO's Industrial Statistics (IS) wing (organized manufacturing sector) Cement recorded highest growth in 2017-18Monthly Index of Eight Core Industries (ICI) - production volume index. Provide an advance indication on production performance of industries of core‘ nature before release of IIP. Released by OEA, DIPP
Sector Coal Crude Oil
Natural Gas
Refinery Products
Fertilizers Steel Cement Electricity Overall Index
Weight 10.3335 8.9833 6.8768 28.0376 2.6276 17.9166 5.3720 19.8530 100.0000
Macroeconomic vulnerability index - adds up the rate of inflation, CAD and fiscal deficit
Territorial enclaves in other countries are considered in GDP
Production tax are independent of actual volume of production
Reduction in power and irrigation bill offered to farmers fall under indirect subsidy, WTO put ceiling on both direct and indirect farm subsidies
Vulture fund - buys security in distressed investment
Paid-up capital is the amount of money a company has received from shareholders in exchange for shares of stock (amount actually subscribed to is called "subscribed capital)
Authorized capital is the maximum amount of the capital for which shares can be issued by the Company to shareholders
Wealth tax is levied on non productive asset
A double dip recession refers to a recession followed by a short lived recovery followed by another recession
Market Intervention Scheme (MIS) is a price support mechanism implemented on the request of State Governments for procurement of perishable and horticultural commodities in the event of a fall in market prices. The Scheme is implemented when there is at least 10% increase in production or 10% decrease in the ruling rates over the previous normal year.
TRIFED - Ministry of Tribal Affairs, provide a platform to tribals for making the sales of their minor forest produce more remunerative, Van Dhan Scheme (Skill development of tribals, improve tribals income through value addition of tribal products)
inflation tax refers to the penalty for holding cash at a time of high inflation (Seignorage)
Gender budgeting - Allocate funds and responsibilities on the basis of gender, Started in India from 2006
Inflation index bond - Gsec, Both principle and interest rate secured
Ease of Doing Business - World bank
On PPP India is third largest economy & sixth largest in nominal terms
Operation Green
1. Ministry of food processing industry2. To promote Farmer Producers Organizations, agri-logistics, processing facilities and professional management3. To address price fluctuations in potato, tomato and onion for benefit of farmers and consumers 4. Reduction in post-harvest losses 5. NAFED will be the Nodal Agency to implement price stabilization measures.
Prime Minister Krishi Sampada Yojana - for boosting investment in food processing, ministry of food processing,
Budget 2019
1. The Indian Budget 2019 is of 27.84 lakh crore rupees. 2. Source of rupee - GST, Corporation tax (Levied by union and belongs to it exclusively) > Borrowing > Income tax (shared with
state)3. Spending - State share > Interest payment > Central sector scheme > Centrally sponsored scheme ~ Subsidies > Defence4. Education 3.3, Health 2.2, Tax administration 4.25. More than 70% Mudra loan given to women 6. Budget includes Actual data of the preceding year, Provisional data of the current year and Budgetary estimates (BE) for the
following year7. Welfare Development Board - De-notified, Nomadic and Semi-Nomadic communities.
Kandla port handled the maximum cargo
Poverty Reduction and Growth Facility (PRGF) - 1999, IMF [Singapore training institute training in macroeconomic policies]
Karl Marx explained the process of class struggle with the help of dielectric materialism
Commercial banks have the highest share in the disbursement of credit to agriculture and allied activities (Then cooperative)
Eighth five year plan recognized HD as core of all development effort
Economic survey is annually released by ministry of finance
National Renewal Fund was to provide a social safety net to the workers who are likely to be affected by technological up-gradation
Energy statistic report is published by CSO
Nationalization of insurance companies - 1955-56 [IRDAI - 1999]Insurance gap - total value of assets divided by the value of assets that are protected by an insurance cover (Widen in India) Insurance penetration - ratio of the total premium underwritten in a particular year to the GDP
Department of economic affairs is responsible for preparation of budget of Union government and state government under president rule
National Investment Fund - Dipam, Ministry of finance, 75% spent on social sector scheme, 25% for revival of PSU
Agriculture income tax is assigned to state government by constitution of India
Spagatti Bowl effect - Multiplication of FTA
Sugar and Sugarcane are essential commodities under essential commodities act
Teaser loans - responsible for sub prime crisis [May be exposed to risk of default in future]
FRP of sugarcane and MSP is approved by cabinet committee of economic affairs [On the recommendation of Commission for Agricultural Costs and Prices]
National investment and infrastructure fund - Trust for infrastructure finance under Department of economic affairs, NIIF is aNIIF banker of the banker of the banker; India’s first sovereign wealth fund; quasi-sovereign wealth fund (49% share of government)
Currently only five industries are under compulsory licensing (Alcohol, Cigar, Aerospace and Defence, Hazardous chemicals)
Small scale industry turnover is around 40% of total manufacturing sector (Export 45% and import 25%)
White goods are large electronic goods used for domestic consumption (Like Ac)
Abid Hussain committee recommended total dereservation and instead policy of promotion for small scale industries
In ordinary partnership number of partners should not exceed 20 (In LLP no limit on partners but at least one should be Indian)
SIDBI - Independent financial organization for growth of MSME, Set up in 1990 as statutory body, Initially subsidy of IDBI
National insurance company - It is oldest insurance company in India (1906), nationalized in 1972 [LIC - 1956]
Lead Bank Scheme - 1969, Commercial bank assigned a district in which it accepts lead role
Land development bank - First bank 1920 in Punjab, Main objective is financing long term loan for rural development (Cottage industry, artisan, etc)
Noble 2018 - William Nordhaus (climate change can be addressed by ensuring correct pricing of polluting resources) and Paul Romer (Technological innovation and skilling of workforce are the real sources of sustainable growth, Endogenous growth model)
Central Government Debt - 46.5 % -( Public Debt 41% other liabilities are 5.5%) [internal - 38.2% and external debt - 2.9][India's external debt is managed by ministry of finance and internal debt is managed by RBI]
Total debt of the States has been 24%
Roll-over Risk - risk associated with the refinancing of debt.
India has not yet adopted UNCITRAL Model Law on Cross-Border Insolvency
Inflationary Gap - Difference between current GDP and potential GDP
Expenditure Management Commission (EMC) - Set up by resolution; To look into various aspects of expenditure reforms to be undertaken by the Government
Benchmark lending rate - RBI repo rate, the 91-day T-bill yield; the 182-day T-bill yield; or any other benchmark market interest rate produced by the Financial Benchmarks India Pvt. Ltd. Financial Benchmark India Private Ltd (FBIL) was jointly promoted by Fixed Income Money Market & Derivative Association of India (FIMMDA), Foreign Exchange Dealers’ Association of India (FEDAI) and Indian Banks’ ‘Association (IBA). [RBI recognized]
Commodity exchanges -trade in futures contracts in commodities. [Spot exchange - Spot delivery contracts of commodities]
Production taxes and Production Subsidies and independent of actual volume of production while Product taxes and Product subsidies are depend upon quantity produced
Structural unemployment - Long-lasting form of unemployment caused by fundamental shiftsCyclical unemployment - Deficiency or fall in effective demand Seasonal unemployment - Occurs during certain seasons of the yearFrictional unemployment - Searching for the new jobs
For last five years the liabilities of the government of India have constantly been below 50% of the GDP
Foreign Exchange Management (Deposit) Regulations, 2000 [All part of external debt]
1. FCNR(B) accounts - can be opened by NRIs and Overseas Corporate Bodies (OCBs) with an authorized dealer. Deposits of funds are allowed in Pound Sterling, US Dollar, Japanese Yen and Euro.
2. Non-Resident External account (NRE account) - Can be opened by NRIs and OCBs with an authorized dealer. These can be in the form of savings, current, recurring or fixed deposit accounts. Deposit allowed in permitted currency
3. Non-Resident Ordinary Rupee account (NRO account) - Can be opened by any person resident outside India with an authorized dealer or an authorized bank. NRI's existing Rupee accounts are designated as NRO [Principle in non repatriable but current income and interest earning is repatriable.]
VGF - Maximum 40% (20+20); available only for infrastructure projects
Uday Kotak Panel - Corporate governance set up by SEBI
India GDP contribution [Worker] - Service (58) [33]; Manufacturing (24) [24]; Agriculture (18) [43]
Deemed Exports - goods supplied do not leave country, payment for such supplies is received either in Indian rupees or in free foreign exchange.
Off-budgeting resource - Expenditure which cannot be funded through budget
The Finance Ministry has notified 280 as the cost inflation index (CII) number for the Financial Year (FY) 2018-19. This CII number is important as it will be used to compute inflation adjusted long-term capital gains (LTCG) [Base year 2001]
Negative trade balance - China,Switzerland, Saudi Arabia, Iraq and South Korea Positive trade balance - USA, UAE, Bangladesh,Nepal and UK
India Import Export data
1. Export [NCERT] - Manufactured goods (68%) > Crude and petroleum products > Agriculture > Ore and Minerals 2. Export [Survey] - Engineering goods > Gems and Jewelry > Chemical > Textile > Petroleum > Agri 3. Import [NCERT] - Fuel (Coal, POL) > Capital goods > Food and allied products > Fertilizers 4. Import [Survey] - Fuel (Coal, POL) > Capital goods > Jems and Jewelry> Chemicals > Electronic goods 5. Total trade - China > USA > UAE > Hong Kong > Saudi 6. Trade deficit - China > Switzerland > Saudi > Iraq > S Korea7. Trade surplus - USA > UAE > Bangladesh > Nepal > UK > Singapore
NEER = E/EiREER = (E/Ei)*(P/Pi) P is India's WPI and Pi is countries CPIIf REER goes above 100 the domestic currency is overvalued (If less than 100 then undervalued)
The main organs of the UN
the General Assemblythe Security Councilthe Economic and Social Councilthe Trusteeship Councilthe International Court of JusticeUN Secretariat
15 specialized agencies
Food and Agriculture Organization (FAO)International Civil Aviation Organization (ICAO)International Fund for Agricultural Development (IFAD)International Labour Organization (ILO)International Maritime Organization (IMO)International Monetary Fund (IMF)International Telecommunications Union (ITU)United Nations Educational, Scientific and Cultural Organization (UNESCO)United Nations Industrial Development Organization (UNIDO)Universal Postal Union (UPU)World Bank World Health Organization (WHO)World Intellectual Property Organization (WIPO)World Meteorological Organization (WMO)World Tourism Organization (UNWTO).
The first ETF in India, "Nifty BeE
Statutory Grants - A.275, Parliament to make grants to the states which are in need of financial assistance [FC recommendation] Discretionary Grants - A.282 empowers both the Centre and the states to make any grants for any public purpose,
Macaulay duration - It is the weighted average number of years an investor must maintain a position in the bond until the present value of the bond's cash flows equals the amount paid for the bond.
