Budget 2016 - Highlights

Check out this link
http://www.firstpost.com/business/budget-2016-key-highlights-that-you-and-me-should-know-about-2648610.html?utm_source=FP_CAT_LATEST_NEWS

Economic Survey presented on 26 February 2016

The Economic Survey for 2015-16 was tabled in Parliament by Union Finance Minister Arun Jaitley on Friday, 26 February 2016. 
The Economic Survey is the Finance Ministry's view on the annual economic development of the country that gives a broad idea on the macro-economic data, which will impact the budget decisions. 

Highlights of Economic Survey 2015-16:

• GDP growth rate for 2015-16 to be in the range of 7 % to 7.75 % 
• Amidst gloomy international economic landscape, India stands as a haven of stability
• Low inflation has taken hold and confidence in price stability has improved
• Services continues to be key driver; expected to be 9.2% in 2015-16
• Foreign exchange reserves have risen to US $349.6 (Jan-2016)
• Govt will meet its fiscal deficit target of 3.9% of GDP
• Agriculture sector needs a transformation to ensure sustainable livelihoods for farmers and food security
• Informal sector has  created  jobs and keeping unemployment low

• Schemes such as Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jivan Jyoti Bima Yojana (PMJJBY), and the Atal Pension Yojana(APY), were launched in 2015 in the insurance and pension sectors for creating a universal social security system for all Indians, especially for the poor and the underprivileged
• India can become the leading investment destination owing to its robust macroeconomic fundamentals
• Reserve Bank of India will meet 5% inflation target by the end of March 2017
• Reform package for the fertilizer Sector

Important dates to watch out for

FEBRUARY 23, 2016 : BUDGET SESSION OF PARLIAMENT BEGINS

FEBRUARY 25, 2016 : RAILWAY BUDGET

FEBRUARY 26, 2016 : PRESENTATION OF ECONOMIC SURVEY

FEBRUARY 29, 2016 : UNION BUDGET FOR 2016-17

Quotable Quote

“There is one and only one social responsibility of business–to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud” 
― Milton Friedman

21 Question Challenge - Final for 2015-16

1. If a price increase of good A increases the quantity demanded of good B, then good B is a

A)  Substitute good

B)  Complementary good

C)  Bargain

D)  Inferior good

2. An increase in consumer income will increase demand for a _______ but decrease demand for a _________

A)  Substitute good, inferior good

B)  Normal good, inferior good

C)  Inferior good, normal good

D)  Normal good, complementary good

3. In an oligopolistic or monopolistically competitive market, firms do not raise their prices because even a small price increase will lose many customers. Which among the following is the most suitable terms used for this concept?

A)   Supracompetitive pricing

B)   Swing Demand

C)   Kinked Demand

D)   Imperfect competition

4. Gilt-edged market means

A)  Bullion market

B)  Market of government securities

C)  Market of guns

D)  Market of pure metals

5. Devaluation of a currency means

A)   Reduction in the value of a currency vis-a-vis major internationally traded currencies

B)   Permitting the currency to seek its worth in the international market

C)   Fixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined currencies

D)   Fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners

6. Why should you care about inflation?

A)   It affects your purchasing power

B)   It can affect the monthly payment on a fixed-rate mortgage

C)   Because proper tire pressure can reduce gas cost

D)   All of the above

7. Who controls monetary policy in the United States?

A)   The President and the U.S. Treasury

B)   Congress

C)   Federal Reserve

D)   None of the above

8. Generally, which is healthiest for the economy?

A)   High inflation

B)   Low inflation

C)   Deflation

D)   None of the above

9. What is the overall measurement of a country's economic activity?

A)   Consumer confidence

B)   General debt productivity

C)   Gross domestic product

D)   Purchasing power parity

10. If all the banks in an economy are nationalized and converted into a monopoly bank, the total deposits

A)   Will decrease

B)   Will increase

C)   Will neither increase nor decrease

D)   None of the above

11. The currency convertibility concept in its original form originated in

A)   Wells Agreement

B)   Bretton Woods Agreement

C)   Taylors Agreement

D)   None of the above

12. Price ceilings are imposed increase price above the free market equilibrium price

A)   TRUE

B)   FALSE

13. When it comes to your finances, rising interest rates are...

A)   Good for borrowers, bad for savers

B)   Good for savers, bad for borrowers

14. In the Industrial Policy of 1991, how many industries were reserved only for Public Sector?

A)   7

B)   8

C)  11

D)  13

15. Which among the following State/ UT / city has the highest per capita electricity consumption in the country?

A)   Puducherry

B)   Delhi

C)   Mumbai

D)  Dadra & Nagar Haveli

16. Development expenditure of the Central government does not include

A)  Defence expenditure

B)  Expenditure on economic services

C)  Expenditure on social and community services

D)  Grant to states

17. When the value of the Rupee rises, what does that mean for your personal finances?

A)  Overseas travel is less expensive

B)   Imported goods are cheaper

C)   Your foreign investments are worth less

D)   All of the above

18. Our financial system has provided for the transfer of resources from the centre to the states; the important means of resource transfer are

A)  Tax sharing

B)  Grant-in-aids

C)  Loans

D)  All the above

19. Excise duty is a tax levied on the

A)   Import of goods

B)   Export of goods

C)   Production of goods

D)   Sale of goods

20. Deficit financing means that the government borrows money from the

A)   RBI

B)   Local bodies

C)   Big businessmen

D)   IMF

21. Indian banks are required to maintain a certain ratio between their cash in the hand and totals assets. This is called

A)  Statutory Bank Ratio (SBR)

B)  Statutory Liquid Ratio (SLR)

C)  Central Bank Reserve (CBR)

D) Central Liquid Reserve (CLR)

Take this final challenge for 2015-16  :)

Email your answers to profKMody@gmail.com by 28 February 2016

Quote for the WeeK

Given the upcoming budget, our thoughts stray towards taxes, thought of sharing this quotation from a former President of the United States:

Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.

Ronald Reagan

7 Question Challenge - 2 - 2015-16 Answers

The opportunity cost of a good is :  B) the quantity of other goods sacrificed to get another unit of that good If new firms enter a market, but demand stays the same, it can be predicted that: B) Prices are likely to fall Time series data show information : B) about different points in time over the same variable When a market is in equilibrium: D) All of the above If a price increase of good A increases the quantity demanded of good B, then good B is a: A)substitute good

Name the economist Raghuram Govind Rajan  is the current and the 23rd Governor of the Reserve Bank of India, Nobel Prize winning economist Paul A. Samuelson. Contributed to raising the general analytical and methodological level in economic science. Was awarded the Nobel prize in 1970 Congratulations to Fatema from FYBA for giving all seven answers. Good participation from Arzoo and Ibrat as well :)