Economic Swat

Economic growth :- It refers to the process of increase in amount of goods and services produced in an economy over a long period of time. It refers to persistence increase in real per capita income or real GDP. Economic growth is measured by increase in the amount of goods and services produced in a country. Factors of Economic Growth :- 1. Natural Resources 2.  Physical Capital or Infrastructure 3.  Population or Labour 4.  Human Capital 5.  Technology 6.  Law   Types of Economic Growth:- 1. Boom and Bust Business cycles 2. Export-led 3. Consumer 4. Commodity Exports 1. Boom and Bust Business cycle :-   When growth is high speed and inflationary, then growth level will become unsustainable and lead a recession condition. So, typically this type of growth is for a business cycle. 2. Export-led :-  If a country have significantly more exports than imports then it is called Export-led. E.g.  China and Japan economy. 3. Consumer :- This econom...

Government Budget :- Government budget is the annual statement showing item wise estimates of receipts and payments during a fiscal year. Fiscal year is from 1st April to 31th March • Budget of Central Government is known as Union Budget. • In India, Budget is presented in the parliament on such a day President may direct. • If President not give a day to present budget by convention, it is presented on the last working day of February. • The receipts and payments shown in the budget are not the actual figures, but they are the estimated value of coming Fiscal year.  Objectives of Government Budget :- (a)- Reallocation of Resources  (huge investment but low profit) (b)- Redistribution Activities  (taxation , subsidies) (c)- Management of Public Enterprise (d)- Stabilizing Economic Activities (e)- Economic Growth Types of Government Budget :- (a)- Balanced Budget   (Expenditure = Receipts) (b)- Surplus Budget     (Expenditure ‹  Receipts) (c)-...