Economic Swat

Economic Growth  Vs.  Economic Development :-    (1) .   ●Economic growth increase in National Output or Real National Income.          ●Economic  development means progress in the living standard and quality of life. (2) . ●Economic growth is a narrow concept. ●Economic development is a broader concept. (3) . ●In Economic growth Quantitative changes expected. ●In Economics development both Quantitative as well as Qualitative changes excepted. (4) . ●Economic growth is a short-term process. ●Economic development is a long-term process. (5) . ●Economic growth is applicable to developed Economics. ●Economic development is applicable to developing economics. (6) . ●Quantitative measurement in Economic growth ●Quantitative and Qualitative measurement in Economic development. (7) . ●Economic growth is a unidimensional approach which deals with the economic growth of the nation. ●Economic development is a Multi-dimensional approach that l...

  Economic Development :-   Economic development is the growth of the standard of living of nations people from a low-income economy to a high-income economy in terms of reduction of poverty, inequality, unemployment, etc.  Features of Economic Development :- (a)- Structural Change (b)- Sectoral Change (c)- Qualitative Concept (d)- Long term Concept (e)- Public Participation (f)- Increase in Real National Income Indicators of Economic Development :- (a)- Rise in Gross National Product (GNP) (b)- Rise in Per-Capita Income (PCI) (c)- Industrial Development (d)- Productivity Per Hector of Land (e)- Qualitative Entrepreneurship (f)- Structural Transformation

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)-...

Planning:- Deciding in advance how to do, what to do, when to do and who has to do is known as  planning. Features of Planning :- 1- Primary function 2- Focus on achieving 3- Continuous 4- Decision making 5- Mental exercise Importance of Planning :- 1- Reduce risk of uncertainty 2- Reduce wastage of resources 3- Reduce overlapping 4- Provide direction 5- Facilitates decision making Limitations of Planning :- 1- Reduce creativity 2- Involves huge cost 3- Leads to rigidity 4- Consumption of time 5- Not guaranteed success Needs of Planning :- 1- High rate of growth of population 2- Negligible industrial growth 3- Traditional attitude 4- Backward technology 5- Low literacy level Objectives of Planning :- 1- Economic growth 2- Balanced regional development 3- Reduction of economic inequality 4- Reduction of Unemployment 5- Modernization