Fiscal Policy

Fiscal policy is that part of government policy

which is concerned with raising revenue through
taxation and other means and deciding on the
level and patter of expenditure.
Fiscal policy can be used to stabilize the
economy over the course of the business cycle.
The two main instruments of fiscal policy are
changes in the level and composition of taxation
and government spending in various sectors.

Instruments of Fiscal Policy

1. Reduction of Govt. Expenditure
2. Increase in Taxation
3. Imposition of new Taxes
4. Wage Control
5.Rationing
6. Public Debt
7. Increase in savings
8. Maintaining Surplus Budget
Some other measures are as below 1. Increase in Imports of Raw materials
2. Decrease in Exports
3. Increase in Productivity
4. Provision of Subsidies
5. Use of Latest Technology
6. Rational Industrial Policy

Economic Trends
Economic trends are around us all of the time. When we buy groceries, we
are adding to the consumer spending trend. When we borrow money, we
pay an interest rate. The interest rate is an economic trend and is the result
of other economic trends. We may know people who have been a victim of
the high unemployment rate. The unemployment rate is also an economic
trend. In this lesson, we will look at a few of the most significant
economic trends to understand how they affect us.
Before we define the term economic trend, let's break this phrase into two
parts. The first word, economic, refers to an economy. An economy is
made up of all of the financial transactions between companies and
consumers in a region or country. Generally, when an economy is referred
to, it is toward a specific country:
The second part of the phrase, trend, can be thought of as a pattern. In
most contexts, trends are formed and interpreted from sets of data.

Stock Exchange Of India

The securities regulation act of 1956 defined stock
exchange as an association, organization, or a individual
which is established for the purpose of assisting,
regulating, and controlling business in buying, selling and
dealing in securities.
Bombay Stock Exchange (BSE)
Established in 1875, BSE Ltd. (formerly known
as Bombay Stock Exchange Ltd.), is Asias
first Stock Exchange and one of Indias
leading exchange groups. Over the past 137
years, BSE has facilitated the growth of the
Indian corporate sector by providing it an
efficient capital-raising platform.

National Stock Exchange (NSE)

The National Stock Exchange of India Ltd. is a stock
exchange located in the financial capital of India,
Mumbai. National Stock Exchange (NSE) was
established in the mid 1990s as a demutualised
electronic exchange. NSE provides a modern, fully
automated screen-based trading system, with over
two lakh trading terminals, through which investors
in every nook and corner of India can trade.

Role of regulatory institutions in

Indian financial system RBI and
SEBI
The RBI was established in 1935. It was
nationalized in 1949. The RBI plays role
of regulator of the banking system in
India. The Banking Regulation Act 1949
and the RBI Act 1953 has given the RBI
the power to regulate the banking
system.
The RBI has different functions in
different roles. Below, we share and
discuss some of the functions of the RBI.

National Income
It is defined as the total market value of all the final
goods and services produced in an economy in a
given period of time.
This suggests that labor and capital of a country,
working on the natural resources produces certain
net amount of goods and services, the aggregates
of which as known as national income or national
product. There are many concepts of national
income which are used by different economists and
all of which are inter-related.

GDP= Income within India

GNP= GDP + Net income from abroad
NDP= GDP - Depreciation
NNP= GNP - Depreciation

Calculating national income

There are three methods of calculating national income:
The income method, which adds up all incomes
received by the factors of production generated in the
economy during a year. This includes wages from
employment and self-employment, profits to firms,
interest to lenders of capital and rents to owners of
land.
The output method, which is the combined value of
the new and final output produced in all sectors of the
economy, including manufacturing, financial services,
transport, leisure and agriculture.
The expenditure method, which adds up all
spending in the economy by households and firms on
new and final goods and services by households and
firms.