Andhra

Pradesh
(list)

Arunachal
Pradesh

N. Chandrababu
Naidu

Nabam Tuki

(list)

Assam
(list)

8 June 2014
(1 year, 13 days)

1 November
2011
(3 years,

Telugu Desam Party

[3]

Indian National
Congress

[4]

Indian National
Congress

[5]

Janata Dal (United)

[6]

Bharatiya Janata
Party

[7]

232 days)

Tarun Gogoi

17 May
2001
(14 years,
35 days)

Bihar
(list)

Chhattisgarh
(list)

Nitish Kumar

22 February
2015
(119 days)

Raman Singh

7 December
2003
(11 years,
196 days)

Delhi[b]
(list)

Goa
(list)

Gujarat
(list)

Haryana
(list)

Himachal
Pradesh

14 February
2015

Arvind Kejriwal

Aam Aadmi Party

[8]

Bharatiya Janata
Party

[9]

Bharatiya Janata
Party

[10]

Bharatiya Janata
Party

[11]

Indian National
Congress

[12]

Jammu and Kashmir

Peoples Democratic
Party

[13]

(127 days)

Laxmikant
Parsekar

Anandiben Patel

8 November
2014
(225 days)

22 May
2014
(1 year, 30 days)

Manohar Lal
Khattar

Virbhadra Singh

(list)

26 October
2014
(238 days)

25
December
2012
(2 years,
178 days)

Jammu and
Kashmir
(list)

Mufti Mohammad
Sayeed

1 March
2015
(112 days)

Jharkhand
(list)

28
December
2014

Raghuvar Das

Bharatiya Janata
Party

[14]

Indian National
Congress

[15]

Indian National
Congress

[16]

Bharatiya Janata
Party

[17]

Bharatiya Janata
Party

[18]

(175 days)

Karnataka
(list)

13 May
2013

Siddaramaiah

(2 years,
39 days)

Kerala
(list)

Madhya
Pradesh
(list)

18 May 2011
Oommen Chandy

(4 years,
34 days)

29
November
2005

Shivraj Singh
Chouhan

(9 years,
204 days)

Maharashtra
(list)

Manipur
(list)

31 October
2014

Devendra
Fadnavis

Okram Ibobi
Singh

(233 days)

2 March
2002
(13 years,

Indian National
Congress

[19]

111 days)

Meghalaya
(list)

Mukul Sangma

20 April
2010
(5 years,

Indian National
Congress

[20]

Indian National
Congress

[21]

Naga People's Front

[22]

Biju Janata Dal

[23]

All India N.R.

Congress

[24]

62 days)

Mizoram
(list)

Lal Thanhawla

7 December
2008
(6 years,
196 days)

Nagaland
(list)

Odisha
(list)

T. R. Zeliang

24 May
2014
(1 year, 28 days)

Naveen Patnaik

5 March
2000
(15 years,
108 days)

Puducherry[b]
(list)

16 May 2011
N. Rangaswamy

(4 years,
36 days)

Punjab
(list)

1 March
2007

Parkash Singh
Badal

(8 years,

Shiromani Akali Dal

[25]

Bharatiya Janata
Party

[26]

Sikkim Democratic
Front

[27]

All India Anna

Dravida Munnetra
Kazhagam

[28]

Telangana Rashtra
Samithi

[29]

112 days)

Rajasthan
(list)

13
December
2013

Vasundhara Raje

(1 year,
190 days)

Sikkim
(list)

Pawan Kumar
Chamling

12
December
1994
(20 years,
191 days)

Tamil Nadu
(list)

Telangana
(list)

Jayalalithaa

23 May
2015
(29 days)

K. Chandrashekar
Rao

2 June 2014
(1 year, 19 days)

Tripura
(list)

11 March
1998

Manik Sarkar

(17 years,

Communist Party of
India (Marxist)

[30]

Samajwadi Party

[31]

Indian National
Congress

[32]

102 days)

Uttar Pradesh
(list)

15 March
2012

Akhilesh Yadav

(3 years,
98 days)

Uttarakhand
(list)

Harish Rawat

1 February
2014
(1 year,
140 days)

West Bengal
(list)

Mamata Banerjee

Legislative
capitals

Judiciary
capitals

Year
capital
was
establis
hed

Port Blair

Port Blair

Kolkata (for
merly
Calcutta)

1956

Calcutta
(19451956)

Andhra
Pradesh

Hyderabad[a]

Hyderabad

Hyderabad

2014

Kurnool

Arunachal
Pradesh

Itanagar

Itanagar

Guwahati

1987

Assam

Dispur

Guwahati

Guwahati

1975

Bihar

Patna

Patna

Patna

1912

Chandigarh[c]

Chandigarh

2015

Raipur[d]

Raipur

Bilaspur

2000

Mumbai
(19541961)
Panaji (1961
1987)

N
o.

State/Un
ion
Territor

Andaman
and
Nicobar
Islands

Chandigarh

Chhattisgar
h

Dadra and
Nagar
Haveli

Daman and
Diu

Administrati
ve capitals

Silvassa

Mumbai

1945

Daman

Mumbai

1987

The
Former
capital

Shillong[b] (187
41972)

Ahmedabad (
19611963)

N
o.

State/Un
ion
Territor

Administrati
ve capitals

Legislative
capitals

Judiciary
capitals

Year
capital
was
establis
hed

The
Former
capital

Panaji (1963
1987)

10

National
Capital
Territory of
Delhi

New Delhi

New Delhi

New Delhi

1931

11

Goa

Panaji[e]

Porvorim

Mumbai

1961

Panaji (1961
1987)

12

Gujarat

Gandhinagar

Gandhinagar

Ahmedabad

1960

Ahmedabad (
19601970)

13

Haryana

Chandigarh

Chandigarh

Chandigarh

1966

14

Himachal
Pradesh

Shimla

Shimla

Shimla

1971

Bilaspur (195
01956)

15

Jammu and Srinagar (S)

Kashmir
Jammu (W)

Srinagar (S)
Jammu (W)

Srinagar (S)
Jammu (W)

1948

16

Jharkhand

Ranchi

Ranchi

Ranchi

2000

17

Karnataka

Bengaluru

Bengaluru

Bengaluru

1940

(Mysore)

18

Kerala

Thiruvanantha
puram

Thiruvanantha
puram

Kochi

1956

N
o.

State/Un
ion
Territor

Administrati
ve capitals

Legislative
capitals

Judiciary
capitals

Year
capital
was
establis
hed

19

Lakshadwe
ep

Kavaratti

Kavaratti

Kochi

1956

20

Madhya
Pradesh

Bhopal

Bhopal

Jabalpur

1956

Nagpur[f] (186
11956)

21

Maharashtr
a

Mumbai[g]
Nagpur (W/2nd
)[h]

Mumbai (S+B)
Nagpur (W)[i]

Mumbai

1818
1960

22

Manipur

Imphal

Imphal

Imphal

1947

23

Meghalaya

Shillong

Shillong

Shillong

1970

24

Mizoram

Aizawl

Aizawl

Guwahati

1972

25

Nagaland

Kohima

Kohima

Guwahati

1963

26

Odisha

Bhubaneswar

Bhubaneswar

Cuttack

1948

Cuttack (1936
1948)

Pondicherry

Pondicherry

Chennai

1954

Madras (1948
1954)

Chandigarh

Chandigarh

Chandigarh

1960

27

28

Puducherry

Punjab

The
Former
capital

Lahore[j] (1849
1947)
Murree (S/187
31875)
Shimla (S/187

N
o.

State/Un
ion
Territor

Administrati
ve capitals

Legislative
capitals

Judiciary
capitals

Year
capital
was
establis
hed

The
Former
capital

61947)
Shimla (1947
1960)

29

Rajasthan

Jaipur

Jaipur

Jodhpur

1950

30

Sikkim

Gangtok[k]

Gangtok

Gangtok

1890

31

Tamil Nadu

Chennai[l]

Chennai

Chennai

1956

32

Telangana

Hyderabad

Hyderabad

Hyderabad

2014

33

Tripura

Agartala

Agartala

Agartala

1956

34

Uttar
Pradesh

Lucknow

Lucknow

Allahabad

1938

35

Uttarakhan
d

Dehradun[m]

Dehradun

Nainital

2000

36

West
Bengal

Kolkata

Kolkata

Kolkata

1947

Finance minister Arun Jaitley said the pace of cutting the fiscal deficit would slow as he seeks to boost
investment and ensure that ordinary people benefit. . Photo: Pradeep Gaur/ Mint

Finance minister Arun Jaitley on Saturday announced Union Budget 2015 aimed at high growth,
saying the pace of cutting the fiscal deficit would slow as he seeks to boost investment and
ensure that ordinary people benefit.

Here are the highlights of Jaitleys budget for the fiscal year that begins 1 April.
Fiscal deficit

Fiscal deficit is the difference between the government's expenditures and its
revenues (excluding the money it's borrowed). A country's fiscal deficit is usually
communicated as a percentage of its gross domestic product (GDP)
Fiscal deficit seen at 3.9% of GDP in 2015-16
Will meet the challenging fiscal target of 4.1 percent of GDP
Remain committed to meeting medium term fiscal deficit target of 3% of GDP
Current account deficit (CAD) below 1.3% of GDP
Jaitley says have to keep fiscal discipline in mind despite need for higher investment
Growth
1.

DEFINITION of 'Gross Domestic Product -GDP' The monetary value of all the
finished goods and services produced within a country's borders in a specific time
period, though GDP is usually calculated on an annual basis.
2. Gross national product (GNP) is the market value of all the products and
services produced in one year by labour and property supplied by the citizens
of a country.
3. Net national product (NNP) refers to gross national product (GNP), i.e. the total market
value of all final goods and services produced by the factors of production of a country or
other polity during a given time period, minus depreciation.[1] Similarly, net domestic
product (NDP) corresponds to gross domestic product (GDP) minus depreciation.
[2]
Depreciation describes the devaluation of fixed capital through wear and tear associated
with its use in productive activities.
4. In national accounting, net national product (NNP) and net domestic product (NDP) are given
by the two following formulas:
5.
6.

GDP growth seen at between 8% and 8.5% year-on-year

Nominal economic growth seen between 11% and 12%
Aiming double digit growth rate, achievable soon
Inflation
1.

In economics, inflation is a sustained increase in the general price level of

goods and services in an economy over a period of time.

Expects consumer inflation to remain close to 5% by March, opening room for more monetary
policy easing
Monetary policy framework agreement with the Reserve Bank of India (RBI) clearly states
objective of keeping inflation below 6%
One of the achievements of my government has been to conquer inflation. This decline in my
view represents a structural shift.
Revenues
Revenue deficit seen at 2.8% of GDP
Non-tax revenue seen at 2.21 trillion rupees
Agricultural incomes are under stress
Net receipts under market stabilization scheme estimated at Rs20,000 crore
Disinvestment
Government targets Rs41,000 crore from stake sales in companies in 2015/16
Total stake sale in 2015-16 seen at 69,500 crore
Sets stake sale target for 2016-17 at Rs55,000 crore
Revises down stake sale target for 2014-15 to Rs31,350 crore
Market reforms
Propose to merge commodities regulator Forward Markets Commission (FMC) with Securities
and Exchange Board of India (Sebi)
To bring a new bankruptcy code
Jaitley says will move to amend the RBI act this year, and provide for a monetary policy
committee
To set up public debt management agency
Proposes to introduce a public contract resolution of disputes bill
To establish an autonomous bank board bureau to improve management of public sector
banks
Policy reforms
To enact a comprehensive new law on black money
Propose to create a universal social security system for all Indians
To launch a national skills mission soon to enhance employability of rural youth

To raise visa-on-arrival facility to 150 countries from 43

Allocates Rs34,699 crore for rural employment guarantee scheme
Raises threshold for application of transfer pricing rules to Rs20 crore from current Rs5 crore
Borrowing
Gross market borrowing seen at Rs6 trillion
Net market borrowing seen at Rs4.56 trillion
General anti-avoidance rules (GAAR)
Government defers rollout of anti-tax avoidance rules GAAR by two years
GAAR to apply prospectively from 1 April 2017
Retrospective tax provisions will be avoided
Taxation
To abolish wealth tax
Replaces wealth tax with additional 2% surcharge on super-rich
Proposes to cut to 25% corporate tax over next four years
Corporate tax of 30% is uncompetitive
Net gain from tax proposals seen at Rs15,068 crore
Jaitley proposes modification of permanent establishment norms so that the mere presence of
a fund manager in India would not constitute a permanent establishment of the offshore fund,
resulting in adverse tax consequences.
Proposes to rationalise capital gains tax regime for real-estate investment trusts (REITs)
Extends withholding tax concession on foreign debt purchases by two years
Expects to implement goods and services tax by April 2016
To reduce custom duty on 22 items
Basic custom duty on commercial vehicle doubled to 20%
Proposes to increase service tax rate and education cess to 14% from 12.36%
Plans to introduce direct tax regime that is internationally competitive on rates without
exemptions
Exemptions for individual tax payers to continue
To enact tough penalties for tax evasion in new bill

Tax department to clarify indirect transfer of assets and dividend paid by foreign firms
Personal income tax
No revision of income tax brackets
Limit of deduction of health insurance premium increased to Rs25,000 from Rs15,000; limit
increased to Rs30,000 from Rs20,000 for the elderly
People aged above 80 and not covered by health insurance to be allowed deduction of
Rs30,000 for medical expenses
Additional deduction of Rs25,000 for the disabled
Limit on deduction for contributions to pension fund and new pension scheme increased to
Rs150,000 from Rs100,000 rupees
Additional deduction of Rs50,000 for contribution to new pension scheme under section
80CCD
Monthly transport allowance exemption doubled to Rs1,600
Import tax
Import tax on iron and steel increased to 15% from 10%
Import tax on metallurgical coke increased to 5% from 2.5%
Infrastructure
Investment in infrastructure will go up by Rs70,000 in 2015-16 over last year
Plans to set up national investment infrastructure fund
Proposes tax-free infrastructure bonds for projects in roads, rail and irrigation projects
Proposes five ultra mega power projects for 4,000 MW each
Second unit of Kudankulam nuclear power station to be commissioned
Will need to build additional 100,000km of road
Ports in public sector will be encouraged to corporatise under Companies Act
Expenditure
Plan expenditure estimated at about Rs4.65 trillion
Non-plan expenditure seen at about Rs13.12 trillion rupees
Allocates Rs2.46 trillion for defence spending
Allocates Rs33,150 billion rupees for health sector
If revenue improves, hope to raise budgeted allocations for rural job scheme by Rs5,000 crore

Investment
Government to provide Rs7,940 crore capital infusion to state-run banks
Propose to do away with different types of foreign investment caps and replace them with
composite caps
To allow foreign investment in alternative investment funds
Public investment needed to catalyse investment
Gold
To launch gold deposit accounts and sovereign bond
Import duty stays at 10%; disappoints jewellers
To work on Indian-made gold coin to cut imports
Cigarettes
Raises excise duty on cigarettes by 25% for cigarettes of length not exceeding 65mm
Raises excise duty by 15% for cigarettes of other lengths
Subsidies
Food subsidy seen at Rs1.24 trillion
Fertilizer subsidy seen at Rs72,969 crore
Fuel subsidy seen at Rs30,000
Major subsidies estimated at Rs2.27 trillion
We are committed to subsidy rationalisation based on cutting leakages
Finance ministers comments
We inherited a sentiment of doom and gloom. The investment community had almost written
us off. We have come a long way since then.
We have turned around the economy, dramatically restoring macroeconomic stability and
creating the conditions for sustainable poverty elimination, job creation, durable double digit
economic growth.
While being mindful of the challenges...this gives us reason to feel optimistic.
Domestic and international investors are seeing us with renewed interest and hope.
Narendra Modi on Twitter
2015 Budget will further reignite our growth engine, signalling the dawn of a prosperous
future

Budget is investment friendly and removes all doubts on tax issues. It assures investors that
we have a stable, predictable and fair tax system.
Market reaction
BSE index gains 0.48%; NSE index up 0.65%
ITC slumps after budget hikes excise duty on cigarettes

Inflation means a sustained increase in the general price level. However, this
increase in the cost of living can be caused by different factors. The main two types
of inflation are
1.

Demand pull inflation this occurs when the economy grows quickly and
starts to overheat Aggregate demand (AD) will be increasing faster than
aggregate supply (LRAS).

2.

Cost push inflation this occurs when there is a rise in the price of raw
materials, higher taxes, e.t.c

1. Demand Pull Inflation

This occurs when AD increases at a faster rate than AS. Demand pull inflation will
typically occur when the economy is growing faster than the long run trend rate of
growth. If demand exceeds supply, firms will respond by pushing up prices.
Simple diagram showing demand pull inflation

The UK experienced demand pull inflation during the Lawson boom of the late
1980s. Fuelled by rising house prices, high consumer confidence and tax cuts, the
economy was growing by 5% a year, but this caused supply bottlenecks and firms
responded by increasing prices.

This graph shows inflation and economic growth in the UK during the 1980s. High
growth in 1987, 1988 of 4-5% caused an increase in the inflation rate. It was only
when the economy went into recession in 1990 and 1991, that we saw a fall in the
inflation rate.

2. Cost Push Inflation

This occurs when there is an increase in the cost of production for firms causing
aggregate supply to shift to the left. Cost push inflation could be caused by rising
energy and commodity prices. See:Cost Push inflation
Simple Diagram showing cost push inflation.

Example of Cost push inflation in the UK

In early 2008, the UK economy entered a deep recession(GDP fell 6%). However, at
the same time, we experienced a rise in inflation. This inflation was definitely not due
to demand side factors; it was due to cost push factors, such as rising oil prices,
rising taxes and rising import prices (as a result of depreciation in the Pound) By

2013, cost push factors had mostly disappeared and inflation had fallen back to its
target of 2%.
Sometimes cost push inflation is known as the wrong type of inflation because this
inflation is associated with falling living standards. It is hard for the Central Bank to
deal with cost push inflation because they face both inflation and falling output.
3. Wage Push Inflation
Rising wages tend to cause inflation. In effect this is a combination of demand pull
and cost push inflation. Rising wages increase cost for firms and so these are
passed onto consumers in the form of higher prices. Also rising wages give
consumers greater disposable income and therefore cause increased consumption
and AD. In the 1970s, trades unions were powerful in the UK. This helped cause
rising nominal wages; this was a significant factor in causing inflation.
4. Imported Inflation.
A depreciation in the exchange rate will make imports more expensive. Therefore,
the prices will increase solely due to this exchange rate effect. A depreciation will
also make exports more competitive so will increase demand.
5. Temporary Factors.
The inflation rate can also increase due to temporary factors such as increasing
indirect taxes. If you increase VAT rate from 17.5% to 20%, all goods which are VAT
applicable will be 2.5% more expensive. However, this price rise will only last a year.
It is not a permanent effect.

Core Inflation
One measure of inflation, is known as core inflation This is the inflation rate that
excludes temporary volatile factors, such as energy and food prices. The graph
below shows inflation in the EU. The headline inflation rate (HICP) is more volatile
rising to 4% in 2008, and then falling to -0.5% in 2009. However, the core inflation
(HCIP energy, food, alcohol and tobacco) is more constant.

Example of Inflation in UK

This shows that energy prices were very volatile in this period, contributing to cost
push inflation in 2008.
Different measures of inflation
There are different measures of inflation. RPI includes mortgage interest payments.
In 2009, interest rates were cut, therefore, RPI measure of inflation became negative.
CPI excludes the effect of mortgage interest payments. The ONS now produce a
statistic CPIH, which is CPI owner occupier costs.

national income
noun
1.
the total amount of money earned within a country.

Types and Classification of Bill of Exchange:

Types of Bill of Exchange on the Basis of Period:

On the basis of period bills are of two types:
1. Demand bills
2. Term bills

Demand Bills of Exchange:

There is no fixed date for the payment of such bill. They become payable at ay time, when they are
presented before payee by the holder.

Tem Bills of Exchange:

These bills are payable after specified period of time. The period after which these bill become due
for payment is called tenor.

Types of Bill of Exchange on the Basis of Object:

On the basis of purpose of writing the bills, the bills can be classified as:
1. Trade Bills
2. Accommodation Bills

Trade Bills:
These bills are drawn and accepted against the sale and purchase of goods on credit. These are
drawn by the seller (creditor) and accepted by the buyer (debtor).

Accommodation Bills:
Such bills do not involve any sale and purchase of goods, rather they are drawn without any
consideration. The purpose of such bills is to help one party or both the parties financially.

Classification of Bills of Exchange:

The bills can be classified into two classes given as under:

Inland Bill:
These bills are drawn in a country upon person living in the same country or made payable in the
same country. Both drawer and the drawee reside in the same country.

Foreign Bills:
These bills are drawn in one country and accepted and payable in another country, e.g. a bill drawn
in England and accepted and payable in India.

Treasury bills
Short-term (usually less than one year, typically three months) maturity promissory
note issued by a national (federal) government as a primary instrument for
regulating money supply and raising funds via open market operations. Issued

through the country's central bank, T-bills commonly pay no explicit interest but are
sold at a discount, their yield being the difference between the purchase price and
the par-value (also called redemption value). This yield is closely watched
by financial markets and affects the yield on municipal and corporate
bonds and bank interest rates. Although their yield is lower than on
other securities with similar maturities, T-bills are very popular with institutional
investors because, being backed by the government's full faith and credit, they come
closest to a risk free investment. Issued first time in 1877 in the UK and in 1929 in
the US.

Use this term in a sentence

The treasury bill was finally issued, after months and months of arguing and
disagreeing with one another in the company.

Per capita income, also known as income per person, is the mean income of
the people in an economic unit such as a country or city. It is calculated by taking
a measure of all sources of income in the aggregate (such as GDP or Gross
national income) and dividing it by the total population.
1.

In economics, personal income refers to an individual's total earnings from

wages, investment enterprises, and other ventures. It is the sum of all
the incomes actually received by all the individuals or household during a given
period.

1.

Disposable income is total personal income minus personal current taxes.

In national accounts definitions, personal income minus personal current taxes
equals disposable personal income.

different types of expenditures

Capital Expenditure is an amount incurred for acquiring the long term assets such as land, building,
equipments which are continually used for the purpose of earning revenue. These are not meant for
sale. These costs are recorded in accounts namely Plant, Property, Equipment. Benefits from such
expenditure are spread over several accounting years.
E.g. Interest on capital paid, Expenditure on purchase or installation of an asset, brokerage and
commission paid.
Revenue Expenditure is the expenditure incurred in one accounting year and the benefits from which
is also enjoyed in the same period only. This expenditure does not increase the earning capacity of
the business but maintains the existing earning capacity of the business. It included all the expenses
which are incurred during day to day running of business. The benefits of this expenditure are for
short period and are not forwarded to the next year. This expenditure is on recurring nature.

Eg: Purchase of raw material, selling and distribution expenses, Salaries, wages etc.