ECONOMIC

ANALYSIS
GROUP MEMBERS:

ROHAN NIKAM - 013096

BABITHA SHETTY - 013097
MEET BHANUSHALI - 013098
APRIT POOJARY - 013099
AKSHAY PILLAI - 013100
TEJASHREE GHORPADE - 013116
ARCHANA PILLAI - 013117
V. SWARNA LAKSHMI - 013118
SWAPNIL MALI - 013121

 SAVINGS

Savings is the portion of current

income not spent on consumption.

INVESTMENTS

Investing is the purchase of assets

with the goal of increasing future
income.

RISK, RETURN, AND

LIQUIDITY
Savings
1. Low risk
2. Low return
3. High
liquidity

Investments
1. High risk
2. High return
3. Low liquidity

INFLATION

INCREASE IN
DEMAND OF
GOODS AND
SERVICES

DECREASE IN
SUPPLY OF
GOODS AND
SERVICES

INCREASE IN
MONEY SUPPLY
IN THE
ECONOMY

1. INCREASE IN PUBLIC EXPENDITURE

2. INCREASE IN PRIVATE EXPENDITURE
3. INCREASE IN CONSUMER SPENDING
4. REDUCTION IN TAXES
5. REPAYMENT OF PAST INTERNAL DEBTS
6. INCREASE IN POPULATION
7. INCREASE IN EXPORTS
8. DEFICIT FINANCING

1. INDUSTRIAL DISPUTES
2. SHORTAGE OF FACTORS OF PRODUCTION
3. NATURAL CALAMITIES

4. HOARDING OF GOODS

MONETARY
MEASURES

OTHER POLICIES

FISCAL
MEASURES

These measures are adopted by central bank of india

(RBI) to control the money supply.
INCREASE IN BANK RATES

Bank rate is the interest rate in which a nations central bank lends
money to the domestic banks this is done to control money supply in
the economy and the banking sector. Any increase in the bank rate
by the rbi is an indication that bank should also increase deposit
rates and should increase the lending rate, this kind of reduced
money supply helps to reduce the inflationary pressure on the
economy.

SALE OF GOVERNMENT SECURITIES IN OPEN MARKET

Government controls the money supply by issuing governemnt

securities in public. It is issued by government to raise money to pay
for its expenses, these are bonds and debenures which have a certain
maturity period. These bonds lock purchacing power of the public.
INCREASE IN CRR

Banks in india have to keep a ceratin amount of deposit in the form

of cash, however banks do not hold these as cash with themselves but
deposit such cash with rbi currency chest which is considered as
holding money. This minimum cash is known as crr. The remaining
cash that bank can use is known as credit creation capacity of the
bank

THE FISCAL MEASURES ARE TAKEN TO AFEECT

THE PURCHASING POWER WITH THE PUBLIC.
GOVERNMENT EXPENDITURE
TAXATION
PUBLIC BORROWING
DEBT MANAGEMENT
OVERVATUATION OF CURRENCY

DEMOGRAPHIC
1. Demographic change in India is opening up new
economic opportunities.
2. As in many countries, declining infant and child
mortality helped to spark lower fertility, effectively
resulting in a temporary baby boom.
3. Theoretical and empirical literature on the effect of
demographics on labor supply, savings, and economic
growth underpins this effort to understand and forecast
economic growth in India.

DEMOGRAPHIC CHANGE AND

ECONOMIC GROWTH
1. Age Structure.
2.Fertility and Birth Rates.
3. Demographic Implications.
4. Demographic transitions.

5. The Future Human Population

BUDGET

What is BUDGET?

Importance of Budget

It sets a framework for policy formulation.

It helps the government to plan for the economy in

economic issues such as sources of funds.

It ensures that citizens know how their taxes are used.

It is a tool of accountability.

It helps in making appropriate decision making by the

government.

It helps the government in implementing some of the

policies which will favour the budget.

It helps to forecast future trends in the economy.

The national budget helps in comparing the trends of

financial flow in the country.

COMPONENTS OF BUDGET

RECEIPTS

a.

CAPITAL RECEIPTS.

b.

REVENUE RECEIPTS.

EXPENDITURES

a.

CAPITAL EXPENDITURES

b.

REVENUE EXPENDITURES

A. REVENUE RECEIPTS (1+2)

1. TAX REVENUE
2. NON-TAX REVENUE

B. CAPITAL RECEIPTS (3+4+5)

3. RECOVERY OF LOAN

4. OTHER RECEIPTS
5. BORROWING AND OTHER LIABILITIES

C. TOTAL RECEIPTS (A+B)

D. REVENUE EXPENDITURE (6+7)

6. ON NON-PLAN ACCOUNT
7. ON PLAN ACCOUNT
E. CAPITAL EXPENDITURE (8+9)
8. ON NON-PLAN ACCOUNT
9. ON PLAN ACCOUNT
F. TOTAL EXPENSE (D+E)
G. BUDGET DEFICIT (F-C)
H. REVENUE DEFICIT (D-A)

Balance of Payments

(BOP)

Record of all economic transactions.

In a particular period.

Transactions made by individuals, firms and

government bodies.

Summation of country's current demand and supply

Factors of BOP

Imports and Exports.

Prepared in domestic currency.

Exports are receipts.

Imports are payments.

Receipts and payments should be equal.

Importance of BOP

It presents the international financial position of the

country.

Helps in planning the future financial activities.

Consistent deficit in BOP has a negative effect on

exchange rate.

It represents a countrys growth each year.

EXCHANGE RATE

What is Exchange Rate?

What is appreciation?

What is depreciation?

INSTRUMENTS

Spot Exchange Rate: Spot rate of exchange refers to

the price of foreign currency in terms of domestic currency
payable for the immediate delivery of the foreign currency.

Forward Exchange Rate: Forward rate refers to a

contract to buy or sell foreign currency at a fixed date in future
at a price agreed at present.

TYPES

Float

Pegged Float

Fixed Float

Monetary Policy
What is Monetary Policy?
Who lays down the Monetary Policy?

OBJECTIVES
Price

Stability

Balance

Economic
Growth

of

Objective
s

Promote
Efficiency

Payments

Equal

Income
Distribution

TOOLS
CRR

Reverse
Repo
Rate

Repo
Rate

SLR

Bank
Rate

MEANING OF FISCAL
POLICY
Fiscal policy is concerned with the raising of
government revenue and incurring of government
expenditure
Fiscal policy has to decide on the size and pattern of
flow of expenditure from the government to the economy
and from the economy back to the government.

 So, in broad term fiscal policy refers to "that segment

of national economic policy which is primarily
concerned with the receipts and expenditure of central
government."
In other words, fiscal policy refers to the policy of the
government with regard to taxation, public expenditure
and public borrowings.
Fiscal policy is a powerful weapon in the hands of
government by means of which it can achieve the
objectives of development.

Main Objectives of Fiscal Policy in

India
1. Efficient allocation of Financial Resources
2. Reduction in inequalities of Income and Wealth
3. Employment Generation
4. Balanced Regional Development
5. Reducing the Deficit in the Balance of Payment
6. Capital Formation
7. Increasing National Income

8. Development of Infrastructure

Thank You

&