Tax Expenditure
Economics Student Corner

Tax Expenditure and Budgetary Policies.

Tax Expenditure corresponds to relaxations given when tax burden becomes difficult for the sustainability of a particular sector.  Tax exemptions or incentives are given in the form of lower rates of tax relative to normal rates. Tax expenditures are revenue losses attributable to tax provisions that often result from the use of the tax system to promote social goals without […]

Government Budgeting
Economics Student Corner

Government Budgeting: Indian Budget for Beginners

The term ‘Budget’ is not mentioned in Indian Constitution. The related term mentioned is ‘Annual Financial Statement’. In this post, we explain the basics of Indian Budget and Government Budgeting process for beginners. What are the constitutional requirements which make Budget necessary? Article 265: provides that ‘no tax shall be levied or collected except by […]

Small Finance Banks vs Payment Banks
Economics Student Corner

Differentiated Banks – Small Finance Banks vs Payment Banks

There are two kinds of banking licences that are granted by the Reserve Bank of India – Universal Bank Licence and Differentiated Bank Licence.  Differentiated Banks (niche banks) are banks that serve the needs of a certain demographic segment of the population. Small Finance Banks and Payment Banksare examples of differentiated banks in India. Custodian Banks and Wholesale and Long-Term Finance […]