Economics

  Meaning of Budget   A government budget is an annual financial statement that estimates the government's receipts and expenditures for the fiscal year  There are two components of govt budget – Revenue budget and Capital Budget.  Key Components of the Budget: Revenue Budget: This deals with the government's regular income and expenses. Revenue Receipts:   These are receipts that do not increase government liabilities or decrease assets (e.g., taxes, interest receipts, dividends).   Revenue Expenditure:   These are expenses that do not create assets or reduce liabilities (e.g., salaries, subsidies, interest payments).   Capital Budget: This focuses on transactions that affect the government's assets and liabilities. Capital Receipts:   These receipts either create liabilities (borrowings) or reduce assets (disinvestment).   Capital Expenditure:   These expenses either create assets (infrastructure) or reduce liabilities. Objectives...

  Development Path - A Snapshot View All three countries had started planning their development strategies in similar ways. India announced its first Five Year Plan for 1951–56,  Pakistan announced its first five-year plan, now called the Medium Term Development Plan, in 1956.  China announced its First Five Year Plan in 1953. India and Pakistan adopted similar strategies, such as creating a large public sector and raising public expenditure on social development. Till the 1980s, all three countries had similar growth rates and per capita incomes. China Great Leap Forward (GLF) campaign Initiated in 1958 aimed at industrializing the country on a massive scale.  People were encouraged to set up industries in their backyards. In rural areas, communes were started. Under the  Commune system , people collectively cultivated lands. GLF campaign met with many problems: A severe drought caused havoc in China killing about 30 million people.  When Russia had confli...