Interim budget 2014-15

Union finance minister , P.Chidhambaram presented the interim budget 2014-15 in the loksabha on 17 Feb 2014.

This was the 83^rd budget of the union govt and 9^th personal budget by Chidambaram as finance minister.

The highlights of the union budget 2014-15:

Growth:

·        GDP expansion in the 3^rd and 4^thquarters of 2013/14 estimated at 5.2%. Growth for the whole year expected at 4.9%.

Branches of Economics

Branches of Economics :

          The two chief branches of economics are

Micro Economics :

          It examines the behavior of basic elements in the economy, including individual agents (such as households and firms or as buyers, and sellers) and market and their interaction.

Macro Economics :

          It is concerned with how the overall economy works. It studies things as employment, gross domestic product and inflation; the stuff of news stories and government policy debates.

          It studies the economy as a whole and its features like national income, employment, poverty, balance of payments and inflation.

Definition of Economics

Definition of Economics :

          The term economics comes from the Ancient Greek word oikonomia mean management of a household, administration. The term economic process refers to those activities, through which goods and services aimed at satisfying human needs, are producted, distributed and used.

          Economics includes the study of labour, land and investments of money, income and production and taxes and government expenditures.

          Adam Smith, regarded as the father of Economics, defines Economics as, “ The science relating to the laws of production, distribution and exchange.”

Economy

Economy :

Ø The World in its World Development Report (2010) classified the various countries on the basis of Gross National Income (GNI) per capita. [GNI is the same as GNP (Gross National Product) used earlier by World Bank.]

Ø India with its population of 1,177 million in 2009 and with its per capita income of $1180 is among the poorest of the economies of the world. It had a share 17.4% in world population, but accounts for only 2.3% of world GNI on exchange rate basis.

Ø On PPP (Purchasing Power Parity ) basis, India with a per capita GNI of $3,768 continues to be in group of lower middle income economies, but during 2000 and 2009, India is supposed to enter the group of upper middle income countries, very soon.

Ø China has already entered the upper middle income group.