BANKING SECTOR

EXIM Bank
The Export Import Bank of India
(1982) was set up for financing,
facilitating and promoting
foreign trade in India.
IDBI
 The Industrial Development
Bank of India was established
on 1964. It is the apex bank for
industrial finance in India.
SIDBI
Small Industries Development
Bank of India is a wholly owned subsidiary of
IDBI. It was established for
the promotion, financing and
development of industries in
the small scale sector.
SIDBI started its operation
from 2nd April 1990.

CENVAT: Central Value Added Tax (CENVAT) is an excise duty
levied on manufacturers. It is designed to reduce the cascading
effect of indirect taxes on final products.

Peak Rate: Maximum rate of customs duty which is applied on any item.
Performance Budget: It is a compilation of activities of
various departments and ministries.
Plan expenditure: Money given from the government's
account for the central plan is called plan expenditure. It
includes both revenue and capital expenditure of the
government on the Central Plan, Central assistance to state and
union territory plans.
Plan outlay: Plan outlay is the amount for expenditure on
projects, schemes and programmes announced in the plan.

Pump priming: A stimulating monetary or fiscal policy to set
in motion an expansionary multiplier process.
Revenue Budget: Consists of the revenue receipts and
revenue expenditure of the government.
Revenue Deficit: Excess of revenue expenditure over revenue receipts.
Revenue Expenditure: Expenditure incurred for the normal
running of government departments and various services,
interest charges on debt incurred by the government and
subsidies. This expenditure does not result in creation of
assets. All grants given to state governments and other
parties are also treated as revenue expenditure, even though
some of the grants may be for creation of assets.
Revenue Receipt: Proceeds of taxes and other duties levied
by the Centre, interest and dividend on investments made by
the government, fees and other receipts for services rendered
by the government.
Regressive tax: A tax in which the poor pay a larger
percentage of income than the rich.
Revised estimates: Usually given in the following budget, it
is the difference between the budget estimates and the actual
figures.


Twin Deficits: Deficits that include both the government
budget deficit and trade deficit.
Tariff: A tax applied to imports.
Value-Added Tax (VAT): This is a tax levied on a firm as a
percentage of its value added, to avoid the multiplying effect of
taxes as the product passes through different stages of
production. The tax is based on the difference between the
value of the output and the value of the inputs used to produce it.
Zero Based Budgeting: Method of budgeting in which all
expenses must be justified for each new period. In traditional
budgeting, departmental managers justify only increases over
the previous year budget and what has been already spent is
automatically sanctioned. In contrast, Zero-based budgeting
starts from a "zero base" and every function within an
organization is analyzed for its needs and costs. Budgets are
then built around what is needed for the upcoming period,
regardless of whether the budget is higher or lower than the
previous one.


Economic Committees
 Narasimhan I & II ...................................... Banking Sector reforms
Raja Chelliah .............................................................. Tax Reforms
Venkataswami ......................Deals with the enquiry of tehalka.com
tape exposure of bribery in defence deals.
Vijay Kelkar ................................ Direct and Indirect Tax Structures
 Indira Goswami ................................................ Industrial Sickness
R.S.Sarkaria .............................................Central State relationship
Swaminathan .................................................. Agricultural reforms
Asoka Mehta ........................................ Reforms in Panchayati Raj
Prof.Sukhamony Chakravarthy ........ Studied to review the working
of Indian Monetary System.
Sen ........ Decentralisation of powers to Panchayati Raj Institutions
L.C. Gupta .......................................................... Trading of shares
G.V. Ramakrishna ................................. Disinvestment Commission
 Malhotra Committee ................................... Insurance Privatisation