Skip to main content

Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...
Post a Comment

Public finance-Role

PUBLIC FINANCE -ROLE
In modern times , public finance has assumed great economic and social importance in both developed and developing countries due to increasing functions of state.
The main role of public finance in the economy is mentioned as under :
a)Economic system - In General theory , the government should interfere in the Economic activities in order to save capitalist economy from ill effects of trade cycles.
The objective of public finance is to increase or decrease effective demand to attain economic goals of the country  and in order to achieve these national objectives in mixed economy ,there is no harm in adopting deficit budget .
In socialist economy, all economic activities are completely understand the control of government. Therefore the economic activities are completely performed through public finance.
b)Developed countries : The government has to play important role in developed economy during the periods of trade cycles. Thus economic stability and maintenance of full employment are two goals of public finance in developed countries.
c)Developing countries:In developing countries,the aim of public finance is to achieve economic development along with stability and social justice  by improving the economic life,reducing regional imbalances.
d) Capital formation: Deficiency of capital is major obstacle in the way of economic development of underdeveloped countries.Capital formation means increasing saving and investment in the country. By mobilising resources of government through taxation , borrowing resources can be made available for investment also.
e) Economic stability:It means avoidance of inflationary and deflationary conditions. It also implies stability in economic activity,income output,employment. The government can achieve objective by adopting the policies of government expenditure , compensatory expenditure during depression , reducing unproductive non development expenditure during inflation.
f) Employment: Through public expenditure,employment opportunities can be increased. It can be generated by setting up of new industries,encouraging small scale industries and cottage industries.
g)Regional imbalances: This objectives can be achieved by diverting private industries in rural areas through the provision of cheap credit , power , transport .
h) Inequalities of income and wealth :Wide gap exists between rich and poor in developing countries. This can be reduced by fiscal measures of taxation and public expenditure. Heavy taxes should be imposed on rich and luxurious goods. The resources collected from these should be used for increasing real income of poor.
I) Improving economic life of poor: The economic conditions of poor can be improved through government activities -
•Taxation policy can be adopted to influence productive activities of people.
•Government can spend it's revenue to provide Better amenities to common people.
•Through financial policies, government can reduce gap between rich and poor.
•By taxing luxurious goods, the demand for these goods can be reduced.
•The government can divert it's resources to production of necessities .
•Government can discourage the usage of harmful goods like liquor or intoxicants.
•By establishing industries in public sector ,production of goods of mass consumption , should be available for poor at cheaper rates.
•Government can introduce various schemes of employment generation and poverty eradication.
j) Curbing undesirable consumption: Consumption of undesirable goods like liquor, cigarette, opium is harmful from social point of view. These should be discouraged by heavy taxes .
k) Satisfaction of social wants : Wants such as roads, bridges , public health , food , electricity are social wants and Merit wants such as educational , free medical facilities , low cost housing are satisfied by the government through its expenditure.

Comments

Post a Comment

Popular posts from this blog

THE WORLD BANK

THE WORLD BANK Origin of the bank The International Bank for Reconstruction and Development (IBRD) or The World Bank was established in 1945 under the Bretton Woods Agreement of 1944 to assist in bringing about a smooth transition from a war time to peace time economy . Membership of the Fund The members of the International Monetary Fund are the members of IBRD. It had 180 members in 2015.If a country resigns its membership, it is required to pay back all the loans with interest on due dates. If the Bank incurs financial loss in the years in which member resigns, it is required to pay its share of loss on demand. Functions of the Bank a)To assist in the development of territories of its members by facilitating tthe investment of capital. b)To encourage the development of productive facilities and resources ib less development countries. c)To promote foreign investment by means of guarantees on participation in loans. d)To supplement private investment by providing finance for product...
Post a Comment
Read more

Foreign exchange market

Foreign Exchange Market Foreign exchange market refers to the market for national currencies of different countries in the world. It is described as the centre of Trade for different currencies. Buyers and sellers in foreign exchange market wish to buy or sell foreign exchange. Functions a)It implies transfer of purchase power in terms of foreign exchange across different countries of the world. b)It implies provision of credit in terms of foreign exchange for the export and import of goods and services across different countries of the world. c)It implies protection against risk relate to variations in the foreign exchange rate. Operation It operates either as spot market or as forward Market a)Spot market :Spot market for foreign exchange is that market which handles only spot transaction or current transaction.It is also called as current market. Characteristics a)Spot market is of daily nature. It does not trade in future deliveries. b)The rate of exchange which is determined in S...
Post a Comment
Read more

GATT

General aggreement on tariffs and trade GATT Introduction The GATT emerged in Havana in the year 1947-48 as the allied owners thought of having a liberal world trading system after World War 2nd.Fifty three nations drew up and signed a charter for Establishing International Trade Organisation ITO . But due to the negligence of Havana centre by Congress , it never came into existence. Simultaneously, 23 nations agreed to continue extensive tariffs and trade. This was signed on October 30, 1947 and came into force from January 1,1948 when other nations had also signed it. In the year 1995 ,GATT disappeared and passed into history when it was merged in the World Trade Organization . Meaning:  GATT was a multilateral treaty which had been signed by 96 government known as contracting parties. It was multinational treaty which covered 80% of world trade. It was decision making body with a code of rules for conduct of International Trade, and mechanisms for trade liberalisation. The contr...
Post a Comment
Read more