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

Tax -Principles

TAX - PRINCIPLES
According to Adam Smith ,there are four Canons of maxims of taxation on admin side of public finance which are recognised as classic. A good tax according to him are those which contain 
a)Canon of equality : The Canon of equality implies that burden of taxation must be distributed equally according to the ability of the tax payers.Equality of social justice demands that rich people should bear heavier burden of tax and poor a lesser burden.
b)Canon of certainty: Taxation must have element of certainty. According to Adam Smith ,the tax which each individual is bound to pay must to be certain and non arbitrary.T he time of payment , method of payment , amount to be paid should be clear to the contributor.
c)Canon of economy:According to him , Every tax had to be contrived as both to take out and keep out of pockets of people . Indian govt has to maintain an elaborate tax collection machinery with a large staff of highly trained personnel involving low administrative costs and should avoid delay in assessment and collection of tax.
d)Canon of convenience:Every tax ought to be levied at the time or in the manner in which it is most likely convenient for contributor to pay it. It is convenient to pay a tax when it is deducted at source from salaried classes at time of paying salaries .

Economists like Bastable have added few more Canons which are :
e)Canon of elasticity :Taxation should be elastic in nature in sense that more revenue is automatically fetched when income of the people rises. This means that taxation must have built in flexibility,so at the time of any emergency , more revenue can be easily generated.
f)Canon of productivity:This implies that a tax must yield sufficient revenue and not adversely affect production in the country,it should enhances productive capacity of nation.
g)Canon of simplicity:This implies that tax rates and tax systems ought to be simple and comprehensible and not to be complex and beyond the understanding of layman.
h)Canon of diversity:This implies that there should be multiple tax system of diverse nature rather than having a single tax system .In the former case ,the tax payer will not be burdened with high incidence of tax in aggregate.
I)Canon of expediency:This implies that a tax should be determined on the ground of its economic,social and political expediency. For example, a tax in agricultural income lacks social , political or administrative expediency in India and tgat is why the government of India had to discontinue it.
j)Canon of buoyancy:The taxation system should be such that the revenue collected increase or decrease automatically and fairly quickly with an increase of decrease in national income.
k) Canon of Neutrality :Canon of Neutrality implies that taxes should not interfere with otherwise efficiently functioning economic system. In other words , it should not the have inflationary or deflationary effects.
l)Canon of coordination :In modern times , central , state and local government levy taxes separately . There should be coordination in these taxes.
m)Canon of desirability :New taxes should be imposed only for some valid reasons so that their desirability cam be explained to the people.
n)Canon of popularity: Taxation system should be popular so that the government may not any opposition from the people.
o)Canon of administrative efficiency : From the point of view of administrative efficiency ,tax should be based on simple and clear definition. It should brace all types of beneficial receipts of people.


Comments

Post a Comment

Popular posts from this blog

Factors of production

Factors of production  The factors of production viz. land, labour, capital and management when combined in proper proportion and then used wisely can help to achieve higher level of efficiency in farming business. Use of any resource beyond its capacity can result in its rapid depletion and deterioration which may cause severe damage to sustainability of farming. Similarly, under utilization of resources or misutilization of resources may result in high cost of production and thus lower the efficiency of agriculture.  Contribution of Land in agricultural development Land in agriculture may  be used in a restricted sense though is complex and affects agriculture in several ways. It is essential for the habilitation of human beings and other living creatures. It is required for agricultural operation ,development of industries, growth of forest, building, road and rail transportation system on its surface. The contribution of land in agricultural development can be judged ...
Post a Comment
Read more

FUNCTIONS OF MONEY

FUNCTIONS OF MONEY Various functions of Money can be classified into three broad groups: a) Primary functions b) Secondary functions c) Contingent functions d) other functions Primary functions   a) Medium of exchange : Money must be commonly accepted by the people in exchange of goods and services to be successful medium of exchange.Money benefits the society in number of ways as a medium of exchange. -It offers sales and purchases through money. -It promotes transactional efficiency. -It allows freedom of choice . b) Measure of value : Money serves as common measure of value in terms of which value of all goods and services is measured and expressed. It has made transactions easy and simplifies the problem of measuring and comparing prices of goods and services. c) Unit of account : As a unit of account, it helps in developing an efficient accounting system . It provides basis for keeping account ,estimating national income,cost of a project etc. Secondary functions a) Standar...
Post a Comment
Read more

Role of capitalism

ROLE OF CAPITALISM IN DEVELOPING ECONOMY Capitalism is that part of the economics where there is no role of government agencies. The sole supe power of capitalism is in the hands of private owners. This means that if private is working on the behalf of government, instead of social welfare, their main objective is to have profits. Features Lack of intervention of government. Role of private firms. Role of price mechanisms. Advantages Encourages innovation Efficient firm incentives Consumers can choose services of their choice. Prevents government from interrupting. Creates climate of innovation and economic expansion. Helps in increasing GDP. Disadvantages Firms can gain monopoly power. Externalities damages the environment. Prone to boom and bust in the economic cycles. Inequality creates social division. Capitalist market crashes causes economic downturn , uneven business cycles. There is difficulty in mobilising unprofitable sector into profitable sectors. By taking advantage of poo...
Post a Comment
Read more