- National income is the net value of all the final goods and services produced in a country during a financial year.
- In India the financial year is from 1st April to 31st March. The National income is calculated annually.
- National income is the measurement of the production power of an economic system in a given time period.
Gross Domestic product
- It is the total money value of all final goods and services produced with in the geographical boundaries of the country during a given period of time.
Gross value added
- It is a measure of the value of goods and services produced in an area, industry or sector of an economy.
CSO and NSSO
- In 1951, central statistical organisation (CSO) was constituted to publish National income data.
- National sample survey organisation (NSSO) was set up in 1950, for conducting large scale sample survey to meet the data needs of the country for the estimation of National income and other aggregates.
Indian Tax structure
- Direct tax The term direct tax generally means a tax paid directly to the government by the persons on whom it is imposed.
- Indirect Tax An indirect tax is a tax collected by an intermediary from the person who bears the ultimate economic burden of the tax.
GST (Goods and Services Tax)
The goods and service tax has been implemented from 1st july, 2017. It incorporates many of the indirect taxes levied by states and the central government. Some of the taxes GST replaced include sales tax, central excise duty, octroi, service tax etc. GST has three components:
- CGST (central goods and services act)
- SGST (state goods and services act)
- IGST (integrated goods and services act
National income estimation in India is made by
(a) National statistical institute
(b) Finance Ministry
(c) Reserve Bank of India
(d) Central statistical organisation
The base year for the estimation of National income is
Gross Domestic product is a measure of
(a) a country’s financial position
(b) a country’s industrial output
(c) a country’s international economic activities
(d) a country’s Domestic economic activities
Which country is the biggest trading partner of India
(a) The USA
(b) The UK
Which one among following is not a fixed capital
Annual budget (Annual Financial Statement) is presented in the parliament by
(a) Reserve Bank
(b) Finance Ministry
(c) Commerce Ministry
(D) All of the above
Which of the following regulates foreign exchange under the Foreign Exchange Management Act (FEMA)
(c) Finance Ministry
(d) Commerce Ministry
Who was the chairman of the first Finance commission
(a) K Santhanam
(b) A K Chandra
(c) P V Rajamannar
(d) K C Neogy
Who is the chairman of the 15th Finance commission
(a) N K Singh
(b) K C Pant
(c) C Rangarajan
(d) Montek Singh Ahluwalia