As the government's revenue from taxes and other sources fall short of its spending requirements, the government resorts to borrowings from markets and external sources. Public debt is the total liabilities of the central government contracted against the Consolidated Fund of India. It is further classified into internal & external debt. Internal debt is categorised into marketable and non-marketable securities. Marketable government securities include G-secs and T-Bills issued through auction. Non-marketable securities include intermediate treasury bills issued to state government's, special securities issued to national Small Savings Fund among others. Based on the spending targets and likely resource mobilisation on tax and non-tax front, the government announces its borrowing programme for the fiscal in the Budget. What is the size of Public Debt? The size of the government debt is important as a sizeable chunk of annual payments (around 25 per cent) is just the interest … [Read more...] about What constitutes Public Debt?
"A person should buy everything by first saving and then buying, rather than buying on credit. If cards are used, it should only be for convenience. Debit cards will fit the bill here. There are many wallets like Paytm, Phone pe and others, which are very convenient and do not create liability," Sadagopan said. … [Read more...] about Got a new job? Check out these five money tips
By Baiju Kalesh and Suvashree Ghosh Shriram Capital Ltd. has held off a plan to merge with its shadow lending arms after the Reserve Bank of India requested the group to cut its stake in its insurance business, according to people familiar with the matter. The unlisted Shriram Capital, which counts billionaire Ajay Piramal and private equity firm TPG Capital as investors, was planning to combine with its publicly traded units Shriram Transport Finance Co. and Shriram City Union Finance Ltd. The proposal would have effectively turned the merged entity into a shadow lender along with a 77% stake in life and general ventures. The central bank was concerned because insurance business isn’t typically the remit of a non-bank financier, said the people, who asked not to be identified as the discussions were private. The banking regulator has recommended non-bank financiers including Shriram to lower their holdings in insurance business to 50% or below, the people said. The … [Read more...] about Shriram Capital halts three-way merger after RBI request
Softening the demonetisation blow, the Budget for 2017-18 on Wednesday halved the tax to 5 per cent on incomes up to Rs 500,000 but proposed a new surcharge of 10 per cent on incomes between Rs 50 lakh and Rs 1 crore and raised duties on cigarettes and pan masala while stepping up allocations for infrastructure, rural, agriculture and social sectors. … [Read more...] about HIGHLIGHTS: Union Budget 2017-18