...sector enterprises (PSEs) initiated since 1991 has as yet been quantitatively modest. It is perhaps too early to judge the effects of these initiatives on their financial performance. While the slow pace of the reform can be perceived as an opportunity, there is perhaps merit in carefully reviewing the policy in light of economic theory, and comparative experience. As the bulk of the public investments are in industries with economies of scale and scope (with externalities that in principle invite considerable regulation), this study suggests an alternative institutional arrangement for improving PSEs’ financial performance: mutual stock holding among complementary enterprises tied around a public sector bank to minimise problems of soft budget constraint, dysfunctional legislative and bureaucratic interference, and to encourage close interaction between banks and firms to promote long term economic development. Introduction: Employing about 19 million persons, public sector currently contributes about a quarter of India’s measured domestic output. Administrative departments (including defense) account for about 2/5th of it, the rest comes from a few departmental enterprises (like railways and postal services), and a large number of varied non-departmental enterprises producing a range of goods and services. These include, close to 250 public sector enterprises (PSEs) owned and managed by the central government, mostly in industry and services (excluding the commercial banks and...
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...‘privatisation’. Ever since India launched the New Economic Policy (NEP) in July 1991, disinvestment has been an important policy area. Also, in recent years the issue of disinvestment has come to the fore due to the large scale fiscal deficit that the government has been running up. While presenting this year’s Union Budget, Finance Minister P. Chidambaram proposed estimated divestment proceeds of 40,000 crore for 2013-14, even when the Economic Survey released a few days before the Budget, had suggested that the Government should try to raise at least 25,000 crore every year by divesting its stake in state-run companies to meet the burgeoning fiscal deficit. The Rangarajan Committee expressed the view that in the case of PSUs for which the first sale is yet to be made or where the track record is yet to be established, two methods are recommended: (a) the method of sale by fixing a predetermined share price, and (b) the method of sale through auction among a pre-determined clientele (by way of shortlisting through tenders) as two acceptable and transparent processes for divestiture. In addition, it also identified a third method of transfer of controlling interest in an enterprise to a specific firm or person. It noted that all these methods have their merits and demerits; provide better quality services; reduce political interference, and reduce wastage and optimise resources. In short, the champions of disinvestment believe that the basic difference lies in the management...
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...government uses the policy to affect the economy. Expansionary Fiscal Policy is a type of policy which includes increase in government purchases, a supple decline in taxes, while making an increase in transfer payments. These changes are designed to close the recessionary gap, while increasing economic stimulus packages and they aim to decrease unemployment. The government will introduce Expansionary Fiscal Policy during anticipation of contractions in the business-cycle. Increase in government spending will increase aggregate demand, and aggregate expenditures. The down side to Expansionary Fiscal Policy leads to budget deficits, and will leave the government with smaller surpluses. The idea of changing taxes and government spending during a recession must be compensated by a surplus during booms. “The goal is to keep tax rates stable and allow the deficit to fluctuate over the cycle. It would be a...
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...ECONOMIC of INDONESIA “INFLATION” Created by: Gabriella Vidiananda 0810233017 Ira Ardella Putri 0810233023 Gilang Pradipta 0810233018 Accounting Department Faculty of Economic University of Brawijaya 2011 INFLATION Definition of inflation We often hear the word inflation (level of inflation) on television, in newspapers, magazines, and various other media. Inflation is one of economic symptom that has much attention from the economic expert. In many cases inflation is unbeneficial symptom and the people who has fix salary is the most harm. In principle, the definition or meaning inflation was widely noted scientists and experts in their field. With regard to the definition or meaning of inflation in according to experts, there are some following, in according to Winardi (1995: 235) definition or meaning of inflation is the period in which the purchasing power of the Monetary Union down. Inflation can occur when the amount of money or deposits in circulation is larger than the amount of goods and services. This is often supported by the loss of public confidence in the country vis-à-vis the domestic currency, which then cause symptoms that apply to exchange money to items. According to Bodie, and Marcus (2001: 331), the definition or meaning of inflation is the value at which the price level of goods and services in general has increased. According to Weston and Copeland (1998: 250), definition of inflation is the state of the economy that experienced...
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...for hiring semi-skilled workers, the new iPhone contract required a complex assembly process entirely based on handwork by 325 workers, with 140 steps involving 100 components during 5 days. To anticipate the need for qualified workers, Danshui had raised their factory wages by almost 30%. But even with the wage increase, Danshui was not able to hire enough qualified workers to assemble the complex new product. Another issue was that, based on original modeling, Danshui was actually operating at a loss and was unable to fill the expected 200,000 per month iPhone quota in the first three months. To begin analyzing the root causes for the shortfall, the controller had considered preparing a “flexible budget” to provide a more realistic comparison of the performance to the budget. If the plant does not analyze the root causes of the problems and find the alternatives ways, it will not be able to deliver on the Apple contract, in the short-term, and in the long-term will lead to inefficiency of controlling the material costs, labor and overhead. Problem Statement: Danshui Plant No. 2 faced two major important issues: The fact that for the first three months of the Apple...
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...B7AF104 COST MANAGEMENT Assessment Cost Management Assignment (Shopping Limited) Prepared by: Name ID Number DBS150718739 Nur Iza Carmilla Bt Mohd Diah Section 2.4 10333550 NurKarimah Bt Abd Halim DBS150718748 2.4 10333562 Fitriah Bt Sulaiman DBS150719759 10333514 Prepared for: Mr Syed Azlan Aljaffree Bin Syed Khadzil No of words: 1675 words 1 2.4 CONTENTS PAGE 1.0 EXECUTIVE SUMMARY 3 2.0 QUESTION 1 4 3.0 QUESTION 2 5 4.0 QUESTION 3 4.1 QUESTION 3 (a) 7 4.2 QUESTION 3 (b) 8 5.0 QUESTION 4 9 6.0 CONCLUSION 10 7.0 REFERENCE 11 8.0 INDIVIDUAL CONTRIBUTIONS 12 2 Executive Summary Shopping Limited is family-owned and managed, traditional department store situated in a city in the North of England. The store has four retailing departments which is Furnishing, Kitchenware, Menswear, Toy and Restaurant. Each department is managed by a departmental manager and recently Samantha was appointed to the post of departmental manager of the Toy Department, Albert is the departmental manager of Menswear, Joseph is the departmental manager of Kitchenware, Arthur is the departmental manager of Furnishings and Claude is the departmental manager of Restaurant. Albert may be Samantha’s great uncle, who used to be a Sergeant in the Police Force but they often argue because they seldom agree with each other’s opinions. On the other hand, Claude have an explosive...
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...ACKNOWLEDGMENT WE WOULD LIKE TO EXPRESS OUR GRATTITUDE TO DR.ASHOK PANIGRAHI WHOSE STIMULATING SUGGESTIONS AND ENCOURAGEMENT HELPED US TO COMPLETE THE PROJECT CONTENTS 1. Acknowledgment 2. Introduction to Indian economy 3. Meaning of fiscal policy 4. Need & importance of EP 5. Use of fiscal policy by Indian government 6. Fiscal policy before & after liberalization 7. Indian tax system & fiscal policy 8. Role in development of Indian Economy 9. Shortcomings or deficiencies in our fiscal policy 10.Findings & suggestions on Indian fiscal policy ECONOMY OF INDIA The economy of India is the eleventh largest in the world by nominal GDP and the third largest by purchasing power parity (PPP). The country is one of the G-20 major economies and a member of BRICS. On a per capita income basis, India ranked 140th by nominal GDP and129th by GDP (PPP) in 2011, according to the IMF. After the independence-era Indian economy (before and a little after 1947) was inspired by the Soviet model of economic development, with a large public sector, high import duties combined with interventionist policies, leading to massive inefficiencies and widespread corruption. However, later on India adopted free market principles and liberalized its economy to international trade under the guidance of Manmohan Singh, who then was the Finance Minister of India under the leadership of P.V. Narasimha Rao the...
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...not focus on profitability, since it is not a relevant objective. Ideally, therefore, they should focus on other performance objectives, such as how well the organizations met their service goals. In reality, however, the goal of reporting on how well they have achieved such goals has proven difficult to attain and the financial reports have focused mainly on financially-related data. 2. Governments and not-for-profits are “governed” by the budget, whereas businesses are governed by the marketplace. The budget is the key political and fiscal document of governments and not-for-profits. It determines how an entity obtains its resources and how it allocates them. It encapsulates most key decisions of consequence made by the organization. In a government the budget is not merely a managerial document; it is the law. 3. Owing to the significance of the budget, constituents want assurance that the entity achieves its revenue estimates and complies with its spending mandates. They expect the financial statements to report on how the budget was administered. 4. Interperiod equity is the concept that taxpayers of today pay for the services that they receive and not shift the payment burden to taxpayers of the future. Financial reporting must...
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...How to correct the Balance of Payment ? Solution to correct balance of payment disequilibrium lies in earning more foreign exchange through additional exports or reducing imports. Quantitative changes in exports and imports require policy changes. Such policy measures are in the form of monetary, fiscal and non-monetary measures. Monetary Measures for Correcting the BoP ↓ The monetary methods for correcting disequilibrium in the balance of payment are as follows :- 1. Deflation Deflation means falling prices. Deflation has been used as a measure to correct deficit disequilibrium. A country faces deficit when its imports exceeds exports. Deflation is brought through monetary measures like bank rate policy, open market operations, etc or through fiscal measures like higher taxation, reduction in public expenditure, etc. Deflation would make our items cheaper in foreign market resulting a rise in our exports. At the same time the demands for imports fall due to higher taxation and reduced income. This would built a favourable atmosphere in the balance of payment position. However Deflation can be successful when the exchange rate remains fixed. 2. Exchange Depreciation Exchange depreciation means decline in the rate of exchange of domestic currency in terms of foreign currency. This device implies that a country has adopted a flexible exchange rate policy. Suppose the rate of exchange between Indian rupee and US dollar is $1 = Rs. 40. If India experiences an adverse...
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...[pic] Professional Higher Education Bachelor's Programme “European Business Studies” Course Paper in Economics TITLE Author: _______________ Group D1AX Supervisor:_______________ Riga, Month 2013 TABLE OF CONTENTS 1. Introduction 3 2. Literature survey 4 2.1 The nature of inflation 4 2.2 Methods of measuring inflation 6 2.3 Reasons and consequences of inflation 9 3. Practical rationale for analysing price dynamics in Latvia 13 3.1 Research into the causes of price changes in Latvia 14 3.2 Overall analysis of price dynamics in Latvia 18 3.3 Examination of price dynamics in relation to particular group of products in Latvia 22 4. Conclusions 25 5. Recommendations 26 6. Bibliography 27 7. Appendices 28 LIST OF TABLES, FIGURES AND FORMULAS Formulas Formula 2.1: GDP deflator 7 Formula 2.2: Inflation Rate Equations Formulas Calculator 7 Tables Table 3.1: Compliance with Maastricht criteria 12 Table 3.2: Government deficit 14 Figures Figure 3.2: Nominal and real household consumption 15 Figure 3.3: Household savings 16 Figure 3.4: Inflation in Latvia 1991 - 2012 17 Figure 3.5: Harmonized consumer price index of the EU Member States 18 Figure 3.6: Private consumption and consumer price index 19 Figure 3.7: Changes of producer prices 20 Figure 3.8: Consumer prices, producer prices and deflator's value...
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...Finances Student Guide Hospitality SIT60313 Advanced Diploma of Hospitality Student Id: Student Name: ASSESSMENT 1 - Project Total Assessment 1 length should be 800 - 1500 words. You must accurately reference all of your external sources of information You must complete your answers in spaces provided in this Student Guide TASK You will need to write a report outlining the following: * What methods would you use to plan for financial management including: * What you would analyse in order to find information on previous profit/loss? * How would investigate the reasons for previous profit/loss? * How would you analyse identify future expenses etc…? * How would you analyse cash flow trends? * What requirements might you have in relation to taxation? * What types of software might you need for financial management? * Then discuss the steps involved in creating a budget: * Then you will need to discuss the methods you will use to implement a budget including: * Circulation methods * Risk management * Review methods * Contingencies * Tracking * Compliance and statutory requirements * Identifying types discrepancies ANSWER SHEET (Expandable) Financial managementFinancial management is broadly concerned with the acquisition and use of funds by a business firm. In other words, FM is planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization...
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...Financial budget planning for many states can be a complex issue. The planners are looking at the large scale of things and tend to extend costs of operations to the agencies that perform the daily operations of state government without their input. This lack of input may affect many programs and daily operations when the budgets are submitted. There are many areas that may be under funded, such as salary increase, specific legislative programs of interest like energy reduction, establishing a tobacco free environment on state property, unexpected spikes in utility costs and the unpredictable revenues gained or lost from natural resources such as Oil and Natural Gas or any other resource specific to a state’s gain in revenue. Government Financial Planning State Government will spend a vast amount of time planning for upcoming fiscal years and the budgetary requirements needed to sustain the states operations during that particular fiscal year. Unfortunately many planners look at the big picture only and leave the small details to the individual state agencies to overcome the shortages within their operating budgets that were appropriated and distributed to them through legislation. One of the drawbacks is when legislation passes new requirements such as energy reduction, but fails to include how this new requirement are to be funded and how this type of action impacts the budgets of state agencies especially ones that are already operating on a small budget. Financial...
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...Alexander III, Tsar of Russia, 1881-1889 Alexander III of Russia was born on 26th February 1845. Clumsy and gruff as a child, he grew up to be a man of great physical strength. Everything about him suggested imperial power. He was six feet four inches tall, broad and very strong. Stories circulated about Tsar Alexander bending (and then restraightening) iron fire pokers, crushing silver roubles in his fingers, and tearing packs of cards in half for the entertainment of his children, and about the occasion in 1888 when, after the imperial train was derailed by terrorists at Borki, he held up the wrecked carriage’s roof on his shoulders while his family escaped. (It seems that Alexander’s kidney disease dated back to this incident.) The first tsar to wear a full beard since the time of Peter the Great, whose Europeanising reforms changed fashions to such an extent that untrimmed facial hair had become a sign of a lack of western sophistication, Alexander suited the imperial Russian stereotype. He could be rude and blunt in conversation, and was terrifying when angry. He used foul language when frustrated and senior officials were intimidated by him, though they felt secure when working for him, partly because they were confident of his personal support and partly because Alexander’s physical and personal strength heightened the sense of autocratic might surrounding him. Alexander was the second son of Tsar Alexander II, and as such was not provided with the education necessary...
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...How reasonable are the projections? Obamacare also known as the Affordable Health Care Act is a new United States law designed to reform the American health care system. The main focus is on providing more Americans with access to affordable health insurance by improving the quality of health care, reducing health care spending, and regulating the health insurance industry (ObamaCare, 2014). Analysis Studies indicate that Obamacare has increased the underlying cost of individually purchased health insurance in the average state by 41 percent (Roy, 2014). This is an estimate average however, much research indicates that many different counties have increased premiums in excess of 200 percent rates. According to the Congressional Budget Office (CBO) it doesn’t expect high premium increases over the next year. However, some critics have warned that premiums could increase based on the demographics of the people who sign up for the coverage. It is predicted to rise slightly approximately 100 dollars per year. Premium increases from...
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...securities occurs by the FED. These operations are in the control on the FOMC. So it basically plays a role in providing largest payment system in the world. Every day many transactions occur between the different sellers and purchasers of goods in term of US dollar. It also maintains millions of accounts as well as performing a role in settling and clearing different financial institution payments through intermediaries. FED play a vital role in providing the facility of financial services to depository institutions like distributing currency and coins, transfer funds and securities through clearing house system and collecting checks. FED Role in 2000 on US Economy In 2000 the US federal budget was in surplus that was $236 Billion and more than the preceding years those showed the deficit condition. This surplus then used buy back privately held government debt over the last five years. Due to rising in the oil prices that...
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