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Fourteenth Finance Commission - Fiscal Consolidation
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In this lecture, Bhavin discusses recommendation given by FFC on fiscal targets. He explains terminolgies related to fiscal policy as well as recommendations in detail with relevant examples.

Bhavin Sangoi
BA Political Science and Psychology, Mumbai University. Teaching Polity, Economics and international relations for 7 years.

U
Unacademy user
its fabulous mam. so why we celebrate new year on janury
Fiscal Deficit means Total expenditure - Total non debt creating receipts. In other words market borrowings aressubtracted from Budget deficit. In lecture I have said "Fiscal deficit means Budget deficit + market Borrowing and future liability which is a mistake. It should have been "Fiscal deficit means Budget deficit - Market borrowings and liabilities. Apologies for the goof up.
Sir if possible please make videos on other topics of 14 FC.it will be very useful for us
What a nice teacher we got here in the form of Bhavin Sir.....My salute to your great teaching and commitment sir....
very useful lectures thanks sr
Z
Great lecture sir
  1. Course Name: In-depth study of Centre State Relations Lesson Name: Fourteenth Finance commission - II Presented by Bhavin Sangoi


  2. About me B.A in Political Science & Psychology Appeared in UPSC CSE Mains Teaching Indian Polity, International Relations, economics &mental Ability since 5 years Experience of teaching for various competitive exams such as NTSE, CET& UPSC Rate, Review and Recommend Follow me on: https://Unacademy.in/user/BhavinSangoi


  3. Fiscal Consolidation Fiscal deficit for union Fiscal deficit for union government should be 3% of from the year 2016-17 to 2019-20 Rationalization of direct taxes and GST will help to eliminate revenue deficit much before 2019-20


  4. Continued Fiscal deficit of states will be 3% GSDP. Flexibility of 0.25% can be allowed over this target for fixing borrowing limit if their debt to GSDP ratio is less than or equal to 25% in the preceding year


  5. Additional borrowing limit of 0.25% of GSDP can be allowed to fix borrowing limit if the interest payment are less than or equal to 10% of revenue receipt of previous year


  6. Continued The flexibility in availing the additional limit under either of the two options or both will be available to a state only if there is no revenue deficit in the year in which borrowing limits are to be fixed and the immediately preceding year


  7. If a state is not able to fully utilise its santionced borrowing limit of 3% of GSDP in any particular year during first four year of award period (2015-16 to 2018-19), it will have the option of availing this unutilized borrowing amount(in Rupees) in the following year but within the award period of FFC