Indian Economy – Important Terminology Part 2nd

Revenue Deficit :- It defines that, where the net amount received (by tax & other forms) fails to meet the predicted net amount to be received by the government.

Gross Domestic Product (GDP) :- The Gross Domestic Product (GDP) is a measure of all of the services and goods produced in a country over a specific period; classically a year.

Gross National Product (GNP) :- Gross National Product is measured as GDP plus income of residents from investments made abroad minus income earned by foreigners in domestic market.

National Income :- National Income is the money value of all goods and services produced in a country during the year.

Per Capita Income :- The national income of a country, or region, divided by its population.

Vote on Account :- A vote – on account is basically a statement, where the government presents an estimate of a sum required to meet the expenditure that it incurs during the first three to four months of an election financial year until a new government is in place, to keep the machinery running.

Difference between Vote – on Account and Interim Budget  :- Vote – on account deals only with the expenditure side of the government’s budget, an Interim Budget is a complete set of accounts, including both expenditure and receipts.

Banc assurance :- It is the term used to describe the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank sales channels in order to sell insurance products.

Banking Ombudsman Scheme :- The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks.

Capital Account Convertibility (CAC) :- It is the freedom to convert local financial assets into foreign financial assets and vice versa at market determined rates of exchange.

More terminology to be continued soon…………………..