Banking Awareness: Important Topics Fiscal Policy and FRBM Act, 2003 for IBPS, SBI and Other Bank tests

Fiscal Policy and FRBM Act, 2003

Fiscal Policy
The part of the government policy, which is concerned with raising revenue through taxation and with deciding on the amount and purpose of government spending. Fiscal Policy is the means, by which a government adjust its level of revenue and spending in order to monitor and influence and nation's economy in a mixed economy, a part from the private sector, then is the government, which plays a very important role. The role of the government in promoting economic development came into vogue after "The great depression" and is essentially a Keynesian prescription. Later Dr. Parthsarthi Scheme Committee was appointed in this regard to form various guidelines and recommendations for GAAR Policy.

Fiscal Policy, essentially has a multidimensional role. However, in India, in the centre of indicative planning.It influences growth performance of economy mainly by influencing the resource mobilisation and influencing the efficiency of resources allocation. It has two objectives.

• 1) Improving the growth performance of the economy.
• 2) Ensuring social justice to the people.

FRBM Act, 2003

The Fiscal Responsibility and Budget Management Act, 2003 (FRBM Act) has been amended as part of the Finance Bill, 2012. It has introduced two concepts to reform the expenditure aspect of the fiscal policy. FRBM Act was passed by the Union Government to provide a legislative control over the fiscal situation of the country, which had deteriorated earlier. 

The Salient Features of FRBM:

Government to annually reduce revenue deficit by 0.5% and fiscal deficit by 0.3% of GDP starting from 2004-05. Prohibits RBI from printing money to lend to the government. Elimination of revenue deficit and reducing fiscal deficit 3% of GDP by 31st March, 2009. Annually present macro-economic frame work statement, medium term fiscal policy statement and fiscal policy strategy statement. Under exceptional circumstances government may breach the target, but the Finance Minister will be required to make a statement in both houses of Parliament explaining the reasons. While some success was achieved in containing fiscal deficit in the few years after passing this law, as the fiscal deficit came down to 2.5% of GDP by 2008, due to economic slowdown post 2008, deficit have again shot up and the government has been struggling to bring them under control.

Assessment of Government Deficits:

Assessment of Government deficits can be done on following basis

Fiscal Deficit: It is the difference between what the government earns and its total expenditure.

Fiscal Deficit = Revenue receipts (Net tax revenue + Non-tax revenue) + Capital receipts - Total expenditure (Plan and Non-plan)

Revenue Deficit: It is the difference between the revenue receipt on tax and non-tax side and the revenue expenditure. Revenue expenditure is synonymous with consumption and non-development.

Revenue Deficit = Revenue expenditure - Revenue receipts.

Banking Awareness: Important Banking Awareness Topics for IBPS, SBI and Other Bank tests

Important Banking Awareness Topis

Current Account:

Current account is that account, which records imports and exports of goods and services and uni-literal transfers. The current account is used to mark the inflow and outflow of goods and services into a country. Earnings on investments, both public and private, are also put into the current account.

Components of Current Account:

Current Account records the following transactions

• Export and import of goods (or of visible items)
• Export and import of services (or of invisible items)
• Uni-literal transfers from one country to the other.

In the context of current account Balance of Payment following are some important observations:

• All exports are recorded as positive (+) items as these result in the flow of foreign exchange into the country.
• All imports are recorded as negative (-) items as these cause the flow of foreign exchange out of the country.
• Balance occurring on account of export and import of goods is regarded as balance of visible trade.
• Balance occurring on account of export and import of services is recorded as balance of invisible trade.
• Receipts of uni-lateral transfers are recorded as positive items.
• Payments of uni-lateral transfers are recorded as negative items.

Capital Account:

It is that account, which records all such transactions between residents of a country and rest of the world, which causes a change in the asset or liability status of the residents of a country or its government. Investments (FDI and FII) and Borrowings (ECB etc) are part of the capital account.

Foreign Investment:

Foreign investment means a investment into production or business in a country by an individual or company in another country for profit earning. Typically, foreign investment denotes that foreigners take a some what active role in management as a part of their investment. Foreign investment typically works both ways, especially between countries of relatively equal economic stature. Foreign investment on the basis of nature can be categorised into two types

• Foreign Direct Investment (FDI)
• Foreign Portfolio Investment (FPI)

Foreign Institutional Investment (FII):

These are investments by entities from outside the country into the financial assets like debts and shares of companies from a different country, in which they are incorporated. FIIs (Foreign Institutional Investment) are required to register with SEBI (Security and Exchange Board of India) and any foreign individual wanting to invest into India has to come through one of these FIIs.

Participatory Notes(P-Notes):

These are financial instruments used by investors or hedge funds that are not registered with the securities and exchange board of India to invest in Indian securities. India-based brokerages buy notes to foreign investors. Any dividends or capital gains collected from the underlying securities go back to the investors.

Capital Account Convertibility in India:

Capital account convertibility (CAC) for Indian economy refers to the abolition of all limitations with respect to the movement of capital from India to different countries across the globe. According to the Tarapore Committee, capital account convertibility refers to the freedom to convert local financial assets into foreign financial assets and vice-versa at market determined rates of exchange. It is associated with changes of ownership in foreign/domestic financial assets and liabilities and embodies the creation and liquidation of claims on or by the rest of the world.

Fire Control Operator and Functions of Fire Control Operators for CISF (Fire) Aspirants

Fire Control Operator and Functions of Fire Control Operators

Fire Control Operator: 
Fire Control operators work as a team. Each individual, in the team, ensures that all of them work in unison and collaboration. They are prepared to counter any adversity so carefully that the least harm is caused to life and property.

Functions of Fire Control Operators:

A fire controller takes every resident, worker and passenger to secure places. A fire controller acts on emergency calls. He/She rescues those trapped in inflamed houses, traffic accidents, floods etc. Sometimes the emergency callers also need help. A fire control operator assists such callers by instructing them on phone. He has to take necessary information from the caller. Accurate address and nature of accident must be known so that suitable rescue equipments are taken to the spot. Suitable equipments and a team of officers, according to the nature of mishap, must be conducted to the spot. Fire control operators must stay connected, with each other and with fireman, through radio service, so that they, remaining at the centre, may co-ordinate with other agencies, such as, police, ambulance, etc,. The operator contributes in emergency operations by gathering and disseminating special information. He has to record or document all activities and information related to an ongoing emergency operation.

Emergency has several manifestations. Therefore, a fire control operator must maintain balance of mind and respond quickly in case of an accident/mishap. A fire control operator is trained to handle all kinds of mis-happenings, apart from fire. A nervous or an aggressive or a perturbed caller must be handled in a calm and composed manner.

Working Environment:

Fire fighting control room is spacious, well ventilated, air conditioned, secure and equipped with modern computerised communication and radio devices. Here, the control staff is always alert and ready to handle emergency round the clock. Sometimes the nature of work is stressful but they are trained to overcome stress or strain. The stratified system of work is based on 42 hours shift which includes 9 hours duty during the day and 15 hours duty during the night. According to the work cycle, one has to work for 2 days, then 2 nights and then follows 4 day rest (this includes the weekend). Sometimes part-time work is also possible. The Department staff are given a beautiful uniform.

Daily Activities:

Fire Control operators are responsible for protecting a large number of people and on an average, every year thousands of emergency calls are acted upon. Any operator, apart from fireman, may be called to operated equipments. They can be called not only in case of fire, but in cases of road accidents, chemical emission, air, sea or rail accidents, trapped animals. They have to communicate with police, ambulance, life boat team and other officers, almost every day.

Furthermore, the operators are also required to ensure that all information have been transformed into a systematic data and see whether they have been completed. Public relation is also an important ingredient of this services. Operators are expected to participate in exhibitions and keep contact with important persons, native groups and the members of public. They also have to reply to the queries of the press.

Article on Fire Safety and Security by Pratap Singh for Defence, CISF and BSF Aspirants

Article on Fire Safety and Security by Pratap Singh(IPS)

Fire Security and fire fighting is a complex and important service for the society. Actually, fire fighting is a highly competitive field. Initially, those, who aspire to join this service, have to go through rigorous training for 15 to 20 weeks. During this training, they are instructed the fundamental skills of a fireman, e.g., use of fire fighting weapons and equipments, ladder safety, use of respiratory equipments etc. A fireman is also trained in the skill of establishing fire security in the community. In fact, training is a continuous process imparted at relevant intervals, and it includes instructions related to handling of transportation problems and disaster mitigation measures executed by the fire fighting department, provided throughout the tenure of their service.

There are thousands of candidates who apply for the job of fireman, every year. They must pass three tests. A candidate must keep himself physically fir and agile for a long time. In other words, he must have alacrity and physical tenacity so that he is capable of undertaking prolonged rescue operations. If you have the right fire fighting equipments, your team would be safe for long durations. Apart from this, they are also trained in enhancing their efficiency in the profession. If firemen are provided proper fire fighting training facilities, especially, in a controlled environment they get a golden opportunity to hone up their skills. There are a few companies which provided equipments to the fire fighting department. This facilitates the efforts for dealing with precarious situation. Firemen, by engaging in mock-drills, may study the effectiveness of the equipments of the fire fighting department. There is also the need of devising techniques for convenient performance of their tasks.

In a controlled situation you can have the advantage of the training and possibly you may get hold of an advanced device which is popular these days. There are a variety of fire extinguishing devices available in a few shops where they demonstrate how the devices are to be used, so that your fire fighting team accomplishes its task without aggravating the injuries. You have the alternative of fixed or portable fire simulators. You have to decide which one is most suitable for you. If your fire fighting equipments are connected with the L.P.G. technique, fire fighting would become easier and the effectiveness of training will further increase.

If you find that fire fighting devices are not available on the market, then you have the option of procuring them on-line. Very often, the manufactures exhibit their fire fighting products and also explain their working. These exhibitions give you opportunities to assess the new technology and training ingredients available on the market. So far as maintenance is concerned, the fire fighting devices are not expensive. They are so manufactured that they are convenient to use. There are various training equipments related to fire fighting, such as, Raben system, Hawk system, Eagle system etc. You have to approach the right place where these new devices are available and also the training facilities are available. Fire fighting devices are so designed that their maintenance cost is very low.
                                                                                                                          by
                                                                                                                     Pratap Singh (IPS)
                                                                                                              Senior Fire safety Officer