Economy

. Capital Account Convertibility is a feature of a nation’s financial  regime that centers on the ability to conduct transactions of local financial assets (money, stocks, bonds,  real estate, FDI, FII, account receivable, inventory etc) into foreign financial assets freely and at market  determined exchange rates. In layman’s terms, full capital account convertibility allows local … Read more

(A)National investment fund The cabinet Committee on Economic Affairs (CCEA) on 27th January,  2005 had approved the constitution of a National Investment Fund (NIF). The Purpose of the fund was to  receive disinvestment proceeds of central public sector enterprises and to invest the same to generate  earnings without depleting the corpus. The earnings of the … Read more

Tax Avoidance is an area of concern across the world.  The rules are framed in different  countries to minimize such avoidance of tax.  Such rules in simple terms are known as ‘General Anti  Avoidance Rules’ or GAAR. Thus, GAAR is a set of general rules enacted so as to check the tax avoidance.  It empowers … Read more

(A) Performance budget Unlike the traditional line item budget, a performance budget reflects the  goal/objectives of the organization and spells out performance targets. These targets are sought to be achieved through a strategy(s). A Performance Budget gives an indication of how the funds spent are expected to give outputs and ultimately the outcomes. However, performance … Read more

. It refers to the effect of tax avoidance strategies used by  multinational corporations on countries’ tax basis. The term was used for the first time by OECD. In an  increasingly interconnected world, national tax laws have not kept pace with global corporations, fluid  capital, and the digital economy, leaving gaps that can be exploited … Read more