Ranotosh7

@Ranotosh7

  • Ranotosh Banerjee
  • 313 karma

Marketing... Final cutoff.. Anyone pls post !!

  • how much u got... 17 Oct '15.
  • @vksamual77 136.5. 18 Oct '15.
santosh.perali
Santosh Perali @santosh.perali
Important que.:A decrease in tax to GDP ratio of a country denotes which of the following(CSE 2015 que.) a)slowing economic growth rate b)less equitable distribution of national income a only,b only,both,none???
Ranotosh7
Ranotosh Banerjee @Ranotosh7

@x47bsaltydog U have taken a lot of wrong assumptions for ur answer. However, u r entitled to your opinion. Respect that

santosh.perali
Santosh Perali @santosh.perali
Important que.:A decrease in tax to GDP ratio of a country denotes which of the following(CSE 2015 que.) a)slowing economic growth rate b)less equitable distribution of national income a only,b only,both,none???
Ranotosh7
Ranotosh Banerjee @Ranotosh7

Ohkkk. Lets Settle this once & for all :

Lets consider the point of less equitable distribution of income,

The rich are getting richer & the poor are staying poor.

GDP is increasing but tax revenue is staying constant (Or any likewise scenario)

If the income of the rich is increasing, it is going to be taxed at a higher rate (30% corporate tax/ increasing income tax brackets).

Lets Consider a hypothetical scenario:

GDP= 100, Distribution to Poor: 30, Rich=70.

Tax Bracket: Rich: 20%, Poor: 10% (I am considering a simplistic scenario, without slab tax structure, Indirect Taxes, etc.)

Now, total tax collection= 30*10% + 70*20% = 17.

Tax:GDP Ratio = 17/100 = 0.17

Now, Alternative scenario 1 : Inequitable distribution of income

Rich = 80, Poor = 20.

Tax: 80*20% + 20*10% = 18

Tax: GDP = 18/100 = 0.18 (It increased)

Alternative Scenario 2: Equitable Distribution:

Rich = 60, Poor = 40.

Tax: 60*20% + 40*10% = 16

Tax: GDP = 16/100 = 0.16 (It decreased)

There obviously are other possible scenarios when B may hold, due to certain assumptions, but as this one scenario is contradictory to that inference, u cannot mark B on the answer sheet (Well, u can if u want negative marks )

Cheers

santosh.perali
Santosh Perali @santosh.perali
Important que.:A decrease in tax to GDP ratio of a country denotes which of the following(CSE 2015 que.) a)slowing economic growth rate b)less equitable distribution of national income a only,b only,both,none???
Ranotosh7
Ranotosh Banerjee @Ranotosh7

MAkes No sense at all. If anyone can please explain !!

santosh.perali
Santosh Perali @santosh.perali
Important que.:A decrease in tax to GDP ratio of a country denotes which of the following(CSE 2015 que.) a)slowing economic growth rate b)less equitable distribution of national income a only,b only,both,none???
Ranotosh7
Ranotosh Banerjee @Ranotosh7

@asabicute As both sides of the ratio have the same unit, u can reduce it to a fraction, so a decrease is denoted by a decrease in the fractional value of the ratios.

Now, the ratio could have been altered due to change in nominal values of GDP or Tax revenue. The situations are explained in my earlier comment.

But yes, Nothing can be inferred ... Cheers

santosh.perali
Santosh Perali @santosh.perali
Important que.:A decrease in tax to GDP ratio of a country denotes which of the following(CSE 2015 que.) a)slowing economic growth rate b)less equitable distribution of national income a only,b only,both,none???
Ranotosh7
Ranotosh Banerjee @Ranotosh7

@santosh.perali No, I didnt attempt CSE this year, Was a bit too content with my present job :P. Will attempt in 2016. Prep is on

Cutoff is around 105 (+- 3). Tough Luck. There is always a Next Year

I have not attempted RBI, neither will I in the future, However, I did solve the last years paper & was getting arnd 52/80 in the GA section. (Dont remember the kind of qstns asked, so, maybe u were right abt the factual qstns part)

Cheers

santosh.perali
Santosh Perali @santosh.perali
Important que.:A decrease in tax to GDP ratio of a country denotes which of the following(CSE 2015 que.) a)slowing economic growth rate b)less equitable distribution of national income a only,b only,both,none???
Ranotosh7
Ranotosh Banerjee @Ranotosh7

@santosh.perali Thanks. Expect these sort of questions in Prelims, Mains is gonna be a bit more technical I guess . Cheers & All the best

santosh.perali
Santosh Perali @santosh.perali
Important que.:A decrease in tax to GDP ratio of a country denotes which of the following(CSE 2015 que.) a)slowing economic growth rate b)less equitable distribution of national income a only,b only,both,none???
Ranotosh7
Ranotosh Banerjee @Ranotosh7

I'll bite onto this one

There are 3 possible reasons for the decrease in tax to GDP ratio.

1. Decrease in tax collection with GDP staying constant   2. Increase in GDP with tax collection staying constant. Or,  3. Growth in GDP outstripping the growth in tax collection. Maybe both are decreasing, but GDP decreasing at a slower rate than tax revenues of maybe both are increasing, with GDP increasing faster.

Now, you cannot infer A, due to possibility 2 & 3. (High rate of GDP growth)

Also, as we have a progressive Income tax scheme, less taxes cant mean inequitable distribution. Hence we cant infer B either.

So, it leaves us with none of the above.

We can only draw an inference if the same applies to all possible situations, & as the same inst applicable here, correct answer is NONE

maude
Maud @maude
Puys I need some advice! Is reading Uma Kapila advisable coz I am at a bookstore and that book is thee real shit. I am actually kinda scared to read beyond the first few pages, is ramesh Singh's Indian Economy not enough? Any help is much appreciated!
Ranotosh7
Ranotosh Banerjee @Ranotosh7

However, as per my analysis, the questions are pretty conceptual in nature. U need to have a pretty good grasp on the concepts to score well. I m pretty sure that they aren't gonna ask about the total budgeted expenditure on mnrega. However they might ask you about how the budget is prepared or abt fiscal/primary deficit, ways to finance the same & likes. So, don't just worry abt reading books, look for clear understanding. Ramesh Singh does cover the syllabus, if u are able to clearly understand everything, look no further, if u can't understand concepts while reading the book, look for simpler books (day to day economics, sriram IAS, Sanjeev verma etc.) All books r written by good authors, no point doubting the content. Pick one that suits your learning style. Waise Ramesh Singh is sufficient (if u understand everything given in the book). I felt a bit lost when reading RS for the first time, so read the simpler books & then got back to it. All the best