Financial and monetary policy of the State and its impact on the income level and poverty reduction in Russia

2020 ◽  
Vol 26 (5) ◽  
pp. 964-990
Author(s):  
N.I. Kulikov ◽  
V.L. Parkhomenko ◽  
Akun Anna Stefani Rozi Mobio
Keyword(s):  
Monetary Policy ◽  
Household Income ◽  
Poverty Reduction ◽  
The State ◽  
Financial Policy ◽  
Gdp Growth ◽  
Tax Rate ◽  
Gdp Growth Rate ◽  
The Government ◽  
The Impact

Subject. We assess the impact of tight financial and monetary policy of the government of the Russian Federation and the Bank of Russia on the level of household income and poverty reduction in Russia. Objectives. The purpose of the study is to analyze the results of financial and monetary policy in Russia and determine why the situation with household income and poverty has not changed for the recent six years, and the GDP growth rate in Russia is significantly lagging behind the global average. Methods. The study employs methods of analysis of scientific and information base, and synthesis of obtained data. The methodology and theoretical framework draw upon works of domestic and foreign scientists on economic and financial support to economy and population’s income. Results. We offer measures for liberalization of the financial and monetary policy of the government and the Central Bank to ensure changes in the structure of the Russian economy. The proposed alternative economic and financial policy of the State will enable the growth of real incomes of the population, poverty reduction by half by 2024, and annual GDP growth up to 6 per cent. Conclusions. It is crucial to change budget priorities, increase the salaries of public employees, introduce a progressive tax rate for individuals; to reduce the key rate to the value of annual inflation and limit the bank margin. The country needs a phased program to increase the population's income, which will ensure consumer demand.

scholarly journals Domestic Debt and Economic Growth in Tanzania

2018 ◽  
Vol 1 (1) ◽  
pp. p207
Author(s):  
Josephat Lotto ◽  
Catherine T. Mmari
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Gdp Growth ◽  
Gdp Growth Rate ◽  
Domestic Debt ◽  
Negative Effect ◽  
The Government ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

The main objective of this paper was to examine the impact of domestic debt on economic growth in Tanzania for the period 1990 to 2015 using Ordinary Least Square (OLS) regression method to estimate the effects. The study finds that there is an inverse but insignificant relationship between domestic debt and the economic growth of Tanzania as measured by GDP annual growth. The inverse relationship between domestic debt and GDP may be caused by different factors such as; increased trend in domestic borrowing, government lenders’ profile dominated by commercial banks and non-bank financial institutions which promotes the “crowding out” effect; the nature of the instruments used by the government ; the improper use of the domestic borrowed funds which may include funding budgetary deficits, paying up principal and matured obligations on debt, developing financial markets as well as fund other government operations. Other control variables relate with the GDP as predicted. For example, Inflation (INF) has a negative effect on the GDP growth rate, but the relationship is not statistically significant, while gross capital formation (GCF) has a positive statistically significant effect on GDP growth rate. Furthermore, foreign direct investment (FDI) showed a positive effect on the GDP growth rate and export (X) has a positive effect on GDP growth rate, and the relationship is statistically significant explaining that if a country applied an export-led growth economic strategy it enjoys the gains of participating in the world market. This means that an increase in export stimulates demand for goods which leads to increase in output, and as a country’s output increases, the economic performance also takes a similar trend. Finally, government expenditure (GE) had a negative effect on the GDP growth rate which may be explained by the increased government expenditures which are funded by either tax or borrowing. Therefore, what is required for countries like Tanzania is to have better debt management strategies as well as prudential financial management while maintaining to remain within the internationally acceptable debt level of 45% of GDP and maintain a GDP growth rate of not less than 5%. It is important for the country to realize from where to borrow from, the tenure, the risks involved and limitations to borrowing and thus set the right balance of combination of both kinds of debt. Another requirement is to properly utilize the borrowed funds. The central government’s objective should be to use the funds in more development-oriented projects that bring positive returns to the economic development.  The government should not only create a right environment and policies for investment to attract investment from domestic and foreign sources but also be cautious about the kind of investments that the foreign investors make.

scholarly journals Current Economic Situation of India: Impact of COVID-19

2020 ◽  
Author(s):  
Indubaran Mandal
Keyword(s):  
Growth Rate ◽  
Household Income ◽  
Small And Medium Enterprises ◽  
Gdp Growth ◽  
Health Crisis ◽  
Indian Economy ◽  
Gdp Growth Rate ◽  
Current Economic Situation ◽  
Medium Enterprises ◽  
The Impact

The outbreak of the COVID-19 pandemic has greatly impacted the Indian Economy. The economy was already in a parlous state before COVID-19 struck. The prolonged lockdown in India will have a sizeable impact on the economy mainly on consumption which is the biggest component of GDP. The magnitude of the economic impact will depend upon the duration and severity of the health crisis, the duration of the lockdown and the manner in which the situation unfolds once the lockdown is lifted. In this paper we will discuss the impact of COVID-19 on various sector economy such as Tourism, Micro, Small and Medium Enterprises: Education and analyze the situation by using some indicators like the GDP growth rate, unemployment rate, Industrial Production, household income etc. This work mainly focuses on the situation in India pre-crises and during the crises to help understand the downturns and challenges faced by Indian Economy.

scholarly journals Whether Fiscal Stance or Monetary Policy is Effective for Economic Growth in Case of South Asian Countries?

2008 ◽  
Vol 47 (4II) ◽  
pp. 791-799 ◽  
Author(s):  
Shahid Ali ◽  
Somia Irum ◽  
Asghar Ali
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Asian Countries ◽  
Policy Mix ◽  
Monetary Policies ◽  
Tax Rate ◽  
The Government ◽  
The Impact ◽  
Fiscal And Monetary Policy

Monetary policy and fiscal policy are sister strategies that can be used alone and in combination to direct the economic goals. In the literature relative efficacy of fiscal and monetary policy has been studied extensively. Friedman and Meiselman (1963), Ansari (1996), Reynolds (2000, 2001), Chari, et al. (1991, 1998), Schmitt and Uribe (2001a), Shapiro and Watson (1988), Blanchard and Perroti (1996), Christiano, et al. (1996), Chari and Kehoe (1998), Kim (1997), Chowdhury (1986, 1988), Chowdhury, et al. (1986), Weeks (1999), Feldstein (2002) and Cardia (1991) have examined the impact of fiscal and monetary policies on various economic aggregates. However, the bulk of theoretical and empirical research has not reached on conclusion concerning the relative power of fiscal and monetary policy to effect economic growth. Some researchers find support for the monetarist view, which suggests that monetary policy generally has a greater impact on economic growth and dominates fiscal policy in terms of its impact on investment and growth. [Friedman and Meiselman (1963); Ajaye (1974); Elliot (1975); Batten and Hafer (1983)], while other argued that fiscal stimulates are crucial for economic growth. [Chowdhury (1986); Olaloye and Ikhide (1995)], On the other hand, according to Cardia (1991) macroeconomic activities are largely explained by some other variables. The experiment of 1970s clearly demonstrates that a policy mix produced only stagflation. Some economist took keen interest in money by combining Keynesian neoclassical mixture which is called the “funnel” theory by James Tobin. The argument was that tax rate and money growth simultaneously leads to stagflation thus the Government could choose either fiscal or monetary policy stimulus which will enhance growth. [Reynolds (2001)].

SOCIO-ECONOMIC EMPOWERMENT OF WOMEN THROUGH MICRO CREDIT: AN EMPIRICAL STUDY

2021 ◽  
pp. 58-60
Author(s):  
T. Indumathi ◽  
G. Savaraiah
Keyword(s):  
Rural Women ◽  
Poverty Reduction ◽  
Rural Poverty ◽  
Poverty Line ◽  
Economic Empowerment ◽  
Political Empowerment ◽  
The Poor ◽  
The Government ◽  
The Impact ◽  
Micro Credit

The World Bank's Andhra Pradesh Rural Poverty Reduction Project supports the self helf groups of the women members. It promotes women's social, economic, legal and political empowerment to reduce poverty among the poor and the poorest of the poor. The important object of this article is to examine the impact of micronance on the socio economic empowerment of the rural women supported by the national reputed NGO- Rashtriya Seva Samithi (RASS). 184 women members of the SHGs promoted by Rasthriya Seva Samathi (RASS) an NGO which located in Tirupati town. 184 samples are selected randomly from 15 SHGs scattered throughout the Tirupati rural mandal (Taluk) from the area of the study have been considered to conduct the present research study. The study reveals that 87.71 percent of the sample women were below the poverty line before joining the SHGs. As a result of SHG, about 40 percent of the sample women crossed the poverty line. The highest intensive value indicates that more women have participated in social agitations for the welfare of the children and the society. The second highest intensity reveals that considerable numbers of women of SHGs have participated in the government sponsored schemes. The 1st point secured 3rd rank with total intensity value of 605 which status that the micro credit has resulted in increased social status and empowerment.

Kazakhstan: Assessment of Renewable Energy Support and a Green Economy

2021 ◽  
Vol 12 (3) ◽  
pp. 631
Author(s):  
Sergey BESPALYY
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Power Plants ◽  
Renewable Energy Sources ◽  
The State ◽  
Green Economy ◽  
Energy Sources ◽  
Environmentally Sustainable ◽  
The Government ◽  
The Impact

The growth of renewable energy sources (RES) shows the desire of the government of Kazakhstan to meet challenges that affect the welfare and development of the state. National targets, government programs, policies influence renewable energy strategies. In the future, renewable energy technologies will act as sources of a green economy and sustainable economic growth. The state policy in the field of energy in Kazakhstan is aimed at improving the conditions for the development and support of renewable energy sources, amendments are being made to provide for the holding of auctions for new RES projects, which replaces the previously existing system of fixed tariffs. It is expected that the costs of traditional power plants for the purchase of renewable energy will skyrocket, provided that the goals in the field of renewable generation are achieved. This article provides an assessment of international experience in supporting renewable energy sources, as well as analyzes the current situation in the development of renewable energy in Kazakhstan and the impact on sustainable development and popularization of the «green» economy. The study shows that by supporting the development of renewable energy sources, economic growth is possible, which is achieved in an environmentally sustainable way.

Changes in Income Distribution in Brazil

2018 ◽  
Author(s):  
Rodolfo Hoffmann
Keyword(s):  
Income Inequality ◽  
Household Income ◽  
Gini Index ◽  
Military Coup ◽  
Transfer Programs ◽  
Per Capita ◽  
The Government ◽  
The Military ◽  
The Impact ◽  
Very High

Income inequality in Brazil, already high, increased after the military coup of 1964 and remained very high even after democratization in the 1980s. It decreased substantially in the period 2001–2014, after inflation was controlled. The Gini index of the per capita household income dropped from 0.594 in 2001 to 0.513 in 2014. The determinants of this decline in inequality are analyzed considering the components of that income and how each one affected changes in inequality, showing the impact of changes in the remuneration of private sector employees and in pensions paid by the government, as well as federal transfer programs. Changes in education lie behind the first of these effects, and the increase of the minimum wage reinforced all three. The economic crises after 2014 interrupted the process of decline, and among economically active persons, inequality even increased from 2014 to 2015. Measures to further reduce inequality are suggested.

scholarly journals Impact of Implementation of Goods and Service Tax on Indian Banking Sector

2018 ◽  
pp. 18-32
Author(s):  
Revathi R. ◽  
Madhushree ◽  
P. S. Aithal
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Value Added ◽  
Tax System ◽  
Tax Rate ◽  
Bank Branches ◽  
Goods And Services ◽  
The Government ◽  
One Year ◽  
The Impact

The banking sector is one of the biggest and revenue generating sector in our economy. Indiais a country with impressively splendid banks with sufficient capital and well-regulated rulesand regulations. One of the biggest transformations that the sector faced during this period isGST i.e., Goods and Service Tax, a new tax regime introduced in the midnight of 1 July2017. Now the new tax regime has become one year old and there are so many changeswhich happened in the banking sector during this one-year periods. Introduction of GST tothe banking sector was one the highly risky and challenging role for the government. GST isa replacement to the Value Added Tax (VAT) which was implied on goods and services. Themain purpose of studying the impact of implementation of GST is to avoid double taxationon goods and services. It is a self-regulated tax system with a simplifies tax regime whichreduces the multiplicity of tax. The purpose of this study is to know the challenges faced bythe Banking sector and its effects on the customers after the implementation of the GST.New tax regime made an incredible step by the abolish of centralized registration of thebanks. Now all the bank branches have to register under GST in each state for the smoothfunctioning. The tax rate has created an impression in the banking sector that the sector iscontributing much toward the economic growth of the country. Tax slabs is anotherimportant and critical thing discussed in this paper which has substantially increasedcompared to the old tax regime. Data for the study have been collected from secondary datasources such as journals, internet, and news articles. Using the ABCD qualitative analysistechnique, advantages, benefits, constraints, and disadvantages for both banks and thecustomers for payment of GST are identified.

scholarly journals FINANCIAL INCLUSION AND POVERTY ALLEVIATION AMONG SMALLHOLDER FARMERS IN ZIMBABWE

2020 ◽  
Vol 8 (3) ◽  
pp. 168-182
Author(s):  
David Mhlanga ◽  
◽  
Steven Henry Dunga ◽  
Tankiso Moloi ◽  
◽  
...  
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Poverty Reduction ◽  
Smallholder Farmers ◽  
Financial Education ◽  
Financial Inclusion ◽  
Strong Impact ◽  
Development Goals ◽  
The Government ◽  
The Impact

The study sought to investigate the impact of financial inclusion on poverty reduction in Zimbabwe among the smallholder farmers. It is alleged that financial inclusion can help in achieving seven of the seventeen sustainable development goals (SDGs), which include poverty eradication in all its forms everywhere, ending hunger, achieving food security, ensuring improved nutrition as well as promoting sustainable agriculture and many others. Using the simple regression method, the study discovered that financial inclusion has a strong impact on poverty reduction among smallholder farmers. The study went on to discover that, for the government to tackle poverty especially among the smallholder farmers, it is important to ensure that farmers do participate in the financial sector through saving, borrowing and taking out insurance among other services. So, it is important for the government of Zimbabwe to fully implement policies that encourage financial inclusion such as making sure that farmers find it easy to access financial institutions and encouraging financial institutions to review transaction costs like bank account opening charges periodically, implementing financial education programs among the farmers because these variables are important in influencing farmers to participate or preventing them from using financial services.

scholarly journals Warlords, the United States, and the state of anarchy in Afghanistan

2021 ◽  
Vol 6 (2) ◽  
Author(s):  
Ahmad Shah Azami
Keyword(s):  
United States ◽  
The United States ◽  
State Building ◽  
The State ◽  
Negative Consequences ◽  
Human Rights Abuses ◽  
Illegal Mining ◽  
The Us ◽  
The Government ◽  
The Impact

As part of its “War on Terror”, the United States (US) provided immense sums of money and advanced equipment to Afghan warlords in order to defeat and dismantle the Taliban and al-Qaeda in Afghanistan. Nearly two decades after the 2001 US-led intervention in Afghanistan that toppled the Taliban regime, the US continues supporting the warlords in various ways. As the intervention was also aimed at establishing a functioning state and reconstruction of the war-torn country, the US needed the support of local warlords to achieve its goals. However, over time, warlords and warlordism became a major challenge to the postTaliban state-building project and in many ways undermined the overall security and the state monopoly on violence. These warlords, who had been mostly expelled and defeated by the Taliban regime, returned under the aegis of the B52 bombers, recaptured parts of the country and reestablished their fiefdoms with US support and resources. They not only resist giving up the power and prestige they have accumulated over the past few years, but also hamper the effort to improve governance and enact necessary reforms in the country. In addition, many of them run their private militias and have been accused of serious human rights abuses as well as drug trafficking, arms smuggling, illegal mining and extortion in the areas under their control or influence. In many ways, they challenge the government authority and have become a major hurdle to the country’s emerging from lawlessness and anarchy. This paper explores the emergence and reemergence of warlords in Afghanistan as well as the evolution of chaos and anarchy in the country, especially after the US-led intervention of late 2001. It also analyzes the impact of the post-9/11 US support to Afghan warlords and its negative consequences for the overall stability and the US-led state-building process in Afghanistan.

ANTI-CRISIS STATE REGULATION OF BUSINESS IN THE CONTEXT OF A PANDEMIC: RESULTS AND PROBLEMS

2021 ◽  
Vol 1 (4) ◽  
pp. 73-79
Author(s):  
E. V. KHOMUTOVA ◽  
◽  
N. F. SHCHUKINА ◽  
Keyword(s):  
Economic Crisis ◽  
State Regulation ◽  
The State ◽  
Global Economic Crisis ◽  
The Government ◽  
The Impact

The article is devoted to the study of the results of state regulation of business in the context of a pandemic and the associated global economic crisis. The impact of the system of anti-crisis measures, implemented by the Government of Russia, to support small and medium-sized businesses has been studied. The problems of development and survival of enterprises in a crisis economy are identified and the ways of their solution are proposed. The measures taken by the state to prevent massive bankruptcies during the pandemic are considered.

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