Management

Administrative Setup and Administrative Culture in Rajasthan.

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Within a state there is generally a four-tier structure of ad- ministration – division, district, taluka/tehsil/block, and village. The district has been so far the most important unit of administration. Some of the states have introduced the system of Panchayati Raj, generally a three-tier structure of local self- government in rural areas at the vil- lage, block and district levels. Two recent constitutional amendments have bestowed on the local bodies in rural and urban areas constitutional status and specific functions including education, covering education upto secondary level, technical training and vocational education, adult and non-formal education. These amendments will strengthen decentralised management of educa- tion at the grass-root level.

 

 

For the administrative ease rajasthan has been devided into following seven devisions:-

 

1          Ajmer Division

2          Bharatpur Division

3          Bikaner Division

4          Jaipur Division

5          Jodhpur Division

6          Kota Division

7          Udaipur Division

 

 

 

Districts of Rajasthan

 

 

 

 

 

 

Citizen’s Charter is a document which represents a systematic effort to focus on the commitment of the Organisation towards its Citizens in respects of Standard of Services, Information, Choice and Consultation, Non-discrimination and Accessibility, Grievance Redress, Courtesy and Value for Money.

The main objective of the exercise to issue the Citizen’s Charter of an organisation is to improve the quality of public services. This is done by letting people know the mandate of the concerned Ministry/ Department/ Organisation, how one can get in touch with its officials, what to expect by way of services and how to seek a remedy if something goes wrong. The Citizen’s Charter does not by itself create new legal rights, but it surely helps in enforcing existing rights. This website provides the details of Citizen’s Charter of various Ministries/ Departments/ Organistions of the Government of India.

The basic objective of the Citizen’s Charter is to empower the citizen in relation to public service delivery. The six principles of the Citizen’s Charter movement as originally framed were:

 

(i) Quality: Improving the quality of services;

 

(ii) Choice: Wherever possible;

 

(iii) Standards: Specifying what to expect and how to act if standards are not met;

 

(iv) Value : For the taxpayers’ money;

 

(v) Accountability: Individuals and Organisations; and

 

(vi) Transparency: Rules/Procedures/Schemes/Grievances.

 

These were later elaborated by the Labour Government as the nine principles of Service Delivery (1998), which are as follows:-

 

  1. Set standards of service

 

  1. Be Open and provide full information

 

  1. Consult and involve

 

  1. Encourage access and the promotion of choice

 

  1. Treat all fairly

 

  1. Put things right when they go wrong

 

  1. Use resources effectively

 

  1. Innovate and improve

 

  1. Work with other providers

Government of Rajasthan(Administrative Reforms and Coordination Department, Jaipur, Rajasthan) manages the citizen charters in the state Following departments have issued there separate charters, which could be accessed from their websites.

 

  1. Registration and Stamps Department, Rajasthan, Ajmer

 

  1. Food and Civil Supplies Department, Rajasthan, Jaipur

 

  1. Revenue Department

 

  1. Local Bodies

 

  1. Transport Department

 

  1. Medical & Health & Associate Hospitals

 

  1. SMS Medical College & Hospital, Jaipur

 

  1. Jawahar Lal Nehru Medical College, Ajmer

 

  1. Psychiatry Centre & Mental Hospital, Jaipur

 

  1. Sir Padampat Mother & Child Health Institute , Jaipur

 

  1. Chest & T.B. Hospital, Jaipur

 

  1. Mahila Chikitsalaya, Jaipur

 

  1. Zenana, Hospital, Jaipur

 

  1. Medical & Health Services (E.S.I) Rajasthan, Jaipur

 

  1. Police Department

 

  1. Rajasthan State Road Transport Corporation, Jaipur

 

  1. Labour Deprtment

 

  1. Factories & Boilers Department

 

  1. Land & Buildings Taxes Department

 

  1. Commercial Taxes Department

 

  1. Bureau of Anticorruption, Rajasthan, Jaipur

 

  1. Command Area Development & Water Utilization Department

 

  1. Mines & Geology Department

 

  1. Literacy & Adult Education Department, Rajasthan, Jaipur

 

  1. Irrigation Department, Rajasthan, Jaipur

 

  1. Animal Husbandry Department

 

  1. Jaipur Vidyut Vitran Nigam Ltd, Jaipur (Jaipur DISCOM)

 

  1. State Insurance & General Provident Fund Department

 

  1. Home Guard & Civil Aviation Department

 

  1. Colonization Department

 

  1. Jaipur Development Authority

 

  1. Women & Child Development Department

 

  1. Secondary Education Department

 

  1. Citizen’s Charter for Divisional Commissioners’ Office

 

  1. Higher Education, Jaipur

 

  1. Panchayati Raj Department

 

  1. Technical Education Department

 

  1. Public Works Department

 

  1. Agriculture Marketing Department

 

  1. Settlement Department

 

  1. Rural Development Department

 

  1. Directorate of Water Shed Development & Soil Conservation Department

 

  1. Fisheries Department

 

  1. Cooperative Department

 

  1. Employment Department

 

  1. Agriculture Marketing Board

 

  1. Public Health Engineering Department

 

  1. Rajasthan State Industrial Development & Investment Corporation Ltd., Jaipur

 

  1. Industries Department, Rajasthan, Jaipur

 

  1. Rajasthan Finance Corporation (RFC)

 

  1. Small Savings Department

 

  1. Vidut Nirikshanalaya Rajasthan, Jaipur (Electrical Inspector, Rajasthan, Jaipur)

 

  1. Agriculture Department, Rajasthan, Jaipur

 

  1. Forest Department

 

  1. Director, Elementary Education, Rajasthan, Bikaner

 

  1. Director, Prosecution, Rajasthan, Jaipur

 

  1. Jail Department, Rajasthan, Jaipur

 

  1. Tourism, Art and Culture Department, Rajasthan, Jaipur

 

  1. Devasthan Department, Rajasthan, Udaipur

 

  1. Excise Department, Rajasthan, Udaipur

 

  1. Director, Horticulture Department, Rajasthan, Jaipur

 

  1. Town Planning Department, Jaipur (JLN Marg).

 

 

The Rajasthan Guaranteed Delivery of Public Services Act, 2011

The Rajasthan Guaranteed Delivery of Public Services Act, 2011 guarantees the delivery of 108 services in 53 areas concerning 15 departments. The time period kept for the delivery of services ranges from one day in the case of removal of animal carcasses from public places to two days for driving licences, 75 days for land use conversion and a maximum of 90 days for sanction of old age pension. Issue of birth/death certificates has been promised in 7-15 days and new ration card in seven days.

 

Right To Information

RTI stands for Right To Information and has been given the status of a fundamental right under Article 19(1) of the Constitution. Article 19 (1) under which every citizen has freedom of speech and expression and have the right to know how the government works, what role does it play, what are its functions and so on.

Right to Information Act empowers every citizen to seek any information, take notes, extracts or certified copies of documents or records, take certified samples of material.

Main Features of Arunachal Economy

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Main Features of Arunachal Economy

Introduction

  • The economy of Arunachal Pradesh is predominantly agrarian. Agriculture and allied activities have overriding importance as a source of livelihood to the people of Arunachal Pradesh.
  • The State’s economy is characterized by persistent stringent financial situation marked by a very low level of State’s own resources co-existing with high level of borrowing.
  • The State has been suffering from impaired economic development due to bottlenecks in development of roads, civil aviation etc. in terms of per capita State Domestic Product and other development indices such as power, road length, Arunachal Pradesh ranks below national average.
  • Arunachal Pradesh is one of the Special Category States and is largely dependent on Central Assistance for Plan investment as the scope of internal mobilization of resources is limited in Arunachal Pradesh in view of low tax base. Therefore, the prime mover of the growth of the economy has been the flow of funds from the Centre.
  • The relatively isolated economies of the tribal communities of the area, which were later reorganized as Arunachal Pradesh, were gradually integrated into the larger economy only after independence, and more particularly after the Indo-China war of 1962. Apart from the relatively late exposure to modernization, another specificity of the historical transformation of the Arunachal economy was the role of the State as the prime mover in this process of gradual transformation and integration of the economy.
  • Arunachal Pradesh has now witnessed remarkable social and economic changes within a comparatively short period of time. The State’s economy has not only experienced a remarkable growth over the past decades, it has diversified from agriculture and forestry based subsistence economy into a market economy.
  • In 1970-71 the per capita Net State Domestic Product (NSDP) of Arunachal Pradesh was 56.14 percent of the per capita national income. Starting from a very low base, Arunachal’s per capita income increased at a faster rate than the country’s national income.
  • The predominantly barter economies are in the process of being transformed into a monetized economy. The market institutions are still underdeveloped in many respects, and there is a great deal of regional variations in the degree of integration with the market economy.
  • There is a significant change in terms of land tenure system, which is steadily leading to individual ownership by making collective ownership (clan, village, community ownership) a marginal phenomenon. In urban or semi-urban areas, land became a commodity for earning cash and ‘brewing social conflicts’
  • Subsistence nature of farming coupled with modern consumption structure is the driving force behind the changing economic institutions in Arunachal Pradesh. The rural urban migration, due to pull factors in the state, has resulted in substantial increase in employment in service sector. Thus, the process of modernization has led to the transformation of the traditional economic institutions in the State.
  • In the context of Arunachal Pradesh, power sector is the most vital infrastructure input for socio- economic development and has assumed centre stage because of huge hydropower potential.
  • At the time of independence there were less than 100 km. of dirt roads. At the time attaining statehood in 1987 the total road length was only 3419 km and today it stands at 21066.36 km i.e., 25.16 km/ 100 sq. km a quantum jump in progress.
  • The prospect of creating an industrial base in the state seems daunting in the light of the ecological and economic specificities of the state. However, a carefully designed strategy for establishing specific industries having strong forward and backward linkages has been envisaged in the New Industrial Policy-2008 of the State.

Economic Reforms

The Government of Arunachal Pradesh has been pursuing economic reforms for speedy development. There has been a significant fiscal correction in the last couple of years. Major reforms initiated by the State are

  • The State has taken various measures to curtail non-plan and unproductive expenditure and to increase State’s Own tax and non-tax revenue. The State’s own tax which was around Rs. 37.00 crore has now jumped to above Rs.80 crore this year. Because of various initiatives in development of hydropower, mines and minerals etc. The non-tax revenue is also increasing substantially.Main Features of Arunachal Economy
  • The State Govt. has enacted the ‘Fiscal Responsibility and Budget Management (FRBM) Act 2006’ and in accordance the ‘Arunachal Pradesh Fiscal Responsibility and Budget Management Rule 2007’ have been framed to ensure prudence in fiscal management.
  • Mobilization of State’s own resource is pre-requisite for financing the annual plan. The Finance Department is in constant touch with revenue generating departments and monitoring meticulously for greater revenue generation.
  • The gross fiscal deficit which was at 13.85% of GSDP in 2004-05 has been reduced to 3.57 in 2007-08. • Serious restrictions have been put for the non-developmental expenditure including the post creation. • The Plan schemes are now being executed in Project Mode with the introduction of the concept of non-divertible earmarked allocation. The State Govt. has constituted very high level committee under the Chairmanship of the Chief Secretary to scrutinize the project proposals.
  • The State Govt. has notified “Hydro Electric Power Policy 2008” to accelerate investments in development of hydro power projects having installed capacity above 25 MW. The Govt. of Arunachal Pradesh had also announced “Small Hydro Power Policy 2007“for small hydro power projects upto an installed capacity of 25 MW.
  • The State PWD has reduced its manpower by 7000 Nos. through VRS. It will lead a saving of Rs. 30.00 crore per year. Other departments with surplus man-power are also working out the modalities.
  • To minimize the burden of committed liabilities of salary, Government of Arunachal Pradesh has transferred 13265 Nos. Plan posts of 37 Nos. departments from 7th Five Year Plan onwards during Annual Plan 2008-09 in the first phase. Transfer of remaining 8 Nos departments as well as committed liabilities of 8 departments will be taken care in the second phase during Annual Plan 2009-10. As a result provision Direction and Administration has been reduced to 27.69% during 2008-09 compared to 44.14% during Annual Plan 2007-008.

 

02.02.18 Arunachal Pradesh(APPSC) Current Affairs

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NORTH-EASTERN STATES

  • Budget brings hope to bamboo-rich northeast

 

  • Bamboo is essentially a type of grass, but its classification as a tree for 90 years prevented the northeast, which grows 67% of India’s bamboo, from exploiting it commercially unlike China, the only country with richer bamboo genetic resources.

 

  • Now Budget 2018 has ignited farm hope for this tree-turned-grass which once fuelled insurgency in the northeastern states. The allocation of ₹1,290 crore for a restructured National Bamboo Mission (NBM) has raised hopes for a range of bamboo-based industries – from food professing to construction.

 

  • Bamboo is a wonder, multi-utility grass that more than 300 ethnic groups in the northeast have traditionally been using in every stages of life, from birth to death, besides it being a delicacy. Bamboo’s commercial journey began when it was struck off the list of trees by amending the Indian Forest Act last year.

 

  • The Budget provision is one of the best initiatives to promote holistic development of bamboo. But the restructured NBM needs to be more focussed on value-chain management and value-addition of bamboo at community level which will bring more income to the bamboo farmers and bamboo processors.

 

 

INTERNATIONAL

 

·        India Slips to 42nd Place On EIU Democracy Index, Norway Tops

 

  • India slipped to 42nd place on an annual Global Democracy Index according to the data compiled by the Economist Intelligence Unit (EIU). India has moved down from 32nd place last year.
  • The top 5 Countries in the list are

    Norway,

    Iceland,

    Sweden,

    New Zealand and

    Denmark

 

  • The index ranks 165 independent states and two territories on the basis of five categories: electoral process and pluralism, civil liberties, the functioning of government, political participation and political culture.

 

  • The list has been divided into four broad categories- full democracy, flawed democracy, the hybrid regime and authoritarian regime.

 

  • North Korea is ranked the lowest at 167th, while Syria is a notch better at 166th place.

 

 

·        India Joins Ashgabat agreement

 

  • India joined Ashgabat Agreement on the establishment of an International Transport and Transit Corridor between the Iran, Oman, Turkmenistan, and Uzbekistan.
  • The agreement was signed in 2011, which envisages facilitation of transit and transportation of goods between Central Asia and the Persian Gulf.
  • According to the External Affairs Ministry, the accession to the Agreement would diversify India’s connectivity options with Central Asia and have a positive influence on its trade and commercial ties with the region.

 

NATIONAL

 

  • Union Budget 2018: Key takeaways and sector-wise highlights

 

  • Finance Minister Arun Jaitley delivered the current government’s fifth and last full financial budget (Budget 2018 for the fiscal year 2018-19) amid subdued economic growth, challenging fiscal situation and farm distress.

 

Here are the key highlights from the Union Budget 2018:

Economic Health

  • Economy firmly on course to achieve high growth of 8%
  • GDP growth at 6.3% in the second quarter of 2017-18 signals turnaround of the economy
  • Growth in the second half likely to remain between 7.2% to 7.5%

Agriculture and Rural Economy

  • MSP for all unannounced Kharif crops increased to 150%
  • Institutional credit for agri-sector increased to Rs.10 lakh crore in 2017-18
  • Fisheries, aquaculture and animal husbandry corpus at Rs.10,000 crore
  • New scheme Operation Greens with an outlay of Rs 500 Crore
  • Govt to develop and upgrade existing 22,000 rural haats
  • Agri-Market Infrastructure Fund with a corpus of Rs.2000 crore
  • Allocation for Ministry of Food Processing doubled to Rs.1400 crore
  • Loans to Self Help Groups (SHG) of women to increase to Rs.75,000 crore by March 2019.
  • Increased allocation of National Rural Livelihood Mission to Rs 5750 crore
  • Under Ujjwala Scheme distribution of free LPG connections will be given to 8 crore poor women
  • Housing for All by 2022 – more than one crore houses to be built by 2019 in rural areas

Education, Health, and Social Protection

  • Estimated budgetary expenditure on health, education and social protection at Rs.1.38 lakh crore
  • Ekalavya Model Residential School to be set up for tribal children
  • Investments for research & infra in premier educational institutions at Rs.1 lakh crore in next 4 years
  • Allocation on National Social Assistance Programme at Rs. 9975 crore
  • NHPS to cover over 10 crore poor and vulnerable families (approximately 50 crore beneficiaries)
  • NHPS to provide coverage up to 5 lakh rupees per family per year for hospitalisation
  • Rs 1200 crore for the National Health Policy, 2017 – additional Rs.600 crore for TB patients
  • 24 new Government Medical Colleges and Hospitals

Medium, Small and Micro Enterprises (MSMEs) and Employment

  • Major thrust for Medium, Small and Micro Enterprises (MSMEs) – allocation at Rs. 3794 crore
  • Target of Rs.3 lakh crore for lending under MUDRA Yojana
  • 70 lakh formal jobs to be created this year
  • Govt to make 12% contribution of new employees in the EPF for all the sectors for 3 years
  • Outlay of Rs.7148 crore for the textile sector
  • Increase budgetary allocation on infrastructure for at Rs.5.97 lakh crore
  • To develop 10 prominent tourist sites into Iconic Tourism destinations
  • 35000 kms road construction in Phase-I at an estimated cost of Rs.5,35,000 crore

Railways

  • Railways Capital Expenditure pegged at Rs.1,48,528 crore
  • 4000 kilometers of electrified railway network slated for commissioning
  • Work on Eastern and Western, dedicated freight corridors
  • Over 3600 km of track renewal targeted in current fiscal
  • Redevelopment of 600 major railway stations
  • Mumbai’s local train network to have 90 kilometers of double line tracks at Rs.11,000 crore cost
  • 150 km of additional suburban network planned for Mumbai
  • Suburban network of 160 km at for Bengaluru metropolis

Air Transport

  • To expand airport capacity more than five times to handle a billion trips a year
  • Regional connectivity – 56 unserved airports and 31 unserved helipads to be connected
  • To establish unified authority for regulating all financial services

Digital Economy

  • NITI Aayog to initiate a national program to direct efforts in artificial intelligence
  • Department of Science & Technology to launch Mission on Cyber-Physical Systems
  • Allocation doubled on Digital India programme to Rs 3073 crore
  • To set up 5 lakh wifi hotspots to provide net-connectivity to five crore rural citizens
  • Rs. 10000 crore for creation and augmentation of telecom infrastructure

Defence

  • Development of two defence industrial production corridors.
  • Allocation of Rs 2.95 lakh crore to defence sector.

Emoluments

  • To revise emoluments to Rs.5 lakh for the President
  • Rs 4 lakhs for the Vice President
  • Rs.3.5 lakh per month to Governor
  • Pay for Members of Parliament – law for automatic revision of emoluments every 5 years
  • 150th Birth Anniversary of Mahatma Gandhi- Rs.150 crore for commemoration programme

Fiscal Management

  • Budget Revised Estimates for Expenditure at Rs.21.57 lakh crore
  • Revised Fiscal Deficit estimates at 3.5% of GDP
  • To bring down Central Government’s Debt to GDP ratio to 40%

Jaitley announces ‘world’s largest healthcare programme’

Finance Minister Arun Jaitley announced two new initiatives under the Ayushman Bharat Programme in the Union Budget 2018.

  • Under the programme, Mr. Jaitley announced a new flagship National Health Protection Scheme, providing a health insurance cover of ₹5 lakh a family per annum.
  • The scheme will cover 10 crore vulnerable families, with approximately 50 crore beneficiaries.
  • Mr. Jaitley also announced the creation of health and wellness centres, which will “bring healthcare closer to home”.
  • These centres, 1.5 lakh in number, will provide free essential drugs and diagnostic services. A sum of Rs. 1200 crore had been allocated for this.

·         Thirty Second Surajkund International Crafts Mela Begins

 

  • The 32nd Surajkund International CraftsMela begun in Faridabad, Haryana.

    The Mela is organized by the Surajkund Mela Authority and Haryana Tourism in collaboration with Union Ministries of Tourism, Textiles, Culture and External Affairs.

    The 17-day cultural extravaganza will see a spectacular showcase of regional and international crafts, handlooms, traditions along with some mouth-watering multi-cuisine food for the visitors.

    This year Uttar Pradesh is the theme state and Kyrgyzstan is the Partner Nation.

25.01.18 Arunachal Pradesh(APPSC) Current Affairs

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NORTH-EASTERN STATES

  • Railways to invest Rs 48,000 crore to boost Northeast infrastructure

 

  • The Railways will invest nearly Rs 48,000 crore in the northeast to boost infrastructure and development in the region.

 

  • Tracks up to Imphal will come up by 2020. the Railways could not expedite work in Meghalaya as local councils are unwilling to part with their land. the Railways has acquired land stretching up to 17 km for train connectivity to Kohima in Nagaland.

 

  • Doubling of tracks in Assam has been sanctioned up to Lumding via Goalpara and the NFR is working to complete the task by 2020. 

    INTERNATIONAL

     

    • Japan’s Development Loan Assistance to India for an amount of Yen 45 billion

     

    • The Government of Japan has committed JICA Official Development Assistance loan for an amount of Yen 45 billion (Rs.2587 crore approx.) for the project.

     

    • The Notes in this regard were exchanged between Mr. S. Selvakumar, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Government of India and H.E. Mr. Kenji Hiramatsu, Ambassador of Japan to India on Japanese official development assistance loan for Bengaluru Water Supply and Sewerage Project (Phase 3) (I).

     

    • This Project will provide residents of Bruhat Bengaluru Mahanagar Palike (BBMP) area especially in 110 villages with safe and stable water supply and sewerage services by carrying-out construction of water treatment plant and sewage treatment plants thereby improving living conditions of the residents as well as the investment environment in the concerned areas in BBMP in the State of Karnataka.

     

    • India and Japan have had a long and fruitful history of bilateral development cooperation since 1958. In the last few years, the economic cooperation between India and Japan has steadily progressed.

     

    • This further consolidates and strengthens the Strategic and Global Partnership between India and Japan.

     

    NATIONAL

     

    ·        Eighth National Voters Day is observed on 25th January

     

    • The Election Commission of India celebrated the 8th National Voters’ Dayacross the country on 25th January for enhanced participation of citizens in the electoral process.
    • The National level function was held in New Delhi.
    • President Ram Nath Kovind gave away awards for best electoral practices to District Collectors, Superintendents of Police and other functionaries involved in election management.

     

    Gk bit – National Voters Day

     

    • National Voters’ Day or Rashtriya Matdata Diwasis celebrated on January 25 every year. The significance of National Voters’ Day is to encourage more young voters to take part in the political process. It is a day to celebrate the right to vote and vibrant democracy of India.

     

    • The day was first celebrated in 2011 to mark Election Commission’s Foundation Day. This will be eighth National Voters’ Day (NVD) and will be used to spread awareness among voters regarding effective participation in the electoral process.

     

    • ECI (Election Commission of India) is permanent and independent constitutional body established directly by Constitution of India to ensure fair and fair elections in the country. It is multi-member body and currently has three members including Chief Election Commissioner (CEC).

     

    • Bharat Parv to be held at Red Fort on Republic Day

     

    • Cultural extravaganza Bharat Parvwill be held at the Red Fort in Delhi as part of the Republic Day celebrations.
    • The prime objective of the event is to promote rich cultural diversity of the country, generate a patriotic mood and to ensure wider participation of the general public.
    • The Bharat Parv event includes a display of Republic Day Parade Tableaux, Performances by Armed Forces Bands, Cultural Performances from a different region.

     

    ·        Union Government To Infuse Over Rs88 Thousand Crore In 20 PSB

     

    • The Union Government announced 88,139 crore rupees capital infusion in20 public sector banks, PSBs, during the current fiscal ending 31st March to boost lending and revive growth.
    • IDBI Bank will get the most- Rs10,610 crore followed by State Bank of India 8,800 crore rupees.
    • The 20 banks that will receive the capital infusion during this phase include Bank of India, UCO Bank, and Punjab National Bank.
    • In October last year, the government had announced over two lakh crore rupees bank recapitalization plan spread over spread over two financial years  2017-18 and 2018-19.

     

    • India to host 16th International Energy Forum meet

     

    • The 16th International Energy Forum (IEF) Ministerial meeting will be held in New Delhi on April 10 to 12.

     

    • It will be hosted by Government of India in New Delhi and co-hosted by the Government of China and South Korea.

     

    • Representatives from 92 countries will be participating in the conference, including 72 member countries of IEF and 20 guest countries.

     

    • India had last hosted the IEF ministerial conference in 1996.

     

    ·        Union Government to increase number of AMRIT pharmacy stores 4 times

    • The Ministry of Health and Family Welfare announced to increase the number of AMRIT pharmacy stores by four times by end of 2018 from the existing 111 outlets in a bid to make low-cost medicines more accessible. So far, 52 lakh patients have been benefited by buying discounted drugs (60 to 90% less than market price) from AMRIT (Affordable medicine and reliable implants for treatment) stores and have saved over Rs. 267 crores.
    • The AMRIT (Affordable medicine and reliable implants for treatment) scheme aims to reduce expenditure incurred by patients on the treatment of cancer.
    • Under it, retail outlets in the name of AMRIT pharmacy are opened to sell drugs for cancer and heart diseases at highly discounted rates on market rates.

     

     

    • SARAS PT1N makes its maiden flight

     

    • SARAS PT1N (14 seater) designed and developed by CSIR-National Aerospace Laboratories (CSIR-NAL), a frontline aerospace research laboratory, has successfully made its maiden flight.

     

    • Union Minister for Science & Technology, Dr. Harsh Vardhan, has congratulated the scientists of CSIR-NAL and other agencies involved in the successful maiden flight.

     

    • The aircraft took off at about 11 a.m from HAL airport and flew for about 40 minutes at the maximum height of 8500 ft at the speed of 145 knots.

     

    • The aircraft programme is named after Indian crane Saras. It was first conceptualised in the 1990s to establish short-haul civil aviation market. The original design of the plane included maximum take-off weight of 6,100kg and a maximum payload of 1,232kg.

     

    • Rapid Reporting System for the Scheme for Adolescent Girls launched

     

    • Secretary, Ministry of Women and Child Development, Shri Rakesh Srivastava launched the Phase -1 i.e. the beneficiary module of the Rapid Reporting System for the Scheme for Adolescent Girls – a web based on line monitoring for the Scheme for Adolescent Girls in New Delhi.

     

    • This Portal has been developed in collaboration with National Informatics Centre (NIC).

     

MANAGEMENT    

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Management is a process of designing and maintaining an environment in which individuals, working together in groups, accomplish selected aims. In other words,”It is the accomplishment of Goals through others.”

Management has been used in different senses. Sometimes it refers to the process of planning, organizing, staffing, directing, coordinating and controlling at other times it is used to describe it as a function of managing people. It is also referred to as a body of knowledge, a practice and discipline.

Different thoughts have been given for Management definition :-

HanriFayol :-“ Father of Modern Management”

He described management as process of functions or functional management.

F.W. Taylor :- “Father of Scientific Management”

According to him, Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way.

Drucker :- Management is combination of Art and science.

 

Scope of Management

Various functional areas of management are:

  • Production management
  • Marketing management
  • Financial management
  • Personal management

Production Management:  

Production means creation of utilities by converting raw material in to final product by various scientific methods and regulations. It is very important field of management. Various sub-areas of the production department are as follows.

Plant lay out and location: This area deals with designing of plant layout, decide about the plant location for various products and providing various plant utilities

Production planning: Managers has to plan about various production policies and production methods.

Material management: This area deals with purchase, storage, issue and control of the material required for production department.

Research and Development: This area deals with research and developmental activities of manufacturing department. Refinement in existing product line or develop a new product are the major activities.

Quality Control: Quality control department works for production of quality product by doing various tests which ensure the customer satisfaction.

 

Marketing Management:

Marketing management involves distribution of the product to the buyers. It may need number of steps. Sub areas are as follows

Advertising: This area deals with advertising of product, introducing new product in market by various means and encourage the customer to buy three products.

Sales management: Sales management deals with fixation of prices, actual transfer of products to the customer after fulfilling certain formalities and after sales services.

Market research: It involves in collection of data related to product demand and performance by research and analysis of market.

 

Finance and accounting management:

Financial and accounting management deals with managerial activities related to procurement and utilization of fund for business purpose. Its sub areas are as follows

Financial accounting: It relates to record keeping of various financial transactions their classification and preparation of financial statements to show the financial position of the organization.

Management accounting: It deals with analysis and interpretation of financial record so that management can take certain decisions on investment plans, return to investors and dividend policy

Taxation: This area deals with various direct and indirect taxes which organization has to pay.

Costing: Costing deals with recording of costs, their classification, analysis and cost control.

 

Personnel Management:

Personnel management is the phase of management which deals with effective use and control of manpower. Following are the sub areas of Personnel management

Personnel planning: This deals with preparation inventory of available manpower and actual requirement of workers in organization.

Recruitment and selection: This deals with hiring and employing human being for various positions as required.

Training and development: Training and development deals with process of making the employees more efficient and effective by arranging training programmes. It helps in making team of competent employees which work for growth of organisation.

Wage administration: It deals in job evaluation, merit rating of jobs and making wage and incentive policy for employees.

Industrial relation: It deals with maintenance of overall employee relation, providing good working conditions and welfare services to employees.

Budgets of Arunachal Pradesh

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Main Features of budgets of Arunachal Pradesh

Constitutional Provision of Budget of State

As per Article 202 of the Constitution of India the Governor of a State shall, cause to be laid before the House or Houses of the Legislature of the State a Statement of the estimated receipts and expenditure of the State for a financial year. This estimated statement of receipt and expenditure for a financial year named in the Constitution as the “Annual Financial Statement” is commonly known as “Budget”

A-202 Annual Financial Statement                                                                              

  1. The Governor shall in respect of every financial year cause to be laid before the House or Houses of the Legislature of the State a statement of the estimated receipts and expenditure of the State for that year, in this Part referred to as the “annual financial statement”.
  2. The estimates of expenditure embodied in the annual financial statement shall show separately—
    1. the sums required to meet expenditure described by this Constitution as expenditure charged upon the Consolidated Fund of the State; and
    2. the sums required to meet other expenditure proposed to be made from the Consolidated Fund of the State; and shall distinguish expenditure on revenue account from other expenditure.
  3. The following expenditure shall be expenditure charged on the Consolidated Fund of each State—
  4. the emoluments and allowances of the Governor and other expenditure relating to his office;
  5. the salaries and allowances of the Speaker and the Deputy Speaker of the Legislative Assembly and, in the case of a State having a Legislative Council, also of the Chairman and the Deputy Chairman of the Legislative Council;
  6. debt charges for which the State is liable including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of loans and the service and redemption of debt;Budgets of Arunachal Pradesh
  7. expenditure in respect of the salaries and allowances of Judges of any High Court;
  8. any sums required to satisfy any judgment, decree or award of any court or arbitral tribunal;
  9. any other expenditure declared by this Constitution, or by the Legislature of the State by law, to be so charged.

A- 203 Procedure in Legislature with respect to estimates

  • So much of the estimates as relates to expenditure charged upon the Consolidated Fund of a State shall not be submitted to the vote of the Legislative Assembly, but nothing in this clause shall be construed as preventing the discussion in the Legislature of any of those estimates.
  • So much of the said estimates as relates to other expenditure shall be submitted in the form of demands for grants to the Legislative Assembly, and the Legislative Assembly shall have power to assent, or to refuse to assent, to any demand, or to assent to any demand subject to a reduction of the amount specified therein
  • No demand for a grant shall be made except on the recommendation of the Governor.

A- 204 Appropriation Bills

(1) As soon as may be after the grants under article 203 have been made by the Assembly, there shall be introduced a Bill to provide for the appropriation out of the Consolidated Fund of the State of all moneys required to meet—

  1. the grants so made by the Assembly; and
  2. the expenditure charged on the Consolidated Fund of the State but not exceeding in any case the amount shown in the statement previously laid before the House or Houses.

(2) No amendment shall be proposed to any such Bill in the House or either House of the Legislature of the State which will have the effect of varying the amount or altering the destination of any grant so made or of varying the amount of any expenditure charged on the Consolidated Fund of the State, and the decision of the person presiding as to whether an amendment is inadmissible under this clause shall be final.

(3) Subject to the provisions of articles 205 and 206, no money shall be withdrawn from the Consolidated Fund of the State except under appropriation made by law passed in accordance with the provisions of this article.

A- 205            Supplementary, additional or excess grants

  1. The Governor shall—
  1. if the amount authorised by any law made in accordance with the provisions of article 204 to be expended for a particular service for the current financial year is found to be insufficient for the purposes of that year or when a need has arisen during the current financial year for supplementary or additional expenditure upon some new service not contemplated in the annual financial statement for that year, or
  2. if any money has been spent on any service during a financial year in excess of the amount granted for that service and for that year,cause to be laid before the House or the Houses of the Legislature of the State another statement showing the estimated amount of that expenditure or cause to be presented to the Legislative Assembly of the State a demand for such excess, as the case may be.
    1. The provisions of articles 202, 203 and 204 shall have effect in relation to any such statement and expenditure or demand and also to any law to be made authorising the appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure or the grant in respect of such demand as they have effect in relation to the annual financial statement and the expenditure mentioned therein or to a demand for a grant and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure or grant.

A- 206 Votes on account, votes of credit and exceptional grants

  1. Notwithstanding anything in the foregoing provisions of this Chapter, the Legislative Assembly of a State shall have power—
  1. To make any grant in advance in respect of the estimated expenditure for a part of any financial year pending the completion of the procedure prescribed in article 203 for the voting of such grant and the passing of the law in accordance with the provisions of article 204 in relation to that expenditure;
  2. To make a grant for meeting an unexpected demand upon the resources of the State when on account of the magnitude or the indefinite character of the service the demand cannot be stated with the details ordinarily given in an annual financial statement;
  3. To make an exceptional grant which forms no part of the current service of any financial year; and the Legislature of the State shall have power to authorise by law the withdrawal of moneys from the Consolidated Fund of the State for the purposes for which the said grants are made.
  4. The provisions of articles 203 and 204 shall have effect in relation to the making of any grant under clause (1) and to any law to be made under that clause as they have effect in relation to the making of a grant with regard to any expenditure mentioned in the annual financial statement and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure.

Arunachal Pradesh State Budget of Arunachal Pradesh

  • The Gross state domestic product is estimated to be Rs 21,414 crores in 2016-17, growing from a level of Rs 11062.69 crores five years ago.
  • There is a slow but perceptible shift of economic activity from the primary sector to the tertiary sector in the last few years. Nonetheless, the primary sector contributed to 38.21% of GSDP at constant prices, while the tertiary sector contributed to 40.28% of GSDP.
  • The Share of Central taxes grew from actual receipt of Rs 7075.58 crores in 2015-16 to Rs 8388.30 crores in revised estimates of 2016-17.
  • The state’s own tax revenue in the revised estimates of 2016-17 was Rs 650.63 crores as against actual receipt of Rs 535.07 crores in 2015-16, growing at 21.59%. Nearly 94% of the tax revenue was collected by the Tax and excise department.
  • The non-tax revenue receipt in the revised estimates of 2016-17 is estimated at Rs 506.79 crores as against an actual collection of Rs 392.12 crores in 2015-16, showing a growth of 29.2%.
  • The fiscal deficit targets laid out in the Fiscal Responsibility and Budget Management Act 2006 and state had a fiscal deficit of 0.4% of GSDP in revised estimates of 2016-17, which is well within the 3% obligation as per the FRBM Act. For the next financial year, the fiscal deficit target of the state is 2.83% of GSDP.
  • The outstanding borrowing and debt liability of the state was pegged at 22.26% of GSDP in 2015-16 which is estimated to be 21.94% of GSDP in the revised estimates of 2016-17, which is well below the prescribed norm of 25%.
  • The underpinning philosophy of the budget draws upon the following 15 broad themes in Arunachal Pradesh:
  1. Enhance transparency through governance reforms.
  2. Empower the youth and squarely address the twin challenge of deficit in skills and jobs
  3. Transformation of rural farm economy
  4. Unlock the latent potential of land
  5. Introducing policy measures which stimulates entrepreneurship
  6. Public investments to have a balanced regional spread
  7. Overhaul the educational system in the state
  8. Create an effective and affordable health services delivery model
  9. Create a social security net for the elderly , widows and the disabled
  10. Take measures for women empowerment
  11. Bridge the infrastructure deficit.
  12. Revitalize the hydro power sector and tourism
  13. Augment the internal resource generation capacity.
  14. Effective Law and Order management
  15. Follow a Sustainable growth path in harmony with environment

Major Points

Governance Reforms

  • The Budget Estimates of 2017-18 has done away with the distinction of Plan and Non Plan and classifies the receipts and expenditure only in Capital and Revenue heads
  • To harmonize the functioning of the Planning and Finance department into an integrated Department of Finance and Investments headed by the Development Commissioner, with three different wings: Investment and Planning division, Budget division and Economic Affairs division. This will help in developing a holistic perspective of planning, resource mobilization and expenditure.
  • The Centrally sponsored schemes will be implemented on the Public Financial Management System platform. The Finance department will make online transfers of money to the current accounts of concerned department opened for each Centrally Sponsored Scheme expeditiously and the departments in turn will transfer money directly to the bank accounts of beneficiaries for beneficiary oriented schemes. This will be a path breaking reform in streamlining the manner in which CSS schemes are currently administered and usher in greater simplicity in transactions as well as transparency.
  • The trinity of JAM – Jandhan, Aadhar and Mobile will be used for delivery of citizen services and moving towards a cashless and paperless economy–over 13 lakh bank accounts in Arunachal Pradesh of which nearly 2.2 lakh are Prime Minister Jandhan Yojana accounts. Nearly 1.4 lakh bank accounts are seeded with Aadhar
  • E Office will be made fully functional within this financial year for all departments in the Secretariat and steps will be initiated for ushering in the E office platform in the districts and the Directorates.
  • A computerized human resource management system will be introduced for all government employees which will integrate details of salaries, deductions, loans, increments etc.
  • Computerization of treasuries will be completed this year and an integrated on line Budget and expenditure management system will be rolled out which will streamline the functioning of the finance department.
  • A Chief Ministers dashboard will be created on an electronic platform which will track progress of key projects, including budget announcements, across the state through a regular video conferencing interface with all Deputy Commissioners
  • Stipends of students, scholarships, old age pensions, salaries of teachers of SSA, RUSA and RMSA will be paid on a direct benefit transfer mode directly into their bank accounts.

Employment and Skills of Budgets of Arunachal Pradesh

  • To establish a Skill University in Arunachal Pradesh on a PPP framework.
  • Aim to train 9000 youth in the coming financial year under Pradhan Mantri Kaushal Vikas Yojana with minimum 70% employment guarantee and an outlay of Rs 24 crores. Four ITI’s will be made operational next year: at Sagalee, Ziro, Kanubari and Pangin. One model ITI will be established at Yupia with an outlay of Rs 2.5 crores.
  • Chief Minister’s Bunkar Yojana
  • Chief Minister’s Swalamban Yojana. A back ended 30% Capital investment subsidy will be provided for small and medium enterprises on loans ranging from Rs 10 lakh to Rs 1 crores excluding land and building.

Agriculture and allied Sectors of Budgets of Arunachal Pradesh

  • To achieve self-sufficiency in food grains: Rice, other coarse cereals and Pulses production by 2020 and total Rice sufficiency by 2023 from the present day deficit levels of 27%
  • To promote organic Agriculture movement by producing organic plant nutrients and other inputs to reduce external dependence.
  • To establish Four Tea & Rubber nurseries -Rubber Nurseries at Govt. Farm Kherem and Sonajuli and Tea nurseries at Govt. Farm Bolung and Jumlo to be under technical supervision of Agriculture Dept. A sum of Rs.10.00 cr is earmarked for this purpose during 2017-18.
  • An allocation of Rs 3 crores is being made under the Chief Minister’s Krishi Rinn Yojana.
  • A state level Agriculture Information Hub cum Farmers’ Hostel will be established at Naharlagun to serve as the node for knowledge and resource sharing for agriculture and allied sectors.This will become the central resource pool with information for farmers in both audio-visual as well as electronic mode. It will be equipped with state of the art agri-information devices for the farming community and also provide accommodation for farmers and Extension workers. An initial allocation of Rs 5 crores is being proposed for this purpose during 2017-18.
  • Establishment of State Horticulture Research and Development Institute (SHRDI) under Department of Horticulture at Itanagar in the year 2014 to provide sustained technical support for our farmers.
  • To give one time Corpus Fund of Rs. 5 crores to State Horticulture Research and Development Institute which will be utilized by the institute for core activities including revenue generating activities that aims at ultimately becoming self-sustaining in future.
  • To create new nurseries across different agro-climatic zones of the State. Four new nurseries including one for High Altitude Medicinal Plants will be established at Ziro, Lower Subansiri for temperate crops, Basar, West Siang for Sub-tropical crops and Namsai for tropical crops and at Tawang for medicinal plants. All four new nurseries will be managed by the SHRDI.
  • An initial outlay of Rs 5 crores is being proposed for the Chief Minister’s white revolution program to establish an integrated dairy development project in Lohit district

Unlocking the potential of Land

  • A land pooling policy will be notified which will make landowners partners in progress in key infrastructure and industrial development projects, while reducing the burden of land acquisition cost for the state

Industry and Private Investments of Budgets of Arunachal Pradesh

  • To roll out a new Industrial policy 2017
  • To develop Industrial estates in the foothill districts
  • To develop one food park at Tippi which will have common infrastructure facilities for investors including packaging, storage and processing

Balanced Regional Development of Budgets of Arunachal Pradesh

  • To develop Pasighat, Tezu and Bomdila as regional growth centres, which would have all facilities at the regional level for education, healthcare, employment generation, skilling and serve as economic growth hubs
  • To keep a provision of Rs 50 crores in the budget for socio economic development in the districts of Tirap, Changlang and Longding under DOTCL
  • To establish Chief Minister’s District Innovation and Challenge Fund, with a corpus of Rs 100 crores

Rural Transformation of Budgets of Arunachal Pradesh

  • The Rural Development department will be implementing the Mahatma Gandhi National Rural Employment Guarantee Act in rural areas of Arunachal Pradesh with a proposed outlay of Rs 270 crores
  • Under the RURBAN Mission, Tuting is being developed as a rural cluster through which rural areas would be provided with urban amenities. Nafra cluster will be taken up for implementation in the next financial year and an outlay of Rs 5 crores has been proposed for this scheme.
  • Rural road construction works are being undertaken across the state under Pradhan Mantri Gramin Sadak Yojana. This year, 16 roads have been taken up to cover 35 habitations, covering a length of 236 km. For the financial year 2017-18, we have set an ambitious target of covering 1000 km of rural roads and an outlay of Rs 450 crores has been proposed for this purpose

Education

  • A sum of 30 crores is being earmarked for Chief Minister’s Adhunik Shiksha Yojana to cover nearly 1500 classrooms under this program.
  • To allocate a sum of Rs 2 crores for completion of works of VKV Longding and a sum of Rs 10 crores for starting classes at VKV Mukto on a PPP basis
  • To establish an Education Hub at Tezu

Health

  • To make an allocation of Rs. 15 crores for procurement and installation of CT scan machines at Naharlagun and Pasighat
  • To allocate a sum of Rs. 10 crores for modernization of existing drug deaddiction centres at Pasighat, Tezu, Namsai, Changlang, Papum Pare, including for purchase of required medicines and equipment. A new drug deaddiction centre will be established at Khonsa.
  • The infrastructure and equipment of 5 zonal general hospitals will be upgraded at Bomdila, Tezu, Ziro, Aalo and Khonsa for which a provision of Rs. 25 crores is proposed.

Social security

  • To make an allocation of Rs. 60 crores under the Chief Minister’s Social security scheme and the benefit will be transferred to the beneficiary directly under the Direct Benefit transfer scheme.
  • To increase the honorarium of anganwadi workers to Rs. 4500 per month and for anganwadi helpers to Rs. 3000 per month to provide them adequate incentive for work
  • Under the integrated child protection scheme, six new juvenile homes are proposed to be constructed at Aalo, Bomdila, Changlang, Tezu, Roing, Yupia and an allocation of Rs. 6 crores is proposed

Infrastructure of Budgets of Arunachal Pradesh

  • A total length of the 2570.82 Km of National Highways/ State Road is being implemented under the Highway Programme of the Ministry of Road Transport & Highways, Government of India, of which our own PWD is executing 16 packages with a road length of 419.88 km, Ministry of Road transport and highway is executing 3 projects with a road length of 710.95 km, BRO is executing 22 packages with a road length of 717.78 km, NHIDCL is executing 25 packages with a road length of 722 km

Forest and environment

  • Arunachal Pradesh is one of the most richly endowed biodiversity zones of India. The rich forest cover, flora, fauna and wildlife are unique in the national context. Even as the state marches on the path of development, we must preserve, protect and nurture this habitat.
  • The Forest department undertakes programs under Project Elephant, Project tiger and Wildlife Habitat program at Pakke tiger reserve, D Ering wildlife sanctuary and Namdapha wild life sanctuary. A sum of Rs. 8.7 crores is being proposed for allocation for these programs.
  • U nder the National Forest Mission and Bamboo Mission, an allocation of Rs. 3.2 crores is being proposed.

Government servants

  • To introduce a Chief Minister’s Employee Housing Scheme under which employees can avail bank loan of upto Rs. 30 lakhs and will get an interest subsidy of 4% from government. This will entail a net interest rate of 4.5% and a doubling of housing loan entitlement

 

 

FUNCTIONS OF MANAGEMENT

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Functions of Management:-

Planning

Organizing

Staffing

Direction

Coordination and control

Decision making

OUTPUT

Attainment goals effectively & efficiently

 

 

 
INPUTS/RESOURCES

Human

Finance

 
CONTROLLING

Measuring performance with standards & taking corrective actions
PLANNING

Setting of objects & selecting ways
ORGANIZING

Establishing relationships,

Delagting authority & assign tasks
DIRECTING

Leading & motivating employees to attain objectives

 

FUNCTIONS OF MANAGEMENT

 

PLANNING

Planning is a process of determination of organization’s objectives and selecting the courses of actions. i.e. Plans for attaining them.

Planning is the primary or basic management function.

 

Planning Process

Environmental scanning
Setting Objectives
Establishing Planning Premises
Searching alternatives
Evaluating alternatives
Selecting the most appropriate alternative
Formulating derivative plans
Budgeting i.e. Committing Resources
Implementing Plans
Follow – up actions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Types/Dimensions of Planning

 

  • Corporate Planning : Business product line

 

  • Long term Planning : > 5years

 

  • Short term Planning : 1 year

 

  • Medium term Planning : 2-5 years

 

  • Strategic planning : Long term, corporate planning for dealing with the organization Competitive environment.

 

  • Operational or Tactical Planning : Plans that specified detail operations needed to achieve The overall organizational goals. (Short range planning)

(Administrative Plans)

 

  • Functional Planning : Production, Marketing, Personnel, Finance.

 

 

Components/Elements of Planning

 

Objectives :    The basic tools that underline all planning and strategic activities.

 

Strategy:         The Long term action plan to attain objectives.

 

Policies:           These are general statements or understanding that guide or channel thinking in decision making.

 

Procedure:      A Chronological Sequence of steps or actions to be taken to accomplish a  Specific task or job.

 

Method:          It is a prescribed way of completing a step in a procedure.

 

Rules:            Specific recored statements that direct what must or must not be done in a Given situation.

 

Standards:      It is a measure against whuch the level of performance is measured or  Evaluated.

 

Programmes: An action plan consisting sequence and timing of steps necessary to achieve Objectives.

 

Schedules:        A plan which indicates the time of commencement of task, passing through Different stages or process and finalising the task.

 

Budgets:        Numerical Plan containing expected result in quantative way.

 

Project:          It is smaller action plan and a distinct part of a programme.

Tactics:          Short term action plan for implementing strategy.

SOURCE OF FINANCE

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Sources of finance are the most explored area especially for the entrepreneurs about to start a new business. It is perhaps the toughest part of all the efforts. There are various sources of finance classified based on time period, ownership and control, and source of generation of finance.

 

The process of selecting right source of finance involves in-depth analysis of each and every source of finance. For analyzing and comparing the sources of finance, it is required to understand all characteristics of the financing sources. There are many characteristics on the basis of which sources of finance are classified.

On the basis of a time period, sources are classified into long term, medium term, and short term. Ownership and control classify sources of finance into owned capital and borrowed capital. Internal sources and external sources are the two sources of generation of capital. All the sources of capital have different characteristics to suit different types of requirements. Let’s understand them in a little depth.

 

ACCORDING TO TIME-PERIOD:

 

Sources of financing a business are classified based on the time period for which the money is required. Time period is commonly classified into following three:

  • Long Term Sources of Finance:

 

Long-term financing means capital requirements for a period of more than 5 years to 10, 15, 20 years or maybe more depending on other factors. Capital expenditures in fixed assets like plant and machinery, land and building etc of a business are funded using long-term sources of finance. Part of working capital which permanently stays with the business is also financed with long-term sources of finance. Long term financing sources can be in form of any of them:

 

  • Share Capital or Equity Shares
  • Preference Capital or Preference Shares
  • Retained Earnings or Internal Accruals
  • Debenture / Bonds
  • Term Loans from Financial Institutes, Government, and Commercial Banks
  • Venture Funding
  • Asset Securitization
  • International Financing by way of Euro Issue, Foreign Currency Loans, ADR, GDR etc.

 

  • Medium Term Sources of Finance:

 

Medium term financing means financing for a period of 3 to 5 years. Medium term financing is used generally for two reasons. One, when long-term capital is not available for the time being and second, when deferred revenue expenditures like advertisements are made which are to be written off over a period of 3 to 5 years. Medium term financing sources can in the form of one of them:

 

  • Preference Capital or Preference Shares
  • Debenture / Bonds
  • Medium Term Loans from
    • Financial Institutes
    • Government, and
    • Commercial Banks
  • Lease Finance
  • Hire Purchase Finance.

 

  • Short Term Sources of Finance: Short term financing means financing for a period of less than 1 year. Need for short term finance arises to finance the current assets of a business like an inventory of raw material and finished goods, debtors, minimum cash and bank balance etc. Short term financing is also named as working capital financing. Short term finances are available in the form of:

 

  • Trade Credit
  • Short Term Loans like Working Capital Loans from Commercial Banks
  • Fixed Deposits for a period of 1 year or less
  • Advances received from customers
  • Creditors
  • Payables
  • Factoring Services
  • Bill Discounting etc.

 

There are two main categories of sources from which the firm can get the required funds for their business. These are:

 

 (1) Internal sources; and

(2) External sources.

When the businessman invests his own money (called owner’s capital), and retains a part of the profits earned in the business it constitute the internal sources of finance. It is an integral part of every business organisation and it is cost effective. But, this source has its own limitations. Hence the business houses have to resort to the external sources of finance. The various external sources from where businessmen can get the finance include, friends and relatives, banks and other financial institutions, moneylenders, capital market, manufacturers and producers, customers, foreign financial institutions and agencies, etc. It is observed that the scope of raising funds also depends upon the nature and form of business organisation.

 

The following are the usual sources of finance. (a) Capital Market (b) Financial Institutions (c) Public Deposits (d) Commercial Banks (e) Leasing Companies (f) Investment Trusts (g) Retained Profits

WEALTH MAXIMIZATION

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Concept:

 

 

Wealth maximization is the concept of increasing the value of a business in order to increase the value of the shares held by stockholders. The concept requires a company’s management team to continually search for the highest possible returns on funds invested in the business, while mitigating any associated risk of loss.

 

Wealth maximization simply means maximization of shareholder’s wealth. It is a combination of two words viz. wealth and maximization. A wealth of a shareholder maximizes when the net worth of a company maximizes.

 

Objectives:

 

 

  1. Measurement of Wealth
  2. Market Value of Shares
  3. Common Goal
  4.  D’s Of Financial Decisions
  5. Shareholder’s Expectations

 

 

  1. Measurement of Wealth

 

The main Principle of financial management is the Maximization of Shareholders Wealth. Shareholder’s Wealth is measured on the basis of economic value. Economic value is based on cash flows and not profit. Economic Value is defined as: “The present value of future cash flows generated by a decision, discounted at appropriate rate of discount which reflects the degree of associated risk“.

 

  1. Market Value of Shares

 

The future cash flow is estimated for the present value. The present value is the Market price of share. As Shareholder’s wealth is equal to the market price of shares held by him, any increase in Market price of shares would result in an increase in Shareholder’s Wealth.

 

  1. Common Goal

The Maximization of Shareholder’s Wealth is the common goal between the Shareholders and the Management. The recognition of this goal motivates the Management to allocate the available resources in an optimum way.

 

 

 

 

 

  1. 3 D’s Of Financial Decisions

The Maximization of Shareholder’s wealth indicates that the Market price of share is related to three basic financial decisions:

The investment decisions,

The financing decision,

The dividend decision.

 

  1. Shareholder’s Expectations

 

Shareholder’s expectations are about future cash flows based on current cash flows and projected future growth. The market price of share shows these expectations.

Appraisal System

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Performance appraisal is a vital tool to measure the frameworks set by any organization to its employees. It is utilized to track individual contribution and performance against organizational goals and to identify individual strengths and opportunities for future improvements and assessed whether organizational goals are achievedor serves as basis for the company’s future planning and development .

Performance appraisal is a formal system that evaluates the quality of an employee’s performance. An appraisal should not be viewed as an end in itself, but rather as and important process within a broader performance management system that links:

  • Organizational objectives
  • Day to day performance
  • Professional development
  • Rewards and incentives

In simple terms, appraisal may be understood as the assessment of an individual’s performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output,initiative, leadership abilities, supervision, dependability, cooperation, judgment, versatility, health and the like.Assessment should not be confirmed to past performance alone. Potentials of the employee for future performance must also be assessed.

Methord for performance and appraisals involves:

  •  Integrating performance appraisal into a formal goal setting system
  • Basting appraisals on accurate and current job descriptions
  • Offering adequate support and assistance to employees to improve their performance (e.g., professional development opportunities)
  • Ensuring that appraisers have adequate knowledge and direct experience of the employee’s performance
    Conducting appraisals on a regular basis.