Human capital affects economic growth and can help to develop an economy by expanding the knowledge and skills of its people. The level of economic growth driven by consumer spending and business investment determine the amount of skilled labor needed.

(i) there is significant long-run relationship between human capital development and economic growth in Nigeria. This is confirmed by the Johansen co-integration. (ii) It was estimated from the VECM, 1% increase in the government expenditure on education (TEDU), on the average led to 23.8% increase in GDP while.

Disinvestment refers: to reducing the holdings of the government in public sector undertaking in part or in full, e.g. The Government of India is undertaking disinvestment by selling its shares in the Maruti Udyog. It is a capital receipt of the government, as it reduces assets of the government.

Disinvestment refers: to reducing the holdings of the government in public sector undertaking in part or in full, e.g. The Government of India is undertaking disinvestment by selling its shares in the Maruti Udyog. It is a capital receipt of the government, as it reduces assets of the government. The receipts from dis-investments of public-sector undertaking does not create any debt, therefore, it comes under non-debt capital receipts.

Government receipts which neither (i) create liabilities nor (ii) reduce assets are called revenue receipts. These are proceeds of taxes, interest and dividend on government investment, cess and other receipts for services rendered by the government. These are current income receipts of the government from all sources. Government revenue is the means for government expenditure. In the same way as production is means for consumption. Revenue receipts are further classified Into Tax Revenue and Non­tax Revenue. The main difference between revenue receipts and capital receipts is that in the case of revenue receipts, government is under no future obligation to return the amount, i.e., they are non-redeemable. But In case of capital receipts which are borrowings, government is under obligation to return the amount along with Interest.

Revenue Receipts:

Government receipts which neither (i) create liabilities nor (ii) reduce assets are called revenue receipts. These are proceeds of taxes, interest and dividend on government investment, cess and other receipts for services rendered by the government. These are current income receipts of the government from all sources. Government revenue is the means for government expenditure. In the same way as production is means for consumption. Revenue receipts are further classified Into Tax Revenue and Non­tax Revenue as explained in Section 9.6.

Capital Receipts:

Government receipts which either (i) create liabilities (e.g. borrowing) or (ii) reduce assets (e.g. disinvestment) are called capital receipts. Thus when govt. raises funds either by incurring a liability or by disposing off its assets, it is called a capital receipt.

 Often GDP (real GDP) is considered as an index of welfare of the people. Welfare means sense of material well-being among the people. This depends upon availability of goods and services per person for consumption. When GDP (or GNP) rises, it shows increase in flow of goods & services. Greater availability of goods and services implies higher standard of living which increases economic welfare. So one may conclude that higher level of GDP is an index of greater well-being of the people. But this may not be correct due to following limitations or reasons.

The GDP deflator, also called implicit price deflator, is a measure of inflation. It is the ratio of the value of goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year.

(i) Profit earned by a foreign bank is included in domestic product of India because the banks branches are located in the Indian domestic territory. (ii) Scholarships is a trasnfer payment because no service is provided in return. So, it is not included in domestic income.

Operating surplus does not arise in the subsistence sector and in the general government sector because of the following reasons: (i) in the subsistence sector, production is meant only for subsistence of the producing families. Production is not meant for sale in the market. Accordingly, there is no operating surplus.

Reason that goverment's operating surplus is zero or nil is that the main motive of government is maximisation of social welfare rather than profit. The subsistence sector relies on natural resources to provide basic needs. Even the term subsistence means supporting oneself at minimal level.

GDP deflator, also known as the implicit price deflator, is used to measure inflation. It is used to determine the levels of prices of the new, domestically produced final goods and services in a country in a year.

GDP deflector shows the changes in the average price levels in the economy, and therefore, it is used in conjunction with the Consumer Price Index (CPI) for measuring inflation.

GDP deflator formula can be represented as

GDP deflator = Nominal GDP / Real GDP * 100

Like other price indices such as CPI, GDP deflector is not formed on a fixed basket of goods and services. The basket is altered every year depending on people’s investment and consumption patterns for that year.

Money flows are opposite to real flows. Because money flow are in response to the real flows. Example-There is a real flow of goods and services from the producers to the households. It is in response to it that the households makes payments to the producers. So that money flows from the households to producers in terms of consumption expenditure. Likewise there is a real flow of factor services from the households to the producers. It is in response to it that the producers make payments to the households. So that money flows from producers to the households in terms of factor payments.

Capital formation implies an increase in capital assets such as plant and machinery, buildings and equipment available to the firm.

Now, with a higher net capital formation, means higher capital equipments per unit of labour.

This leads to a higher productivity/efficiency of labour.

Macroeconomics is the study of aggregates while microeconomics is not. ... It is in microeconomics that we study concepts like market demand which is the aggregate of individual demand for a commodity. However, the difference lies in the degree of aggregation. Microeconomics is the study of individuals, households and firms' behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.

Circular Flow of Income in a Two-sector Economy.: 
Let us start with a simplified model involving two sectors, namely, household sector and firm sector, assuming that there is no Govt. We further assume that the economy is a closed one having no exports or imports. Similarly there is no saving by the households, who spend all what they earn; and no investment by the firms. Such an economy has two types of markets — Product market and Factor market. Under these presumptions the firm sector hires factor services from households, who are owners of factors of production (land, labour, capital and enterprise), for producing goods and services and pays them remuneration (or compensation) in the form of money for rendering the productive services. For the factors of production, these are factor incomes known as rent, wages, interest and profit which have been generated in the production process. Thus money income flows from firm sector to the households. With this money the households purchase from the firms, manufactured goods and services to satisfy their wants with the result, the same money flows back from households to the firm sector. Thus entire income of economy comes back to firms in the form of sales revenue. Clearly one man's (or sector's) expenditure is other man's (or sector's) income. 

By money supply we mean the total stock of monetary media of exchange available to a society for use in connection with the economic activity of the country. Supply of money refers to the total stock of money (in the form of currency notes and coins) held by the people of an economy at a particular point of time. The following are the components of money.

This is because of two reasons:
(i) Export refers to the purchase of domestically produced goods by the rest of the world. Goods produced within the domestic territory of a country are to be treated as a part of GDP.
(ii) Export receipts refer to revenue of the firms from the sale of its output. These are not the receipts of factor incomes from abroad which are to be in the form of rent, interest, profit and wages.

In an economy, equilibrium livel of income and employment is determined when AD (Aggregate Demand) is equal to AS (Aggregate Supply). ... In the following figure, AD represents aggregate demand curve and 45° line is the line of reference, where AS – AD. Most simply, the formula for the equilibrium level of income is when aggregate supply (AS) is equal to aggregate demand (AD), where AS = AD. Adding a little complexity, the formula becomes Y = C + I + G, where Y is aggregate income, C is consumption, I is investment expenditure, and G is government expenditure.

The 'Halwa Ceremony' is a customary ritual which marks the process of printing documents for the Budget. Also Read: Union Budget 2020 | Highway sector allocation may increase by Rs 10,000 crore in budget: 

Some of the important objectives of government budget are as follows: 1. Reallocation of Resources 2. Reducing inequalities in income and wealth 3. Economic Stability 4. Management of Public Enterprises 5. Economic Growth and 6. Reducing regional disparities.

Fiscal discipline refers to a state of an ideal balance between the revenues and the expenditures of the government. It requires timely check on the expenditures, in view of the limited revenues of the government.

Gross national product (GNP) is an estimate of total value of all the final products and services turned out in a given period by the means of production owned by a country's residents. For example, the GNP of the United States is $250 billion higher than its GDP due to the high number of production activities by U.S. citizens in overseas countries. Most countries around the world use GDP to measure economic activity in their country. Also known as the expenditure approach to measuring GNP, this method calculates the value of the GNP as the sum of the four components of GNP expenditures: consumption, investment, government purchases, and net exports. The expenditure method accounts for the source of the monetary demand for products and services.