Periodic Labour Force Survey (PLFS) is an important survey conducted by the National Statistical Office (NSO) of India. It provides crucial data on employment and unemployment in the country, offering insights into the labor market dynamics. It was launched in April 2017.
The survey is conducted annually from July to June where as the since 2025, monthly surveys are also conducted. The survey compiles data from nearly 45,000 households comprising of around 1.7 lakh individuals from urban areas.
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October 11 What is it? The fiscal multiplier is a simple idea in economics that shows how government spending or tax changes can boost the whole economy. Imagine the government spends extra money on something like building roads or giving tax cuts. This extra money doesn't just stop there—it flows through the economy, creating more jobs, more spending, and higher overall income. The fiscal multiplier measures how much bigger the final impact is compared to the original amount spent or cut. In easy terms, if the multiplier is 2,...
October 06 DEFINITION Automatic stabilizers are built-in features of a government's fiscal policy that help moderate economic cycles without requiring new legislation or deliberate intervention. During the recession, they work by automatically increasing government spending or decreasing tax revenues to stimulate activity and take the opposite action during booms to cool things down. This helps smooth out fluctuations in GDP, employment, and inflation, making the economy more stable overall. The concept originates from Keynesian...
September 22 CONTEXT In the context of India's Finance Commission—a constitutional body tasked every five years with recommending how to divide tax revenues between the Centre and the states—income distance serves as a measure of economic inequality among states. As India's 16th Finance Commission gears up to redefine how central taxes are shared among states, one term keeps popping up in policy debates: "income distance." This seemingly straightforward concept is at the heart of ensuring equitable resource...
September 15 Meaning of Monetization Turning something into money or turning non-revenue assets (e.g., free services) into profitable ones. For instance, in the music industry, artists monetize through streaming royalties or ad placements on platforms. Monetization refers to the process of converting something non-monetary—such as assets, data, services, or ideas—into money or revenue. In essence, it involves transforming resources that do not generate income into profit-generating opportunities. This can occur in...
September 09 WHAT? State Development Loans (SDLs) are bonds issued by state governments in India to raise funds for their developmental needs. These are long-term borrowings intended to finance infrastructure, welfare schemes, and cover fiscal deficits. Since state revenue is often insufficient to meet expenditure demands, SDLs help bridge the funding gap in a structured and regulated manner. Although the SDLs are issued by state governments, the process is managed by the Reserve Bank of India (RBI), which conducts auctions on their behalf. These...
August 28 WHAT? The Fiscal Health Index (FHI) is a composite measure developed by NITI Aayog, India's policy think tank, to evaluate the fiscal performance of major Indian states. It assesses aspects such as expenditure quality, revenue generation, fiscal discipline, debt management, and long-term debt sustainability, using data primarily from the Comptroller and Auditor General (CAG) report. The index aims to highlight strengths and weaknesses in state finances, guide policy reforms, promote best practices, and ensure...
June 18 SUMMARY On June 18, 2025, the Business Standard reported that Amazon CEO Andy Jassy warned employees that the integration of artificial intelligence (AI), particularly generative AI, will lead to a reduction in the company’s corporate workforce over the next few years. Amazon is investing heavily in AI, with ~$75 billion in capital expenditure in 2024 (predominantly for AI) and $10-20 billion in data centers to support AI growth. In an internal memo, Jassy emphasized AI’s transformative potential, describing...
June 17 WHAT? The Indian government is accelerating its disinvestment drive by planning to sell up to 20% stake in five public sector banks (PSBs) within the next six months, utilizing Qualified Institutional Placement (QIP) and Offer for Sale (OFS) routes. This move aims to raise capital, improve bank governance, and ensure compliance with the Securities and Exchange Board of India’s (SEBI) minimum public shareholding (MPS) norm of 25%. The initiative is part of a broader strategy to strengthen the financial health of...
June 14 What is NAIRU? NAIRU, or the Non-Accelerating Inflation Rate of Unemployment, is an economic concept that represents the specific unemployment rate at which inflation remains stable, neither accelerating nor decelerating. It is a theoretical benchmark where the labor market is in equilibrium, meaning there is neither upward pressure on wages (which fuels inflation) nor downward pressure (which could lead to deflation). NAIRU is closely tied to the idea of the "natural rate of unemployment," but it...
May 16 Investing in the Economy Public Private Partnership in Infrastructure : Infrastructure-related ministries to come up with a 3-year pipeline of projects in PPP mode, States also encouraged. Support to States for Infrastructure : An outlay of ₹1.5 lakh crore proposed for the 50-year interest free loans to states for capital expenditure and incentives for reforms. Asset Monetization Plan 2025-30 : Second Plan for 2025-30 to plough back capital of ₹ 10 lakh crore in new projects announced. Jal Jeevan Mission : Mission to...
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