Unit-5 Monetary and Financial Resources

This unit discusses these aspects which have a crucial bearing on the flow of monetary and financial resources needed for the development of the economy.

In which sector of the economy, public or private, larger share of investment has taken place?

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Learning Pundits Content Team

Written on Jun 26, 2019 3:45:21 PM

The gross capital formation in the public sector has increased from Rs.294 crore in 1950-51 to Rs.3,21,753 crore in 2006-07 maintaining an upward trend throughout the five decades period. The gross capital formation in the Private Sector too has been rising. During the period 1950-51 to 2006-07, it went up from Rs.743 crore to Rs.11,20,851 crore. Leaving out the year 1950-51, during the period 1961-81, the gap in the relative shares of GCF between the public and the private sector was marginal. This difference began accentuating from 1990-91 and widened steeply to reach the 1950- 51 level by the year 2000-01.

This difference further increased by the year 2006-07. Evidently, public sector investment was a low key affair in the post-reform phase. 

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