The Ministry of Finance has released the detailed breakdown of the new salary scale and allowances for civil servants for the current fiscal year 2083/84, effective from Shrawan 1. Following the cabinet meeting’s approval on…
The revenue mobilization of the government in Nepal faces several structural, administrative, economic, and political challenges and issues. These issues have limited the ability of the government to mobilize revenue efficiently and effectively. Major issues…
The structure of government revenue in Nepal shows the dominance of tax revenue, which is quite natural, implying that tax revenue is the largest share og the government revenue. In the total revenue, tax revenue…
Theories of government revenue explore how states fund public operations, focusing on the optimal mix of taxation, borrowing, and fees. These frameworks guide fiscal policy, aiming to balance economic growth, wealth distribution, and resource allocation…
Fiscal deficit refers to the gap between the government expenditure and revenue, excluding borrowing. Fiscal deficit = total expenditure – total government revenue. Or, Fiscal deficit = Total Government Expenditure – (Tax Revenue + Non-tax…
Before understanding the marginal productivity theory, first know what the theory of distribution. This is the neo-classical theory of distribution, which argues that the price of any input depends on its marginal productivity. Marginal productivity…
In economics, theories of distribution explain how an economy’s total wealth or national income is divided among individuals (personal distribution) and among the factors of production (functional distribution). Functional distribution focuses on the rewards paid…
Deadweight loss is defined as the loss in social welfare due to inefficiencies of the market. The market is inefficient due to government intervention and market imperfections. It is a loss in social welfare due…
Baumol developed the sales revenue maximisation model as an alternative to the profit-maximising model of traditional business. According to Baumol, in the modern corporate business, shareholders and management are two different parts of the organisation,…