Sunday, April 28, 2024
07:12 AM (GMT +5)

Go Back   CSS Forums > CSS Optional subjects > Group I > Economics

Reply Share Thread: Submit Thread to Facebook Facebook     Submit Thread to Twitter Twitter     Submit Thread to Google+ Google+    
 
LinkBack Thread Tools Search this Thread
  #1  
Old Saturday, June 15, 2013
Irum Siddiqui's Avatar
Senior Member
 
Join Date: Jun 2012
Location: Multan
Posts: 124
Thanks: 355
Thanked 75 Times in 45 Posts
Irum Siddiqui will become famous soon enough
Default Factors proportional to GDP & GST

1-Which factors are directly & inversely proportional to GDP value overall?
2-Which factors are responsible for positive(increasing) & negative (decreasing) value of GDP?
3-Which factors are directly & inversely proportional to GST value overall?
4-Which factors are responsible for increasing & decreasing value of GST?
Please elaborate with examples because i am not an Economist & didn't read economics in my life being a medical sciences student
I am waiting for urgent & detailed answers.
Thanks!
Reply With Quote
  #2  
Old Saturday, June 15, 2013
Senior Member
Medal of Appreciation: Awarded to appreciate member's contribution on forum. (Academic and professional achievements do not make you eligible for this medal) - Issue reason:
 
Join Date: Mar 2009
Posts: 407
Thanks: 193
Thanked 301 Times in 183 Posts
New Student has a spectacular aura aboutNew Student has a spectacular aura about
Default

@Irum Siddiqui

From your questions, it seems you have little idea about GDP and GST. I will try to explain in simple words to make things easy.

GDP:
It is abbreviation of Gross Domestic Product. This is overall value of whatever has produced in a country in one year.

It is made of four things.
First is what we spend on our consumption (I mean all the population of Pakistan).
Secondly what we invest on our factories, equipments, etc that can produce some thing in future. Like factories can produce new things for us in future.
Thirdly, what our government spend on its various functions.
Fourthly, the difference between the exports (i.e. things we send to other countries) and imports (things we get from other countries).

So our GDP is proportional to all these four things.

GST:

It is abbreviation of General Sales Tax. This tax is levied on things we consume. For example if you buy a pepsi bottle, then you can see their that in the place where price is written includes GST along with factory price. The factory price goes to company, while GST is collected by pepsi company, which government takes after some time. Now GST is 17 percent, so anything on which GST is levied, if its factory price is 100 rupees, then 17 rupees ultimately go to government.

Regarding proportionality, you can see if people consume more things, more GST will go to government. It is also called indirect tax.
Reply With Quote
The Following User Says Thank You to New Student For This Useful Post:
Irum Siddiqui (Sunday, June 16, 2013)
  #3  
Old Sunday, June 16, 2013
Irum Siddiqui's Avatar
Senior Member
 
Join Date: Jun 2012
Location: Multan
Posts: 124
Thanks: 355
Thanked 75 Times in 45 Posts
Irum Siddiqui will become famous soon enough
Default

Quote:
Originally Posted by newstudent View Post
@Irum Siddiqui

From your questions, it seems you have little idea about GDP and GST. I will try to explain in simple words to make things easy.

GDP:
It is abbreviation of Gross Domestic Product. This is overall value of whatever has produced in a country in one year.

It is made of four things.
First is what we spend on our consumption (I mean all the population of Pakistan).
Secondly what we invest on our factories, equipments, etc that can produce some thing in future. Like factories can produce new things for us in future.
Thirdly, what our government spend on its various functions.
Fourthly, the difference between the exports (i.e. things we send to other countries) and imports (things we get from other countries).

So our GDP is proportional to all these four things.

GST:

It is abbreviation of General Sales Tax. This tax is levied on things we consume. For example if you buy a pepsi bottle, then you can see their that in the place where price is written includes GST along with factory price. The factory price goes to company, while GST is collected by pepsi company, which government takes after some time. Now GST is 17 percent, so anything on which GST is levied, if its factory price is 100 rupees, then 17 rupees ultimately go to government.

Regarding proportionality, you can see if people consume more things, more GST will go to government. It is also called indirect tax.
I'm beholden to you.
So
GDP value will be high when the more we spend on our consumption & vise versa.
GDP value will be high when there will be more invesment in a country & vise versa.
GDPvalue will be high when our exports will be greater than imports (in short when production will be greater) 7 vise versa.
i need example of your third point please!

Can we say that when the GDP value will be high the GST value can be decreased by a Government? (so the inflation rate can be lowered? )
i heared that Direct tax is better to implement than indirect tax is this right or wrong? why?
Reply With Quote
  #4  
Old Sunday, June 16, 2013
Senior Member
Medal of Appreciation: Awarded to appreciate member's contribution on forum. (Academic and professional achievements do not make you eligible for this medal) - Issue reason:
 
Join Date: Mar 2009
Posts: 407
Thanks: 193
Thanked 301 Times in 183 Posts
New Student has a spectacular aura aboutNew Student has a spectacular aura about
Default

Third point is that government spends on its various functions, like defence, law and order, communications, infrastructure and so forth. All these spending by government is also part of the GDP. For example, government of Pakistan spends thousand billion rupees on defence is a part of GDP.

Regarding your second question, it is not necessary that GST will be decreased if GDP is higher.

Direct tax is better, because this tax is on income. The more you earn, the more you pay. The indirect tax like GST is on consumption, i.e. the more you consume the more you pay. This is not good.

For example we have a family, who is earning 1 lac rupees per month, while having 3 members. Consider another family who is earning 10 thousand rupees, while having 10 members, it is natural that they will spend more, but their income is meager and government is taking too much in GST from them. This is one of the typical case of Pakistani elite family having less members and poor one with lots of members who pays more to government. This is why indirect taxes are not considered good in terms of welfare.
Reply With Quote
The Following User Says Thank You to New Student For This Useful Post:
Irum Siddiqui (Sunday, June 16, 2013)
  #5  
Old Sunday, June 16, 2013
Irum Siddiqui's Avatar
Senior Member
 
Join Date: Jun 2012
Location: Multan
Posts: 124
Thanks: 355
Thanked 75 Times in 45 Posts
Irum Siddiqui will become famous soon enough
Default @Newstudent

i am thankful to you.
Now i'm getting this GDP & GST.
Stay Blessed.
Regards!
Reply With Quote
  #6  
Old Sunday, June 23, 2013
Member
 
Join Date: Mar 2013
Location: home my sweet sweet home.
Posts: 39
Thanks: 106
Thanked 12 Times in 12 Posts
iranibilly is on a distinguished road
Default

@newstudent
can you please explain for me that what is meant by ''2.5% of GDP''?
And what does ''fiscal deficit of 8.8% of GDP'' mean?
Reply With Quote
Reply


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Psychology, By David G. Myers, 6th Edition sarfrazmayo Psychology 24 Sunday, July 20, 2014 03:47 PM
Required VU sociology Notes by Dr. Anwar shrd Sociology 6 Saturday, February 23, 2013 11:40 AM
Geography Two - Factors governing agriculture Bhalla Changa Geography 1 Friday, July 09, 2010 12:18 AM
Causes and Factors of Poverty KAWISH Essay 0 Wednesday, May 12, 2010 11:12 PM


CSS Forum on Facebook Follow CSS Forum on Twitter

Disclaimer: All messages made available as part of this discussion group (including any bulletin boards and chat rooms) and any opinions, advice, statements or other information contained in any messages posted or transmitted by any third party are the responsibility of the author of that message and not of CSSForum.com.pk (unless CSSForum.com.pk is specifically identified as the author of the message). The fact that a particular message is posted on or transmitted using this web site does not mean that CSSForum has endorsed that message in any way or verified the accuracy, completeness or usefulness of any message. We encourage visitors to the forum to report any objectionable message in site feedback. This forum is not monitored 24/7.

Sponsors: ArgusVision   vBulletin, Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.