Unit 3 of Economics (syllabus: Module III — money market; capital market; measures of money supply; tax structure; public revenue; public expenditure; Centre–State fiscal relations and the Finance Commission). Below: what the unit covers, the provisions it turns on, and the cases an examiner expects you to name.
What this unit covers
- How does the Reserve Bank's rate structure work, and what happened to the Bank Rate?
- Why does the secondary securities market matter when no capital reaches the company through it?
- How are the Indian monetary aggregates constructed, and where does money come from?
- How are taxes classified, and who actually bears an indirect tax?
- What do the four deficit measures each tell you, and why publish all four?
- How does Article 280 work, and are the Finance Commission's recommendations binding?
- Why did GST require a constitutional amendment, and what is unusual about Article 246A?
Treat that list as a self-test: recite each topic's rule from memory before you open its cases.
Provisions
- Reserve Bank of India Act, 1934, s. 49
- Securities and Exchange Board of India Act, 1992, s. 11(1), 11A, 12 and 12A
- Reserve Bank of India, monetary aggregates and concepts material, s. Monetary aggregates M0 to M3, and NM2 and NM3
- Constitution of India, s. 265
- Budget at a Glance 2026-2027, s. Deficit statement
- Constitution of India, s. 280 and 281
- Constitution of India, as amended by the Constitution (One Hundred and First Amendment) Act, 2016, s. 246A, read with 279A
Leading cases
- Reserve Bank of India Act
- Securities and Exchange Board of India Act
- Reserve Bank of India material on monetary aggregates and the Working Group's recommendations
- Constitution of India
- Budget at a Glance 2026-2027 (Ministry of Finance)
- Constitution (One Hundred and First Amendment) Act