Garnishee Order: When a Court directs a bank to attach the funds to the credit of customer's account under provisions of Section 60 of the Code of Civil Procedure, 1908.
GAAR : The General Anti Avoidance Rule (GAAR)- proposed during the annual budget 2012-13- is anti-tax avoidance rule, drafted by the Union Government of India, which prevents tax evaders, from routing investments through tax havens like Mauritius, Luxemburg, Switzerland.
General Lien: A right of the creditors to retain possession of all goods given in security to him by the debtor for any outstanding debt.
GENERAL LINE OF CREDIT (GLC): A General Line of Credit may be defined as an arrangement in which a bank or a vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period. For example, RBI extends a GLC to NABARD under section 17(4E) of the RBI Act to enable it to meet the credit requirement of co-operatives and RRBs.
GIFFEN GOODS: They are goods which do not obey the laws of demand.
GILTS: Term denotes Government securities like Central Government loans and State Government loans. Include government guaranteed bonds like that of IDBI. 'Gilts' is the short form for gilt-edged securities- so called because they carry no risk.
GLOBALISATION: This term connotes a process by which the national economy moves towards a single borderless world economy with open market. It implies expansion of markets for goods, services, labour and capital beyond national boundaries. Independence of countries, competition, and dominance of market and private sector characterise the globalisation process.
GOODS AND SERVICES TAX: Goods and Service tax is a tax on goods and services, which is leviable at each point of sale or provision of service, in which at the time of sale of goods or providing the services the seller or services provider can claim the input credit of tax which he ahs paid while purchasing the goods or procuring the service. GST is an indirect tax and ultimate burden of the GST has to be taken by the last customer. It will be applicable from April 01, 2012.
GOVERNMENT BUDGET-DEFICIT: Budget deficit broadly represents excess of total expenditures over total receipts with borrowings not included among receipts. The various measures of budget deficit are as follows.
- Traditional budget deficit: Revenue expenditure + capital expenditure +net domestic lending - revenue receipts + foreign borrowings + domestic borrowings excluding treasury bills.
- Monetary deficit: This is measured by the changes in Reserve Bank credit to government represented by total RBI holdings of government securities (dated securities and treasury bills) less central governments deposits with the Reserve Bank.
- Gross Fiscal Deficit: Revenue expenditure +capital expenditure + net domestic lending-revenue receipts + grants (deficit is covered through all borrowings).
- Net fiscal deficit: Gross fiscal deficit - Net domestic lending.
- Primary deficit: gross fiscal deficit -net interest payments, i.e. interest payments - interest earnings
- Net primary deficit: (non-interest revenue expenditure + capital expenditure) - (non-interest revenue receipts + grants). Primary deficit concept indicates the extent to which current fiscal actions affects the debt position of Union Government.
Guarantee: A contract between guarantor and beneficiary to ensure performance of a promise or discharge the liability of a third person. If promise is broken or not performed, the guarantor pays contracted amount to the beneficiary.