Budget & banking: General Awareness & Current Affairs Notes for Madhya Pradesh Police Sub-Inspector (SI)

Budget & Banking – Study Notes

(For the Madhya Pradesh Police Sub‑Inspector Exam – General Awareness & Current Affairs)

Concept	Simple Analogy	Tiny Example
Budget	A yearly “shopping list” for a country.	Think of planning a family trip: you list how much you’ll spend on food, tickets, lodging, and how much money you’ll bring.
Revenue	The money you bring to the trip.	Your pocket money, allowance, or a part‑time job.
Expenditure	The money you spend on the trip.	Tickets, food, souvenirs.
Deficit	When spending > bringing.	If you need ₹1,000 but only have ₹800, you’re short ₹200.
Surplus	When bringing > spending.	If you bring ₹1,200 but only spend ₹1,000, you have ₹200 left.
Fiscal Year	The time period the budget covers.	Usually 1st April – 31st March.

Every step is like a school project: you plan, ask a teacher, submit, get feedback, then do the work.

Term	What It Means	Everyday Hint
Total Expenditure	All money the government spends.	All the bills you pay in a month.
Total Revenue	All money the government gets.	All the money you earn.
Deficit	Revenue < Expenditure.	When you spend more than you earn.
Debt	Money borrowed over time.	A student loan that you keep paying back.
CPI (Consumer Price Index)	Price of a basket of goods.	How much your monthly groceries cost.
Inflation	Rising prices over time.	Your favorite snack becomes more expensive each month.

Concept	Simple Analogy	Tiny Example
Bank	A safe place to keep your money.	Like a piggy bank that also gives you a card.
RBI (Reserve Bank of India)	The country’s “chief bank.”	The head coach who sets the rules for all other coaches (banks).
Commercial Bank	Gives loans to people and businesses.	A bank that loans you money to buy a bike.
Public Sector Bank	Run by the government.	Government’s own bank, like Union Bank.
Private Sector Bank	Run by private companies.	A private bank like HDFC or ICICI.
Co‑operative Bank	Owned by members who use it.	Your local community bank.
Savings Account	Where you keep money and earn a little extra.	Your pocket money that grows a bit each year.
Current Account	For businesses to keep funds flowing.	A shopkeeper’s account that accepts daily sales.
Interest	The money you earn for keeping your money in the bank.	Your piggy bank pays you a tiny reward.
Loan	Borrowing money with a promise to pay back later.	Borrowing ₹5,000 from a bank to buy a laptop.

Date	Event	Short Takeaway
23‑24 May 2024	Union Budget 2024‑25	₹40 lakh crore total expenditure, ₹31 lakh crore revenue, ₹9 lakh crore deficit.
May 2024	Digital Payments	More funds for UPI and Aadhaar‑based transactions.
June 2024	GST Reforms	Simplified tax rates for small businesses.
July 2024	Infrastructure Boost	₹1.5 lakh crore for roads, rail, and power.
August 2024	Health & Education	₹30,000 crore extra for rural health & school infrastructure.

Think of it as the government deciding how to spend its “family budget” for the next year, focusing on roads, health, and digital services.

Date	Event	Simple Summary
May 2024	RBI’s 2024 Monetary Policy	Cut the repo rate by 0.25% to encourage borrowing.
June 2024	National Payments Corporation of India (NPCI)	Launched ‘Instant Loan’ through UPI.
July 2024	Public Sector Banks	RBI authorised 5 new loan‑facilitating banks.
September 2024	Digital Banking	RBI approved ‘Digital‑only’ banks to attract tech-savvy customers.
October 2024	Financial Inclusion	Launch of “Jan Dhan” 2.0 – free accounts for all.

Term	Meaning
Budget	Annual plan of money in and money out.
Deficit	Spending > revenue.
Surplus	Revenue > spending.
RBI	The country’s chief bank.
Commercial Bank	Gives loans and takes deposits.
Interest	Small extra you earn for keeping money in a bank.