Govt.'s View an Economic Perspective
* Government believes that Investor's Money investments in Land, Properties, Gold, etc,. does not benefit to the Economy.
* On the other hand, Money invested in Financial Assets like Equity Mutual Funds, Debentures, F.D.s, Bonds, LIC Policies can be productive investments for the Economy.
* The Money that the Government mobilizes through issue of Govt. securities can go towards various productive purposes.
* The Companies whose shares are bought can invest the money in an expansion projects, which can boost production, jobs and National Income in the form of Taxes.
* The bank where the bank account or F.D. is maintained can lend the money to such productive activities and thus help the economy. This explains the interest of the government in converting more and more of the physical assets held by investors into Financial Assets.
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