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  • Fiscal Policy: Name:-Waleed Baber Malik I.D: - BB-25408 Teacher: - Sir Younus Qadri Topic: - Fiscal Policy

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    Usama Jahangir Babar
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    This document defines fiscal policy as the government's arrangements for tax collection and spending to achieve economic stability without inflation or deflation. The objectives of fiscal policy include economic growth, employment expansion, and controlling inflation. Fiscal policy can be expansionary, involving increased spending or tax cuts, or contractionary, involving decreased spending or tax increases. The government budget is the main instrument of fiscal policy. Fiscal deficit is defined as government spending exceeding revenues, excluding borrowing. High government spending, lower revenues, and inflation can cause fiscal deficits. The conclusion notes Pakistan's worsening fiscal position due to domestic and external events, and recommends increasing tax collection.

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    This document defines fiscal policy as the government's arrangements for tax collection and spending to achieve economic stability without inflation or deflation. The objectives of fiscal policy include economic growth, employment expansion, and controlling inflation. Fiscal policy can be expansionary, involving increased spending or tax cuts, or contractionary, involving decreased spending or tax increases. The government budget is the main instrument of fiscal policy. Fiscal deficit is defined as government spending exceeding revenues, excluding borrowing. High government spending, lower revenues, and inflation can cause fiscal deficits. The conclusion notes Pakistan's worsening fiscal position due to domestic and external events, and recommends increasing tax collection.

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    9 views7 pages

    Fiscal Policy: Name:-Waleed Baber Malik I.D: - BB-25408 Teacher: - Sir Younus Qadri Topic: - Fiscal Policy

    Uploaded by

    Usama Jahangir Babar
    This document defines fiscal policy as the government's arrangements for tax collection and spending to achieve economic stability without inflation or deflation. The objectives of fiscal policy include economic growth, employment expansion, and controlling inflation. Fiscal policy can be expansionary, involving increased spending or tax cuts, or contractionary, involving decreased spending or tax increases. The government budget is the main instrument of fiscal policy. Fiscal deficit is defined as government spending exceeding revenues, excluding borrowing. High government spending, lower revenues, and inflation can cause fiscal deficits. The conclusion notes Pakistan's worsening fiscal position due to domestic and external events, and recommends increasing tax collection.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    of 7

    FISCAL

    POLICY
    NAME
    I.D
    TEACHER
    TOPIC

    ::::-

    WALEED BABER MALIK


    BB-25408
    Sir Younus Qadri
    FISCAL POLICY

    DEFINITION:
    What is a Fiscal Policy?

    According to Samuelson Fiscal Policy is


    concerned with all those arrangements
    which are adopted bythe Government to
    collect the revenue and make the
    expenditures so that economic stability
    could be attained/maintained without
    inflation and deflation.
    Fiscal policy means the use of taxation,
    Public expenditure by the Government for
    purposes to Stabilization and

    OBJECTIVES OF FISCAL
    POLICY:
    Development of country

    Expansion of Employment
    Fixation of Govt Policy
    Economic Growth
    Controlling Inflation
    Check imbalance the various sectors
    Reduce inequality the income and wealth
    Increasing the Investment
    Optimum allocation of Resources

    TYPES OF FISCAL POLICY


    Expansionary:

    An increase in government purchases of goods and services, a


    decrease in net taxes, or some combination of two for the purpose of
    increasing aggregate demand and expanding real output.
    Aggregate demand= consumption+investment+Govt spending+net
    Exports
    Contractionary:

    A decrease in government purchases of goods and services, an


    increase in net taxes, or some combination of the two for the purpose
    of decreasing aggregate demand and thus controlling inflation.

    INSTRUMENT OR TOOLS OF
    FISCAL POLICY:
    Implementing the Fiscal policy of the Nation
    Govt revenue
    Expenditure
    Budget

    The Budget of the Govn is main instrument of the Fiscal

    Policy.

    FISCAL DEFICIT
    Fiscal deficit is the difference between the governments
    expenditures and its revenues (excluding the money its
    borrowed). A countrys fiscal deficit is usually communicated as
    a percentage of its gross domestic product (GDP).
    Fiscal Deficit=Govt. Spending Govt. Earning
    Causes of Fiscal Deficit
    High Govt. Spending
    Lower Revenue
    Inflation

    CONCLUSION
    Pakistan fiscal position worsened because ofunexpected

    events occurred on domestic and external scene.

    High proportion of revenues being spent on defense and

    interest payments.

    Lower industrial productivity leads to lower tax collection

    because of high interest rates.

    Pakistan needs to increase tax base by imposing tax on

    agriculture and capital gainto increase revenue.

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