Fiscal Policy: Presented By: Megha 014 Naresh 016 Nishant 017

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Fiscal policy

Presented by:
Megha 014
Naresh 016
Nishant 017
Source: http://indiabudget.nic.in/
Basics
The fiscal policy is basically concerned with the
taxes and government expenditure through issues
relating to non tax revenue, government
borrowing.

equals revenue.
Neutral • When expenditure
Revenue

greater than revenue.


Expentionary • When expenditure is

Expenditure less than revenue.


Contractionary • When expenditure is
Explanation for stances
Structure Tax receipt
Direct

Indirect

revenue Interest

Dividend &
Non tax profit
receipt Union
territories

Fiscal policy External


grants

Revenue
Planned
Capital

expenditure
Interest

Non
Defense
planned

Subsidy
Goals Aspects

Economic growth
Taxation policy
Employment
Public expenditure
Stabilization policy

Economic quality Public debt policies

Price stability
Deficit financing policies
Revenue earnings
500000
450000
400000
350000
300000
250000
200000
non tax revenue
150000
tax revenue
100000
50000
0
-05 06
04 5- -07 08
20 00 06 7- -09 10
2 20 0 8 -
20 20
0
009
2
Taxation revenue trends
300000

250000

200000
corporation
income tax
150000 custom
excise
service
100000

50000

0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Non taxation revenue trends
50000

45000

40000

35000

30000
intrest
25000 dividend & profit
union territories
20000 grants
15000

10000
jum
5000 p
0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Expenditure trends
100%

90%

80%

70%

60%

50% Series 3
Planned
40%

30%

20%

10%

0%
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Non planned expenditure
250000

200000

150000
interest
defense
subsidy
100000 pension

50000

back
0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Planned expenditure

300000

250000

200000

150000 revenue acct


Series 3
100000

50000

0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Trends in revenue & expense

1200000

1000000 Fiscal deficit


800000

600000
revenue
400000 Column1

200000

0
-05 -06 -07 -08 -09 -10
04 05 06 07 08 09
20 20 20 20 20 20
Deficit financing
2500000

2000000

1500000

external
1000000 Series 3

500000

0
2004-052005-06
2006-072007-08
Suggestions
Progressive
tax

Check on Agricultural
black money tax

Reduction in
Profits from
unplanned
PSU’s
expenditure
Thank you

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