Scribd Logo
Upload

Welcome to Scribd!

  • 5 views

    Fiscal Policy

    Uploaded by

    Vishak Theboss
    The document discusses fiscal policy and its techniques used by governments. Fiscal policy involves controlling government expenditures, money supply, and taxes to balance the government budget when expenditures are estimated to exceed revenues. The key techniques of fiscal policy are: 1) Taxation policy to increase tax rates or lower exemptions, 2) Public expenditure policy to encourage development spending and reduce non-development costs, 3) Deficit financing policy to borrow from central banks if needed, 4) Securities policy to issue bonds, and 5) Public debt policy to carefully manage government loans and consider alternatives to reducing expenditures.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    Fiscal Policy

    Uploaded by

    Vishak Theboss
    5 views2 pages
    The document discusses fiscal policy and its techniques used by governments. Fiscal policy involves controlling government expenditures, money supply, and taxes to balance the government budget when expenditures are estimated to exceed revenues. The key techniques of fiscal policy are: 1) Taxation policy to increase tax rates or lower exemptions, 2) Public expenditure policy to encourage development spending and reduce non-development costs, 3) Deficit financing policy to borrow from central banks if needed, 4) Securities policy to issue bonds, and 5) Public debt policy to carefully manage government loans and consider alternatives to reducing expenditures.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses fiscal policy and its techniques used by governments. Fiscal policy involves controlling government expenditures, money supply, and taxes to balance the government budget when expenditures are estimated to exceed revenues. The key techniques of fiscal policy are: 1) Taxation policy to increase tax rates or lower exemptions, 2) Public expenditure policy to encourage development spending and reduce non-development costs, 3) Deficit financing policy to borrow from central banks if needed, 4) Securities policy to issue bonds, and 5) Public debt policy to carefully manage government loans and consider alternatives to reducing expenditures.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    5 views2 pages

    Fiscal Policy

    Uploaded by

    Vishak Theboss
    The document discusses fiscal policy and its techniques used by governments. Fiscal policy involves controlling government expenditures, money supply, and taxes to balance the government budget when expenditures are estimated to exceed revenues. The key techniques of fiscal policy are: 1) Taxation policy to increase tax rates or lower exemptions, 2) Public expenditure policy to encourage development spending and reduce non-development costs, 3) Deficit financing policy to borrow from central banks if needed, 4) Securities policy to issue bonds, and 5) Public debt policy to carefully manage government loans and consider alternatives to reducing expenditures.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Fiscal Policy

    >> March 27, 2010

    We are discussing public financing. Earlier, we have discussed income tax, VAT, Government budgeting and government bonds. Today, we have taken the concept of fiscal policy. Fiscal policy is that policy which is made by government for controlling the government expenditure, supply of money and taxes. Fiscal policy is great equipment in the hand of any countrys government to make better tax system and to m anage the public loan and expenditures. We all know that if government budget shows that estimated expenditures are more than estimated incomes. At that time, it is very necessary to make fiscal policy to bring this adverse situation to balance level where will be total expenditure will equal to total income of government. For this government can use following five techniques of fiscal policy. Techniques of Fiscal Policy

    1. Taxation Policy By amendment in Indian tax law 1961, government of India has p ower to make new taxation policy according to the current Indian economic situation. Either government can increase the tax rate or decrease exemption for collecting more tax for previous year income. 2. Public expenditure policy Public expenditure policy is very useful to reduce the government expenditure. Government divides total expenditures into two major categories one is development expenditure and other is non development expenditure. With this policy, government encourages only development expenditure and tries to reduce non development expenditure. 3. Deficit financing policy If above two equipment does not work to create balance in government budget, government can get loan from central bank to adjust deficiency or deficit. For this RBI has to issue new currency notes. But this decision should be taken very carefully because increasing trend of deficit financing will decrease the value of currency in world market and it will increase the prices of commodities in commodity market.

    4. Sei

    e e t take benefit by i ing new notes and it is i ortant role to

    Sei i e i al techni make fiscal policy. 5. Publi Debt Poli

    Public debt means, loan is taken by government to fulfill government expenditures. Government should make this policy very seriously. If there any other source, then government should use to pay government expenditure or reducing expenditure is better than taking loan. Sometime, under the pressure of foreign creditor, government of India has to take many decisions which are against public interest. So, government of Indias minister should live in simple life and think high. They should use internet for doing all work. With this, India can save Rs. 500,000 per month/ per minister for travelling expenditure.

    You might also like