Recession :

A recession is a macroeconomic term that refers to a significant decline in general economic

activity in a designated region. It had been typically recognized as two consecutive quarters
of economic decline, as reflected by GDP in conjunction with monthly indicators such as a rise
in unemployment.

What Is Fiscal Policy?

Fiscal policy refers to the use of government spending and tax policies to
influence economic conditions, especially macroeconomic conditions, including
aggregate demand for goods and services, employment, inflation, and economic
growth.

KEY TAKEAWAYS

 Fiscal policy refers to the use of government spending and tax policies to
influence economic conditions.
 Fiscal policy is largely based on ideas from John Maynard Keynes, who
argued governments could stabilize the business cycle and regulate
economic output.
 During a recession, the government may employ expansionary fiscal
policy by lowering tax rates to increase aggregate demand and fuel
economic growth.
 In the face of mounting inflation and other expansionary symptoms, a
government may pursue contractionary fiscal policy.

Understanding Fiscal Policy

Fiscal policy is largely based on the ideas of British economist John Maynard
Keynes (1883-1946),

This means that to help stabilize the economy, the government should run large
budget deficits during economic downturns and run budget surpluses when the
economy is growing. These are known as expansionary or contractionary fiscal
policies, respectively.

What is balanced fiscal policy?

Key Takeaways. A balanced budget occurs when revenues are equal to or greater
than total expenses. A budget can be considered balanced after a full year of
revenues and expenses have been incurred and recorded. Proponents of a balanced
budget argue that budget deficits burden future generations with debt.

Federal Consolidated Fund

Federal Consolidated Fund means the consolidated fund of which all revenues
received and all loans raised by the Federal Government, and all moneys received
by the Federal Government in repayment of any loan, form part.