University of Perpetual Help System LAGUNA

Monetary and Fiscal Policy

JOURNAL REVIEW 3

The Directions of Productivity Improvement

of Fiscal Policy under Present-day
Conditions

SUBMITTED BY:

JULIUS B. MESINA

SUBMITTED TO:

DR. ALLAN AMPARO

FACULTY GRADUATE SCHOOL

Part I. Summary:

The paper is devoted to the investigation of the questions connected with the directions

of productivity improvement of fiscal policy under present-day conditions. It is shown that for the

correct and timely solution of the problems standing before the policy of the budget expenses, it

is required an exact and deep approach to the essence, purpose and implementation method of

the financial policy and its consisting elements. It is obviously that study of practices of the other

foreign countries which has the budget institutions that carries out a successful activity can

provide many advantages for the developing of more productive and transparent budget system

of the Republic of Azerbaijan. The practice shows that the separation of the financial policy from

economy results in serious economic difficulties and it restrains the realization of existent

possibilities. The scientific approach to the development of the financial policy is the main

subject for its compliance with social development regularity. Violation of this important demand

may result in great loss in the national economy.

Part II. Reflection:

For the proper and prompt resolution of issues. When it comes to budget spending

policy, an exact and thorough approach to the essential is required. The financial policy's aim

and method of implementation, as well as its constituent aspects. The practice of carrying out

financial transactions in foreign nations is really interesting. It is apparent that studying the

methods of other foreign nations with effective budget institutions can bring numerous benefits

for the development of a more productive and transparent budget system. Due to the relative

independence of this policy, only such a scientific method, which includes learning all aspects

that influence budget policy, can maintain an uninterrupted relationship with objective economic

terms. The practice illustrates that separating financial policy from economic policy causes

major economic problems and limits the fulfillment of existing opportunities. The fundamental

subject for its conformity with social development regularity is the scientific approach to the
creation of financial policy. Violation of this critical demand could result in significant economic

losses for the country.

Part III. Application

When the government spends more than it collects, the society's consuming capacity

grows. In other words, the populace consumes more, businesses sell more items, and the

fundamental component is that resource flow is expedited, resulting in higher employment. As a

result of the demand exceeding the supply due to a shortage of resources, the budget default

leads to inflation. To limit inflation, a reasonable budget surplus must be established. It is critical

to reduce management costs as much as possible while maintaining tax rate stability in the face

of high inflation. Restriction of consumer credit, acceleration of deposit borrowings' selling

methods, and limited use of pricing control are also crucial. In the various fields of the economy,

there is a need for rationalization.