3. “Fiscal policy refers to policy under which
govt. uses its expenditure and revenue
programmes to produce desirable effects and
avoid undesirable effects on the national
income , production and
employment”……Arthus Smithies
Fiscal policy in short refers to budgetary
policy.
4. Accelerating Economic Growth
Price stability
Reducing income inequalities
Generating employment opportunities
To mobilize resources
To encourage socially optimal investment
6. The income of the government through all
sources is called public income or public
revenue. ...
According to Dalton, however, the term
“Public Income” has two senses — wide and
narrow. In its wider sense it includes all the
incomes or receipts which a public authority
may secure during any period of time.-
7.
8.
9. There are variety of taxes like direct and
indirect tax, progressive, proportional and
regressive taxes, VAT, GST,
Purposely selected collections different
types of tax to achieve desired objective is
known as tax structure of a country.
10. Low tax revenue as % of GDP
High tax rate for income tax and corporate
taxes
Absence of agricultural taxation
tax evasion
Regressive tax structure
frequent changes in types of taxes and tax
rate
11. As % GDP it is very low in developing nations
LOW PCI
Greater inequalities
No tax on Agricultural sector
12.
13. Name of countries
MALASIYA 6.4
INDIA 17.7
CHINA 21.1
AUSTRALIA 34.3
CANADA 39.8
DENMARK 50.8
NORWAY 54.8
Tax revenue % of GDP
14. 3.25 per cent in 2000-01.
6.3 per cent in 2007-08
5.47 per cent in 2015—16.
Share of direct taxes to GDP touched a peak
of 6.3 per cent in 2007-08 and has since
declined to 5.47 per cent in 2015—16. It was
3.25 per cent in 2000-01…..P.M. Modiji
15.
16.
17. A regressive tax structure results in low-
income individuals paying a higher
percentage of their income on taxes than
high-income individuals. A regressive tax
structure tends to shift the burden
of taxation to the poor.
18.
19. Taxpayers fall into one of seven brackets,
depending on their
taxable
income: 10%, 15%, 25%, 28%, 33%,35% or 39.
6%.
Because the U.S. tax system is a progressive
one, as income rises, increasingly higher
taxes are imposed. But those in the highest
bracket don't pay the highest rate on all their
income.
Jan 12, 2018
20.
21.
22. Every year, the world's economies lose billions of
dollars to tax avoidance. Estimates of the sheer
scale of the losses fluctuate wildly with the IMF
reporting that around $600 billion is lost due to
profit shifting every year.
The IMF has reported that OECD countries lose
approximately 2 to 3 percent of their total annual
tax revenue while lower-income countries lose
substantially more.
25. High tax rate for income tax and corporate
taxes
Absence of agricultural taxation
tax evasion
Regressive tax structure
frequent changes in types of taxes and tax
rate
26. Tax rate –income tax and corporate taxes
Progressive tax system
Promoting savings and investment
Simple tax structure
Govt. revenues should increase
Tax on agriculture
Stability in tax rate and types
27. Explain features of tax system of developing
nations.
What are weaknesses of tax system of
developing nations? What are the steps to
improve?