Why is the knowledge of Fiscal Policy important to a
Retail Banker and it’s impacts on sales pitch. Substantiate
with an I...
INDEX
1

Fiscal Policy

2

Objectives

3

Functions

4

Types of Fiscal Policies

5

Limitations

6

Factors affecting fis...
Introduction
Definition :Fiscal Policy refers to a policy under which
government uses it’s expenditure and revenue program...
Fiscal can be explained as Financial ,so a policy in
relation to finance and something similar to monetary
policy
 Now a...
Objectives
 Economic growth
 Full Employment
 Reducing inequalities of income and wealth
 Controlling inflation
 Pric...
Functions
• Allocation
• Distribution
• Stabilization
• Development
Types of Fiscal policy
Expansionary Fiscal Policy
 An increase in government expenditure for
goods and services
 A decre...
Expansionary fiscal policy
Contractionary fiscal policy
Difference between fiscal policy and
monetary policy
Limitations
•
•
•
•

Lack of adequate data
Time lag
Budget deficit
Small proportion of population in taxable
income groups
Factors affecting fiscal policy
 Tax policies
 Government subsidies

 Government borrowings, lending's &
investments
Fiscal Deficit
 The expenses that the government incurs is
always more than the income it makes, this
difference or defic...
Why it is important to a Retail Banker ?
It will help a retail banker in determining:• Selection of Investment product.
• ...
EXAMPLES ?
COMPANY LAST CHANGE OPEN
NAME
PRICE (%)
National
Highways
Authority
of India

999.50

Canara-rob Debt
equity-tax fund
save...
Current trend on Fiscal Policy
 Deficit level in india is better than many democratic
countries
 Government plans to bri...
Upcoming SlideShare
Loading in …5
×

Group4Fiscal Policy & Impact on Retail Banking

1,102 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,102
On SlideShare
0
From Embeds
0
Number of Embeds
10
Actions
Shares
0
Downloads
28
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Group4Fiscal Policy & Impact on Retail Banking

  1. 1. Why is the knowledge of Fiscal Policy important to a Retail Banker and it’s impacts on sales pitch. Substantiate with an Investment option. Faculty name - Vishwanathan center – Hyderabad Batch No – hyd01aa0213 Participant name Participant ID S.KARTHIK GOUD E30031000148 T.PRAVEEN E30031000114 SANDEEP E30031000119 ANURAG E30031000113
  2. 2. INDEX 1 Fiscal Policy 2 Objectives 3 Functions 4 Types of Fiscal Policies 5 Limitations 6 Factors affecting fiscal policy 7 Fiscal Deficit 8 Why it is important to a Retail Banker 9 Impacts on sales pitch & examples 10 Current trend on Fiscal policy
  3. 3. Introduction Definition :Fiscal Policy refers to a policy under which government uses it’s expenditure and revenue programs to produce desirable effects on national income, production and employment
  4. 4. Fiscal can be explained as Financial ,so a policy in relation to finance and something similar to monetary policy  Now a Monetary policy is formed by RBI and the Fiscal policy is formed by central government The main aim of the policy is to see the three facets of financial system are healthy i.e. public debt, public revenue, public expenditure
  5. 5. Objectives  Economic growth  Full Employment  Reducing inequalities of income and wealth  Controlling inflation  Price stability
  6. 6. Functions • Allocation • Distribution • Stabilization • Development
  7. 7. Types of Fiscal policy Expansionary Fiscal Policy  An increase in government expenditure for goods and services  A decrease in taxes  Some combination of two Contractionary Fiscal Policy  A decrease in government expenditure for goods and services  An increase in taxes
  8. 8. Expansionary fiscal policy
  9. 9. Contractionary fiscal policy
  10. 10. Difference between fiscal policy and monetary policy
  11. 11. Limitations • • • • Lack of adequate data Time lag Budget deficit Small proportion of population in taxable income groups
  12. 12. Factors affecting fiscal policy  Tax policies  Government subsidies  Government borrowings, lending's & investments
  13. 13. Fiscal Deficit  The expenses that the government incurs is always more than the income it makes, this difference or deficit is known as “ Fiscal Deficit”  It is expressed as a percentage of GDP  The financing of this deficit is known as “Deficit Financing”
  14. 14. Why it is important to a Retail Banker ? It will help a retail banker in determining:• Selection of Investment product. • Market behavior. • Product yield / Returns. • Risk diversification.
  15. 15. EXAMPLES ?
  16. 16. COMPANY LAST CHANGE OPEN NAME PRICE (%) National Highways Authority of India 999.50 Canara-rob Debt equity-tax fund saver fund 0.26% 0.25 997.00 0.39 HIGH YEILDING FD”S HIGH 999.50 LOW VOLUMEFACE VALUE 992.00 12081 17.74 Interest Rates ICRA CRISI L FITCH CARE 1 YEAR 2 YEAR 3 YEAR MAAA FAAA N/A N/A 8.90% 9.05% 9.15 % 1,000
  17. 17. Current trend on Fiscal Policy  Deficit level in india is better than many democratic countries  Government plans to bring down Fiscal deficit to 3 % of GDP by 2016-17 Present fiscal deficit 6.1 % of GDP Fiscal deficit of 5.3 % in my view is doable – FINANACE MINISTER Fiscal deficit target of 5.3 % hard to achieve – MOODY High fiscal deficit is a threat for sovereign rating

×