fiscal policy

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fiscal policy

  1. 1. * Warsaw.Vistula University. 18.11.2013 Saidjon Rahimov and Karomatullo Karimov
  2. 2. * Definition of Fiscal Policy * Objectives of Fiscal Policy * Instruments of Fiscal Policy * Types of Fiscal Policy * Criticisms of Fiscal Policy * Effects of Fiscal Policy * Difference between Fiscal/Monetary Policy *
  3. 3. *Fiscal Policy- is a policy under which government uses it’s expenditure and revenue programs to produce desirable effects and avoid undesirable effects on national income, production and employment. *
  4. 4. * Development of country * Economic development and growth * Reduction of disparities of income * Expansion of employment * Price stability and inflation *
  5. 5. * Taxes-refers to the income or receipts from public Tax Revenues -Personal income tax -Corporate tax -Service tax -Sales tax -Toll tax -Value added tax * Non-Tax Revenues -Fees -License fees -Price of Public goods/services -Fines -Penalties
  6. 6. * Public Expenditure-refers to the expenditure incurred by the two major categories 1. Development expenditure -Development of public enterprise -Development of infrastructure -Social welfare 2. Non development expenditure -Unproductive expenditures are termed as non development expenditures *
  7. 7. * Public debt-is spending more money than we have. Expenditure – National income = Deficit Deficit1 + Deficit2 + Deficit3 +….. = Public Debt This Public Debt can be drawn internally or externally. *
  8. 8. *Expansionary Fiscal Policy *Contractionary Fiscal Policy *Discretionary Fiscal Policy *
  9. 9. * Disincentives of tax cuts * Side effects on public spending * Poor information * Time lags * Budget deficit *
  10. 10. * Unemployment * Expansion * Contraction * Inflation Issues *
  11. 11. * Fiscal policy – controls the tax rate and government expenditure in the economy. * Monetary policy – controls the supply of money often targeting a rate of interest for the purpose of promoting economic growth and stability. *

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