The document discusses fiscal policy and how it works. It explains that fiscal policy has both discretionary and non-discretionary elements, with government spending and benefits automatically increasing during economic slowdowns and decreasing during booms. It also discusses using discretionary fiscal policy tools like infrastructure investment and tax rate reductions to boost demand. The document then covers topics like government debt, fiscal deficit, the components of government expenditure and receipts, and how economists view the relationship between fiscal deficit and the economy.

1. Session VII

2. Fiscal Policy

8. Government Expenditure Government Receipts Fiscal Deficit Revenue Deficit Deficit on Capital Account Revenue Expenditure Revenue Receipts Capital Expenditure Capital Receipts