This document discusses fiscal policy and its objectives. It provides information on fiscal policy tools used by governments to influence economic growth, employment and prices. The key objectives of fiscal policy are mobilizing resources, accelerating economic growth, minimizing income inequality, increasing employment opportunities, and maintaining price stability. Examples of fiscal tools include taxation, public expenditure, borrowing. The document also summarizes Indian fiscal policy goals of rapid growth, employment expansion, reducing disparities.

1. FISCAL POLICYPresented by SandeshKothavale - BT0942Shaniraj Babar - BT0944Sheetal Mehta - BT0945Sheetal Narkar - BT0946

2. FISCAL POLICYThe use of Fiscal Tools by the government constitutes what we call Fiscal PolicyFiscal Policy is a policy under which the government uses its revenue and expenditure programmes to produce desirable effects and avoid undesirable effects on national income, production and employment.Fiscal Policy is used as a balancing device in an economy

3. OBJECTIVES OF FISCAL POLICY

4. OBJECTIVES OF FISCAL POLICYObjectives differ from country to country

5. Major Objectives :Mobilization of ResourcesAcceleration of Economic GrowthMinimize the Inequalities of Income and WealthIncrease the Employment OpportunitiesPrice Stability

6. xOBJECTIVES OF FISCAL POLICY1. Mobilization of ResourcesLevel of Investment RaisedPublic BorrowingsTaxation ,Fiscal Tools :

7. OBJECTIVES OF FISCAL POLICY2. Acceleration of Economic GrowthHigher YieldMobilization of Resources +Direct resources to channelsGoods are socially desirablePublic Expenditure ProgramsRaise Production PotentialLarger Incomes

8. OBJECTIVES OF FISCAL POLICY 3.Minimize the Inequalities of Income and WealthRedistribution of IncomePoorer Section of Societye.g. Government may collect larger revenue from the richer sections of the society and make use of revenue so raised to incur expenditure on the social welfare activities that largely benefit the poorer sections of the society.

9. OBJECTIVES OF FISCAL POLICY4. Increase the Employment OpportunitiesGrowth of IndustriesFiscal IncentivesTax Rebates,ConcessionsHigh Employment Generation PotentialPublic Expenditure can be incurred on employment – generating works

10. OBJECTIVES OF FISCAL POLICY5. Price StabilityFiscal tools can be judiciously employed to contain inflationary and deflationary tendencies Cut in Public ExpenditureAnti – Inflationary EffectBoost to Economic ActivityIncrease in Public Expenditure

11. OBJECTIVES OF FISCAL POLICY5. Price StabilityRaise in Direct TaxesInflationReduction in Tax RatesDeflation

12. Indian Fiscal Policy

13. Indian Fiscal PolicyExpansion in the public sector, public expenditure, public revenueShare of Public sector in NDP:5.4% to 26%Share of public expenditure in NDP:11.7% to 49.7%Share of Public revenue in NDP: 9.4% to 21.2%

14. Goals of Indian Fiscal PolicyRapid economic growthExpansion of employmentReduction of disparities in income and wealthPrevention of concentration of economic power

15. Ways to Achieve the GoalsTo create necessary social and economic overheads.To develop and promote basic industries.To create job opportunities.To improve the economic conditions.To reduce the income and wealth disparitiesTo achieve self-sufficiency

16. Public expenditure Expenditure of public authorities, i.e. central, state and local government, on various socio-economic and political activities with ultimate aim of public expenditure being promotion of public welfare.

17. Principles of public expenditureGiven by prof. Findlay shirras Principle of benefitPrinciple of economyPrinciple of sanction Principle of surplus

18. Causes of growth in public expenditureEmergence of welfare statesRising defense expenditureRise in price levelIndustrialisationBasic infrastructurePopulation growth

19. Classification of public expenditureFunctional classification

20. Plan

21. Non-plan

22. Economic classification