Fiscal Policy

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The government can impact the economy through fiscal policy and monetary policy. Fiscal policy involves manipulating government spending and taxation. A government's budget deficit is the difference between what it spends and what it collects in taxes, with a deficit occurring when spending exceeds taxes. To finance a deficit, the government must borrow from the public by selling Treasury bonds and bills, diverting some household savings to the government.

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I prepared this slide on my research paper 'fiscal deficit and inflation ' on the current economic situation of India. In this data has been collected from economic survey 2011-12 and several other books. This slide has full data how the the central govt. and central bank uses their, fiscal policy and monetary policy respectively Hope, it will provide a good help for students who want to know about these concepts of economics. gaurav tripathi(undergrad econ)>

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