Macro eco FISCAL POLICY
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This document presents an introduction to fiscal policy by various authors. It defines fiscal policy as the expenditures and revenue collection of governments to achieve economic stability without inflation or deflation. The objectives of fiscal policy are listed as mobilizing resources, accelerating growth, minimizing inequality, increasing employment and price stability. Tools of fiscal policy include budget surpluses, government expenditure, taxation, public debt, and deficit financing. Specific fiscal policy tools like taxation, government expenditure, and public debt are further described. The role of fiscal policy in Pakistan's economic development is outlined as promoting capital formation, investment, stability, and checking imbalances.
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3.fiscal policy
Fiscal policy involves the government making discretionary changes to taxation, expenditures, and borrowings to achieve macroeconomic goals. It is an essential tool for overcoming recessions and inflation as well as promoting economic growth. Fiscal policy instruments include changes to budget deficits or surpluses, the level and composition of government expenditures, taxation levels and types, public debt, and deficit financing. The government uses these tools to target variables like disposable income, consumption, savings and investment to influence the overall economy.
Fiscal policy
This document defines and discusses fiscal policy in India. It begins by introducing fiscal policy and its objectives of stabilizing the economy. It then defines fiscal policy as involving government revenue collection through taxation and spending. The objectives and instruments of fiscal policy are outlined, including the budget, taxation, public expenditure, and public debt. Data on India's fiscal deficit is presented, showing it as a percentage of GDP from 2005-2014. The achievements and reforms of India's fiscal policy are highlighted, such as increasing resources and savings. The Fiscal Responsibility and Budget Management Act of 2003 is described as institutionalizing financial discipline and reducing deficits. Current fiscal policy targets reducing the deficit to 3% of GDP by 2017-2018.
Main objectives of fiscal policy in india ↓
The document outlines the main objectives of fiscal policy in India. It discusses 11 objectives: 1) development through effective resource mobilization, 2) efficient allocation of resources, 3) reduction of income/wealth inequalities, 4) price stability and inflation control, 5) employment generation, 6) balanced regional development, 7) reducing balance of payments deficits, 8) increasing capital formation, 9) increasing national income, 10) infrastructure development, and 11) increasing foreign exchange earnings. The conclusion states that fiscal policy tools like public expenditure, taxation, borrowing, and deficit financing must be used effectively to achieve these objectives.
Government Budget
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Fiscal policy
Fiscal policy involves a government adjusting its spending and tax rates to influence the economy. The objectives of fiscal policy include full employment, reducing inequality, price stability, and economic development. Public revenue comes from tax receipts like direct taxes on individuals/corporations and indirect taxes on goods/services. It also comes from non-tax receipts like interest. Public expenditure consists of revenue expenditure on current needs and capital expenditure on infrastructure. India's fiscal policy has shifted from indirect taxes to more direct taxes since independence. The 2017 budget aims to transform, energize and clean the economy through initiatives for farmers, MGNREGA, affordable housing, and promoting a digital India.
Final Fiscal
The document discusses India's fiscal system and reforms. It outlines the goals of fiscal policy as mobilizing resources, promoting growth, ensuring stability and equitable distribution. It discusses tax and expenditure reforms since the 1990s aimed at simplification, rationalization and widening the tax base. Reforms also focused on privatization, expenditure quality and reducing non-developmental spending. The document calls for further reforms to increase productive spending and finance development goals through improved resource mobilization and expenditure efficiency.
Fiscal Policy
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.
Is post 1991 Economic Development In India skewed?
The document summarizes the economic situation in India before and after the 1991 economic reforms. Before 1991, India followed socialist policies and imposed licenses and restrictions on private investment and imports. This led to high inflation, currency volatility, and increasing debt. The 1991 reforms introduced liberalization, privatization, and globalization policies. This included industrial deregulation, trade liberalization, and foreign investment reforms. After 1991, India's economy grew rapidly, with GDP quadrupling, foreign exchange reserves surging, and exports increasing substantially. However, the reforms also led to rising inequality, unemployment, and poverty remained an issue.
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3.fiscal policy
Fiscal policy involves the government making discretionary changes to taxation, expenditures, and borrowings to achieve macroeconomic goals. It is an essential tool for overcoming recessions and inflation as well as promoting economic growth. Fiscal policy instruments include changes to budget deficits or surpluses, the level and composition of government expenditures, taxation levels and types, public debt, and deficit financing. The government uses these tools to target variables like disposable income, consumption, savings and investment to influence the overall economy.
Fiscal policy
This document defines and discusses fiscal policy in India. It begins by introducing fiscal policy and its objectives of stabilizing the economy. It then defines fiscal policy as involving government revenue collection through taxation and spending. The objectives and instruments of fiscal policy are outlined, including the budget, taxation, public expenditure, and public debt. Data on India's fiscal deficit is presented, showing it as a percentage of GDP from 2005-2014. The achievements and reforms of India's fiscal policy are highlighted, such as increasing resources and savings. The Fiscal Responsibility and Budget Management Act of 2003 is described as institutionalizing financial discipline and reducing deficits. Current fiscal policy targets reducing the deficit to 3% of GDP by 2017-2018.
Main objectives of fiscal policy in india ↓
The document outlines the main objectives of fiscal policy in India. It discusses 11 objectives: 1) development through effective resource mobilization, 2) efficient allocation of resources, 3) reduction of income/wealth inequalities, 4) price stability and inflation control, 5) employment generation, 6) balanced regional development, 7) reducing balance of payments deficits, 8) increasing capital formation, 9) increasing national income, 10) infrastructure development, and 11) increasing foreign exchange earnings. The conclusion states that fiscal policy tools like public expenditure, taxation, borrowing, and deficit financing must be used effectively to achieve these objectives.
Government Budget
Just sharing my efforts makes me feel happy and self-satisfied. Feel free to use my works as your project work at school.
Contact me at @ashmitg132@gmail.com
Fiscal policy
Fiscal policy involves a government adjusting its spending and tax rates to influence the economy. The objectives of fiscal policy include full employment, reducing inequality, price stability, and economic development. Public revenue comes from tax receipts like direct taxes on individuals/corporations and indirect taxes on goods/services. It also comes from non-tax receipts like interest. Public expenditure consists of revenue expenditure on current needs and capital expenditure on infrastructure. India's fiscal policy has shifted from indirect taxes to more direct taxes since independence. The 2017 budget aims to transform, energize and clean the economy through initiatives for farmers, MGNREGA, affordable housing, and promoting a digital India.
Final Fiscal
The document discusses India's fiscal system and reforms. It outlines the goals of fiscal policy as mobilizing resources, promoting growth, ensuring stability and equitable distribution. It discusses tax and expenditure reforms since the 1990s aimed at simplification, rationalization and widening the tax base. Reforms also focused on privatization, expenditure quality and reducing non-developmental spending. The document calls for further reforms to increase productive spending and finance development goals through improved resource mobilization and expenditure efficiency.
Fiscal Policy
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.
Is post 1991 Economic Development In India skewed?
The document summarizes the economic situation in India before and after the 1991 economic reforms. Before 1991, India followed socialist policies and imposed licenses and restrictions on private investment and imports. This led to high inflation, currency volatility, and increasing debt. The 1991 reforms introduced liberalization, privatization, and globalization policies. This included industrial deregulation, trade liberalization, and foreign investment reforms. After 1991, India's economy grew rapidly, with GDP quadrupling, foreign exchange reserves surging, and exports increasing substantially. However, the reforms also led to rising inequality, unemployment, and poverty remained an issue.
Economic reforms
The document discusses the economic reforms in India that began in 1991 in response to an economic crisis. It provides context around the need for reforms, including increased fiscal deficits, adverse balance of payments, and falling foreign exchange reserves. Early crisis management measures focused on fiscal correction, industrial decontrol, and balance of payments stabilization. The major features of the economic reforms were liberalization, privatization, and globalization. Liberalization involved reducing government controls over industries and the economy to allow market forces to guide growth more effectively.
Fiscal policy
Fiscal policy deals with government taxation and spending decisions. The key instruments of fiscal policy are the budget, taxation, public expenditure, public revenue, public debt, and fiscal deficit. Fiscal policy can be either expansionary, which stimulates economic growth through tax cuts or increased spending, or contractionary, which slows growth through tax increases or spending cuts. The current US fiscal policy has led to massive government debt levels, with mandatory spending on programs like Social Security, Medicare and Medicaid accounting for most of the budget. The objectives of fiscal policy include mobilizing resources, reducing inequality, price stability, employment generation, balanced regional development, improving the balance of payments, increasing national income, developing infrastructure, and earning foreign exchange.
Two Decades of Economic Reform in India
The document summarizes India's economic reforms over the past two decades since 1991. It discusses how India shifted from a socialist planned economy to a more market-based economy through major reforms in fiscal policy, trade, industry, agriculture, finance, and the public sector. The reforms were initiated in response to a balance of payments crisis in 1991 and aimed to reduce the fiscal deficit, encourage foreign investment, liberalize trade and industry, make the currency market-determined, and increase the private sector's role. The reforms met their initial goals and supported economic growth rates of around 6% annually in the following decade.
government budget
The document discusses the key components of government budgets, including:
- Revenue receipts, which do not create liabilities or reduce assets, such as tax revenues. Tax revenues include direct taxes like income tax and indirect taxes like VAT. Non-tax revenues include fees, licenses, fines, and other sources.
- Capital receipts, which do create liabilities or reduce assets. These include borrowings, which create liabilities, and the sale of shares in public enterprises, which reduces assets.
- Expenditure, which is divided into revenue expenditure on ongoing activities and capital expenditure on infrastructure and other long-term investments.
The budget aims to allocate resources, reduce inequalities, promote stability and
New economic reforms in india
The document summarizes India's 1991 economic reforms which were launched due to an economic and political crisis. The reforms included liberalization, privatization, and globalization. Liberalization freed the economy from government controls, privatization allowed private sector involvement in industries previously reserved for public sector, and globalization promoted free trade and foreign investment. The reforms aimed to reduce fiscal deficits, balance of payments issues, inflation, and improve growth. Key sectors like automobiles, agriculture, and telecommunications saw increased growth and investment following the reforms. Overall, the reforms led to higher average GDP growth rates compared to previous decades.
Economic policies - mba-
This document summarizes an assignment submitted on economic policy modules, including privatization, fiscal policy, and monetary policy in India. It discusses objectives and instruments of fiscal policy like taxation, public borrowing, and expenditure. It outlines the Raja Chelliah Committee recommendations on tax reforms and the objectives of monetary policy like growth, stability, and employment. Tools of monetary policy discussed include bank rate, cash reserve ratio, open market operations, and moral suasion.
Economic Reforms
This document discusses economic reforms and planning in India. It notes that economic reforms are necessary structural and institutional changes to address issues like rising fiscal deficits, balance of payment issues, and inflation. In 1990-1991, India began a process of gradual economic liberalization and privatization that resulted in satisfactory outcomes across various sectors. Major reforms included changes to industrial, trade, fiscal, monetary, and capital market policies. The document also outlines India's system of economic planning through Five-Year Plans developed by the Planning Commission to achieve goals like increasing national income, employment, and reducing economic inequalities.
Economic reforms of india
The document discusses two stages of economic reforms. The second generation reforms aim to ensure the state plays its proper role in a market economy by creating a level playing field for all sectors and implementing social policies to alleviate poverty and provide equal opportunity. These reforms focus on strengthening financial systems, encouraging good governance, adjusting fiscal composition, and deeper structural reforms such as civil service reform and labor market reform.
Fiscal Policy trends in India: Since Independence
The document discusses India's fiscal policy trends from post-independence to present day. It summarizes that early on, fiscal policy focused on stimulating growth and reducing inequality through high government expenditure and taxation. This led to budget deficits. Economic reforms since 1991 have focused on reducing deficits through tax cuts, expenditure reforms, and greater fiscal responsibility. The Fiscal Responsibility and Budget Management Act of 2003 aimed to further improve fiscal discipline.
New economic policy of india
The document discusses India's economic policies before and after 1991. Prior to 1991, India followed a socialist model with a large public sector, import substitution, and strict regulations. This led to low growth, shortages, and a balance of payments crisis by 1991. India was forced to seek IMF/World Bank loans in exchange for reforms. The 1991 New Economic Policy introduced liberalization, privatization, globalization and stabilization measures. Key reforms included industrial deregulation, opening the economy to foreign trade and investment, tax cuts, and allowing private sector growth. The reforms aimed to make the Indian economy more competitive and efficient but were criticized for not sufficiently reducing inequality or boosting agriculture/industry.
Economic reforms and its impact
The document discusses India's economic reforms and their impacts. It covers:
1. Major economic reforms introduced in 1991 including liberalizing industries, trade and fiscal policies.
2. Impacts of reforms on GDP growth, food production, infrastructure development, foreign exchange reserves, imports/exports, debt levels, and inflation.
3. Reforms led to increased globalization and growth rates rising from 4% pre-1991 to over 6% post-1991, though inflation also increased initially.
Economic policy
The document discusses India's economic policy, including important factors like the structure and nature of the economy, economic conditions, policies, and global linkages. It outlines the objectives of economic policy like promoting agriculture, industry, and development. Key aspects of economic policy discussed include liberalization, privatization, fiscal and monetary policy, and indicators like GDP, industrial production, and inflation. It also provides an overview of India's economic performance in recent years based on various economic indicators.
Objectives of Fiscal Policy
objectives of fiscal policy
,
to accelerate the rate of economic growth:
,
optimum allocation of resources
,
generally following are the objectives of a fiscal
,
equitable distribution of income and wealth:
,
full employment
,
to encourage investment
,
economic stability:
Fiscal policy by Karan Sahu
Fiscal policy refers to the government's spending and tax policies. It aims to achieve macroeconomic goals such as economic growth, employment generation, price stability, and balanced regional development. The key instruments of fiscal policy are government expenditure, government revenue, public debt, and budgetary surplus/deficit. Government expenditure includes spending on goods/services, wages, public investments, and transfer payments. Government revenue comes from taxes, which can be direct taxes like income tax or indirect taxes like VAT. Public debt includes borrowing from the public and central bank as well as external borrowing from international organizations. The budget aims to balance revenue receipts against expenditure payments.
Indian economic reforms 1991
The document discusses India's economic crisis in 1991 which prompted the need for a new economic policy. The new policy featured privatization, globalization, fiscal reforms, financial reforms, liberalization, and modernization to increase productivity and efficiency. Globalization aimed to reduce trade barriers and allow free flow of capital and technology. Liberalization freed the economy from government controls and allowed private sector growth. Privatization aimed to increase efficiency and competitiveness.
Fiscal History of Pakistan (Fiscal Deficit of Pakistan)
fiscal deficit
definition
a fiscal deficit occurs when a govt's total expenditure exceed the revenue that it generates, excluding money from borrowing.
India’s-balance-of-payments-crisis-and-it’s-impacts
The 1991 Indian balance of payments crisis occurred due to a combination of factors: a large current account deficit caused by rising oil prices after the Gulf War, declining exports, and a withdrawal of foreign capital. India's foreign exchange reserves fell dangerously low, forcing the government to undertake major economic reforms, including currency devaluation, trade liberalization, and industrial deregulation. In the following decades, these reforms helped stabilize the economy and shift to a market-oriented policy framework, leading to strong growth in foreign investment, exports, and overall macroeconomic indicators. However, some slowing was seen in the late 1990s due to global trade declines.
Impact of economic reforms
Economic reforms were initiated in 1991 in India to address high fiscal deficits, balance of payments issues, and low foreign reserves. The reforms focused on liberalization, privatization, and globalization. This included reducing state control of the economy and opening it up to private and foreign investments. The reforms led to higher economic growth rates but did not sufficiently address issues like unemployment and infrastructure development.
Fiscal policy
This document discusses fiscal policy and public finance. It defines fiscal policy as the policy through which governments create and sustain public economies. The major functions of fiscal policy are outlined as allocation of resources, distribution of income and wealth, and economic stabilization. Key topics covered include government revenue sources, features of a good tax policy, approaches to tax equity, and the concept of tax incidence.
Economic reforms by Dipen Shah
The document discusses the rationale for India's economic reforms in 1991. It provides context around the economic crisis India was facing at the time including high fiscal deficits, a worsening balance of payments situation, and slow economic growth. It then outlines the major economic reforms introduced as part of the New Economic Policy in 1991 including liberalization of industrial policy, trade, and the financial sector. The reforms aimed to reduce government controls, encourage private sector growth, and make the Indian economy more globally competitive. The document also discusses some of the achievements and ongoing challenges of the economic reforms.
Fiscal policy
Fiscal policy uses government spending and taxation to influence the economy. It aims to achieve economic stability without inflation or deflation. The government collects revenues through taxes, fees, fines, and loans, then spends money on productive investments like infrastructure and non-productive services like education and health. The budget shows estimated receipts and expenditures. Fiscal policy can be neutral, expansionary, or contractionary depending on whether spending equals, exceeds, or is less than tax revenue. While fiscal policy aims to evenly distribute wealth and resources, limitations include inadequate data and delayed decision-making.
Fiscal Policy in Macro Economics
Fiscal policy uses government spending and taxation to influence the economy. It aims to achieve stability without inflation or deflation. The budget estimates revenues and expenditures and is an anti-inflation tool to sustain growth. Revenues come from taxes, fees, loans, etc. and are spent on productive items like infrastructure or non-productive like defense. Fiscal policy can be neutral, expansionary, or contractionary depending on if spending equals, exceeds, or is less than revenues. The objectives are equal wealth distribution, savings, price stability, and economic stability. Limitations include inflexibility, statistics, and decision delays. Islam advocates equal distribution, zakat, and limiting spending imbalances.
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Economic reforms
The document discusses the economic reforms in India that began in 1991 in response to an economic crisis. It provides context around the need for reforms, including increased fiscal deficits, adverse balance of payments, and falling foreign exchange reserves. Early crisis management measures focused on fiscal correction, industrial decontrol, and balance of payments stabilization. The major features of the economic reforms were liberalization, privatization, and globalization. Liberalization involved reducing government controls over industries and the economy to allow market forces to guide growth more effectively.
Fiscal policy
Fiscal policy deals with government taxation and spending decisions. The key instruments of fiscal policy are the budget, taxation, public expenditure, public revenue, public debt, and fiscal deficit. Fiscal policy can be either expansionary, which stimulates economic growth through tax cuts or increased spending, or contractionary, which slows growth through tax increases or spending cuts. The current US fiscal policy has led to massive government debt levels, with mandatory spending on programs like Social Security, Medicare and Medicaid accounting for most of the budget. The objectives of fiscal policy include mobilizing resources, reducing inequality, price stability, employment generation, balanced regional development, improving the balance of payments, increasing national income, developing infrastructure, and earning foreign exchange.
Two Decades of Economic Reform in India
The document summarizes India's economic reforms over the past two decades since 1991. It discusses how India shifted from a socialist planned economy to a more market-based economy through major reforms in fiscal policy, trade, industry, agriculture, finance, and the public sector. The reforms were initiated in response to a balance of payments crisis in 1991 and aimed to reduce the fiscal deficit, encourage foreign investment, liberalize trade and industry, make the currency market-determined, and increase the private sector's role. The reforms met their initial goals and supported economic growth rates of around 6% annually in the following decade.
government budget
The document discusses the key components of government budgets, including:
- Revenue receipts, which do not create liabilities or reduce assets, such as tax revenues. Tax revenues include direct taxes like income tax and indirect taxes like VAT. Non-tax revenues include fees, licenses, fines, and other sources.
- Capital receipts, which do create liabilities or reduce assets. These include borrowings, which create liabilities, and the sale of shares in public enterprises, which reduces assets.
- Expenditure, which is divided into revenue expenditure on ongoing activities and capital expenditure on infrastructure and other long-term investments.
The budget aims to allocate resources, reduce inequalities, promote stability and
New economic reforms in india
The document summarizes India's 1991 economic reforms which were launched due to an economic and political crisis. The reforms included liberalization, privatization, and globalization. Liberalization freed the economy from government controls, privatization allowed private sector involvement in industries previously reserved for public sector, and globalization promoted free trade and foreign investment. The reforms aimed to reduce fiscal deficits, balance of payments issues, inflation, and improve growth. Key sectors like automobiles, agriculture, and telecommunications saw increased growth and investment following the reforms. Overall, the reforms led to higher average GDP growth rates compared to previous decades.
Economic policies - mba-
This document summarizes an assignment submitted on economic policy modules, including privatization, fiscal policy, and monetary policy in India. It discusses objectives and instruments of fiscal policy like taxation, public borrowing, and expenditure. It outlines the Raja Chelliah Committee recommendations on tax reforms and the objectives of monetary policy like growth, stability, and employment. Tools of monetary policy discussed include bank rate, cash reserve ratio, open market operations, and moral suasion.
Economic Reforms
This document discusses economic reforms and planning in India. It notes that economic reforms are necessary structural and institutional changes to address issues like rising fiscal deficits, balance of payment issues, and inflation. In 1990-1991, India began a process of gradual economic liberalization and privatization that resulted in satisfactory outcomes across various sectors. Major reforms included changes to industrial, trade, fiscal, monetary, and capital market policies. The document also outlines India's system of economic planning through Five-Year Plans developed by the Planning Commission to achieve goals like increasing national income, employment, and reducing economic inequalities.
Economic reforms of india
The document discusses two stages of economic reforms. The second generation reforms aim to ensure the state plays its proper role in a market economy by creating a level playing field for all sectors and implementing social policies to alleviate poverty and provide equal opportunity. These reforms focus on strengthening financial systems, encouraging good governance, adjusting fiscal composition, and deeper structural reforms such as civil service reform and labor market reform.
Fiscal Policy trends in India: Since Independence
The document discusses India's fiscal policy trends from post-independence to present day. It summarizes that early on, fiscal policy focused on stimulating growth and reducing inequality through high government expenditure and taxation. This led to budget deficits. Economic reforms since 1991 have focused on reducing deficits through tax cuts, expenditure reforms, and greater fiscal responsibility. The Fiscal Responsibility and Budget Management Act of 2003 aimed to further improve fiscal discipline.
New economic policy of india
The document discusses India's economic policies before and after 1991. Prior to 1991, India followed a socialist model with a large public sector, import substitution, and strict regulations. This led to low growth, shortages, and a balance of payments crisis by 1991. India was forced to seek IMF/World Bank loans in exchange for reforms. The 1991 New Economic Policy introduced liberalization, privatization, globalization and stabilization measures. Key reforms included industrial deregulation, opening the economy to foreign trade and investment, tax cuts, and allowing private sector growth. The reforms aimed to make the Indian economy more competitive and efficient but were criticized for not sufficiently reducing inequality or boosting agriculture/industry.
Economic reforms and its impact
The document discusses India's economic reforms and their impacts. It covers:
1. Major economic reforms introduced in 1991 including liberalizing industries, trade and fiscal policies.
2. Impacts of reforms on GDP growth, food production, infrastructure development, foreign exchange reserves, imports/exports, debt levels, and inflation.
3. Reforms led to increased globalization and growth rates rising from 4% pre-1991 to over 6% post-1991, though inflation also increased initially.
Economic policy
The document discusses India's economic policy, including important factors like the structure and nature of the economy, economic conditions, policies, and global linkages. It outlines the objectives of economic policy like promoting agriculture, industry, and development. Key aspects of economic policy discussed include liberalization, privatization, fiscal and monetary policy, and indicators like GDP, industrial production, and inflation. It also provides an overview of India's economic performance in recent years based on various economic indicators.
Objectives of Fiscal Policy
objectives of fiscal policy
,
to accelerate the rate of economic growth:
,
optimum allocation of resources
,
generally following are the objectives of a fiscal
,
equitable distribution of income and wealth:
,
full employment
,
to encourage investment
,
economic stability:
Fiscal policy by Karan Sahu
Fiscal policy refers to the government's spending and tax policies. It aims to achieve macroeconomic goals such as economic growth, employment generation, price stability, and balanced regional development. The key instruments of fiscal policy are government expenditure, government revenue, public debt, and budgetary surplus/deficit. Government expenditure includes spending on goods/services, wages, public investments, and transfer payments. Government revenue comes from taxes, which can be direct taxes like income tax or indirect taxes like VAT. Public debt includes borrowing from the public and central bank as well as external borrowing from international organizations. The budget aims to balance revenue receipts against expenditure payments.
Indian economic reforms 1991
The document discusses India's economic crisis in 1991 which prompted the need for a new economic policy. The new policy featured privatization, globalization, fiscal reforms, financial reforms, liberalization, and modernization to increase productivity and efficiency. Globalization aimed to reduce trade barriers and allow free flow of capital and technology. Liberalization freed the economy from government controls and allowed private sector growth. Privatization aimed to increase efficiency and competitiveness.
Fiscal History of Pakistan (Fiscal Deficit of Pakistan)
fiscal deficit
definition
a fiscal deficit occurs when a govt's total expenditure exceed the revenue that it generates, excluding money from borrowing.
India’s-balance-of-payments-crisis-and-it’s-impacts
The 1991 Indian balance of payments crisis occurred due to a combination of factors: a large current account deficit caused by rising oil prices after the Gulf War, declining exports, and a withdrawal of foreign capital. India's foreign exchange reserves fell dangerously low, forcing the government to undertake major economic reforms, including currency devaluation, trade liberalization, and industrial deregulation. In the following decades, these reforms helped stabilize the economy and shift to a market-oriented policy framework, leading to strong growth in foreign investment, exports, and overall macroeconomic indicators. However, some slowing was seen in the late 1990s due to global trade declines.
Impact of economic reforms
Economic reforms were initiated in 1991 in India to address high fiscal deficits, balance of payments issues, and low foreign reserves. The reforms focused on liberalization, privatization, and globalization. This included reducing state control of the economy and opening it up to private and foreign investments. The reforms led to higher economic growth rates but did not sufficiently address issues like unemployment and infrastructure development.
Fiscal policy
This document discusses fiscal policy and public finance. It defines fiscal policy as the policy through which governments create and sustain public economies. The major functions of fiscal policy are outlined as allocation of resources, distribution of income and wealth, and economic stabilization. Key topics covered include government revenue sources, features of a good tax policy, approaches to tax equity, and the concept of tax incidence.
Economic reforms by Dipen Shah
The document discusses the rationale for India's economic reforms in 1991. It provides context around the economic crisis India was facing at the time including high fiscal deficits, a worsening balance of payments situation, and slow economic growth. It then outlines the major economic reforms introduced as part of the New Economic Policy in 1991 including liberalization of industrial policy, trade, and the financial sector. The reforms aimed to reduce government controls, encourage private sector growth, and make the Indian economy more globally competitive. The document also discusses some of the achievements and ongoing challenges of the economic reforms.
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Fiscal policy
Fiscal policy uses government spending and taxation to influence the economy. It aims to achieve economic stability without inflation or deflation. The government collects revenues through taxes, fees, fines, and loans, then spends money on productive investments like infrastructure and non-productive services like education and health. The budget shows estimated receipts and expenditures. Fiscal policy can be neutral, expansionary, or contractionary depending on whether spending equals, exceeds, or is less than tax revenue. While fiscal policy aims to evenly distribute wealth and resources, limitations include inadequate data and delayed decision-making.
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Fiscal policy uses government spending and taxation to influence the economy. It aims to achieve stability without inflation or deflation. The budget estimates revenues and expenditures and is an anti-inflation tool to sustain growth. Revenues come from taxes, fees, loans, etc. and are spent on productive items like infrastructure or non-productive like defense. Fiscal policy can be neutral, expansionary, or contractionary depending on if spending equals, exceeds, or is less than revenues. The objectives are equal wealth distribution, savings, price stability, and economic stability. Limitations include inflexibility, statistics, and decision delays. Islam advocates equal distribution, zakat, and limiting spending imbalances.
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Fiscal policy refers to the government's spending and tax policies to influence macroeconomic goals like economic growth, employment, stabilization, and equality. The major instruments of fiscal policy are the budget, government expenditures, taxation, public debt, and deficit financing. A budget outlines the government's estimated revenues and expenditures for a period and can aim for a surplus, deficit, or balance. Sticking to targets set in the Fiscal Responsibility and Budget Management Act aims to reduce deficits and debt over time to support long-term macroeconomic stability and intergenerational equity.
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Fiscal policy deals with government taxation and expenditure decisions. The major instruments of fiscal policy include the budget, taxation, public expenditure, public revenue, public debt, and fiscal deficit. The objectives of India's fiscal policy are to promote economic growth, reduce income and wealth inequalities, generate employment, ensure price stability, correct balance of payments deficits, and provide effective administration. Fiscal policy aims to mobilize resources through taxation, public savings, and private savings to fund infrastructure development, employment programs, and social services.
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Fiscal policy deals with government taxation and expenditure decisions. The major instruments of fiscal policy include the budget, taxation, public expenditure, public revenue, public debt, and fiscal deficit. The objectives of India's fiscal policy are to promote economic growth, reduce income and wealth inequalities, generate employment, ensure price stability, correct balance of payments deficits, and provide effective administration. Fiscal policy aims to mobilize resources through taxation, public savings, and private savings to fund development projects that boost growth.Similar to Macro eco FISCAL POLICY (20)
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Macro eco FISCAL POLICY
- 2. Presented by: • • • • • ZIA UL HAQUE HINA ILYAS SUNDAS ZAHRA HAMMAD QAYYUM MEHWISH MAQSOOD
- 3. INTRODUCTION • The term fiscal policy refers to the expenditure a government undertakes to provide goods and services and to the way in which the government finances these expenditures.
- 4. What is a Fiscal Policy? According to Samuelson, • Fiscal Policy is concerned with all those arrangements which are adopted by the Government to collect the revenue and make the expenditures so that economic stability could be attained/maintained without inflation and deflation´
- 5. Objectives • Mobilization of resources • Acceleration of Economic growth • Minimizes the inequalities of income and wealth • Increase the Employment opportunities • Price stability
- 6. Objectives • • • • Balanced regional development Reducing the deficit in the balance of payment Increasing National income Foreign exchange earnings
- 7. Tools • • • • • Budgetary surplus Government expenditure Taxation-Direct and indirect Public debt Deficit financing
- 8. Budgetary surplus • A budget is a detailed plan of operations for some specific future periods
- 9. Government expenditure • It includes: -Government spending on the purchase of goods and services -payments of wages and salaries of government servants -public investments -transfer payments
- 10. Taxation • Meaning : Non quid pro quo transfer of private income to public coffers by means of taxes. Classified into 1. Direct taxes- Corporate tax, Div. Distribution Tax, Personal Income Tax, Fringe Benefit taxes, Banking Cash Transaction Tax 2. Indirect taxes- Central Sales Tax, Customs, Service Tax, excise duty.
- 11. Public debts • Internal borrowings 1. Borrowings from the public by means of treasury bills and govt. bonds 2. Borrowings from the central bank (monetized deficit financing) • External borrowings 1. foreign investments 2. international organizations like World Bank & IMF 3. market borrowings
- 12. Role of Fiscal policy in economic development of PAKISTAN • • • • • • Capital formation Increase the rate of investment Encourage socially optimal investment Economic stability Counteract inflation Flow of investment to socially desirable channels • Checks imbalance in various sectors • Reduce inequality of income and wealth
- 13. •THANK YOU!