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Fiscal Policy of India for Last 5 Yr and Analysis

Fiscal Policy of India for Last 5 Yr and Analysis

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Published by Devkant Rath

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Published by: Devkant Rath on Jun 15, 2010
Copyright:Attribution Non-commercial

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04/12/2013

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Fiscalpolicyreferstotheoveralleffectofthe budgetoutcomeoneconomicactivity.
TheideaofusingfiscalpolicytocombatrecessionswasintroducedbyJohnMaynardKeynesinthe1930sTwo main instruments of fiscal policy
Revenue Budget
Expenditure Budget
 
Three possible stances of fiscal policyare:
A
neutralstance
offiscalpolicyimpliesabalanced budgetwhereG=T(Governmentspending=Taxrevenue).
A
n
expansionarystance
offiscalpolicyinvolvesanetincreaseingovernmentspending(G>T).
A
contractionarystance
offiscalpolicy(G<T)

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