FISCAL POLICY

Vaibhav Londhe 224 Paresh Patil 236 Suraj Sharma 246 Junaid Ansari 201 Kavita vishwakarma 254 Amruta Mhatre 227

DEFINITION

Change in government spending or taxes to alter the economy.

Government spending policies that influence macroeconomic conditions. These policies affect tax rates, interest rates and government spending, in an effort to control the economy.

Objectives of Fiscal Policy

1. Development of country 2. Employment 3. To achieve desirable price level

4. To achieve desirable consumption level

5. Reduce unequal distribution of income 6. Economic growth, stability and controlling inflation

TYPES

Expansionary fiscal policy Contractionary fiscal policy

Instrument of fiscal policy

Budget Crowding out Effect Indicators of Fiscal Imbalances Vertical imbalance Horizontal imbalance Fiscal Deficit

GOVERNMENT EXPENDITURE

Payment of wages and salaries of government servants. Public investment Transfer Payments Current Government Spending Capital Spending

GOVERNMENT REVENUE

Direct taxesCorporate tax, Div. Distribution Tax , Personal Income Tax, Fringe Benefit taxes.

Indirect taxesCentral Sales Tax, Service Tax, excise duty.

Thank You