Submitted to :

Submitted By:
A.P Minal
Kajol Aggarwal
What Is Fiscal Policy?
The word “fisc” means “state treasury”.

Fiscal policy refers to the use of government spending

and tax policies to influence economic conditions ,
including demand for goods and services, employment,
inflation, and economic growth.

It is the sister strategy to monetary policy through

which a central bank influences a nation's money
supply.
According to Culbarston, “By
fiscal policy we refer to
government actions affecting its
receipts and expenditures
which ordinarily as measured
by the government’s receipts, its
surplus or deficit.”
 Budgets

Public
Instruments
Public
expendit
ure
of fiscal debt
policy

taxation
Impact of Fiscal Policy
The policy may not affect all the people in the
same way. The effect depends on the goals of the
policy-making authorities. For instance,
increased spending on research may only
increase the income of a select few people.
Whereas construction of dams may lead to
increased employment for a larger group of
people.
Along similar lines, a tax slab may affect only the
middle-level income group.
To put it in nutshell, the existence of a
sustainable fiscal policy is imperative
to create a vibrant and productive
economy.