Search icone
Search and publish your papers

The evolution, features, concepts, application and terminologies of fiscal policy

Or download with : a doc exchange

About the author


About the document

Published date
documents in English
term papers
12 pages
0 times
Validated by
0 Comment
Rate this document
  1. Introduction
  2. Definitions of fiscal policy
  3. Objectives of fiscal policies
  4. Types of fiscal policy
  5. Basics of fiscal concepts
  6. Appendices
  7. Conclusion
  8. Bibliography

Fiscal policy can be explained as a policy executed by the government to produce desirable effect on national income, output and employment. There are two type of fiscal policy they are - Contractionary & Expansionary.It helps the government by creating an environment for rapid economic growth. It helps in stabilizing the prices. It minimizes the inequalities of income & wealth.The word FISCAL is derived from Greek word FISC meaning basket. The word FISC was used to devote the income and expenditure operations of the Government. Thus, fiscal policy can be explained as a policy executed by the Government to produce desirable effects on national income, output and employment. Thus, broadly speaking, PUBLIC EXPENDITURE+PUBLIC REVENUE constitute the tools of fiscal policy which are at the disposal of the Government to pursue its micro and macro economic goals, through taxation and expenditure policies.

[...] Stamp duty: It is levied on the purchase of shares and securities, the issue of bearer instruments and transfer of land, currency transactions or certain such transactions. These duties reduce the liquidity of the instruments and thus most often levied for discouraging speculative purchases of assets .stamp duty on currency transactions is known as Tobin tax. Value added tax: This tax applies the equivalent of excise or sales tax to every operation that creates value. It is assessed at each stage of production and covers both producers and traders . [...]

[...] Continuously increasing share of revenue deficit in the fiscal deficit adversely affects public investment and hence, has adverse impact on the productive capacity of the economy in the long run. On the other hand, falling revenue deficit, for a given level of fiscal deficit implies that the borrowed funds are used for capital formation. It's a healthy trend as it enhances the productive capacity of the economy Fiscal Deficit = Total expenditure - (Revenue receipts + Recovery of Loans + Receipts from the sale of assets) i.e = (Revenue expenditure + capital expenditure) (Revenue receipts + own capital receipts + capital grants Recoveries + sale of public assets). [...]

[...] It often tax the total income of the individual with some permissible deductions , where as corporate income taxes the net income , that is the difference between gross receipts , expenses and write offs. Poll tax: It is also known as per capita tax or capitation tax. It is easy to compute , involves less administrative costs, economically efficient as people are fixed in supply It is levied as a set amount per individual . However they are strongly regressive as a poorer section of the society ends up paying a higher proportion of their income than richer .Moreover, the supply of the people may not be fixed; poll tax may discourage couples to have more children reducing the population over a period of time. [...]

Similar documents you may be interested in reading.

Country Analysis - Canada (2007)

 Economics & finance   |  Economics   |  Market study   |  09/29/2010   |   .pdf   |   36 pages

How far did the fair value principle contribute to accelerate the credit crisis in France?

 Economics & finance   |  Finance   |  Thesis   |  09/29/2010   |   .pdf   |   46 pages

Recent documents in government finance category

Taxation limits on local governments; municipalities and school districts in the state of Georgia

 Economics & finance   |  Government finance   |  Presentation   |  07/24/2015   |   .doc   |   9 pages

In your opinion what was the primary cause of the financial crisis/recession of 2008-2009?

 Economics & finance   |  Government finance   |  Case study   |  06/10/2013   |   .doc   |   3 pages