Fiscal policy generally refers to the use of taxation and government expenditure to regulate the aggregate level of economic activity. Thus, if unemployment is regarded as too high, income and expenditure taxes may be varied to stimulate the level of aggregate expenditure (demand). The overall effect on economic activity will depend on the size of the tax cut and the [...]
In this article we will discuss about:- 1. Objectives of Fiscal Policy in LDCs 2. The Role of Fiscal Policy in LDCs 3. Limitations. Objectives of Fiscal Policy in LDCs: The major objectives of fiscal policy in the LDCs are as follows: 1. To raise revenues for the government. 2. To stabilise prices by changing aggregate demand. 3. To promote [...]
In this article we will discuss about the anti-inflationary fiscal policy and its aims. The government often makes deliberate adjustments in revenues and expenditures for the purpose of obtaining greater economic stability. Such adjustments go by the name 'fiscal policy'. Since fiscal policy operates mainly through the budget, it is also known as the budgetary policy. The generally accepted goal [...]