Fiscal Policy Meaning Its Main Object

Topics: Tax, Public finance, Keynesian economics Pages: 17 (2319 words) Published: December 10, 2014
6/14/2014

Fiscal Policy Meaning - Its Main Objectives In India - Conclusion

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Post : Gaurav Akrani
Date : 3/06/2011 01:25:00 PM IST
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Meaning of Fiscal Policy ↓

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The fiscal policy is concerned with the raising of government revenue and

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incurring of government expenditure. To generate revenue and to incur expenditure, the government frames a policy called budgetary policy or fiscal policy. So, the fiscal policy is concerned with government expenditure and

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government revenue.

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Fiscal policy has to decide on the size and pattern of flow of expenditure from the government to the economy and from the economy back to the government. So, in broad term fiscal policy refers to "that segment of national economic policy which is primarily concerned with the receipts and expenditure of central government." In other words, fiscal policy refers to the policy of the government with regard to taxation, public expenditure and public borrowings.

The importance of fiscal policy is high in underdeveloped...
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