Fiscal Policy Role and Development in Bulgaria and Eu
International Finances
R e p o r t
Fiscal policy role and development in Bulgaria and in the EU
Fiscal policy is a set of measures by the government aimed to slow or stimulate the economy. Such measures are changes in tax policy and government spending. With the changes that are made the government influence directly to the demand. Fiscal policy is based on the theories of the British economist John Maynard Keynes. The idea is that the state can influence the economy by increasing or reducing the taxes and public spending. This influence is limiting the inflation (taken for healthy for levels of 2-3%), increased employment and maintain the value of money. The main instruments of fiscal policy are: • Changes in volume and structure of state / governmental / costs; • Changes in the system of taxes and tax rates; Conducting the contemporary fiscal policy is aimed to amend the jointly cost, respectively. Aggregate demand, which has an impact on the formation of: • the equilibrium level of aggregate manufacture; • the level of employment / unemployment /; • the level of prices / inflation /. By thus the fiscal policy is mainly connected with so called economy of demand or Keynesian theoretical conception, according to which aggregate demand has a decisive importance at formation of the key macroeconomic relationships / aggregate demand creates its necessary aggregate supply /. Fiscal policy is government macroeconomic policy conducted by the government through purposive changes in government spending and taxes - in this context it is restrictive fiscal policy. Fiscal policy is a set of economic approaches / principles /, economic activities and economic instruments which have an influence on the formation of aggregate demand with aim to target the aggregate production and employment to the potential level in a stable price level. By the point of general theoretical principles for the formation and conduct of fiscal policy, it
R e p o r t
Fiscal policy role and development in Bulgaria and in the EU
Fiscal policy is a set of measures by the government aimed to slow or stimulate the economy. Such measures are changes in tax policy and government spending. With the changes that are made the government influence directly to the demand. Fiscal policy is based on the theories of the British economist John Maynard Keynes. The idea is that the state can influence the economy by increasing or reducing the taxes and public spending. This influence is limiting the inflation (taken for healthy for levels of 2-3%), increased employment and maintain the value of money. The main instruments of fiscal policy are: • Changes in volume and structure of state / governmental / costs; • Changes in the system of taxes and tax rates; Conducting the contemporary fiscal policy is aimed to amend the jointly cost, respectively. Aggregate demand, which has an impact on the formation of: • the equilibrium level of aggregate manufacture; • the level of employment / unemployment /; • the level of prices / inflation /. By thus the fiscal policy is mainly connected with so called economy of demand or Keynesian theoretical conception, according to which aggregate demand has a decisive importance at formation of the key macroeconomic relationships / aggregate demand creates its necessary aggregate supply /. Fiscal policy is government macroeconomic policy conducted by the government through purposive changes in government spending and taxes - in this context it is restrictive fiscal policy. Fiscal policy is a set of economic approaches / principles /, economic activities and economic instruments which have an influence on the formation of aggregate demand with aim to target the aggregate production and employment to the potential level in a stable price level. By the point of general theoretical principles for the formation and conduct of fiscal policy, it
References: 1. http://www.standardandpoors.com/ratings/en/us/?rpqSearch=NO&pageNav=No&searchField=Entity&searchText=Bulgaria 2. https://www.imf.org/external/np/vc/2007/050907.htm 3. http://www.profit.bg/news.php?cid=55&id=58910 4. http://www.diterambconsult.com/en/news/287-bulgaria%E2%80%99s-fiscal-policy-slackest-in-the-region---unicredit.html 5. http://sofiaecho.com/2009/12/25/835427_bulgaria-has-stable-and-sustained-fiscal-policy-finance-minister-dyankov 6. http://www.aeaf.minfin.bg/en/documents/cp_2008/Addendum_to_the_Convergence_Programme_2008_2011_EN.pdf 7. http://novinite.com/view_news.php?id=26208 8. http://old.government.bg/cgi-bin/e-cms/vis/vis.pl?s=001&p=0138&n=876&g=