Indian Fiscal Policy Impacts
LOVELY PROFESSIONAL UNIVERSITY
Term Paper
School of Business Department of Management
Name of the Student: Azhar Shokin Regd. No.: - 11000968
Course Code: MGT511 Course Title: Business Environment
Course Instructor: Vishwas Chakranarayan Course Tutor: Vishwas Chakranarayan
Class: MBA Semester: 1st
Section: S1001 Batch 2010-12
Student’s Signature Azhar Shokin
Topic: - Impact of Fiscal Policy on Indian Economy
Contents
* Introduction * Literature Review * Research * Article * Analysis * Data and Methodology * Main Findings * Conclusion * Recommendations * References
Impact of Fiscal Policy on Indian Economy
Introduction
In economics, fiscal policy is the use of government expenditure and revenue collection to influence the economy.
Fiscal policy can be contrasted with the other main type of macroeconomic policy, monetary policy, which attempts to stabilize the economy by controlling interest rates and the money supply. The two main instruments of fiscal policy are government expenditure and taxation. Changes in the level and composition of taxation and government spending can impact on the following variables in the economy: * Aggregate demand and the level of economic activity; * The pattern of resource allocation; * The distribution of income. * |
Stances of fiscal policy
The three possible stances of fiscal policy are neutral, expansionary and contractionary. The simplest definitions of these stances are as follows: * A neutral stance of fiscal policy implies a balanced economy. This results in large tax revenue. Government spending is fully funded by tax revenue and overall the budget outcome has a neutral effect on the level of economic activity. * An expansionary stance of fiscal policy involves government spending exceeding tax revenue. * A contractionary fiscal policy occurs when government spending is lower than tax revenue.
However, these
Term Paper
School of Business Department of Management
Name of the Student: Azhar Shokin Regd. No.: - 11000968
Course Code: MGT511 Course Title: Business Environment
Course Instructor: Vishwas Chakranarayan Course Tutor: Vishwas Chakranarayan
Class: MBA Semester: 1st
Section: S1001 Batch 2010-12
Student’s Signature Azhar Shokin
Topic: - Impact of Fiscal Policy on Indian Economy
Contents
* Introduction * Literature Review * Research * Article * Analysis * Data and Methodology * Main Findings * Conclusion * Recommendations * References
Impact of Fiscal Policy on Indian Economy
Introduction
In economics, fiscal policy is the use of government expenditure and revenue collection to influence the economy.
Fiscal policy can be contrasted with the other main type of macroeconomic policy, monetary policy, which attempts to stabilize the economy by controlling interest rates and the money supply. The two main instruments of fiscal policy are government expenditure and taxation. Changes in the level and composition of taxation and government spending can impact on the following variables in the economy: * Aggregate demand and the level of economic activity; * The pattern of resource allocation; * The distribution of income. * |
Stances of fiscal policy
The three possible stances of fiscal policy are neutral, expansionary and contractionary. The simplest definitions of these stances are as follows: * A neutral stance of fiscal policy implies a balanced economy. This results in large tax revenue. Government spending is fully funded by tax revenue and overall the budget outcome has a neutral effect on the level of economic activity. * An expansionary stance of fiscal policy involves government spending exceeding tax revenue. * A contractionary fiscal policy occurs when government spending is lower than tax revenue.
However, these
References: https://www.repository.utl.pt/bitstream/10400.5/.../ecbwp991.pdfscribd.com http://en.wikipedia.org/wiki/Fiscal_policyOppapers.com http://Jsbbc.imf.org/external/np/seminarstr.com www.econlib.org/library/Enc/FiscalPolicy.html rbidocs.rbi.org.in/rdocs/Publications/PDFs/82936.pdf tutor2u.net/economics/.../a2-macro-fiscal-policy-effects.html