Fiscal system is concerned with management of government finances, assessment of the financial requirements of the government, modalities of raising revenue and, finally, with the scale and pattern of government expenditure. Fiscal Policy refers to the deliberate use of government budgets in the form of changes in revenue and expenditure to achieve desired macroeconomic goals. The government budget is an [...]
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 [...]