Question 23. What is fiscal policy ?
Answer 23. FISCAL POLICY : RAVEN JOHNSON, " Changes in government expenditure and taxation design to influence the pattern and level of activity .
G.K SHAW ," defines fiscal policy as policy to influence include and design to change the price and composition and timing of government expenditure or vary the burden , structure or frequency of tax payment " .
OBJECTIVES :
1. To mabilize adequate resource for financing various programmes and projects in contents with the economic development.
2. To raise the rate of saving and Investment for increasing the rate of capital formation.
3. To promote necessary developments in private sectors through fiscal incentives.
4. To arrange optimum utilization of resource.
5. To remove poverty and unemployment .
6. To reduce regional disparity.
TECHNIQUES OF FISCAL POLICY
1. TAXATION POLICY
2. PUBLIC EXPENDITURE POLICY
3. DEFICIT FINANCING POLICY.