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Fiscal Policy - Meaning and Objectives
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This lesson deals with meaning and objectives of fiscal policy in India.

Surabhi Agrawal
Rank 358 UPSC 2018, Chartered accountant and company secretary with 4 All India ranks, passionate learner and above all a positive soul.

Unacademy user
thanks 😃😂 😅
mam could you please explain how decrease in govt expenditure leads to reduction in prices
Surabhi Agrawal
a year ago
when govt expenditure will decrease then People will have less money in hands which means their Demand will decrease... when Demand decreases price falls
Hi surabhi madam, you have explained this concept in a lucid manner thank you.
ma'am I am not having my right hand at GDP concept, so it would really be of great aid to me if you could make me understand that how increased output leads to increased GDP? 😃
how the prices can be decreased or increased while increasing or decreasing the govt. expenditure
here, what is being meant by mobilization and what the word 'resource' is suggestive of?
  1. FISCAL POLICY- MEANING AND OBJECTIVES Presented by Surabhi Agrawal

  2. About Myself A Chartered Accountant (CA) and Company Secretary (CS) by Qualification, I love teaching and Public speaking 1. a. Have secued llIndaank4th and:sthinACCndFinalrespectively 3. Have appeared for UPSC Mains 2017 For the courses related to Monetary Policy of India, go to the following link: 4. simplified/HSN46R3Y

  3. Fiscal policy- Meaning A policy that influences changes in Government expenditure and taxes that are designed to achieve macroeconomic policy goals like Growth, employment, investment, inflation control, etc. fiscal policy pian marlke solution market success planning progress

  4. Infrastructure Development Increase National Income Improve Economic Efficiency Role of GOI Employment Generation Capital Formation Reduce Income inequality

  5. Objectives of Fiscal Policy 1. Development by effective Mobilization of resources. Taxation Public savings Private savings

  6. 2. Efficient allocation of financial resources Developmental Expenditure Eg. Railways Non Developmental expenditure Ea. Defence, Interest Payments Infrastructure

  7. 3. Reduction in inequalities of income and wealth Progressive rates of Income tax Cess over and above GST rates on Luxury goods Poverty Alleviation programmes

  8. 4. Price stability Price stability Reduce prices Increase prices Increase tax rates Decrease Govt. Exp Decrease tax rates Increase Govt. Exp

  9. 5. Employment generation Direct Indirect measures measures Investment in infrastructure Tax holidays and incentives Employment generation programmes Skill development programmes

  10. 6. Capital formation in the economy Fiscal policy Savings rate Capital formation