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Introduction to Fiscal Policy (for UPSC CSE)
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In this lesson, Ayussh has given a brief introduction about the fiscal policy. He then goes on to explain briefly about the pillars of fiscal policy. As he proceeds he also explains what all does fiscal policy involve, the functions of fiscal policy and the stabilization requirement.

Ayussh Sanghi is teaching live on Unacademy Plus

Ayussh Sanghi
Passionate Educator - CSE / Other Govt Exams [Peep into my Unacademy Plus Courses & experience awesome learning.]

Unacademy user
excellent...kindly try to incorporate more facts in slides so that it would be easy to revise thr' slide
you mismatch slide of distributive fucntion nd stabilising system.....plz have a look at once
There is sync problem between distribution function and stabilization function slides and audio
Sir u are working so hard.. I guess you are suffering from some ailments as I can hear the sound of cold and cough.. See the doctor and get well.. Thanks for the awesome series... Salutation to you.. Soon contribute
Thank you so much. This video help a lot for my psc exam Your way of explaining each topic is really exceptional. God bless you.
wow! after watching this lesson I'm very clear about fiscal policy. Sir please please make lesson for whole economics syllabi.

  2. ABOUT ME >Passionate about Teaching >Taught at most reputed Civil Services Institutes >CA, Lawyer >Hit "Contribute to Ayussh" Follow me on: AyusshSanghi

  3. PILLARS OF PUBLIC FINANCE Fiscal and Monetary Policy are the main policy approaches used by economic managers to function in the broad aspects of the economy. Fiscal policy deals with the taxation and expenditure decisions of the government. * Monetary policy deals with the supply of money in the economy and the rate of interest.

  4. Who is responsible for each? The Government deals with Fiscal Policy * The Central Bank is responsible for Monetary Policy. The Central Bank is responsible for Monetary Policy

  5. What does FP involve? Fiscal Policy involves the use of: sk spending to alter macroeconomic outcomes.

  6. What does FP involve? k Fiscal policy is composed of: tax policy, expenditure policy, investment or ** disinvestment strategies and debt or surplus management.

  7. What does FP involve? Fiscal policy is an important constituent of the overall economic framework of a country and is therefore linked with its general economic policy strategy.

  8. Instruments of Fiscal Policy k Fiscal policy is carried out by the legislative and/or the executive branches of government. The two main instruments of fiscal policy are: expenditure government spends on subsidies, defines, pension etc. taxes government collects taxes in order to finance expenditures on a number of public goods and services.

  9. Functions of Fiscal Policy Three distinct functions that operate through the revenue and expenditure measures of the government are: Allocation Function * Distribution Function

  10. Allocation Function k Goods, referred to as: * public goods (such as national defence, roads, government administration), as distinct fromm private goods (like clothes, cars, food items), k cannot be provided through the market mechanism, i.e. by transactions between individual consumers and producers and must be provided by the government. This is the allocation function.