taxation
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fiscal policy OBJ. in relation to taxation policy and expenditure policy
The president regulates the fiscal policy of India.
fiscal is the governments budget in terms of spending and expenditure. so there can either be a budget deficit or a budget surplus. when there is a budget surplus, government use a contractionary fiscal policy, and when there is a deficit, they use an expansionary fiscal policy. Monetary policy is used to combat an economy growing to quickly and inflation is rising. in most countries this is the Official Cash Rate. There is a tight monetary policy which government can impose if the economy is growing rapidly and this is used to constrict spending within that economy
The limits to fiscal policy are difficulty of changing spending levels, predicting the future, delayed results, political pressures and coordinating fiscal policy.
Fiscal policy is how the government taxes and spends money. The objective of fiscal policy is to influence the economic activity of the governmentâ??s country.