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    Fiscal Policy and Budget: Presented By: Group 4 (Roll. No 46-60)

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    Sanjiv Kumar
    The document discusses fiscal policy and the budget in India. It outlines the objectives of fiscal policy as achieving macroeconomic goals like economic growth, employment, stabilization, and equality. The instruments of fiscal policy are described as budget surplus/deficit, government expenditure, taxation, public debt, and deficit financing. It also discusses the components of the budget in India including revenue/capital receipts and expenditure. Targets of the Fiscal Responsibility and Budget Management Act are presented.

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    Fiscal Policy and Budget: Presented By: Group 4 (Roll. No 46-60)

    Uploaded by

    Sanjiv Kumar
    45 views13 pages
    The document discusses fiscal policy and the budget in India. It outlines the objectives of fiscal policy as achieving macroeconomic goals like economic growth, employment, stabilization, and equality. The instruments of fiscal policy are described as budget surplus/deficit, government expenditure, taxation, public debt, and deficit financing. It also discusses the components of the budget in India including revenue/capital receipts and expenditure. Targets of the Fiscal Responsibility and Budget Management Act are presented.

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    The document discusses fiscal policy and the budget in India. It outlines the objectives of fiscal policy as achieving macroeconomic goals like economic growth, employment, stabilization, and equality. The instruments of fiscal policy are described as budget surplus/deficit, government expenditure, taxation, public debt, and deficit financing. It also discusses the components of the budget in India including revenue/capital receipts and expenditure. Targets of the Fiscal Responsibility and Budget Management Act are presented.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    45 views13 pages

    Fiscal Policy and Budget: Presented By: Group 4 (Roll. No 46-60)

    Uploaded by

    Sanjiv Kumar
    The document discusses fiscal policy and the budget in India. It outlines the objectives of fiscal policy as achieving macroeconomic goals like economic growth, employment, stabilization, and equality. The instruments of fiscal policy are described as budget surplus/deficit, government expenditure, taxation, public debt, and deficit financing. It also discusses the components of the budget in India including revenue/capital receipts and expenditure. Targets of the Fiscal Responsibility and Budget Management Act are presented.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    of 13

    Fiscal Policy and Budget

    Presented By: Group 4 (Roll. No 4660)

    1.The wordfisc means state treasury and fiscal policy refers to policy concerning the use of state treasury or the govt. finances to achieve the macroeconomic goals. any decision to change the level, composition or timing of govt. expenditure or to vary the burden ,the structure or frequency of thetax payment is fiscal policy. -G.K. Shaw G.K.
    2.

    Objectives of Fiscal Policy


    It has 2 major objectives:
    ii. GENERAL obj-. aimed at achieving macroeconomic goals iii. SPECIFIC obj-. relating to any typical problems of an economy
    3.

    Fiscal Policy And

    Macroeconomic Goals
    Economic Growth: By creating conditions for increase in savings & investment. Employment: By encouraging the use of labourabsorbing technology Stabilization: fight with depressionary trends and booming (overheating) indications in the economy Economic Equality: By reducing the income and wealth gaps between the rich and poor. Price stability: employed to contain inflationary and deflationary tendencies in the economy.
    4.

    Instruments of Fiscal Policy


    Budgetary surplus and deficit Government expenditure Taxation- direct and indirect Public debt Deficit financing
    5.

    Budgetary surplus and deficit

    A budget is a detailed plan of operations for

    some specific future period Keeping budget balanced (R=E) or deficit (R<E) or surplus (R>E) as a matter of policy is itself a fiscal instrument. An accumulated deficit over several years (or centuries) is referred to as the government debt A deficit is a flow. And a debt is a stock. Debt is essentially an accumulated flow of deficits
    6.

    Government Expenditure
    It includes : Government spending on the purchase of goods & services. Payment of wages and salaries of government servants Public investment Transfer payments
    7.

    Taxation

    Meaning : Non quid pro quo transfer of private income to public coffers by means of taxes. Classified into 1. Direct taxes- Corporate tax, Div.
    Distribution Tax, Personal Income Tax, Fringe Benefit taxes, Banking Cash Transaction Tax 2. Indirect taxes- Central Sales Tax, Customs, Service Tax, excise duty
    gs from the public by means of treasury bills and govt. bonds Borrowings from the central bank (monetized deficit financing)
    8.

    Public debt

    Internal borrowings External borrowings 5. foreign investments 6. international organizations like World Bank & IMF 7. market borrowings
    9.

    BUDGET

    A budget is a detailed plan of operations for some specific future period It is an estimate prepared in advance of the period to which it applies
    10.

    COMPONENTS OF BUDGET
    Revenue receipts Capital receipts Revenue expenditure Capital expenditure
    11

    BUDGET FINANCIALS 2007-08


    12

    Where The Rupee Comes From


    14

    Fiscal Responsibility And Budget Management (FRBM) Bill


    Introduced in Lok Sabha in December 2000. Objectives include: It aimed at:
    6. Reducing revenue deficit 7. Reducing gross fiscal deficit 8. Reducing the Public debt 9. No Borrowing from the RBI
    15

    Sticking to FRBM Targets

    58.6 64.4 65.1 % Debt/ GDP 14.0** 14.1 14.2 % Expenditure/ GDP 12.0 11.4 10.3 % Gross Tax/ GDP

    3.3 3.7 4.1 % Fiscal deficit/ GDP 1.5 2 2.6 % Revenue deficit/ GD

    Thank You
    Weneedfast ergrowthbec ause,atourl evelofincom es,therecan be

    nodoubtthat wemustexpan dtheproduct ionbaseofth eeconomyif wewanttopro videbroad-b asedimprove mentinthema terial conditionso flivingofou rpopulation ,.......... Butgrowthal oneisnoteno ughifitdoes notproducea flowofbenef its thatissuffi cientlywide -spread.We, therefore,n eedagrowthp rocess thatismuchm oreinclusiv e,......... .andwhichal soensuresac cessto essentialse rvicessucha shealthande ducationfor allsections ofthe

    community. -Dr.Manmoha nSingh, PrimeMinist e

    Thank You
    Weneedfast ergrowthbec ause,atourl evelofincom es,therecan be nodoubtthat wemustexpan dtheproduct ionbaseofth eeconomyif wewanttopro videbroad-b asedimprove mentinthema terial conditionso flivingofou rpopulation ,.......... Butgrowthal oneisnoteno ughifitdoes notproducea flowofbenef its thatissuffi cientlywide -spread.We,

    therefore,n eedagrowthp rocess thatismuchm oreinclusiv e,......... .andwhichal soensuresac cessto essentialse rvicessucha shealthande ducationfor allsections ofthe community. -Dr.Manmoha nSingh, PrimeMi

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