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Fiscal Policy

Refers to the government's management of public spending and taxation to influence the economy.

Expansionary Fiscal Policy

Aims to grow the economy through increased government spending and lower taxes.

Contractionary Fiscal Policy

Intended to slow economic growth by reducing government spending and raising taxes.

National Budget

A financial plan created by the government indicating how much will be spent and how the funds will be sourced.

Ability to Pay Theory

A tax theory stating that tax burdens should be based on an individual's income and ability to pay.

Benefit Theory

A tax theory suggesting that those who benefit from public services should pay taxes according to the benefits received.

Tax Types

Categories of taxes including personal income tax, corporate income tax, property tax, and more.

Direct Tax

A tax that is directly paid to the government by the taxpayer, such as income tax.

Indirect Tax

A tax collected by an intermediary and paid to the government, such as VAT.

Excise Tax

A tax on specific goods and services, often aimed at reducing consumption of harmful products.

Fiat Money

Currency that a government has declared to be legal tender, not backed by a physical commodity.

Commodity Money

Money that has intrinsic value; it is based on a physical commodity such as gold or silver.

Credit Money

Money that is created through bank loans and is not in physical form.

Regulatory Tax

A tax imposed to control and limit certain activities, often to discourage negative behavior.

Public Services

Services provided by the government to its citizens, including education, health care, and infrastructure.

Government Revenue Sources

Main sources of government funds including taxes, tariffs, and fees.

Budget Execution

The process through which the budget is carried out by government agencies.

Estate Tax

A tax imposed on the transfer of property upon the death of the owner.

Sin Tax

A tax levied on goods deemed harmful, such as tobacco and alcohol.