fiscal policy

fiscal policy

government money from taxes and how it handles money (collection, expenditure, and management)

fiscal year

12 month period for accounting purposes not usually aligning w/ calendar

PH: jan 1 - dec 32

budgeting & planning (revenue, expenditure, financial priorities)

contractionary policy

INCREASE TAX

DECREASE GOVT SPENDING

slow down inflation & economic overheating

expansionary policy

LOWER TAX

INCREASE GOVT SPENDING

stimulates growth in recession

taxation

mandatory payment to cover govt goods, services, activities

disposable income

money after tax

gross salary - tax

percentage bc of equity

government purchases

public goods & services (ex. roads, public schools, healthcare, etc.)

social tax

funds social welfare (SSS, philhealth)

witholding tax

money employers deduct for taxes

direct taxes

directly to government, usually through worker salary

income tax

percentage taken from workers’ salary depending on what they earn

indirect tax

taxation on individual/entity, paid by another person

charges added to the price of things you buy

excise tax/sin tax

alcohol, tobacco, gas, luxury items

vat tax

added to cost of goods at each stage of production/distribution

paid by end consumer

build build build

mostly construction & development

inadequacies in country’s state of infrastructure