FISCAL POLICY

Fiscal Policy

is the use of government spending and taxation to influence the economy

Economic Stabilization

is an importance of fiscal policy that can be used to counter economic fluctuations by implementing extractionary policies

Managing Aggregate Demand

is an importance of fiscal policy that adjusting government spending and taxation to influence the overall level of demand in economy

Social Goals

is an importance of fiscal policy that used to address social issues

Infrastructure Development

is an importance of fiscal policy that provides government spending on infrastructure

Budget Deficit

A challenge in Fiscal Policy that expansionary fiscal policy can lead to large budget deficits which can increase public debt

Policy Lags

is a challenge of fiscal policy that there can be a significant time lag between fiscal policy is implemented and effects

Uncertainty about Economic Effects

is a challenge of fiscal policy that predicting the exact impact of fiscal policies due to ghe complex economic interactions.

Crowding Out Effect

is a challenge of fiscal policy that increased government spending lead to higher interest rates.

Inefficient Spending

is a challenge of fiscal policy that inefficient allocation of government spending can reduce the effectiveness.

Expansionary Fiscal Policy

this policy experience that government spends more money or lowest taxes, during recession the economy is slowing down and it creates jobs & increase people's spending power

Contractionary Fiscal Policy

the government spends less money and raises taxes, the economy is growing too fast leaning to high inflation and to contrail inflation.

Economic Growth

fiscal policy that aims to stimulate economic growth.

Full Employment

fiscal policy seeks to reduce unemployment

Price Stability

Government uses fiscal policy to control inflation.

Redistribution of Income

fiscal policy aim to reduce income inequality

Public Debt Management

Fiscal Policy addresses the management of the government’s budget and public debt.

Public Debt

known as government debt or national debt that refers to the total amount of money that government owes to external creditors.

Productive Debt

these debts are raised to enhance the productive capacity of an economy.

Unproductive Debt

debts that don't add to the productive capacity

Voluntary Debt

public loans are voluntary in nature and government announces the floating of such debt

Compulsory Debt

are raised coercively.

Internal Debt

raised within the country and is funded mostly but with the own citizens.

External Debt

is raised from foreign countries of international institution.

Short term

Debt matures within 3-9 months.

Medium Term

maturity period of such debt lies between shot and long term loans.

Long- Term Debt

maturity period of ten years or more .

Redeemable Debt

government promise to payoff debt on some future data

Imdeemable Debt

the borrowing government does not fix a definite date for final repayment.

Funding Debt

has maturity period ranging from at least 12 when raised up to 30 years or more.

Unfunded Debt

The borrower is obliged to pay the load at a set due date with interest.

Development Planning

is a process in which various strategies and programs are performed for the development of the citizens and country.

Unpopularity of Taxation

paying taxes plays a very important role in various public services and government related operations.

Facing Natural Calamities

natural calamaties occur and can create damage.

Waging Wars

the rise of new wats is a major causes of publes debt.

Covering the Temporary Deficit in the Budget

many times government face the problem of temporary deficit in their bugedt so government needs to find shortcomings.

Dealing with Depression

the causes of depression for the governments

Controlling Inflation

The need for public raises. During this time of inflation, the value of money decreases.

Fiscal Consolidation

is a cornerstone of microeconomic stability and international institution recommend to country with high debts level

Tax Reforms

Implementing progressive tax systems

Introducing New Taxes

exploring potential new revenue sources.

Prioritizing Spending

allowing resources to high impact areas such as infrastructure development, education and healthcare.

Improving Efficiency

Implementing cost-savung measures And ensuring value for money in all government.

Optimizing Debt Structure

balancing short term and long term debt and ensuring that debt servicing cost are sustainabk

Transparent Debt Reporting

maintaining accurate and transparent records of government debt.