This website uses cookies to ensure you have the best experience. Learn more

Fiscal Policy Essay

462 words - 2 pages

Fiscal Policy

← What is the most prominent document that elaborates the Fiscal Policy of Bangladesh?
← As head of the government how would you design your next fiscal policy?

Submitted By
Md. Mizanur Rahman
Roll No: 03

April 18, 2011


Fiscal policies play a main role to the economic development of a country. It is the decision of the government about How to earn revenue and gather resources from various sources, for what to spend those earnings and resources, how much to spend and, when to spend. Main elements of fiscal policy are a) Government income and b) Government expenditure

The most prominent document that elaborates the Fiscal Policy of Bangladesh is the National Budget passed in the Jatio Sangsad (The National Assembly of Bangladesh) every year.

Fiscal Management ...view middle of the document...

e. to run the government
❖ To ensure protection for the helpless
❖ To provide necessary services to people that otherwise nobody would provide (Market failure)
❖ To ensure development of the country
❖ To build buffer against risk!
❖ building socio-economic and physical infrastructure
❖ human resource development and
❖ Poverty alleviation.
❖ Administrative
❖ welfare and
❖ Other service oriented activities.

➢ Establishing Equity
❖ Inequality prevails in all societies.
❖ Government tries to reduce the gap between the rich and the poor
❖ For this, the government collects taxes from the rich and spends it for the poor
❖ Efficiency in resource allocation:
❖ Private entrepreneurs may not be interested in investments where return of investment is not good for him but good for the country
❖ In this case, the government may step ahead and supply resources for such investments
❖ Example: building roads and highways, Public-Private Partnership (PPP)
❖ Provision of public goods
❖ Check market failure i,e, ensuring price hike.
❖ Encouraging agriculture sector.
❖ Establishing Agro-based industry to uplift living standard of marginal farmer and creating employment opportunity.
❖ Promoting livestock sector.

➢ Long term Investment
❖ Improving public health.
❖ Improving water management.
❖ Investing on energy and power sector.
❖ Investing on communication system i,e, railway sector.
❖ Developing human resource through proper education and training.
❖ Addressing clement change issue.

Other assignments on Fiscal Policy

You Decide Gm 545 Essay

589 words - 3 pages government will need to apply expansionary fiscal policy: these involve increasing government spending, increasing transfer payment (Social Security, unemployment compensation, or welfare) or decreasing taxes. * Cutting tax makes to increase disposable income, increase consumption and increase the real DGP. * Increasing government spending and transfer payment make to increase the equilibrium real GDP. 2. Also the government need to apply

Fiscal Essay

315 words - 2 pages etermining and Implementing Fiscal Policy Fiscal policy is defined as, “decisions by the President and Congress, usually relating to taxation and government spending, with the goals of full employment, price stability, and economic growth” (“Fiscal policy“, 2010). Keynesian economic theory states that governments should influence macroeconomic productivity by adjusting tax levels and public spending to curb inflation, increase employment and

Digestive System

300 words - 2 pages government uses up its financial and other resources that would otherwise be used by private enterprise. Automatic stabilizers work as a tool to dampen fluctuations in real GDP without any explicit policy action by the government and though these stabilizers do exist they tend to function in the short term. An expansionary fiscal policy is when government spending exceeding tax revenue and the contractionary fiscal policy occurs when government

Monetary Policy

873 words - 4 pages Sonia L. Godoy GM545 “You Decide project “ In order to try to get the US economy back in track we need to get as much support as we can, this means that we need to use both our Monetary and fiscal policies to get back on our feet. Monetary Policy We can use the Monetary policy to lower interest rates this will help the consumer to spend more and it will make borrowing less expensive it will boost demand and employment, this will

Devry Econ 545 Entire Course

434 words - 2 pages 545 Week 3 Quiz Imperfect Competition DEVRY ECON 545 Week 4 DQs 1 Macroeconomic News DEVRY ECON 545 Week 4 DQs 2 Healthcare DEVRY ECON 545 Week 5 DQs 1 Trade Deficits DEVRY ECON 545 Week 5 DQs 2 Exchange Rates DEVRY ECON 545 Week 5 Project Part 2 DEVRY ECON 545 Week 6 DQs 1 Fiscal Policy DEVRY ECON 545 Week 6 DQs 2 Monetary Policy DEVRY ECON 545 Week 6 Monetary and Fiscal Policy –- You Decide DEVRY ECON 545 Week 6 Quiz

Measuring Health Economics

536 words - 3 pages , recession, and trough. Each stage is of an uncertain span of time, varying from weeks to years (Rummery, 2002). However, when looking at historical data, the economy seems to move from one point to another in a rather cyclical manner, hence the term business cycle. Government Bodies That Determine Fiscal Policies Fiscal policy is the option applied by governments concerning the stages of government purchases and taxes. Fiscal policies contain

Credit Management

2034 words - 9 pages Responsibilities of Local Government Unit * the giving of allotments and grants by the national government (NG) to local government units (LGUs) * sharing of taxing powers between the NG and the LGUs, and among LGUs units * policy on tax rates and structure * revenue and expenditure planning * revenue utilization and expenditure allocation * monitoring and approval of budgets, tax ordinances and other fiscal measures


621 words - 3 pages . Competition Policy Competition as a policy has a big influence on the economy. This is not alone the biggest effect to Cadbury but also to any other business. Governments encourage competition to stabilize prices but this is bad for Cadbury as it may manage to just cover its costs but as prices remain low it would not have profited greatly. Fiscal Policy This policy covers the spending and taxation decisions of a government. The government

You Decie

865 words - 4 pages policies should be taken to expand the economy again and increase aggregate demand. Monetary and fiscal policy are two ways in which governments attempt to achieve or maintain full levels of employment, price stability, and economic growth. Monetary policy is the responsibility of the Federal Reserve System, which uses three main instruments: open-market operations, the discount rate, and reserve requirements to manipulate the money supply and

Government Spending:

700 words - 3 pages Government Spending: An Expansionary Fiscal Policy Article Summary “On fiscal policy, USC professor's viewpoint is moral and farsighted” by Edward D. In this article, Kleinbard Challenges reliance on the tax code in order to stimulate the economy. According to Kleinbard (2014), increased government spending is a solution of achieving an expansionary fiscal policy in the American economic system. Moreover, he argues with the progressive

An Accelarator Tied To A Brake

1858 words - 8 pages depreciating exchange rate protected the Australian economy in the 1997 crisis, but was prevented from doing so in the 2008–09 crisis by the fiscal stimulus. Theoretical Underpinnings The Mundell-Fleming model (Mundell 1963) throws light on the relative effectiveness of monetary and fiscal policy under different exchange-rate regimes. Here we will consider a very simple example of their results. We assume that capital is internationally mobile. Under

Similar Documents

Fiscal Policy Essay

1769 words - 8 pages Fiscal Policy and ExxonMobil Introduction Government spending has been an instrumental component and reflection for the United States economy. As an integral part of the business cycle, the last several years have been through the trough since the recession in 2008. While government spending has been increasing, for a couple years it did reduce in addition to maintaining a steady quantity of spending up until the past few years of recovering

Fiscal Policy Essay

327 words - 2 pages extremely hard to pay off the national debt that has accumulated, there is less money to spend on projects that could create jobs for those that are unemployed which is where a surplus would come in hand. On the other hand, a high deficit could be beneficial to the unemployment rate. The financial crisis in 2008 offered assistance to the unemployed. According to Boyes and Melvin (2012), “fiscal policy around the world involved governments

Fiscal Policy & Macroeconomic Models Essay

1031 words - 5 pages FISCAL POLICY & MACROECONOMIC MODELS There are three macroeconomic models in which to analyze the effects of changes in fiscal policy: Keynesian, Monetarist and Classical. Keynesian Model The Keynesian model focuses on attempting to manage the “Demand” side of the economy by using taxation and spending to redistribute income and wealth. The rationale is that redistribution of income and wealth via taxation and use of transfer payments

Macro Essay

673 words - 3 pages 1) Fiscal Policy: Use of government spending and taxes to regulate economic activity. All levels of government conduct fiscal policy. The two main instruments of fiscal policy are government spending and taxation. The main objective of fiscal policy is to move the economy towards its full employment level of income without inflation. Following are the economic goals of fiscal policy: 1. To combat Inflation: If the economy is