Elementary treatment of fiscal policy/ what's fiscal policy?

 

What's fiscal policy 

Fiscal policy may be define as the use of government expenditure and taxation instrument to control or regulate the economic activities in a country. It's the action of government partaking to the raising of revenue through taxation and other means and the pattern of expenditure to be applied.

Objective of fiscal policy 

1). Economic development:- a good fiscal policy can be used by government to ensure rapid economic development.

2).  Revenue generation for government though taxation.

3).  Creation of employment

4).  Industrial development

5).  Income redistribution

6).  Control of inflation:- fiscal policy instrument can be used by government to control inflation in the country. E.g increased taxation.

 Public finance 

The aspect of economics that deals with government revenue that expenditure. In other words public finance involves the financial activities of government as they relate to revenue income expenditure and deal with operation and their overall effect on the economy.

    Objectives of public finance 

1). Revenue generation:- the activities of government may lead to more generation of revenue

2). Improved balance of payment helps the government in ensuring favorable balance of payment

3). Price stabilitation (standby)

4). Equitable distribution of income

5). Food fiscal policy:- public finance is used by government to ensure that a good and acceptable fiscal policy is attached

6). Staisfactions of need :- public finance in used to determine the need of people to enable government to meet those in needs.

Government or public revenue 

Public revenue may be defined as the total income that accrues to all level of administration (local, state and federal) or government from various source.