Archive | Fiscal Policy

Top 7 Roles of Fiscal Policy in a Developing Economy

This article throws light upon the top seven roles of fiscal policy in a developing economy. The roles are: 1. Resource Mobilization 2. Development of Private Sector 3. Optimization of Resources Allocation 4. Creation of Social and Economic Overheads 5. Balanced Regional Development 6. Economic Stability 7. Reduction of Inequality. 1. Resource Mobilization: Owing to acute poverty, the marginal propensity [...]

By |2016-07-12T14:18:12+00:00July 12, 2016|Fiscal Policy|Comments Off on Top 7 Roles of Fiscal Policy in a Developing Economy

Deficit Financing: Meaning, Effects and Limitations

After reading this article you will learn about:- 1. Meaning and Definition of Deficit Financing 2. Objectives of Deficit Financing 3. Effects 4. Limitations. Meaning and Definition of Deficit Financing: The term deficit financing means the direct addition to gross national expenditure through budget deficits whether the budget deficits are on revenue or on capital account. This policy implies that [...]

By |2016-07-12T14:18:12+00:00July 12, 2016|Fiscal Policy|Comments Off on Deficit Financing: Meaning, Effects and Limitations

Deficit Financing and Economic Development

After reading this article you will learn about deficit financing as a tool of economic development. Deficit financing is an extraordinary fiscal device of development finance in modern times. In developed countries J.M. Keynes, popularized this concept, with a view to fight and control depression which is often accompanied by unemployment. Prof. J.M. Keynes, through the instrument of pump priming, [...]

By |2016-07-12T14:18:12+00:00July 12, 2016|Fiscal Policy|Comments Off on Deficit Financing and Economic Development
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