Archive | Fiscal Policy

Functional Finance: Concept and Roles

After reading this article you will learn about:- 1. Concept of Functional Finance 2. Rules of Functional Finance 3. Roles. The Concept of Functional Finance: The chief exponent of functional finance was Prof. Abba P. Lemer who believed that fiscal measures should be judged only by their effects. The way fiscal measures function in an economy is called functional finance. [...]

By |2016-07-12T14:18:12+00:00July 12, 2016|Fiscal Policy|Comments Off on Functional Finance: Concept and Roles

Notes on Contra-Cyclical Budget | Fiscal Policy

In modern days budget is recognized as an efficient fiscal instru­ment in the hands of the Finance Minister for materializing the prime objective of economic growth and development. However the ortho­dox economists refuse to accept the efficacy of the budget. For them budget was only a financial statement showing the revenue and expenditure of the government. The great depression of [...]

By |2016-07-12T14:18:12+00:00July 12, 2016|Fiscal Policy|Comments Off on Notes on Contra-Cyclical Budget | 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
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