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 [...]
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 [...]
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 [...]