βοΈ αααααΉαααααΆαα
– ααααααααΆαααΆαααΎαααααααα
ααΎααΆαααααΎααααΆαα ααΆαα
αααΆααααααααααΆαα·ααΆα αα·αααααααααΆαααααααΆα αααααΆαα₯αααα·ααααΎααααααααααααααα·α
αα
ααΆαα·ααααααααααααααΆααααΌααααααα·α
αα
α
– αααΆαααΆαα»ααααΆαααααααααααααΆαααΆαααΎααααααΆαααΈαααααΊ ααΆαα
αααΆααααααααααΆαα·ααΆα ααααααΆα αα·αα±αααΆαααα·ααΆ αα·αα’αα·αααααα·ααΆα
– ααααααααΆαααΆαααΎααααααΆαααΈαααααααααΊ ααααααααΆαααΆαααΎαααααααααΈα αα·αααααααααΆαααΆαααΎααααααααα½αα
– ααααααααΆαααΆαααΎααααα’αΆα
ααααΌαααΆαααααΎαααααΆααααααα
ααααααα·α
αα
ααααααα
– ααααα
ααααααααααααΆαααΆαααΎααααα
– ααααααααΆαααΌαα·αααααα» VS ααααααααΆαααΆαααΎααααα
βοΈ ααααααααααΈααααααααΆαααΆαααΎαααα
ααααααααΆαααΆαααΎαααααααα
ααΎααΆαααααΎααααΆαα ααΆαα
αααΆααααααααααΆαα·ααΆα αα·αααααααααΆαααααααΆα αααααΆαα₯αααα·ααααΎααααααααααααααα·α
αα
ααΆαα·ααααααααααααααΆααααΌααααααα·α
αα
α ααααααααΆαααΆαααΎαααα ααΊααΆααααααααΆαα
ααααααααααααΆαα·ααΆααααααααααΎααααΆααααΎααααΈααααΎααΆααααααα
α
α·αααααΎα
αααΌα αα·αα
αααΆααααααααααΆαα·ααΆα αα·αααΎααααΈααΆαααΆαααΈαααααααα
αααΌα αα·αα
αααΆαααΆαααααααΆαα₯αααα·ααααΎαα»αααΆαααααααα·α
αα
ααΆαα·ααΆααααΌαα
βοΈ αααΆαααΆαα»ααααΆαααααααααααααΆαααΆαααΎαααα
– ααΆαα
αααΆααααααααααΆαα·ααΆαα ααΆαα
αααΆααααααΆαααααααααΉαααΆααααααα
α
α·ααααααααααΎα‘αΎαααααααααΆαα·ααΆαα’αααΈα
ααα½αααΉαααααΆαααααααααΌααααα
αααααααΆαααα·ααα αα·ααααααα·ααΈαααααα ααΌα
ααΆααΆαααααΆααα»αααΆα ααΆαα’αααα ααΆαααΆαααΆαααΆαα· α αααααΆαα
ααΆαααααααα αα·ααα»αα»ααΆαααΆααααααα ααΆααααααααα½αααα
αααΆααααααααααΆαα·ααΆαα’αΆα
αααααΆααααααααααααΆαααααααα·α
αα
αα·αααααα·αααΆαααΆααααααααΆααα
– ααααααΆαα ααααααααΆαααΆαααΎαααααααα½ααααα αΌαααΆααααααα α α·αααα’αααΈα’ααααΆαααα αα ααΆαααααααααααα αα·αααααααααΆααααααααααα ααΆααααααΆαααααααα½αα’ααααΆααααααα αααααΆαα·ααΆαα’αΆα ααα₯αααα·ααααΎααα·ααΆαααααααΆααα αααΌααααα’αΆα ααααΎααααΆααααΆααααααΆαααααα½ααΆα αα·αα’αΆααΈααααα αααααΆαααααΆαααααααΆαααααΎααααΆαα ααΆααα·αα·ααα αα·αααααΎαααααααα·α αα ααΆαα·ααΆααααΌαα
– α±αααΆαααα·ααΆ αα·αα’αα·αααααα·ααΆα αααααΆαα·ααΆαα’αΆα ααααΎαααΆαα±αααΆαααα·ααΆ (α αααΆαααΎαααΈααΆααααααΌαα αααΌα) α¬ααΎαααα·ααΆ (αααααΌαα αααΌαα αααΎαααΆαα αααΆα)α α±αααΆα α¬α’αα·αααααΆαααααα’αΆα ααΆααααααααΆαααααααααααα·α αα αααΆαααααΆαα αα·αααΆαααααΆααααΆααααααααααααΆαααΆαααΎαααααααααα

βοΈ ααααααααααααααααΆαααΆαααΎαααα
– ααααααααΆαααΆαααΎαααααααααΈα
ααααααααΆαααΆαααΎαααααααααΈαααααΌαααΆαααααΎααααΆαααα
αααααααααααΆαα·ααΆαααΆαααααα
αααααα»αααααΎαααααααα·α
αα
ααΆαααααααααΆαα’ααααΆαααΆαααααΎ αα·ααααα»ααααααΌαααΆαααα»ααα
αααα»αααααααα·α
αα
α ααΆααΆαααααααααΉαααΆααααααΎαααΆαα
αααΆααααααααααΆαα·ααΆα α¬ααΆααααααααααα ααΎααααΈααααααααααΆααα
αΌααα
αααα»αααααααα·α
αα
α
– ααααααααΆαααΆαααΎααααααααα½α
ααααααααΆαααΆαααΎααααααααα½αααααΌαααΆαααααΎααααΆαααα
αααααααααααΆαα·ααΆαααΆαααααα
αααααααααααΏαααααααα·α
αα
ααααααααααααααΆαα’αα·ααααΆ α¬ααΆαααααααα±αααΆαααα·ααΆα ααΆααΆαααααααααΉαααΆαααΆαααααααααΆαα
αααΆααααααααααΆαα·ααΆα ααΆαααα‘αΎααααα ααΎααααΈααΆααααααααααααΌαααΆαααΆααααΌααα
αααα»αααααααα·α
αα
α
βοΈ ααΎααααααααΆαααΆαααΎααααα’αΆα
ααααΌαααΆαααααΎααααΆαααααα»αααααα
ααααααα·α
αα
αααΆαααΌα
ααααα
αααα?
ααααααααΆαααΆαααΎααααα’αΆα
ααααΌαααΆαααααΎαααααΆααααααα
ααααααα·α
αα
αααααα αα½αααΆαα
– ααααΎα±ααααααααα·α αα ααΆααααα·αααΆαα αααα»αα’αα‘α»ααα·ααααα·ααααααα·α αα αααααΆαα·ααΆαα’αΆα αααααΎαααΆαα αααΆα α¬ααΆααααααααααα ααΎααααΈαααα»ααααααΌαααΆα αα·ααααα»ααααααααΆαααααααα·α αα α αααα»ααα αα·α αααα»αα’αα‘α»αααααααααΆααααααΆαα’αα·ααααΆααααα ααααα½αααα’αΆα ααΆαααααααααΆαα αααΆα α¬ααα‘αΎαααααααΎααααΈααααΎα±ααααααΏαααααααα·α αα ααααΆααα α»ααααα·αα
– ααΆαααΎαααααααααααΎαααααααα·α αα α ααααααααΆαααΆαααΎααααα’αΆα ααααΌαααΆαααααααα½αααΎααααΈααΆαααααααααααΎαααααααα·α αα αααα»αααααααααα ααααααα»ααααααΆαααΆαααααααα½ααααα»αααΆααα·αα·αααααΎα αααααΆαα ααΆαααααααα ααΆαα’αααα αα·αααΆαααααΆαααααΆα αα·αααΆαα’αα·ααααααΆααΎαα
– ααΆααααα ααααααΆααα αααΌαα‘αΎααα·αα αααααΆαα·ααΆαα’αΆα ααααΎααααΆααααααααααΆαααΆαααΎααααααΎααααΈαααααααΆααα·ααααΆαααααΆααα αααΌααααααΆαα’αα»αααααααααα·ααΈααααααΆα αα·ααα»αα»ααΆαααΆααααααα
– ααααααααααααα»αααΆααΆαααα ααααααααΆαααΆαααΎααααααααΎααα½ααΆααΈαααα»αααΆααααααααααααααα·ααααααα»αααΆααΆααααααααα αααααΆαα·ααΆαααααΌααααααα ααααΆαααΆααΎααααΈα±ααααα·ααΆααΆαα·ααΆααα»αααααΆα αα·αααΎααααΈααΆααΆα±ααααΆαααΆαααα»αααΆααΆαααααΆααα·ααααααΆα (ααΆαα αΆαα·αααααΆα)α
βοΈ ααααα
ααααααααααααΆαααΆαααΎαααα
– ααΆααααααααααααααααα·α
αα
α ααααααααΆαααΆαααΎααααααΆααααααααααΎααααΈααααααααα αα·αααααΎα±ααααααααα·α
αα
ααΆααααα·αααΆα ααααααα»αααααΎαααααααα·α
αα
αααααα
ααΆαααΌαααΆαααΆααααααα αα·ααααααΆαααα·αααΆααααααααα ααΆααααααααααααααααα·α
αα
αααααΊααΆαααααααααΉαααΆαααααααα½αααααΆαα
αααΆααααααααααΆαα·ααΆα αα·αααααααΆα ααΎααααΈααΆαα₯αααα·ααααΎαααααααΆαααααααα·α
αα
α
– ααΆααααα ααααααΆααα αααΌα αα·ααα»αα»ααΆαααΆααααααα ααααααααΆαααΆαααΎααααααααΌαααΆαααααΎααααΆααααΎααααΈαααααααΆααα·ααααΆαααααΆααα αααΌα αα·αααΆααααααααα»αα»ααΆαααΆααααααααααΆαααααααΆαα’αα»αααααααααα·ααΈααααααΆα αα·ααα»αα»ααΆαααΆααααααα ααΆααΆαααααααααΉαααΆαααΎααααααααααα»αααΆααααα αααααααααααααααα·αααααααΎααΆα αα·αααΆααΆααΌαααΆααααααααααΆααΆααΆαααααααΆααα αα·αα αααααΆαα ααΆααααααααααΆααΎαα
– ααα·ααΆ αα·ααα·αααααααΆαα α·ααααααααα»α αααααΆαα·ααΆαααααΎααααΆααααααααααΆαααΆαααΎαααααααα»αααΆααααααααααααα·ααΆαααααα½αααααΎααααΈααααααααααααα·αααααΆα αααααΆααΆα±ααααΆαααΌααα·αααααααΆαα α·ααααααααα»αααα»ααααααααααα ααΆαααααααΊααΆαααααααααΉααα»αααααΆαααα·ααΆ ααΆαααααααααααααα»αααΆααΆααα αα·αααΆααααααααΆααααα»αααααΆαα·ααααααααααα αααααα ααΎααααΈαααααα α±ααααΆαααΌαααααα ααα·ααααΆα αα·ααααααα

βοΈ ααααααααΆαααΌαα·αααααα» VS ααααααααΆαααΆαααΎαααα
ααααααααΆαααΌαα·αααααα»ααααΌαααΆαα’αα»ααααααααααΆααΆααααααΆα αα·αααΆααααααααααΆα
ααααααΎααααΈαααααααααααΆαααααααααααααααΆαα αααααααααα’ααααΆααΆαααααΆαα αα·αααΆααΆαααα·αααΆααααααα ααΆαααααααΎααΆααααααααααα’αα·ααααΆ αα·αααΆααααααααΎαααααααα·α
αα
αααααααααα·αααααααΆαα αααααααααααααααααΆαααΆαααΎααααααααΌαααΆαα’αα»ααααααααααααΆαα·ααΆα α αΎααααααααααααααΆααΊααΆαααααααααααααα
ααΆαααΌαααααα
ααααααα·α
αα
αα·ααααααααΆα
αααΎα αα½αααΆαααααα·αααΆαααααααα·α
αα
ααΆααααααΎαααΆαααΆα ααΆααααα
ααααααΆααα
αααΌαα‘αΎααα·α αα·αααΆαααααααααα·α αα·αααααΆααααααΆααΆαααα
| English Version |
βοΈ Key takeaway
– Fiscal policy refers to the use of government spending and taxation to influence and manage a country’s economy, especially macroeconomic.
– There are 3 key components of fiscal policy which are: Government Spending, Taxation, and Budget Deficits & Surplus.
– There are 2 types of fiscal policy which are: Expansionary fiscal policy and Contractionary fiscal policy.
– Fiscal policy can be used for various economic objectives.
– Goals of fiscal policy
– Monetary policy vs Fiscal Policy
βοΈ Understanding about the Fiscal Policy
Fiscal policy refers to the use of government spending and taxation to influence and manage a country’s economy, especially macroeconomic. Fiscal policy is primarily concerned with the government’s revenue and expenditure decisions and how they impact the overall economic health of a nation.
βοΈ Key components of fiscal policy
– Government Spending: This involves decisions made by the government on how much money to allocate to various sectors and programs, such as healthcare, education, defense, infrastructure, and social welfare. Changes in government spending can directly impact economic activity and employment levels.
– Taxation: Fiscal policy also encompasses decisions about tax rates, tax structures, and tax policies. By adjusting tax rates, governments can influence the amount of disposable income available to households and businesses, which in turn affects consumption, investment, and overall economic growth.
– Budget Deficits and Surpluses: Governments can run budget deficits (spending more than they collect in revenue) or budget surpluses (collecting more revenue than they spend). These deficits or surpluses can have significant economic implications and are a key aspect of fiscal policy.

βοΈ Types of fiscal policy
– Expansionary Fiscal Policy
Expansionary fiscal policy is employed when a government aims to stimulate economic growth, reduce unemployment, and boost overall demand in the economy. It involves increasing government spending and/or reducing taxes to put more money in the hands of consumers and businesses
– Contractionary Fiscal Policy
Contractionary fiscal policy is employed when a government aims to slow down an overheating economy, control inflation, or reduce budget deficits. It involves decreasing government spending and/or increasing taxes to reduce the overall demand in the economy.
βοΈ How can fiscal policy be used for economic purposes?
Fiscal policy can be used for various economic objectives, including:
– Stabilizing the Economy: During economic downturns, governments can increase spending or reduce taxes to boost demand and stimulate economic activity. Conversely, during periods of high inflation or economic overheating, they may reduce spending or raise taxes to cool down the economy.
– Promoting Economic Growth: Fiscal policies can be tailored to support long-term economic growth by investing in infrastructure, education, and research and development.
– Income Redistribution: Governments can use fiscal policy to address income inequality by implementing progressive taxation and social welfare programs.
– Managing Public Debt: Fiscal policy also plays a role in managing the level of public debt. Governments need to balance their budgets over the long term to ensure that debt remains sustainable.
βοΈ Goals of fiscal policy
– Economic Management: Fiscal policy aims to manage and stabilize the economy by promoting economic growth, achieving full employment, and maintaining price stability. It involves adjusting government spending and taxation to influence economic activity.
– Income Redistribution and Social Welfare: Fiscal policy is used to address income inequality and support the well-being of the population by implementing progressive taxation and social welfare programs. It seeks to promote a fairer distribution of wealth and ensure the provision of essential public services and infrastructure.
– Budget and Financial Sustainability: Governments use fiscal policy to manage their budgets effectively, ensuring that they remain financially sustainable over the long term. This involves balancing budgets, managing public debt, and addressing external trade balances while considering environmental and social goals.

βοΈ Monetary policy vs Fiscal Policy
Monetary policy is implemented by the central bank and primarily aims to control the money supply, manage interest rates, and ensure price stability. It focuses on controlling inflation and supporting sustainable economic growth. While fiscal policy is implemented by the government and its objective is aims to achieve a range of economic and social objectives, including economic stability, job creation, income redistribution, and the provision of public goods and services.