Q-24 = What are main objectives of Fiscal policy of Pakistan. How budget deficit can be controlled.
FISCAL POLICY OF PAKISTAN
Fiscal policy of Government of Pakistan primarily deals with taxation, spending and borrowing. Fiscal policy encompasses several fundamental policy issues, including the proper role of Government in promoting growth, creating jobs, social development and redistribution of benefits of economic growth, nature and extent of public services and fairness between the present and the future generations.
OBJECTIVES OF FISCAL POLICYGovernment’s fiscal policy has both microeconomic and macroeconomic objectives.
(1)-Microeconomic objectives include an improved distribution of income and wealth, equitable access to social services, meeting the basic needs of the poor, promoting investment in public goods and enhancing efficiency with which public and private sectors produce goods and services and their responsiveness to the needs of consumers.
(2)-Macroeconomic objectives relate to evolution of the economy as a whole—national income and output, jobs, inflation and the balance of payments. Fiscal policy must also ensure that the level and structure of taxes promote equality and redistribution, and do not interfere unduly in people’s investment and consumption decisions.
OBJECTIVES OF FISCAL POLICY
1 Attainment of maximum welfare of common man
2 Increase in the employment opportunities
3 Equitable distribution of national wealth
4 Development of rural areas and reduction in disparity
5 Control on inflation/price level
6 Provision / development of health / education facilities
7 Reduction in non-development expenditure
8 Encouragement of private investment
9 Improvement in balance of payments position
HOW BUDGET DEFICIT CAN BE REMOVED
1. Saving habits should be increased
2. Output of agricultural and industrial sectors should be increased
3. Non-productive expenditures should be decreased
4. Political stability should be maintained
5. Economic policies should have continuity
6. Tax department should be strengthened and tax collection be increased
7. Fiscal discipline should be maintained
8. Population growth should be checked.
FISCAL POLICY OF PAKISTAN
Fiscal policy of Government of Pakistan primarily deals with taxation, spending and borrowing. Fiscal policy encompasses several fundamental policy issues, including the proper role of Government in promoting growth, creating jobs, social development and redistribution of benefits of economic growth, nature and extent of public services and fairness between the present and the future generations.
OBJECTIVES OF FISCAL POLICYGovernment’s fiscal policy has both microeconomic and macroeconomic objectives.
(1)-Microeconomic objectives include an improved distribution of income and wealth, equitable access to social services, meeting the basic needs of the poor, promoting investment in public goods and enhancing efficiency with which public and private sectors produce goods and services and their responsiveness to the needs of consumers.
(2)-Macroeconomic objectives relate to evolution of the economy as a whole—national income and output, jobs, inflation and the balance of payments. Fiscal policy must also ensure that the level and structure of taxes promote equality and redistribution, and do not interfere unduly in people’s investment and consumption decisions.
OBJECTIVES OF FISCAL POLICY
1 Attainment of maximum welfare of common man
2 Increase in the employment opportunities
3 Equitable distribution of national wealth
4 Development of rural areas and reduction in disparity
5 Control on inflation/price level
6 Provision / development of health / education facilities
7 Reduction in non-development expenditure
8 Encouragement of private investment
9 Improvement in balance of payments position
HOW BUDGET DEFICIT CAN BE REMOVED
1. Saving habits should be increased
2. Output of agricultural and industrial sectors should be increased
3. Non-productive expenditures should be decreased
4. Political stability should be maintained
5. Economic policies should have continuity
6. Tax department should be strengthened and tax collection be increased
7. Fiscal discipline should be maintained
8. Population growth should be checked.