Fiscal Policy — Chapter Summary
ICSE · Class 12 · Economics
Summary of Fiscal Policy for ICSE Class 12 Economics. Part of the ICSE Class 12 Economics syllabus. Fiscal policy is the government’s policy of using.
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Overview
Fiscal policy is the government’s policy of using taxation, public expenditure, public borrowing, and deficit financing to influence income, output, employment, price stability, and economic growth. Public finance is the science of the government’s income and expenditure, and fiscal operations are t
Key Concepts
Public finance is the science
Public finance is the science of income and expenditure of the government. It deals with public revenue, public expenditure, public debt, budgetary po
Fiscal policy is a policy concerned
Fiscal policy is a policy concerned with the effects of public expenditure, taxation, and public borrowing on income, output, and employment. It is a
The main objectives are price stability
The main objectives are price stability, full employment, economic growth, and reduction of inequality. Keynesian economics gave special importance to
Public revenue is the income
Public revenue is the income of the government from tax revenue and non-tax revenue. Tax revenue includes sales tax, income tax, excise duty, and cust
In direct taxes
In direct taxes, the impact and incidence fall on the same person, so the burden cannot be shifted. Income tax and property tax are examples. In indir
Learning Objectives
- Understand the meaning of public finance and fiscal policy
- Distinguish between public finance and private finance
- Explain the objectives and role of fiscal policy in development
- Classify sources of public revenue into tax and non-tax revenue
- Differentiate direct and indirect taxes using impact and incidence
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Sources & Official References
Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
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