For example, Shankar Acharya, a former chief economic adviser to the Government of India, has contended that a large fiscal and revenue deficits during 1996-2003 as compared to 1995-96 slowed down economic … The purpose of this study was to shed light on the impact of fiscal policy on growth. If a government wants to stimulate growth in the economy, it will increase spending for goods and services. © 2010 Pakistan Institute of Development Economics, Islamabad Fiscal policy is the general name for the federal government's taxation and expenditure decisions and activities, particularly as they affect the economy. OBJECTIVES AND ROLE OF FISCAL POLICY DEVELOPMENT OF INDIA 1. kumuduni@sjp.ac.lk1, htorii@meijo-u.ac.jp2 Abstract . Request Permissions. For estimating the impact of fiscal decentralization on economic growth, we follow the analytical framework developed by Davoodi and Zou (1998), which is based on the conventional neoclassical economic growth model (Barro, 1990, Mankiw et al., 1992). A shock in . supply. FISCAL POLICY AND ECONOMIC GROWTH IN ROMANIA Cosmin Enache1 ABSTRACT: The connection between fiscal policy and economic growth is not a strong one, taking into account that fiscal policy is not a fundamental source of growth. Redesigned and re-planned twice in the last two decade, the contents have tended to emphasise theoretical-cum-empirical contributions; the underlying commitment has been to strengthen the interest in the general areas of Economics and other social science fields. (2008) fiscal policy is considered to have dynamic transmission HYPOTHESIS The fiscal policy of India has influenced the economic growth of the country. Thus economic growth, income inequality and fiscal policy variables are neither independent nor separately determinable. As a side effect, unemployment rates tend to go down since businesses need to hire more personnel to handle the increase in production. We find the impact of fiscal policy on the economy is larger than we previously thought, and is more in line with the impacts found internationally. The implication is that it is essential to determine empirically the impact of fiscal policy on economic growth … Beyond this limit, the unsustainable budget deficit could have undesirable macroeconomic costs and the government's macroeconomic objectives such as low inflation and high economic growth might be in jeopardy. Hence, this study concludes that expansionary fiscal contraction occurs in Pakistan. Thus, monetary policy plays a stabilizing role in influencing economic growth through a number of channels. Also, c j is the coefficient of the growth impact of the variableF jt, one of l −1 fiscal … This study investigates the effectiveness of fiscal policy and its impact on macroeconomic activities in Pakistan during the period 1972-2008. However, recently the extent to which fiscal policy affect growth has attracted both theoretical and empirical debate especially in the developing countries due to budget deficits, existing governance issues and their aspiration to move up the ladder of growth. The fiscal policy … The study adopts a growth accounting framework that specifies economic growth All Rights Reserved. Output tends to go up as more consumers demand products and services. The issue concerning the effect of fiscal policy on growth is quite old. Fiscal policy is the use of taxation and government spending to influence the economy. the tool of economic growth. The result of impulse response function shows that both fiscal and monetary policies positively affect the growth of GDP per capita in the long run. (b) Government spending had a negative impact on economic growth in Malaysia and Singapore, but had a positive impact in Thailand. Adverse impact of fiscal deficit on economic growth has also been shown through its effect on saving and investment in the Indian economy. ISLAMABAD: The meeting of the Monetary and Fiscal Policies Coordination Board was held on Wednesday to review the impact of fiscal and monetary policies on economic growth, inflation, investment and the external sector. The general objective of the study is impact of fiscal and monetary policy instruments on the economic growth of Nigeria; The specific objectives are; 1) To examine the relationship between money supply and economic growth. Governments undertake expenditures to pursue a variety of goals, only one of which may be an increase in per capita income. Other social sciences, such as demography and anthropology and interdisciplinary studies increasingly define the widening scope of research that must be undertaken for proper economic policy and development to have sound underpinnings. The purpose of the paper is to examine the effectiveness of fiscal policy instruments in Zimbabwe on economic growth as the major target variable in the period 1980-2010. The purpose of the paper is to examine the effect of fiscal policy variables on economic growth in South Africa. This suggests fiscal policy has two incompatible major, long-term targets: economic growth and income equality. Sriyalatha M.A.K. limits. 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