Fiscal policy is the government mechanism of revenue collection and expenditure on different sectors. It is an important chapter of Macro Economics. The fiscal policy shapes the economic growth, investment and output in a country. The fiscal policy assignment is an essential assignment task for students studying in Arts & Social science colleges in Australia. At times, the complexity of the subject assignment increases so much that Fiscal policy assignment help is counted on.
The scope of fiscal policy is very wide as it covers wide area such as the sources of government revenue, agencies involved for revenue collection, priority areas for public investment etc. Writing assignment paper on fiscal policy therefore, require the students to have thorough knowledge of Economics. Again, due to lack of subject knowledge, many students prefer to seek assignment help from external experts.
Fiscal policy is aimed at balancing the gap between revenue and expenditure of the government during a fiscal period. Generally, governments across the world adopt two types of fiscal policy:
This is known as people’s friendly policy as it provides consumers more money in the form of tax rebates, high employment generation and public investment. Government through this fiscal policy provides different incentives to the people. The main purpose of expansionary fiscal policy is to increase private consumption. However, expansionary fiscal policy is not possible for many governments who face tough challenges on fiscal front such as unfavorable balance of payment, high external debts and limited sources of revenue.
2.This is known as tough fiscal policy as it slows down new capital investment in the economy. The main purpose of contractionary fiscal policy is to contain the rising inflation rate in the economy. But it at the same time, raise unemployment rate in the economy. The contractionary fiscal policy is adopted when the government does not have sufficient revenue generation. To mop up revenue collection, government increases tax rates and impose new taxes that reduces the savings of consumers.
There are two tools of fiscal policy which are government investment and taxes. There are usually two types of taxes i.e., direct and indirect taxes. The government investment is spending of government on different sectors such as education, social security, infrastructure development and others.
In expansionary fiscal policy, government reduces tax rates and enhances investment in new projects. But in contractionary fiscal policy, government increases tax rates and reduces budget layouts for new projects for reducing the fiscal deficit and public debt. As per our specialized fiscal policy assignment writers, number of assignments are framed around the topics related to tools of fiscal policy and taxes. Students face ample of doubts when they start with fiscal policy assignment writing.
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