What is fiscal policy? Explain its aims.

The Government’s policy decisions regarding public revenue, public expenditure and public debt is called fiscal policy. These policies are implemented through the budget.

Some aims of the fiscal policy are: -

•Attain economic stability

•Control unnecessary expenditure

•Create employment opportunities

•Reduce Tax evasion

•Targeted developmental activities

•Reduce bureaucratic delay

•Attain equitable growth in all regions