Budgetary Policy

Budgetary Policy - The budget has two components. These are...

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Budgetary Policy: This relates to two important implements: government expenditure and taxes . The idea of collecting taxes is so that the government can carry out expenditure on various public facilities. a) Revenue and Capital accounts: Modern public authorities have been popularly making use of fiscal policy. It is planned and implemented through annual budgets of the governments. A budget is an estimated or anticipated account of government receipts and expenditure in the next financial year. It is discussed and voted (for or against) in the legislature, in the Congress or Parliament. It is implemented by executives such as ministers or secretaries.
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Unformatted text preview: The budget has two components. These are revenue or current account and capital or debt account . The revenue account displays receipts from tax collection and from other sources of public income during the course of the year. The capital account shows all debt liabilities and payments of interest on loans. Government loans may be internal in the form of borrowing from the people, banks or the central bank. It may also be in the form of external debt from international agencies like the International Monetary Fund (IMF) or International Bank for Reconstruction and Development (IBRD)....
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This note was uploaded on 11/17/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.

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