1. Fiscal policy is the government's use of taxation, public spending, and borrowing to achieve economic objectives such as sustainable growth.
2. The government can influence fiscal policy through taxation and government spending, which can be used to incentivize spending or counter negative growth.
3. An effective fiscal policy can stabilize the economy during inflationary pressures, promote income equality, and raise private investor confidence. However, political pressures and decision-making without understanding people's needs can create challenges in implementing a prudent fiscal policy.
The article provides a comprehensive definition of fiscal policy and its objectives. It explains how fiscal policy works and how it is different from monetary policy. The article also highlights the importance of a healthy fiscal policy in controlling inflation, increasing employment, and maintaining the value of money.
However, the article seems to have a bias towards the effectiveness of fiscal policy in managing the economy. It presents examples of countries that have implemented successful fiscal policies without exploring potential counterarguments or risks associated with such policies. For instance, while India's fiscal policy during the pandemic is presented as a success story, there is no mention of potential long-term consequences such as rising debt levels or inflation.
Moreover, the article does not provide enough evidence to support some of its claims. For example, it states that an effective fiscal policy will raise private investor confidence and encourage them to expand their operations. However, there is no evidence provided to support this claim.
The article also lacks balance in presenting both sides of the argument. While it highlights some potential downsides of fiscal policy such as political pressures and unintended consequences, it does not explore alternative views on whether government intervention in the economy through fiscal policy is necessary or effective.
Overall, while the article provides a good introduction to fiscal policy and its objectives, it could benefit from more balanced reporting and exploration of potential counterarguments and risks associated with implementing such policies.