The Influence of Fiscal Policy on the Country’s Economy
Posted on : October 4, 2023 | post in : Phone Number List |Leave a reply |
Fiscal policy is a policy implemented by the government to regulate state financial expenditure and receipts. Fiscal policy can take the form of government spending or revenue, or a combination of both. One of the main goals of fiscal policy is to stimulate or slow economic growth.
The influence of fiscal policy on economic growth can be seen from two sides, namely fiscal expansion and fiscal contraction. Fiscal expansion is a fiscal policy carried out to increase government spending or reduce taxes. This is expected to increase aggregate demand, increase investment and increase economic growth.
Meanwhile, fiscal contraction is a fiscal policy carried out to reduce government spending or increase taxes.
This is expected to reduce aggregate demand
Reduce investment and reduce economic growth.
In the short term, fiscal expansion can increase aggregate demand and increase economic growth. However, in the long term, fiscal expansion can increase the budget deficit and state debt, which telemarketing leads can lead to financial problems.
Meanwhile, fiscal contraction can reduce aggregate demand and reduce economic growth in the short term. However, in the long term, fiscal contraction can reduce the budget deficit and state debt, which can increase financial stability.
Appropriate fiscal policy should include a combination of fiscal expansion and contraction, taking into account current economic conditions and future economic projections. The government must take pro-active fiscal policies to stimulate economic growth when needed, but must also pay attention to the long-term impacts of these policies.
The government must coordinate with the central bank in taking fiscal policy
Therefore, The goal of sharia economics is to create an economic system based on sharia principles. These principles are BSB Directory often referred to as the laws of the Koran and Sunnah. This goal also includes ensuring that sharia economic concepts are practiced consistently and responsibly.
The main aim of implementing sharia economics is to avoid economic activities that violate sharia law.