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Tanima Dutta, Lovely Professional University Unit 6: Fiscal Policy

Unit 6: Fiscal Policy Notes

CONTENTS
Objectives

Introduction
6.1 India's Fiscal Policy

6.1.1 Revenue Budget
6.1.2 Capital Budgets
6.1.3 Expenditures of Central Government

6.1.4 Budgets of State Government
6.1.5 Financial Power of Central and State Governments

6.1.6 Fiscal Policy and Economic Growth
6.1.7 Impact of Fiscal Policy on Business
6.2 Foreign Trade Policy and BOP

6.2.1 Import Policy: Prior to 1991
6.2.2 New Trade Policy (1991)
6.2.3 Foreign Trade Policy 2002-2007

6.3 Direct Taxes
6.4 Indirect Taxes
6.5 Summary

6.6 Keywords
6.7 Self Assessment

6.8 Review Questions
6.9 Further Readings

Objectives

After studying this unit, you will be able to:
Discuss the monetary policy and fiscal policy of india

Assess the foreign trade policy and BOP
State the concept of direct taxes and indirect taxes

Introduction

In last unit you have studied about monetary policies, SLR and CRR. The sphere of state action
on a country's budget is vast and all pervading. It includes "maintaining public services, influencing
attitudes, shaping economic institutions, influencing the use of resources, influencing the

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