FISCAL POLICY

Standard of Value The standard of value is a concept in accounting that establishes a common base for comparing and evaluating financial statements and the underlying assets and liabilities. It provides a framework for ensuring consistency and comparability in financial reporting by setting common principles and guidelines. Key Principles of the Standard of Value: Financial […]

The word “guardian” has a variety of meanings. It can refer to: Someone who protects someone else: This is the most common meaning of the word “guardian.” It can refer to a parent, a teacher, a religious leader, or a person in authority who is responsible for protecting someone else. A trustee: A trustee is […]

Definition: The financial system is a complex network of institutions, markets, and individuals that facilitate the flow of money and credit. It plays a crucial role in the overall economy by facilitating financial transactions, providing access to credit, and managing risk. Components: Central Banks: National authorities that regulate the overall financial system and control monetary […]

Fiscal Policy Fiscal policy is a set of government policies that influence economic activity by adjusting tax rates and spending levels. It is a key component of macroeconomic policy, along with monetary policy. Key Elements of Fiscal Policy: 1. Taxes:– Changing tax rates and structures affects income, consumption, and investment behavior.- Tax incentives can encourage […]

Definition: Fiscal capacity is a country’s ability to raise revenue through taxation and other fiscal instruments to meet its public spending needs. It is determined by a country’s economic strength, its tax structure, and its capacity to collect taxes effectively. Key Factors Affecting Fiscal Capacity: 1. Economic Strength:– GDP per capita: Higher GDP per capita […]