1 / 10

Fiscal Policy

Fiscal Policy. Ways to finance government expenditures in Hong Kong. Tax revenue : direct and indirect taxes Non-tax revenue : sale of land, fees and charges ……. Past fiscal surplus ( 財政儲備 ) Selling government bonds ?. Classification by function: Types Economic services Security

nguyend
Download Presentation

Fiscal Policy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Fiscal Policy

  2. Ways to finance government expenditures in Hong Kong • Tax revenue : direct and indirect taxes • Non-tax revenue : sale of land, fees and charges ……. • Past fiscal surplus ( 財政儲備 ) • Selling government bonds ?

  3. Classification by function: Types Economic services Security Social welfare Health Education Environment Community & external affairs Infrastructure Support Housing Classification by nature Capital expenditure refers to expenditure on capital works and is non-recurrent in nature. Revenue expenditure refers to regular expenditure. Types of Government Expenditures

  4. Fiscal Policy : Government Budgeting Policy Fiscal policy means that the government makes decisions on taxation and spending with an aim to influence the income ( GDP ) and employment.

  5. Economic Problems: An economy is not doing well when.. • Unemployment rate is rising. • Real GDP growth rate falls or even becomes negative. • Price level is falling. • ( Or, price level is rising. )

  6. Aims of Fiscal Policy • Full employment ( very low unemployment rate ) • Economic growth ( real GDP growth ) • Price stability ( without deflation and inflation )

  7. Types of Budget : How to achieve the above aims ? • Surplus budget ( 盈餘預算 ) : estimated revenue is larger than estimated expenditure. • Deficit budget ( 赤字預算 ) : estimated revenue is smaller than estimated expenditure. • Balanced budget (平衡預算 ) estimated revenue is equal to estimated expenditure.

  8. Surplus budget ( 盈餘預算 ) • Economic condition: inflation and overheated economy • Aim: Price stability • Policy : contractionary fiscal policy • decrease government expenditure • increase tax rate

  9. Deficit budget ( 赤字預算 ) • Economic condition: unemployment and falling real GDP growth • Aims: Reducing unemployment and economic growth • Policy : expansionary fiscal policy • increase government expenditure • decrease tax rate

  10. What type of budget policy would you advise the Financial Secretary of the HKSAR to adopt to achieve economic growth and high employment ? End

More Related