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π°
π Basic Economics
Fiscal Policy
Government's use of taxation and spending to influence the economy; Union Budget presented in February
UK/India π 1936 Basic Economics
Key Facts
- 1
Expansionary fiscal policy: increase spending / cut taxes β stimulates economy during recession
- 2
Contractionary: cut spending / raise taxes β cools overheating economy and reduces deficit
- 3
India: Union Budget in February; fiscal year AprilβMarch; Fiscal Responsibility Act (FRBM, 2003) targets deficit limits
π Did you know? India's first Union Budget was presented by RK Shanmukham Chetty on 26 November 1947 β within months of Independence
Quick Reference
Category
Basic Economics
Country
π UK/India
Year / Era
1936
About
Government's use of taxation and spending to influence the economy