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2
1.
2. Consist of efforts by the government to
change how it spends money or how it gets
taxes for the purpose of achieving economic
stability.
•All top government policies and strategies that
are deliberate efforts to improve certain
aspects of the economy , such as full
employment and lower inflation, are
collectively known as the government’s fiscal
policy.
•
3.
During a period of recession, or when there is
deflation or very low prices, government can
increase its spending, and thus stimulate
demand and decrease unemployment in the
long run. On the other hand, when there is
inflation, government may decrease
spending. This will lead to a reduced deficit
onto a budget surplus, thus reducing inflation.
4.
5.
To keep an acceptable level of employment
for the labor force
To have industrial plants and machinery
running at optimum levels
To keep inflation at a minimum or a its most
efficient level
To promote maximum purchasing power
6.
7. 1. Increased Government Spending
- The government may use resources as its
disposal to increase spending.
2. Reduced Taxes
- The government may reduce taxes in
order to increase demand.
8. 3. Combination of Increased Government spending
and Reduced Tax Rates
The combination of the above options may be
used by government.
9. 1. Decrease Government Spending
- if the government decrease its spending,
then it will reduce the overall demand for
goods and services, thus decreasing demandpill inflation.
10. 2. Increased Taxes
This will affect the over all demand for goods
and services, thus inhibiting inflation.
3. Combination of Decreased government
spending- As with the above, the government
may use both a decrease in government spending
and an increase in tax rates simultaneously to
help in curbing demand–full inflation.
11.
12. (Article II Section 9)
The state shall promote a just and dynamic social
order that will ensure the prosperity and
independence of the nation and free the people
from poverty through policies that provide
adequate social services, promote full
employment,. A rising standard of living, and an
improved quality of life for all.
13.
The Philippine government has always been
very conservative in formulating measures
and guidelines that would form part of its
fiscal policy measures done by the
government of President Gloria Macapagal
Arroyo in recent years.
14.
A budget deficit- reduction program was instituted to ease
interest rates.
An anti- money laundering act was passed to alleviate
uncertainties about the handling of money by banks and
other financial institutions.
Spending was increased for agricultural modernization,
education and health, socialized housing, infrastructure
information and communication technology, and tourism.
.
15.
The amount of P 22 billion was set aside as a fiscal
stimulus with P 14 billions for infrastructure projects and P
8 billion fo9r back payments to government constructors
Strengthening the revenue of government by improving
tax collection and administration.
Cutting down on non-essential spending, or expenditure
control, so that the extra funds generated can be coursed to
more important projects, or those that would generate
employment.
17. Taxes
This is the main source of revenue for most governments.
Taxes are the money raised by the government from
individuals and organization to pay for the goods and
services it provides.
Sale of Government Assets and Properties
Subject to certain limitations, the government may sell its
properties or assets to private companies and
corporations, except those that are not allowed by law.
privatization government may also sell public
corporations to be owned and operated by private
companies.
18. Service Fees and Fines
it provides to the public, including fees and charges for
licenses, ID’s, and certifications. It also charges fines
for violation of rules and laws, such as traffic rule
infraction, or non-filing on taxes.
Government –Owned and Controlled Corporations
(GOCC’S) and other Government Businesses
The government owns or controls companies and
profits or revenues they make go to government
coffers. However, many of these do not make a lot of
money , and are even losing financially.
19. Loans from Local and International Financial
Institutions
- Sometimes, when government has not
raised enough for its budget due to poor tax
collection, it may have to borrow money from
local and foreign financial institutions.