Deficit financing
Deficit financing in advanced countries is used to mean an excess of expenditure over revenue the gap being covered by borrowing from the public by …
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Deficit financing in advanced countries is used to mean an excess of expenditure over revenue the gap being covered by borrowing from the public by …
Two main branches of public finance, namely, public revenue and public expenditure, we shall first study the public expenditure. The classical economists did not analyse …
First, there is Wagner’s Law of Increasing State Activity. According to Wagner, a German economist, there are inherent tendencies for the activities of the Government …
The second hypothesis about the growth of public expenditure has been put forward by Wiseman and Peacock in their study of public expenditure of U.K. …
Having studied the causes of large increase in public expenditure, it will be useful to explain the effects of public expenditure on the production and …
The income of the government through all sources is called public income or public revenue. According to Dalton, however, the term “Public Income” has two …
Income Tax: Income tax is an important direct tax levied by the central government but the proceeds obtained from it are shared between the centre …
Proportional Taxes: Taxes in which the rate of tax remains constant, though the tax base changes, are called proportional taxes. Here, the tax base may …
The burden of the tax can be transferred to others through a process of shifting. It may be noted that the whole burden of the …
Tax effect on Production 1. Effects on Ability to work: Taxes reduce disposable income. As such, the buying capacity and consumption expenditure are curtailed. These cause …