Jadavpur University Introductory Macroeconomics Project PDF

**JADAVPUR UNIVERSITY** **INTRODUCTORY MACROECONOMICS PROJECT** **TOPIC:** **"FISCAL POLICIES IN INDIA: REASONS, IMPLEMENTATIONS** **AND** **IMPACTS FROM 2000"** **\ PRESENTED BY:-** - **SHREESHA SENGUPTA (ROLL NO. 12)** - **ARUNIMA CHOWDHURY (ROLL NO. 13)** - **ADRIJA ROY (ROLL NO. 1...

**JADAVPUR UNIVERSITY** **INTRODUCTORY MACROECONOMICS PROJECT** **TOPIC:** **"FISCAL POLICIES IN INDIA: REASONS, IMPLEMENTATIONS** **AND** **IMPACTS FROM 2000"** **\ PRESENTED BY:-** - **SHREESHA SENGUPTA (ROLL NO. 12)** - **ARUNIMA CHOWDHURY (ROLL NO. 13)** - **ADRIJA ROY (ROLL NO. 16)** - **THUPDEN LAMA (ROLL NO. 46)** - **UPASANA GHOSH (ROLL NO. 53)** - **SUSUSHMITA PODDAR (ROLL NO. 59)** **[ACKNOWLEDGEMENT ]** We would like to express our gratitude to Dr. Rilina Basu (Banerjee) for her guidance, academic encouragement and friendly critique. We would also like to thank the Jadavpur University Economics Department **[PREFACE]** **CONTENTS** **[INTRODUCTION]** Fiscal Policy in India*** ***is the cornerstone of its economic strategy, which steers the country through various phases of growth, development, and challenges. It plays crucial role in shaping the nation's development trajectory, influencing its macroeconomic stability, and addressing socio-economic challenges. Fiscal policy is based on the principles of Keynesian economics, which basically states that governments can influence macroeconomic productivity levels by increasing or decreasing tax levels and public spending. When the government receives more than it spends, it has a surplus. If the government spends more than it receives it runs a deficit. A comprehensive indicator of the government's deficit is the fiscal deficit. This is the sum of revenue and capital expenditure less all revenue and capital receipts other than 6 loans taken. This gives a more holistic view of the government's funding situation since it gives the difference between all receipts and expenditures other than loans taken to meet such expenditures. **Fiscal Deficit = Total Expenditure (that is Revenue Expenditure + Capital Expenditure) -- (Revenue Receipts + Recoveries of Loans + Other Capital Receipts (that is all Revenue and Capital Receipts other than loans taken))** **"The gross fiscal deficit (GFD) of government is the excess of its total expenditure, current and capital, including loans net of recovery, over revenue receipts (including external grants) and non-debt capital receipts."** The net fiscal deficit is the gross fiscal deficit reduced by net lending by government. The gross primary deficit is the GFD less interest payments while the primary revenue deficit is the revenue deficit less interest payments.