PUBLIC EXPENDITURE, DEBT MANAGEMENT AND FISCAL POLICY
Public expenditure, debt management, and fiscal policy are critical components of a country's economic framework. They play a vital role in influencing economic stability, growth, and the overall development of a nation.
1.Public expenditure refers to the spending by the government on various public services and infrastructure projects. It includes expenditures on healthcare, education, defence, social security, and public infrastructure. Efficient allocation and utilization of public funds are essential for promoting economic development and social welfare.
2.Debt management involves strategies and practices to handle a government's debt efficiently. It aims to ensure that the government's borrowing and debt servicing are conducted in a sustainable manner. Effective debt management helps maintain financial stability and avoid excessive debt burdens that can hinder economic growth.
3.Fiscal policy encompasses the government's use of taxation and public spending to influence the economy. It is a tool to achieve macroeconomic objectives such as controlling inflation, managing unemployment, and stimulating economic growth. Fiscal policy decisions directly impact public expenditure and debt management, making them intertwined elements of economic governance.
Together, these elements shape the economic environment, affecting everything from infrastructure development and social services to economic stability and growth. By carefully balancing public expenditure, managing debt, and crafting effective fiscal policies, governments can foster a stable and prosperous economy.
The budget of India is an annual financial statement presented by the government, detailing its estimated revenues and expenditures for the upcoming financial year. It serves as a crucial policy tool for the government, influencing economic activities and directing resource allocation. Typically presented by the Finance Minister in the Parliament on the first day of February, it allows for thorough discussions and enactment before the new financial year begins on April 1st. The budget reflects the government's economic strategies and priorities, influencing various sectors and impacting the overall economic environment.