KEBIJAKAN FISKAL

Summary

In this educational video, Bu Dewi Nursani provides a comprehensive overview of fiscal policy, focusing on its role in managing national economies. She explains the key concepts of fiscal policy, including its relation to taxes, government spending, and its impact on inflation, unemployment, and economic stability. The video covers types of fiscal policies, such as expansionary and contractionary, and dives into their applications in both inflationary and deflationary periods. The video also compares fiscal policy with monetary policy, highlighting their differences in implementation and impact on the economy. This lesson aims to enhance understanding of how fiscal policy shapes national financial systems.

Takeaways

• 😀 Fiscal policy involves government revenue and expenditure adjustments to stabilize the economy.
• 😀 Fiscal policy can help reduce inflation by postponing or canceling government projects to reduce money circulation.
• 😀 One role of fiscal policy is to boost GDP by increasing public spending or transferring funds to citizens.
• 😀 Fiscal policy can reduce unemployment by creating new job opportunities through government-funded projects.
• 😀 Increasing public spending can raise citizens' income and improve their economic well-being.
• 😀 Fiscal policy ensures economic stability, particularly during global economic fluctuations.
• 😀 Fiscal policy promotes national welfare by regulating tax expenditures and debt management.
• 😀 The two main types of fiscal policy are expansionary (to stimulate the economy) and contractionary (to slow down the economy).
• 😀 According to theory, fiscal policy can be functional, deliberate, or unintentional in its approach to managing the economy.
• 😀 Instruments of fiscal policy include taxes and government spending, both of which can regulate inflation, boost economic growth, or manage public welfare.

Q & A

What is fiscal policy and how does it impact a country's economy?

Fiscal policy refers to the government's adjustments in its spending and taxation policies to influence the nation's economic conditions. It impacts the economy by either stimulating growth during a recession or slowing it down during inflation, aiming to maintain stability and support economic health.

What is the primary source of government income in fiscal policy?

The primary source of government income in fiscal policy comes from taxes, which are collected from the public and businesses. These revenues are used for government spending to stabilize and improve the economy.

What role does fiscal policy play in controlling inflation?

Fiscal policy helps control inflation by reducing government spending or raising taxes, which decreases the amount of money circulating in the economy. This helps to cool down an overheated economy and control price increases.

What is the difference between an expansive fiscal policy and a contractionary fiscal policy?

An expansive fiscal policy is aimed at stimulating economic growth by increasing government spending or cutting taxes, usually during recessions. A contractionary fiscal policy is designed to slow down the economy by reducing government spending or increasing taxes, typically when inflation is too high.

How can fiscal policy influence employment levels?

Fiscal policy can affect employment by funding government projects, which create jobs and reduce unemployment. During periods of high unemployment, the government may increase its spending to stimulate job creation.

What are the two main types of fiscal policy according to the script?

The two main types of fiscal policy are expansive fiscal policy, which stimulates economic activity, and contractionary fiscal policy, which slows down the economy to control inflation.

What are the functions of fiscal policy as described in the script?

The functions of fiscal policy include authority (setting budgets), planning (managing government expenditure), oversight (monitoring economic activities), allocation (efficiently distributing funds), stability (ensuring economic balance), and distribution (ensuring fair allocation of resources).

What is the role of government spending in fiscal policy?

Government spending is a key instrument of fiscal policy. It helps stimulate the economy by funding infrastructure projects, creating jobs, and increasing overall demand. Conversely, reducing government spending can help control inflation during economic booms.

How does fiscal policy differ from monetary policy?

Fiscal policy is concerned with government taxation and spending to influence the economy, and is managed by the Ministry of Finance. In contrast, monetary policy involves controlling the money supply and interest rates to stabilize the economy, and is managed by a country's central bank.

What is the significance of balancing the national budget in fiscal policy?

Balancing the national budget is important because it ensures that the government's spending does not exceed its income, preventing the need for excessive borrowing. A balanced budget helps maintain financial stability, though it may limit the government's ability to stimulate the economy during downturns.