GM Trendy Hiverzzz, welcome to Hindustan Trendz. When we read the word "fiscal policy," it sounds like any government term. It is directly related to government spending, changes in taxation, and the budget plan.
Now, let's understand it more so that we can achieve a good level of understanding in this field.
At its core, fiscal policy is about how the country's government makes changes in taxation rates, borrowing, and spending, which influences the country's economy and the people. Let's understand it with an example.
Let's say there is an economic disaster and the government lowers the tax, and the purpose is to increase public spending of public so this is directly related to fiscal policy.
Now flip the scenario in overheating economies. Reduce spending and increase taxes. So this is all for stabilizing the nation's economy.
Keeping fiscal policy aside, inflation is a key piece because it depends on government spending, and if it is aggressive, it can fuel inflation. When inflation increases, scenarios change, and lots of troubles come ahead.
It increases the price of goods, and the burden falls on the middle class's wallet. middle-class people have to adjust their budget and use emergency funds in this situation. Long-term financial planning is always needed.
The interest rate is also affected by fiscal policy. Your interest rate on loans such as credit card debt, personal loan, vehicle loan, gold loan, and home loan can be affected due to the heavy borrowing of the country's government.
What you can do is just keep your eye on these trends, so you should know what your government is doing.
All I want to say is you should be aware of what is going on in the economy and what the current economic environment is, because government decisions directly affect your personal life.
You have to create a strategy and change it accordingly when needed. Hoping that you understand about fiscal policy and how it is directly impacting people.
Keeping an eye on government steps is a smart move. Keep yourself updated to play here and survive. Salam namaste, take care.
"Dream is not that which you see while sleeping, it is something that does not let you sleep." - Avul Pakir Jainulabdeen Abdul Kalam 💪
