What Is Fiscal Representation?
The fiscal revenue of a country in a fiscal year is greater than the fiscal expenditure. This situation is called fiscal surplus, otherwise it is fiscal deficit.
Fiscal surplus
Right!
- Chinese name
- Fiscal surplus
- Foreign name
- Financial surplus
- Definition
- Fiscal revenue is greater than fiscal expenditure
- Distinguish
- Fiscal deficit
- Time period
- A fiscal year
- The fiscal revenue of a country in a fiscal year is greater than the fiscal expenditure. This situation is called fiscal surplus, otherwise it is fiscal deficit.
- Fiscal surplus means that fiscal revenue is greater than fiscal expenditure, that is, a portion of wealth is stored. The more fiscal surpluses, the more wealth is stored, and in the long run, it will cause economic contraction. Therefore, fiscal policy is in principle a balance of income and expenditure. How the wealth of individuals and businesses are controlled is regulated by the market, while the government decides to adopt a tightening (making fiscal surplus) or expanding (making fiscal deficit) policy according to the needs of macroeconomic regulation. .
- The fiscal deficit represents the government's purchase of excess fiscal revenue, and the increase in government purchases can drive GDP growth, stimulate corresponding production, and increase employment. In fact, the Keynesian school supports the government to use certain fiscal deficits to stimulate employment and thus Drive economic growth.
- Fiscal surplus is called austerity fiscal policy, which refers to increasing fiscal revenue by increasing taxes, or reducing or eliminating deficits by compressing fiscal expenditures, resulting in the emergence or increase of fiscal surpluses, and the suppression or reduction of total social demand, eliminating total demand inflation effect. Surplus fiscal policy is mainly achieved by increasing taxes, reducing expenditures and reducing deficits or increasing surpluses.