Macro Economic Impact of Fiscal Policy Changes in Sri Lanka, 1977-2005
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Fiscal policy is considered as an important policy in regulating macro economies of less developed countries (LDCs). Also, there is a general acknowledgment that the fiscal policy can be used to promote economic development in these countries. Especially, fiscal policy has an ability to affect all variables including micro and macro aspects and therefore it is considered as an important policy in an economy. Also, the fiscal policy is considered a major cause of slow economic growth and emerging fundamental macro-economic imbalances in LDCs. Therefore, fiscal policy reforms have included as an...
Fiscal policy is considered as an important policy in regulating macro economies of less developed countries (LDCs). Also, there is a general acknowledgment that the fiscal policy can be used to promote economic development in these countries. Especially, fiscal policy has an ability to affect all variables including micro and macro aspects and therefore it is considered as an important policy in an economy. Also, the fiscal policy is considered a major cause of slow economic growth and emerging fundamental macro-economic imbalances in LDCs. Therefore, fiscal policy reforms have included as an integral part of economic liberalization programs and SAPs, the proper design of fiscal policy in the context of structural adjustment and stabilization has been hence become a much more active focus in developing countries.
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