Who Is Responsible for Fiscal Policy in South Africa
What is called fiscal policy?
Fiscal policy is the process through which a government modifies its spending levels and tax rates in order to monitor and impact the economy of a country.
What are the types of fiscal policy?
There are two main types of fiscal policy:
Expansionary fiscal policy
Contractionary fiscal policy
Who introduced fiscal policy?
Fiscal policy was an idea introduced by the British economist John Maynard Keynes.
What is the aim of fiscal policy in South Africa?
Fiscal policy seeks to:
1. Maintain a sound and sustainable balance between the government’s spending, taxation, and borrowing needs.
2. Increase local savings to fund higher levels of investment and lower the need for foreign financing.
3. Maintain a reasonable level of government consumption spending, which will contribute to reducing inflation and a sustainable balance of payments.
4. Support an export-friendly trade and industrial strategy to boost South Africa’s competitiveness.
5. Ensure that public sector pay increases are market and productivity linked, as well as fiscally viable.
Who is responsible for fiscal policy in South Africa?
The National Treasury is in charge of developing and promoting fiscal policy as well as coordinating macroeconomic policy. It is also in charge of assisting the Minister of Finance on tax policy matters.
What is another term for fiscal policy?
Fiscal policy is also known as deficit financing.
How does fiscal policy help South Africa?
South Africa has had greater success than 11 peer countries in employing fiscal policy measures to alleviate inequality and poverty.
What is the fiscal policy unit?
The fiscal policy unit manages and produces the fiscal framework, which is used to advise the Minister of Finance on policy alternatives available in budget framework development.
