ECON 1010 Chapter Notes - Chapter 29: Government Budget Balance, Real Interest Rate, Tax Wedge
24 Jul 2016
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The annual statement of the outlays and revenues of the government of canada, together with the laws and regulations that approve and support those outlays and revenues, make up the federal budget. The provincial budget is an annual statement of the revenues and outlays of a provincial government, together w with the laws and regulations that approve or support those outlays and revenues. Before ww2 the federal budget had no purpose other than to finance the business of government. However since the late 1940"s the federal budget assumed a purpose to pursue the government"s fiscal policy. Fiscal policy is the use of the government"s budget to achieve macroeconomic objectives such as full employment, sustained long term economic growth, and price level stability. The federal government and parliament make fiscal policy. After all these consultations, the minister develops a set of proposals, which are discussed in cabinet and which become government policy.
