The Impact of Fiscal Policy on GDP

Abstract

GDP is an important indicator of a country's economic development and an economic variable that countries are concerned about. High and stable growth of real GDP is the goal of governments. So governments achieve this goal by adopting a number of economic policies, such as the fiscal policy discussed in this paper. Fiscal policy is the sum of fiscal measures taken by a country to achieve its macro-control objectives. The good or bad fiscal policy of a country directly affects economic development, political stability, and the improvement of people's living standards. For example, the fiscal investment policy determines the rate of economic growth of a country: the fiscal taxation policy is an important guarantee for the state to exercise. The fiscal policy of taxation is an important guarantee of the state's ability to exercise macro-control and an important means to solve the problem of equity: the fiscal policy of price subsidies can protect the low-income class; the fiscal policy of transfer payments can provide assistance to poor areas.