- Economic growth of the Country
- Increase the employment opportunity
- Ensuring high rate of capital formulation.
- Re-allocation of resources to ensure the achievements of nation’s socio-economic goals.
- To achieve favorable balance of payment.
- Reduction of Economic inequity.
- To achieve the goal of Economic equity.
Instrument of Fiscal Policy are taxation, public borrowing and expenditure. In the taxation policy government make progressive and regressive both types of taxes so that the revenue of the government may increase and public expenditure, taxes effect the economic conditions or development in an country. effect of fiscal policy on Income and rate of interest.