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Fiscal Policy In Ethiopia

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A nation 's economic performance depends on many factors, such as capital accumulation (physical and human capital), technological progress, institutions and population growth (Ben eta al, 2001 and P.Todaro & C.Smith, 2012). Another extremely important factor affecting economic growth is the set of macroeconomic policies of the economy. The three major types of macroeconomic policies are fiscal, foreign exchange and monetary policies.
Fiscal policy concerned on government spending and taxation which is linked to government expenditure plan and taxation structure of an economy (Black, Calitz, Steenekamp, 2013 and Ben, and Andrew, 2001).Studying the impact of fiscal policy on one country’s macro economy is very decisive to have a sound macroeconomic …show more content…

A side of these, different studies analyzed the role of government intervention via its spending and taxation policy in economic growth of the country. James eta al, (2014) assures that fiscal instruments play an important role for developing economies to create a wide opportunities to economic growth. From this government spending is the one which play an important role to create conducive and attractive environment for domestic as well as foreign direct investment through development of infrastructures, electric utility and other social …show more content…

Taxation policies of Ethiopia have many divisions; among those the major divisions are direct tax which is like personal income tax, rental tax, business profit tax and others; and the indirect one includes value added tax, custom duty, excise and turn over taxes. To investigate these issues the paper used static compatible general equilibrium (CGE) model. Since CGE enables to capture broad representation of economic variable relation in the economic system and in order to compute the effects of different policies changes or shocks in the system of the

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Chapter 11 1. Fiscal policy can be described as the use of government purchases, taxes, transfer payments, and government borrowing with an objective of influencing economy-wide variables such as the employment rates, the economic growth, and the rates of inflation (McEachern, 2015). 1. When all other factors are held constant, a decrease in government purchases will lead to an increase in the real GDP demanded 2. An increase in net taxes, holding other factors constant, will lead to an increase in the real GDP demanded.

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Sales tax is income elastic; because of this fact, consumers have a higher tax incidence and carry the burden. From this, it has been evidenced that the tax burden is vertically unequitable and can be seen as unfair to the less fortunate. Sales tax is paid by retailers, which is dependent upon their sales revenue. However, since the demand of consumers is inelastic and can vary based on market and economic conditions, this burden is felt more by lower income individuals and families. However, it is important to note that the tax burden is independent of who physically pays the tax.

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DBQ: Famine in Ethiopia: How did the government make it worse? (hook)From 1983-1985, a famine in Ethiopia caused millions to die. In 1984, grain prices increased by 300% and five Ethiopian provinces set all-time lows for rainfall. Many people, blamed the famine on the drought, but later figured out that the real cause was politics. Soviet-backed communist Derg took over and worsened the famine.

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MPA609 Public Finance Week Eight Writing Assignment Marquette Funchess Professor Jinkiri Belhaven University Numbers 35:33 (ESV) states, “You shall not pollute the land in which you live, for blood pollutes the land, and no atonement can be made for the land for the blood that is shed in it, except by the blood of the one who shed it.” This scripture can be applied to the practice of recycling waste and unused goods. Recycling is defined as the process of converting waste materials into reusable objects to prevent waste of potentially useful materials, reduce the consumption of fresh raw materials, energy usage, air pollution and water pollution by decreasing the need for waste disposal and lowering harmful greenhouse gas emission.

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The Income Tax Act establishes the liability for tax and the tax responsibility of Canadian residents. Every resident in Canada is responsible for paying an income tax on taxable income for that taxation year. The taxable income includes that year’s taxable income including any additions and excluding any deductions that are permitted by Division C. It also includes non-residents that held employment, carried on business, or disposed of Canadian property that is taxable. (Income Tax Act). Tax policy plays an important role in making the distribution of post-tax income less unequal.

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It requires a pretty high sales tax. In order for the government to bring in the same revenue as the current taxation system, the national sales tax would have to be pretty high. Naturally, this means the prices of products and services will increase and in turn affect the current financial state. 2.

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Federal budget is the amount of money that will be spent on all sorts of expenses in the upcoming year. It reflects the financial performance of the country. What is a balanced federal budget means? Balanced budget is the total amount of government revenues equal to the total amount of government expenditures. If the government revenue more than total amount of government expenditure is known as budget surplus.

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In Chapter 1, Rich Nation, Poor nation of The Economics of Macro Issues, the author first identifies the common misconception that economic advantages are predetermined by the natural resources made available to that country. Economic growth is developed by political and legal institutions. Stable institutions are detrimental to the success of the economy because they provide a sense of security for investing. These investments raise capital stock and promote long-term growth which leads to a higher standard of living.

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The Maurya empire and the ancient African civilization of Ethiopia were both located near major waterways, which played an important role in their prosperity and success. However, they also both had governments which differently affected the way their people lived. Overall, we understand how both Ethiopia and the Maurya empire used their location to their advantage, but both their rulers set up different governments which influenced the lives of their

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Hunger in Ethiopia Every day the world develops widely and jumps great leaps in technology. Yet lots of unfortunate people die every minute caused by famines, civil wars, and rapacity of some who rape others rights and dreams of decent lives. Today in the 21th century shamefully, there are a lot of starve, literally, to death. Starvation is a severe deficiency in caloric energy intake. It is the most extreme form of malnutrition.

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According to the Suitcase Clinic organization homelessness means a temporary condition that people fall into when they cannot afford to pay for a place to live, or when their current home is unsafe or unstable. (Suitcase Clinic Organization ) Main reasons being homeless: cyclical nature of mental health/ substance abuse, unavailability of affordable accommodation-waiting lists for public housing and lack of reasonably priced houses. For example, in UK and USA housing stocks are unaffordable.

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Governments need to tax its citizens in order to protect and serve them. Many politicians vehemently debate which taxation methods the government should or should not utilize. Most members of the United States of America pay taxes every year. No wonder taxes play a major role in politics. According to popular belief, we procure an income tax because it provides the best way to tax citizens.

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The fiscal policy is primarily an instrument in the hands of the government whereby it estimates its revenues and expenditures in the economy. This is a very important tool as it would define the flow of money from different sources, indicating the level of activity in the economy. It also defines the broad policies of the government indicating the outwards flow of money in to different sectors of the economy to maintain the overall health of the economy and fulfill its social goals. Apart from the fiscal policy every country has monetary policy at its disposal.

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INTRODUCTION Economic growth is defined as the increased capacity of an economy to be able to produce goods and services in comparison from one period of time to another. This is figured by the genuine Gross Domestic Product (GDP) and development, and is measured by utilizing genuine terms such as “Balanced Inflation”. These terms help to remove any distorted views on the perceived outcome of inflation on the cost of merchandises produced. Likewise, Economic growth is related to the high expectations in a person’s standard of living. If the standards are high, it wouldn’t be beneficial for the economy as the working class individuals will face a lot of trouble.

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