1. Why is the knowledge of Fiscal Policy important to a
Retail Banker and it’s impacts on sales pitch. Substantiate
with an Investment option.
Faculty name - Vishwanathan
center – Hyderabad
Batch No – hyd01aa0213
Participant name
Participant ID
S.KARTHIK GOUD
E30031000148
T.PRAVEEN
E30031000114
SANDEEP
E30031000119
ANURAG
E30031000113
2. INDEX
1
Fiscal Policy
2
Objectives
3
Functions
4
Types of Fiscal Policies
5
Limitations
6
Factors affecting fiscal policy
7
Fiscal Deficit
8
Why it is important to a Retail Banker
9
Impacts on sales pitch & examples
10
Current trend on Fiscal policy
3. Introduction
Definition :Fiscal Policy refers to a policy under which
government uses it’s expenditure and revenue programs
to produce desirable effects on national
income, production and employment
4. Fiscal can be explained as Financial ,so a policy in
relation to finance and something similar to monetary
policy
Now a Monetary policy is formed by RBI and the
Fiscal policy is formed by central government
The main aim of the policy is to see the three facets of
financial system are healthy i.e. public debt, public
revenue, public expenditure
5. Objectives
Economic growth
Full Employment
Reducing inequalities of income and wealth
Controlling inflation
Price stability
7. Types of Fiscal policy
Expansionary Fiscal Policy
An increase in government expenditure for
goods and services
A decrease in taxes
Some combination of two
Contractionary Fiscal Policy
A decrease in government expenditure
for goods and services
An increase in taxes
12. Factors affecting fiscal policy
Tax policies
Government subsidies
Government borrowings, lending's &
investments
13. Fiscal Deficit
The expenses that the government incurs is
always more than the income it makes, this
difference or deficit is known as “ Fiscal Deficit”
It is expressed as a percentage of GDP
The financing of this deficit is known as
“Deficit Financing”
14. Why it is important to a Retail Banker ?
It will help a retail banker in determining:• Selection of Investment product.
• Market behavior.
• Product yield / Returns.
• Risk diversification.
16. COMPANY LAST CHANGE OPEN
NAME
PRICE (%)
National
Highways
Authority
of India
999.50
Canara-rob Debt
equity-tax fund
saver fund
0.26%
0.25
997.00
0.39
HIGH YEILDING FD”S
HIGH
999.50
LOW
VOLUMEFACE
VALUE
992.00
12081
17.74
Interest Rates
ICRA
CRISI
L
FITCH
CARE
1 YEAR
2 YEAR
3 YEAR
MAAA
FAAA
N/A
N/A
8.90%
9.05%
9.15 %
1,000
17. Current trend on Fiscal Policy
Deficit level in india is better than many democratic
countries
Government plans to bring down Fiscal deficit to 3 % of
GDP by 2016-17
Present fiscal deficit 6.1 % of GDP
Fiscal deficit of 5.3 % in my view is doable – FINANACE
MINISTER
Fiscal deficit target of 5.3 % hard to achieve – MOODY
High fiscal deficit is a threat for sovereign rating