Critical Analysis of Fiscal Policy of India since 1971 With Special Reference to Personal Income Tax Administration

Abstract

Introduction Macroeconomic policy may be defined as a programmer of action under taken to control, regulate, and manipulate macroeconomic variables to active the macroeconomic goals of the economy. In the wards of Brooks and Evans macro economic policy can be though of as an attempt by the authorities to achieve particular target levels of certain major economic Aggregates 1.1 The need for and advent of Macroeconomic policies: Macroeconomic problems have always been there ever countries began the Endeavour to improve their living conditions but the roll of government in managing the economy and use of macroeconomic policies to solve the macroeconomic problems are of recent origin. Until the great depression of the 1930 there was nothing like macroeconomic policy. Classical economist did not favors the government intervention in economic system. However the great depression (1929-1933) shattered classical doctrine as it could often neither an explanation nor a solution to the devastating and unprecedented economic problems caused by the great depression. It was Keynes who highlighted and advocated the government role for economic management to active growth and stability Keynes view gained prominence in the post second world war period, specially in the reconstruction of the War-ravaged economies and described that government may play a significant role of the prime- mover and con accelerate the pace of economic growth reduce unemployment and stabilize the economy though its fiscal measures. many early enthusiast of the Keynesian approach belied that fiscal policy was like a knob they could turn to control the pace of the economy