role of government sectors
-
Upload
suvasmita-rout -
Category
Education
-
view
144 -
download
0
Transcript of role of government sectors
![Page 1: role of government sectors](https://reader031.fdocuments.in/reader031/viewer/2022021923/58f008351a28abba0c8b46b1/html5/thumbnails/1.jpg)
Role ofGOVERNMEN
T SECTORSUBMITTED BY:•Suvasmita rout
![Page 2: role of government sectors](https://reader031.fdocuments.in/reader031/viewer/2022021923/58f008351a28abba0c8b46b1/html5/thumbnails/2.jpg)
HOUSEHOLD
HOUSEHOLDS GOVERNMENT
TAXES/DONATIONS/
INVESTEMENTS/RESOURCES
ALLOWANCES/ SCHLORSHIPS/ NGOS/ PROVIDES EMPLOYMENT
INCOME
![Page 3: role of government sectors](https://reader031.fdocuments.in/reader031/viewer/2022021923/58f008351a28abba0c8b46b1/html5/thumbnails/3.jpg)
BUSINESS FIRMS
GOVERMENT
CORPORATE TAX/DIVIDENDS
ON INVESTMENTS
BUSINESS FIRM
GOVT PURCHASES/GOODS & SERVICES/PAYMENTS TO THE FIRMS/SUBSIDIES/ FINANCIAL
AID/ INVESTMENT
![Page 4: role of government sectors](https://reader031.fdocuments.in/reader031/viewer/2022021923/58f008351a28abba0c8b46b1/html5/thumbnails/4.jpg)
FINANCIAL SECTOR
FINANCIAL SECTOR
GOVERNMENT
Govt. borrowings(loan),
dividends & interests
Rate on Investments & yield dividends
![Page 5: role of government sectors](https://reader031.fdocuments.in/reader031/viewer/2022021923/58f008351a28abba0c8b46b1/html5/thumbnails/5.jpg)
REST OF THE WORLD
Rest of the world Government
LOAN/DONATIONS/GIFTS/GOODS & SERVICES/ IMPORT
LOAN/DONATION/GIFTS/GOODS & SERVICES/EXPORT
F.S
![Page 6: role of government sectors](https://reader031.fdocuments.in/reader031/viewer/2022021923/58f008351a28abba0c8b46b1/html5/thumbnails/6.jpg)
CRITICAL ELEMENTS
![Page 7: role of government sectors](https://reader031.fdocuments.in/reader031/viewer/2022021923/58f008351a28abba0c8b46b1/html5/thumbnails/7.jpg)
leakages
![Page 8: role of government sectors](https://reader031.fdocuments.in/reader031/viewer/2022021923/58f008351a28abba0c8b46b1/html5/thumbnails/8.jpg)
Leakage means withdrawal from theflow
LEAKAGES INJECTIONS
TAX EVASIONS INVESTMENTS
SAVINGS EXPORT
TAX HOLIDAY GOVT. SAVINGS
SUBSIDIES
HOARDINGS
PENSIONS
IMPORTS
![Page 9: role of government sectors](https://reader031.fdocuments.in/reader031/viewer/2022021923/58f008351a28abba0c8b46b1/html5/thumbnails/9.jpg)
The financial sector
In circular flow the leakage that financial institutions provide in the economy is the option for households to save their money. This is a leakage because the saved money can not be spent in the economy and thus is an idle asset that means not all output will be purchased.
![Page 10: role of government sectors](https://reader031.fdocuments.in/reader031/viewer/2022021923/58f008351a28abba0c8b46b1/html5/thumbnails/10.jpg)
How tax becomes a leakage:
• “Tax” is paid to Government from Households and firms.
• current income and reduces the expenditure on current goods and services.
• The injection provided by Government on this leakage is Government spending( services and welfare payments to the community.
• For e.g.. Income tax collected by Government is a leakage and Government spends some amount as food subsidy as an injection.
![Page 11: role of government sectors](https://reader031.fdocuments.in/reader031/viewer/2022021923/58f008351a28abba0c8b46b1/html5/thumbnails/11.jpg)
POLICIES
![Page 12: role of government sectors](https://reader031.fdocuments.in/reader031/viewer/2022021923/58f008351a28abba0c8b46b1/html5/thumbnails/12.jpg)
Economic policies
Medicine given to cure a “sick” economy.•Fiscal policies.•Industry policies.•Foreign exchange policies.•Monetary policies.•Trade policies.By these policy govt. stabilize the national economy by controlling interest rates or inflation& by pushing the employment rate towards full employment so that all sectors will affect.
![Page 13: role of government sectors](https://reader031.fdocuments.in/reader031/viewer/2022021923/58f008351a28abba0c8b46b1/html5/thumbnails/13.jpg)