Fiscal policy
Fiscal policy instruments are effective in poverty reduction and promotion of the community living standards. Increasing public expenditure ensures that vital public goods and services are availed to the public. Moreover, it helps in creation of employment opportunities, triggering economic growth, and ensuring sustainable growth and development. Tax reduction and cash transfers’ helps in increasing disposable income and transferring resources from the rich to the poor in the community. Fiscal policy instruments can be used to achieve balanced growth in an economy.