Some of the
important fiscal measures to control inflation are as follows:
1.
Reduction in
Public expenditure: -Government expenditure
should be reduced to control inflation.
2.
Increase in
taxes: -Government
increases level of
taxes and imposes new taxes. It leads to fall in the consumption expenditure.
3.
Surplus budget: -The government has to adopt surplus
budget in order to control inflation.
4.
Public
borrowings: -the government
borrows money from market, private individuals and firms. It takes away the
excess purchasing power of the people. It reduces demand and hence prices come
down.
5.
Over Valuation: -It discourages exports and increases
availability of goods and services in a country.
