The paper examines the role of fiscal policy (FP) presenting a general overview of government actions to stabilize economy and control inflation. Ups and downs of the gross domestic product (GDP) are discussed; the interactions of FP and monetary policy are analyzed; a case study of FP in Saudi Arabia is presented.
The paper examines four budgetary systems providing an outline of incremental and zero-based budgets and focusing on capital budget and production budget. Information is provided on the mechanisms of setting, controlling and reviewing the budgets, the needs of budgetary control, etc. Evaluation of production, capital budgets, and their control mechanisms is examined. Recommendations are offered for improving budget setting, budget control and overall effectiveness of budgets.
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