Name: Maute, Abdulrahman
Subject/section: POS 152 Cc
Date: 03/23/2022
Summary of Fiscal Policy and Politics Part 2
The formulation and implementation of fiscal policy must contend with the rule of politics
in the process. Because the relationship between fiscal administration and politics is a dynamic
interchange of effects and concerns, pay fiscal policies are the product of fiscal administration
influence as well as political process influence. Fiscal administration is a political process in and
of itself.
Some Assumptions to be set first it is assume that a purpose of fiscal administration is to
realize the desire objective through fiscal policies second we should recognize that which is
obvious the formulation and execution of fiscal policies done within in a political context third
there is a process by which politicization of fiscal policies is done by this means farther there are
actors of the process 4th the process takes place within a system which governs political context
how the process works and how the actors behave Fifth the system is govern by an ideology which
represents a composite economics, political and social value of the society. This discussion intent
to show the fiscal administration process within the political perspectives it will be seen that due
to the influence of the Political Factors on fiscal process
Fiscal policy is alter in both intention and substance such that the resulting fiscal policies
may not effectively address economic objectives for which it was originally consent. The political
factors affects the fiscal process in such a way originally consent the fiscal policy within the
reflects more interest of stronger political factor or actor does policies, tax incentives. may favor
capital investment largely political process in which a policy is formulated and executed is
dominated by actors, representing foreign investment. The problem is not reconcile the between
politics and fiscal administration towards their realization of general welfare. The relationship
between politics and fiscal administration can be understood if you look at the system which give
rise to it their relationship between fiscal policy and politics.
The system is composed of number 1 the process is made up of existing institutions,
political or nonpolitical which serve as mechanism where individuals preferences and views is
express deliberate upon translated into winning combination of issues number 2 the interest group
formal or non-formal which determine lives and preferences rest in their strategies or presentation
the conversion of the winning nation or set of preferences into fiscal decision and the extent of
implication of such decision and number 3 Ideology or structures of distribution of power in a
developing countries
The issues in particular discussion refers to the concern of fiscal policies such as taxation,
budget and expenditures of borrowings occurs example in determining the budget or who more
allocation from it or which sector should be benefited from a foreign loans. fiscal policies are the
output of the interaction of politics and fiscal administration.