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.