Significance of fiscal policy for economic development and agriculture

Abstract

With the latest global economic crisis (2007-2009) the importance of fiscal policy as a part of economic policy is growing. Its significance extends from the experience of the Great Depression of the 1930s. In this paper, with the help of the ARIMA model, the influence of fiscal policy instruments on macroeconomic fiscal indicators and some selected indicators of economic development in the context of countries of Southeast Europe have been explored. Friedman's test has shown that the countries have not yet recovered from the global economic crisis. The results shows that fiscal policy can act on the individual's standard of living, but only responsible implementation will have the same effect on public finances and the overall sustainable development of a country. Also, fiscal policy is an important measure of agricultural policy and is increasingly being used as a directional development factor.