Part one of term paper
The main objective of tax policy is to encourage permanent economic growth. Many countries suffer from a combination of budget deficit crisis and domestic financial instability. Fiscal policy plays a key role in reducing in the size of the budget deficit. However, the way the deficit is reduced--the quality of fiscal adjustment--can also aff ...

Part two of term paper
... the use of a consistent macroeconomic framework in preparing the budget; an effective ceiling and control mechanism on overall expenditure; a budget reporting system that produces reliable, comprehensible, transparent, and timely data; and the use of project appraisal techniques where appropriate. These activities must be financed by a tax system that does not impede growth. While most taxes are distorting and entail some loss of welfare, a growth-promoting tax system is one that exercises th ...