Tax policy plays major role in fiscal stimulus

GOVERNMENTS around the world have introduced fiscal stimulus to counter the worldwide slowdown in growth.

The recent International Monetary Fund’s March 2009 World Economic Outlook (WEO) report has revised its projected world economic growth from 0.5% (January 2009 WEO update) to -1.3% for 2009, despite the determined and seemingly synchronised policy actions taken by governments around the world since the end of 2008.