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This dissertation will examine the fiscal policy firmly towards maintaining sound macroeconomics, dealing with deficits and debts both in terms of fiscal planning and the responses of fiscal policy to economic surprises. This dissertation covers the policy needed to meet the challenge, and how governments channel the sound policies and regulations. The key to success is the interrelationship between fiscal and monetary polices, and getting those policies and regulations right. The objective of this dissertation is to promote a methodology of fiscal policy that identifies strengths and weaknesses of a country’s economic management and integrity systems, in order to propose improvements that will increase their effectiveness and efficiency.