ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Fiscal policy is defined as the policy under which the government uses the instrument of taxation, public spending and public borrowing to achieve various objectives of economic policy. Simply put, it is the policy of government spending and taxation to achieve sustainable growth.

Detailed explanation-2: -There are three components of the Fiscal Policy of India: Government Receipts. Government Expenditure. Public Debt.

Detailed explanation-3: -Fiscal policy is concerned with public revenue, public expenditure, and debt. Fiscal policy is the part of government economic policy which deals with, expenditure, taxation, borrowing and the management of public debt in the economy. It is basically concerned with the flow of funds in the economy.

Detailed explanation-4: -The primary objective of the fiscal policy is to regulate the case of economic stability, full employment and stabilize the growth rate. It is often optimized with monetary policy, including the banking system, the supply of money in circulation and the management of interest rates.