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: -Fiscal policy refers to the use of government spending and tax policies to influence economic conditions.

Detailed explanation-3: -There are three components of the Fiscal Policy of India: Government Receipts. Government Expenditure. Public Debt.

Detailed explanation-4: -Fiscal policy is a government’s decisions regarding spending and taxing. If a government wants to stimulate growth in the economy, it will increase spending for goods and services. This will increase demand for goods and services. Since demand goes up, production must go up.

Detailed explanation-5: -One of the most significant fiscal policy objectives in India is to bring the revenue expenditures and receipts to the same level.