ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Fiscal policy refers to the use of government spending and tax policies to influence economic conditions.

Detailed explanation-2: -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-3: -There are three components of the Fiscal Policy of India: Government Receipts. Government Expenditure. Public Debt.

Detailed explanation-4: -Ans: There are four major fiscal functions of government; Allocation, Distribution, Economic Growth and Stabilization. Allocation: The provision for social goods, or the process by which total resource use is divided between private and social goods and by which the mix of social goods is chosen.

Detailed explanation-5: -In economics and political science, fiscal policy is the use of government revenue collection (taxes or tax cuts) and expenditure to influence a country’s economy.