ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is Fiscal Policy? Fiscal policy is an economic strategy that uses a government’s taxing and spending powers to impact a nation’s economy.

Detailed explanation-2: -Federal government spending pays for everything from Social Security and Medicare to military equipment, highway maintenance, education, and more. In 2022, the federal government spent the most on Social Security.

Detailed explanation-3: -Government Borrowings The government primarily funds its spending on the economy through tax revenues it earns.

Detailed explanation-4: -Each year, the Office of Management and Budget (OMB) prepares the President’s proposed Federal Government budget for the upcoming Federal fiscal year, which runs from October 1 through September 30 of the following year.