ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Governments can modify the fiscal policy by bringing in measures and changes in tax rates to control the fiscal deficit of the economy.

Detailed explanation-2: -Ministry of Finance formulates the fiscal policy.

Detailed explanation-3: -In most modern economies, the government deals with fiscal policy while the central bank is responsible for monetary policy. Fiscal policy is composed of several parts. These include, tax policy, expenditure policy, investment or disinvestment strategies and debt or surplus management.

Detailed explanation-4: -Fiscal policy is a means to use government spending and taxation to influence the economic situation. It is different from the monetary policy that is under the control of the central bank in that country. Together these two policies can help a country to achieve its economic goals.

Detailed explanation-5: -fiscal policy, measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations of taxes and government expenditures. Fiscal measures are frequently used in tandem with monetary policy to achieve certain goals.