Question

Fiscal policy is the policy of?

• A. Both the Government and RBI
• B. RBI
• C. the Government
• D. NABARD

Answer 1

Answer:

C. the Government

• Fiscal policy refers to the government's use of spending and taxation to influence the economy.

• Fiscal policy is one of the key tools deployed by a country's government, as applicable, for managing the economic activity of the country.

• It is all about using government spending and taxes to steer the economy toward goals like growth, stability and equity.

• These financial mechanisms are important tools that, when properly managed, contribute to a balanced and sustainable economic environment.