Question

Explain various instruments of fiscal policy. Is it important to keep fiscal deficit of the country low? Comment

22 Jul 2024
Answer :
Word Count : 470

Fiscal policy refers to the use of government spending and taxation to influence the economy. In India, like in many other countries, fiscal policy plays a crucial role in managing economic growth, stabilizing the economy, and addressing social needs. There are several instruments of fiscal policy that the government uses to achieve its economic objectives. 

Instruments of Fiscal Policy

1. Government Spending: This includes expenditure on public services such as health, education, and infrastructure. Government spending can stimulate _______ ________ _____ __________ ______ _____ ____ _______.
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