Join 60,000+ competitive exam aspirants
or with email
Your Cart
SubtotalтВ╣0
TotalтВ╣0
Examoogle тАв User тАв info@examoogle.com тАв EE-2024-8821
Chapter 1 of 12 тАв Page 1 of 248ЁЯФТ Protected PDF тАв Watermarked
Join 60,000+ competitive exam aspirants
What is the main objective of fiscal policy in India?
Controlling money supply
Price stability and economic growth
Regulating stock markets
Fixing exchange rates
Price stability and economic growth
Fiscal policy is managed by the central government through taxation and public expenditure to achieve macroeconomic objectives. Its primary goals in India are promoting rapid economic growth, ensuring price stability, and reducing poverty and regional disparities.
Fiscal policy is managed by the central government through taxation and public expenditure to achieve macroeconomic objectives. Its primary goals in India are promoting rapid economic growth, ensuring price stability, and reducing poverty and regional disparities.
Article 112 of the Indian Constitution mandates the presentation of the Annual Financial Statement (Union Budget), which serves as the primary instrument of fiscal policy implementation in India.
Fiscal policy deals with government revenue, expenditure, and public debt management.
Monetary policy, handled by the Reserve Bank of India, is responsible for controlling the money supply.
Economic growth alongside price stability helps balance inflation and aggregate demand.
Option A is incorrect because controlling money supply is the objective of monetary policy managed by the Reserve Bank of India.
Option C is incorrect because regulating stock markets is the responsibility of the Securities and Exchange Board of India.
Option D is incorrect because fixing exchange rates involves foreign exchange policies managed in coordination with central bank interventions.
B is correct тАФ Price stability and economic growth are the fundamental objectives of fiscal policy managed through government budgetary measures.
Distinguish carefully between Fiscal Policy (government budget, taxation, spending handled by Ministry of Finance) and Monetary Policy (repo rate, money supply, CRR handled by RBI Monetary Policy Committee).
Get instant step-by-step AI explanations, full shift Previous Year Papers (SSC GD, RRB, SSC JE), and regional rank analysis on the official Examoogle App.
Free Download тАв 100K+ Aspirants