India's fiscal policies are characterized by several key characteristics: 1. Progressive taxation: India's fiscal policies are designed to implement a progressive tax system, where individuals with higher incomes are subject to higher tax rates. This helps in reducing income inequality. 2. Subsidies and welfare measures: India's fiscal policies aim to provide subsidies and welfare measures to uplift the disadvantaged sections of society. These include schemes such as the Mahatma Gandhi National Rural Employment Guarantee Act and direct benefit transfers. 3. Focus on infrastructure development: India's fiscal policies allocate a significant portion of the budget towards infrastructure development, including investments in transportation, power, and communication sectors. This is crucial for boosting economic growth and improving living standards. 4. Fiscal consolidation and deficit management: India's fiscal policies emphasize achieving fiscal consolidation by managing the fiscal deficit. Efforts are made to reduce government borrowing and bring fiscal discipline through measures such as the Fiscal Responsibility and Budget Management Act. Various factors influence India's fiscal policies, including economic conditions, political considerations, international economic trends, public debt, and fiscal space. The government's objective is to stimulate economic growth, ensure social welfare, maintain price stability, and achieve fiscal sustainability.