What are the key features of the Indian government's fiscal policy

Describe the fiscal policy of the Indian government and highlight its important features.
The Indian government's fiscal policy is designed to manage the country's public finances, promote economic growth, and ensure social welfare. The following are the key features of the Indian government's fiscal policy:
  • Revenue and expenditure management: The government manages public revenue and expenditure through various policies and measures to achieve fiscal discipline and stability.
  • Taxation policy: The government employs tax measures to generate revenue, promote investment, and encourage savings and consumption.
  • Public debt management: The government manages public debt through prudent borrowing, debt servicing, and refinancing to ensure financial stability.
  • Budgetary policy: The government formulates and implements an annual budget to allocate resources to various sectors, promote inclusive growth, and ensure fiscal sustainability.
  • Social welfare policy: The government aims to provide basic amenities and services to all citizens through various schemes, programs, and subsidies.
  • Privatization and disinvestment: The government promotes privatization of public sector enterprises and disinvestment in non-strategic sectors to increase efficiency, competitiveness, and revenue generation.
In conclusion, the Indian government's fiscal policy is characterized by a mix of revenue and expenditure management, taxation, public debt management, budgetary policy, social welfare, and privatization measures to achieve sustainable growth and development.
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