What are the key principles governing fiscal policy in India?
Explain the core principles that shape fiscal policy decisions in the country.
- Fiscal responsibility: Striving to maintain a sustainable level of government debt and deficits.
- Economic stability: Balancing government spending and revenue to promote stable economic growth.
- Allocative efficiency: Ensuring that public resources are allocated efficiently to maximize benefits for society.
- Redistribution: Implementing policies that reduce income inequalities and benefit marginalized sections of society.
- Public investment: Prioritizing infrastructure development and human capital investment to foster long-term economic growth.
- Taxation policy: Designing tax structures to enhance revenue collection while promoting economic efficiency and equity.
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