What is fiscal policy? and its role?

Fiscal policy refers to the policy undertaken by the government to influence the economy through the process of expenditure (government expenditure, subsidies and transfer payments) and revenue collection (taxation). In other words, fiscal policy refers to a policy whereby the government alters its expenditure and revenue receipts. The main role of fiscal policy is that it helps in correcting the situation of budget deficit. It is one of the key policy measures taken up by the government in order to deal with the situation of imbalance in the budget.

For a detailed explanation of the concerned topic, you can refer to the below mentioned link.


In case of difficulty, do get back to us.

  • -2
What are you looking for?