Formulation of fiscal policy in India: Identify the authority primarily responsible for framing the Union Government’s fiscal policy (taxation, expenditure, budgeting). Choose the correct institution.
General Knowledge
Indian Economy
Difficulty: Easy
Choose an option
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ANITI Aayog
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BReserve Bank of India (RBI)
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CMinistry of Finance, Government of India
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DFinance Commission of India
Answer
Correct Answer: Ministry of Finance, Government of India
Explanation
Given data
- We need the institution that formulates fiscal policy (tax and spend decisions) for the Union.
Concept / ApproachFiscal policy is a sovereign function anchored in the Union executive. The Ministry of Finance leads budgeting, taxation proposals, expenditure management, and FRBM targets.RBI handles monetary policy; the Finance Commission recommends tax devolution formulas; NITI Aayog is a policy think-tank/advisory body.
Final AnswerThe fiscal policy formulator is the Ministry of Finance, Government of India.