Question:

Which among the following formulates fiscal policy?

Updated On: June 02, 2025
  • RBI
  • SEBI
  • IRDA
  • Ministry of Finance
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The Correct Option is D

Solution and Explanation

Fiscal policy refers to government spending and taxation decisions that influence the economy. It is formulated by the Ministry of Finance. The Ministry of Finance prepares the budget, which is the primary instrument of fiscal policy, to manage the economy's overall demand and control inflation. Fiscal policy directly impacts public expenditure, taxation, and government borrowing, thus influencing national economic performance.
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