Fiscal policy formulation MCQ — 1 Practice Questions with Answers

Explanation

Fiscal policy concerns the government’s taxation, public expenditure, borrowing, and budget management. In India, this policy is formulated by the Finance Ministry, especially through the Union Budget and related fiscal measures. The Planning Commission was associated with planning and resource allocation before its replacement by NITI Aayog, not with direct formulation of fiscal policy. The Securities and Exchange Board of India regulates the securities market. The Reserve Bank of India frames monetary policy and regulates banking. Therefore, fiscal policy is linked to the Finance Ministry.