Which among the following is not a component of fiscal policies adopted by the Government?

Correct option is A

Correct Answer: (a) Cash Reserve Ratio
Explanation
· Fiscal policy refers to government actions related to revenue collection and public expenditure to influence the economy.
· It mainly operates through taxation, government spending, and subsidies.
· Cash Reserve Ratio (CRR) is a tool of monetary policy, controlled by the Reserve Bank of India, not by the government.
Information Booster
· Fiscal policy is formulated by the Ministry of Finance.
· Main objectives include:
· Economic growth
· Employment generation
· Inflation control
· Reduction of inequality
· Fiscal policy instruments directly affect the Budget.
Additional Knowledge
· Government spending (b): Includes expenditure on infrastructure, defense, health, and education.
· Taxes (c): Primary source of government revenue; used to regulate demand and redistribute income.
· Subsidies (d): Financial support provided to reduce the cost of essential goods and services for targeted groups.